BOX INC - CLASS A (BOX) Stock Fundamental Analysis
NYSE:BOX - New York Stock Exchange, Inc. - US10316T1043 - Common Stock - Currency: USD
Taking everything into account, BOX scores 5 out of 10 in our fundamental rating. BOX was compared to 284 industry peers in the Software industry. BOX has an average financial health and profitability rating. BOX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BOX had positive earnings in the past year.
BOX had a positive operating cash flow in the past year.
In multiple years BOX reported negative net income over the last 5 years.
In the past 5 years BOX always reported a positive cash flow from operatings.
1.2 Ratios
BOX has a better Return On Assets (11.79%) than 89.08% of its industry peers.
With an excellent Return On Equity value of 90.21%, BOX belongs to the best of the industry, outperforming 98.59% of the companies in the same industry.
BOX has a Return On Invested Capital of 7.02%. This is in the better half of the industry: BOX outperforms 78.87% of its industry peers.
BOX had an Average Return On Invested Capital over the past 3 years of 7.16%. This is significantly below the industry average of 12.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.79% | ||
| ROE | 90.21% | ||
| ROIC | 7.02% |
ROA(3y)6.93%
ROA(5y)2.74%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.16%
ROIC(5y)N/A
1.3 Margins
BOX has a Profit Margin of 17.57%. This is amongst the best in the industry. BOX outperforms 84.86% of its industry peers.
The Operating Margin of BOX (6.17%) is better than 72.18% of its industry peers.
Looking at the Gross Margin, with a value of 79.08%, BOX is in the better half of the industry, outperforming 78.17% of the companies in the same industry.
In the last couple of years the Gross Margin of BOX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.17% | ||
| PM (TTM) | 17.57% | ||
| GM | 79.08% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.43%
GM growth 5Y2.75%
2. Health
2.1 Basic Checks
BOX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BOX has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, BOX has less shares outstanding
Compared to 1 year ago, BOX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.41 indicates that BOX is not a great score, but indicates only limited risk for bankruptcy at the moment.
BOX's Altman-Z score of 2.41 is in line compared to the rest of the industry. BOX outperforms 54.58% of its industry peers.
The Debt to FCF ratio of BOX is 2.21, which is a good value as it means it would take BOX, 2.21 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.21, BOX is in the better half of the industry, outperforming 67.96% of the companies in the same industry.
BOX has a Debt/Equity ratio of 2.09. This is a high value indicating a heavy dependency on external financing.
BOX's Debt to Equity ratio of 2.09 is on the low side compared to the rest of the industry. BOX is outperformed by 79.23% of its industry peers.
Even though the debt/equity ratio score it not favorable for BOX, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.09 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.63
WACC11.07%
2.3 Liquidity
A Current Ratio of 1.20 indicates that BOX should not have too much problems paying its short term obligations.
The Current ratio of BOX (1.20) is worse than 63.38% of its industry peers.
BOX has a Quick Ratio of 1.20. This is a normal value and indicates that BOX is financially healthy and should not expect problems in meeting its short term obligations.
BOX has a worse Quick ratio (1.20) than 63.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.23% over the past year.
BOX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 124.22% yearly.
The Revenue has been growing slightly by 4.88% in the past year.
BOX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.38% yearly.
EPS 1Y (TTM)5.23%
EPS 3Y25.99%
EPS 5Y124.22%
EPS Q2Q%-23.08%
Revenue 1Y (TTM)4.88%
Revenue growth 3Y7.63%
Revenue growth 5Y9.38%
Sales Q2Q%4.39%
3.2 Future
Based on estimates for the next years, BOX will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.29% on average per year.
The Revenue is expected to grow by 9.19% on average over the next years. This is quite good.
EPS Next Y-24.16%
EPS Next 2Y-5.55%
EPS Next 3Y8.33%
EPS Next 5Y16.29%
Revenue Next Year7.45%
Revenue Next 2Y7.44%
Revenue Next 3Y8.29%
Revenue Next 5Y9.19%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.65, which indicates a rather expensive current valuation of BOX.
Based on the Price/Earnings ratio, BOX is valued a bit cheaper than 76.06% of the companies in the same industry.
