BOX INC - CLASS A (BOX) Stock Fundamental Analysis
NYSE:BOX - New York Stock Exchange, Inc. - US10316T1043 - Common Stock - Currency: USD
Overall BOX gets a fundamental rating of 5 out of 10. We evaluated BOX against 282 industry peers in the Software industry. BOX has an average financial health and profitability rating. BOX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BOX was profitable.
In the past year BOX had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BOX reported negative net income in multiple years.
In the past 5 years BOX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.79%, BOX belongs to the top of the industry, outperforming 89.01% of the companies in the same industry.
The Return On Equity of BOX (90.21%) is better than 98.58% of its industry peers.
BOX has a Return On Invested Capital of 7.02%. This is in the better half of the industry: BOX outperforms 78.72% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BOX is significantly below the industry average of 12.26%.
| 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's Profit Margin of 17.57% is amongst the best of the industry. BOX outperforms 84.75% of its industry peers.
BOX has a Operating Margin of 6.17%. This is in the better half of the industry: BOX outperforms 71.99% of its industry peers.
The Gross Margin of BOX (79.08%) is better than 78.01% of its industry peers.
BOX's Gross Margin has improved in the last couple of years.
| 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.
BOX has less shares outstanding than it did 5 years ago.
BOX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.18 indicates that BOX is not a great score, but indicates only limited risk for bankruptcy at the moment.
BOX's Altman-Z score of 2.18 is in line compared to the rest of the industry. BOX outperforms 49.65% 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.
BOX has a Debt to FCF ratio of 2.21. This is in the better half of the industry: BOX outperforms 67.02% of its industry peers.
BOX has a Debt/Equity ratio of 2.09. This is a high value indicating a heavy dependency on external financing.
BOX has a worse Debt to Equity ratio (2.09) than 79.79% of its industry peers.
Although BOX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.09 | ||
| Debt/FCF | 2.21 | ||
| Altman-Z | 2.18 |
ROIC/WACC0.83
WACC8.46%
2.3 Liquidity
A Current Ratio of 1.20 indicates that BOX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.20, BOX is not doing good in the industry: 63.48% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 1.20, BOX is not doing good in the industry: 63.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
BOX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.23%.
BOX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 124.22% yearly.
Looking at the last year, BOX shows a small growth in Revenue. The Revenue has grown by 4.88% in the last year.
The Revenue has been growing by 9.38% on average over the past years. This is quite good.
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
BOX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.29% yearly.
The Revenue is expected to grow by 9.19% on average over the next years. This is quite good.
EPS Next Y-21.08%
EPS Next 2Y-5.09%
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.39, which indicates a rather expensive current valuation of BOX.
BOX's Price/Earnings ratio is a bit cheaper when compared to the industry. BOX is cheaper than 78.72% of the companies in the same industry.
When comparing the Price/Earnings ratio of BOX to the average of the S&P500 Index (27.28), we can say BOX is valued slightly cheaper.
With a Price/Forward Earnings ratio of 21.43, BOX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, BOX is valued a bit cheaper than 73.05% of the companies in the same industry.
BOX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.39 | ||
| Fwd PE | 21.43 |
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 64.89% of the companies listed in the same industry.
BOX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BOX is cheaper than 88.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.06 | ||
| EV/EBITDA | 50.31 |
4.3 Compensation for Growth
The decent profitability rating of BOX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-5.09%
EPS Next 3Y8.33%
5. Dividend
5.1 Amount
No dividends for BOX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
32.82
-0.88 (-2.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.24%
Inst Owner Change-0.26%
Ins Owners3.26%
Ins Owner Change0.01%
Market Cap4.75B
Analysts78.57
Price Target38.87 (18.43%)
Short Float %10.45%
Short Ratio6.28
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)-1.88%
EPS NQ rev (1m)12.21%
EPS NQ rev (3m)12.21%
EPS NY rev (1m)4.06%
EPS NY rev (3m)7.11%
Revenue NQ rev (1m)2%
Revenue NQ rev (3m)2%
Revenue NY rev (1m)1.28%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.39 | ||
| Fwd PE | 21.43 | ||
| P/S | 4.31 | ||
| P/FCF | 16.06 | ||
| P/OCF | 14.48 | ||
| P/B | 22.15 | ||
| P/tB | 35.45 | ||
| EV/EBITDA | 50.31 |
EPS(TTM)1.61
EY4.91%
EPS(NY)1.53
Fwd EY4.67%
FCF(TTM)2.04
FCFY6.23%
OCF(TTM)2.27
OCFY6.9%
SpS7.61
BVpS1.48
TBVpS0.93
PEG (NY)N/A
PEG (5Y)0.16
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 | 2.18 |
F-Score7
WACC8.46%
ROIC/WACC0.83
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-21.08%
EPS Next 2Y-5.09%
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%