DB:5XB

Stock Analysis Report

Executive Summary

Bandwidth Inc. operates as a cloud-based software-powered communications platform-as-a-service (CPaaS) provider in the United States.

Snowflake

Fundamentals

Flawless balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has Bandwidth's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 5XB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.1%

5XB

-1.3%

DE Telecom

0.03%

DE Market


1 Year Return

13.9%

5XB

-3.6%

DE Telecom

9.9%

DE Market

Return vs Industry: 5XB exceeded the German Telecom industry which returned -3.6% over the past year.

Return vs Market: 5XB exceeded the German Market which returned 9.9% over the past year.


Shareholder returns

5XBIndustryMarket
7 Day10.1%-1.3%0.03%
30 Day-9.0%-4.5%4.4%
90 Day-34.9%4.2%13.6%
1 Year13.9%13.9%1.1%-3.6%13.4%9.9%
3 Yearn/a14.0%0.08%25.6%14.6%
5 Yearn/a27.9%4.9%36.9%18.2%

Price Volatility Vs. Market

How volatile is Bandwidth's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bandwidth undervalued compared to its fair value and its price relative to the market?

363.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 5XB's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 5XB's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 5XB is poor value based on its PE Ratio (363.9x) compared to the Telecom industry average (15.1x).

PE vs Market: 5XB is poor value based on its PE Ratio (363.9x) compared to the German market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: 5XB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 5XB is overvalued based on its PB Ratio (4.6x) compared to the DE Telecom industry average (1.3x).


Next Steps

Future Growth

How is Bandwidth forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-72.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5XB's earnings are forecast to decline over the next 3 years (-72.9% per year).

Earnings vs Market: 5XB's earnings are forecast to decline over the next 3 years (-72.9% per year).

High Growth Earnings: 5XB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 5XB's revenue (17.3% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: 5XB's revenue (17.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 5XB is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Bandwidth performed over the past 5 years?

-14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5XB has a high level of non-cash earnings.

Growing Profit Margin: 5XB's current net profit margins (1.4%) are lower than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: 5XB's earnings have declined by -14.1% per year over the past 5 years.

Accelerating Growth: 5XB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 5XB had negative earnings growth (-83.2%) over the past year, making it difficult to compare to the Telecom industry average (-27.1%).


Return on Equity

High ROE: 5XB's Return on Equity (1.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bandwidth's financial position?


Financial Position Analysis

Short Term Liabilities: 5XB's short term assets ($233.3M) exceeds its short term liabilities ($41.1M)

Long Term Liabilities: 5XB's short term assets (233.3M) exceeds its long term liabilities (9.5M)


Debt to Equity History and Analysis

Debt Level: 5XB is debt free.

Reducing Debt: 5XB had no debt 5 years ago.

Debt Coverage: 5XB has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 5XB has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 5XB has a low level of unsold assets or inventory.

Debt Coverage by Assets: 5XB's debt is not covered by short term assets (assets are -13724.2x debt).


Next Steps

Dividend

What is Bandwidth's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.7%industryaverage4.8%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 5XB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 5XB's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 5XB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 5XB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 5XB's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Bandwidth's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average board tenure


CEO

David Morken (50yo)

0yrs

Tenure

US$1,414,860

Compensation

Mr. David A. Morken serves as an Advisor of Sovereign's Capital. He focuses on investments in IT at the firm. He Co-Founded Bandwidth.com Inc. in 1999 and serves as its Chairman and Chief Executive Officer ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD1.41M) is about average for companies of similar size in the German market ($USD1.60M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Board Age and Tenure

3.0yrs

Average Tenure

53yo

Average Age

Experienced Board: 5XB's board of directors are not considered experienced ( 3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 5XB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,285,60721 Aug 19
Henry Kaestner
EntityIndividual
Shares16,685
Max PriceUS$77.81
SellUS$2,591,74810 Jul 19
Amdg 1, Llc
EntityCompany
Shares37,741
Max PriceUS$69.55
SellUS$4,235,21102 Jul 19
Amdg 1, Llc
EntityCompany
Shares62,977
Max PriceUS$69.78
SellUS$689,26618 Jun 19
Amdg 1, Llc
EntityCompany
Shares10,000
Max PriceUS$68.93
SellUS$3,346,91213 Jun 19
Amdg 1, Llc
EntityCompany
Shares50,000
Max PriceUS$67.57
SellUS$50,63110 Jun 19
Lukas Roush
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares750
Max PriceUS$67.51

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 23.8%.


Management Team

  • David Morken (50yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: US$1.41m
  • Noreen Allen

    Chief Marketing Officer

    • Tenure: 0yrs
  • Chris Matton (49yo)

    General Counsel & Secretary

    • Tenure: 9.8yrs
    • Compensation: US$546.78k
  • Rebecca Bottorff

    Chief People officer

    • Tenure: 0yrs
  • Kade Ross

    Chief Information Officer

    • Tenure: 0.08yrs
  • Jeff Hoffman (50yo)

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: US$1.14m
  • Ryan Henley

    Senior Vice President of Customer & Business Operations

    • Tenure: 0yrs
  • Tom Steffens

    Senior Vice President of Product

    • Tenure: 0yrs
  • Scott Mullen

    Chief Technology Officer

    • Tenure: 0yrs
  • Sarah Walas

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Brian Bailey (52yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$148.64k
  • Julius Genachowski (56yo)

    Member of Advisory Board

    • Tenure: 0yrs
  • David Morken (50yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: US$1.41m
  • Luke Roush (41yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$28.32k
  • John Murdock (54yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$1.71m
  • Doug Suriano (58yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$151.25k

Company Information

Bandwidth Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bandwidth Inc.
  • Ticker: 5XB
  • Exchange: DB
  • Founded: 2000
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: US$1.250b
  • Listing Market Cap: US$1.131b
  • Shares outstanding: 23.49m
  • Website: https://www.bandwidth.com

Number of Employees


Location

  • Bandwidth Inc.
  • 900 Main Campus Drive
  • Suite 500
  • Raleigh
  • North Carolina
  • 27606
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BANDNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDNov 2017
5XBDB (Deutsche Boerse AG)YesClass A Common StockDEEURNov 2017

Biography

Bandwidth Inc. operates as a cloud-based software-powered communications platform-as-a-service (CPaaS) provider in the United States. The company operates through two segments, CPaaS and Other. Its platfor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 22:10
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.