NasdaqGM:BNFT

Stock Analysis Report

Executive Summary

Benefitfocus, Inc. provides cloud-based benefits management platform for consumers, employers, insurance carriers, suppliers, and brokers in the United States.


Snowflake Analysis

Imperfect balance sheet with concerning outlook.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.1%

BNFT

-1.0%

US Software

-2.0%

US Market


1 Year Return

-81.1%

BNFT

6.5%

US Software

-15.1%

US Market

Return vs Industry: BNFT underperformed the US Software industry which returned 6.5% over the past year.

Return vs Market: BNFT underperformed the US Market which returned -15.1% over the past year.


Shareholder returns

BNFTIndustryMarket
7 Day-2.1%-1.0%-2.0%
30 Day-24.8%-15.0%-19.7%
90 Day-58.8%-8.6%-23.2%
1 Year-81.1%-81.1%7.6%6.5%-13.4%-15.1%
3 Year-69.8%-69.8%100.0%91.4%10.9%3.7%
5 Year-77.1%-77.1%162.3%143.8%28.4%14.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether Benefitfocus is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Benefitfocus has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

Future Growth

How is Benefitfocus forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BNFT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: BNFT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: BNFT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: BNFT's revenue (8.6% per year) is forecast to grow faster than the US market (7.1% per year).

High Growth Revenue: BNFT's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BNFT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Benefitfocus performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BNFT is currently unprofitable.

Growing Profit Margin: BNFT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BNFT is unprofitable, but has reduced losses over the past 5 years at a rate of 5.4% per year.

Accelerating Growth: Unable to compare BNFT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BNFT is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.4%).


Return on Equity

High ROE: BNFT's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Benefitfocus's financial position?


Financial Position Analysis

Short Term Liabilities: BNFT has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: BNFT has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: BNFT has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: BNFT's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: BNFT has a high level of physical assets or inventory.

Debt Coverage by Assets: BNFT has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: BNFT has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: BNFT has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 8.7% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate BNFT'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 BNFT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BNFT'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 BNFT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Ray August (57yo)

2.25s

Tenure

US$4,172,997

Compensation

Mr. Raymond Alexander August, also known as Ray, has been Chief Executive Officer of Benefitfocus, Inc. since January 1, 2018 and its President since March 2015. Mr. August has been a Director of Benefitfo ...


CEO Compensation Analysis

Compensation vs Market: Ray's total compensation ($USD4.17M) is above average for companies of similar size in the US market ($USD1.49M).

Compensation vs Earnings: Ray's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Mason Holland
Co-Founder & Executive Chairman19.83yrsUS$1.05m8.2% $22.7m
Raymond August
CEO, President & Director2.25yrsUS$4.17m0.96% $2.7m
Stephen Swad
Chief Financial Officer0.75yrUS$195.15k0.11% $304.5k
James Restivo
Chief Technology Officer4.25yrsUS$1.25m0.12% $324.6k
Lou Gilmore
Principal Financial and Accounting Officer0.83yrno data0.10% $287.6k
Michael Bauer
Investor Relations5.25yrsno datano data
Peter Allen
Senior Vice President of Sales & Marketing0.083yrno datano data
Scott Gibson
Senior Vice President of Human Resources0.083yrno datano data
Annmarie Fini
Executive VP of Customer Successno datano data0.16% $436.3k
Steve Malme
Senior Vice President of Platform Strategy & Experience0.083yrno datano data

0.8yrs

Average Tenure

57yo

Average Age

Experienced Management: BNFT's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mason Holland
Co-Founder & Executive Chairman19.83yrsUS$1.05m8.2% $22.7m
Raymond August
CEO, President & Director2.25yrsUS$4.17m0.96% $2.7m
A. Napier
Independent Director5.58yrsUS$185.02k0.094% $259.9k
Douglas Dennerline
Independent Director5.67yrsUS$187.65k0.058% $160.4k
Francis Pelzer
Independent Director6.92yrsUS$206.27k0.048% $132.2k
Ana White
Independent Director1.25yrsno datano data

5.6yrs

Average Tenure

51.5yo

Average Age

Experienced Board: BNFT's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: Benefitfocus, Inc.
  • Ticker: BNFT
  • Exchange: NasdaqGM
  • Founded: 2000
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$277.325m
  • Shares outstanding: 32.82m
  • Website: https://www.benefitfocus.com

Number of Employees


Location

  • Benefitfocus, Inc.
  • 100 Benefitfocus Way
  • Charleston
  • South Carolina
  • 29492
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BNFTNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDSep 2013
BTFDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2013
BTFBRSE (Berne Stock Exchange)YesCommon StockCHCHFSep 2013

Biography

Benefitfocus, Inc. provides cloud-based benefits management platform for consumers, employers, insurance carriers, suppliers, and brokers in the United States. The company operates through Employer and Carrier segments. Its products for insurance carriers include BenefitsPlace, a transaction-oriented, marketplace solution; eEnrollment that provides online enrollment for benefits; eBilling, an electronic invoice presentment and payment solution; eExchange, a solution that bridges the integration gap between carrier and employer systems; eSales for carriers and brokers tools to organize and manage accounts, track leads, generate quotes, and create proposals for various products; and Core & Advanced Analytics, a data analytics solution. The company’s products for employers include Benefitfocus Marketplace that streamlines online enrollment, employee communication, and benefit administration; ACA Management and Reporting, a solution for employers to manage ACA compliance; Consolidated Billing & Payment, an application that synchronizes enrollment and billing information to streamline the monthly billing process, automate adjustments, and enhance accuracy of payments; Consumer-Directed Healthcare Accounts, a solution for health savings accounts management; and COBRA Administration, a solution for employers that simplifies management of Consolidated Omnibus Budget Reconciliation Act, benefits. In addition, it provides professional and customer support services, which include implementation services, such as discovery, configuration and deployment, integration, testing, training, and technical support; and fulfillment, dependent verification, and HR administration services. The company was founded in 2000 and is headquartered in Charleston, South Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 10:28
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.