BOX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.04, BOX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, BOX is valued a bit cheaper than 67.96% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BOX to the average of the S&P500 Index (22.39), we can say BOX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.65 | ||
| Fwd PE | 24.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BOX indicates a somewhat cheap valuation: BOX is cheaper than 64.44% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BOX indicates a rather cheap valuation: BOX is cheaper than 84.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.84 | ||
| EV/EBITDA | 56.19 |
4.3 Compensation for Growth
BOX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-5.55%
EPS Next 3Y8.33%
5. Dividend
5.1 Amount
BOX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
36.46
-0.99 (-2.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.92%
Inst Owner Change-0.26%
Ins Owners3.18%
Ins Owner Change0.01%
Market Cap5.28B
Analysts78.57
Price Target38.87 (6.61%)
Short Float %9.67%
Short Ratio6.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.1
Dividend Growth(5Y)N/A
DP7.75%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.33%
Min EPS beat(2)-0.06%
Max EPS beat(2)14.73%
EPS beat(4)3
Avg EPS beat(4)7.12%
Min EPS beat(4)-0.06%
Max EPS beat(4)14.73%
EPS beat(8)6
Avg EPS beat(8)5.12%
EPS beat(12)10
Avg EPS beat(12)5.64%
EPS beat(16)14
Avg EPS beat(16)5.57%
Revenue beat(2)0
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-0.96%
Max Revenue beat(2)-0.46%
Revenue beat(4)0
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-0.96%
Max Revenue beat(4)-0.46%
Revenue beat(8)0
Avg Revenue beat(8)-0.83%
Revenue beat(12)1
Avg Revenue beat(12)-0.78%
Revenue beat(16)4
Avg Revenue beat(16)-0.39%
PT rev (1m)4.45%
PT rev (3m)1.21%
EPS NQ rev (1m)12.21%
EPS NQ rev (3m)-29.06%
EPS NY rev (1m)3.01%
EPS NY rev (3m)-31.69%
Revenue NQ rev (1m)2%
Revenue NQ rev (3m)1.93%
Revenue NY rev (1m)1.28%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.65 | ||
| Fwd PE | 24.04 | ||
| P/S | 4.79 | ||
| P/FCF | 17.84 | ||
| P/OCF | 16.09 | ||
| P/B | 24.6 | ||
| P/tB | 39.38 | ||
| EV/EBITDA | 56.19 |
EPS(TTM)1.61
EY4.42%
EPS(NY)1.52
Fwd EY4.16%
FCF(TTM)2.04
FCFY5.61%
OCF(TTM)2.27
OCFY6.21%
SpS7.61
BVpS1.48
TBVpS0.93
PEG (NY)N/A
PEG (5Y)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.79% | ||
| ROE | 90.21% | ||
| ROCE | 8.89% | ||
| ROIC | 7.02% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 6.17% | ||
| PM (TTM) | 17.57% | ||
| GM | 79.08% | ||
| FCFM | 26.87% |
ROA(3y)6.93%
ROA(5y)2.74%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.16%
ROIC(5y)N/A
ROICexc(3y)141.33%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)9.07%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.43%
GM growth 5Y2.75%
F-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.09 | ||
| Debt/FCF | 2.21 | ||
| Debt/EBITDA | 4.87 | ||
| Cap/Depr | 132.15% | ||
| Cap/Sales | 2.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 355.58% | ||
| Profit Quality | 152.91% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 2.41 |
F-Score7
WACC11.07%
ROIC/WACC0.63
Cap/Depr(3y)65.86%
Cap/Depr(5y)46.57%
Cap/Sales(3y)2.07%
Cap/Sales(5y)1.91%
Profit Quality(3y)1242%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.23%
EPS 3Y25.99%
EPS 5Y124.22%
EPS Q2Q%-23.08%
EPS Next Y-24.16%
EPS Next 2Y-5.55%
EPS Next 3Y8.33%
EPS Next 5Y16.29%
Revenue 1Y (TTM)4.88%
Revenue growth 3Y7.63%
Revenue growth 5Y9.38%
Sales Q2Q%4.39%
Revenue Next Year7.45%
Revenue Next 2Y7.44%
Revenue Next 3Y8.29%
Revenue Next 5Y9.19%
EBIT growth 1Y12.43%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year17.27%
EBIT Next 3Y15.3%
EBIT Next 5Y1.46%
FCF growth 1Y0.13%
FCF growth 3Y10.43%
FCF growth 5Y57.36%
OCF growth 1Y4.1%
OCF growth 3Y12.27%
OCF growth 5Y49.36%