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

Fundamentals

Overvalued 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


Market Performance


7 Day Return

-0.5%

BNFT

0.5%

US Software

2.3%

US Market


1 Year Return

-27.5%

BNFT

19.6%

US Software

5.6%

US Market

Return vs Industry: BNFT underperformed the US Software industry which returned 19.6% over the past year.

Return vs Market: BNFT underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

BNFTIndustryMarket
7 Day-0.5%0.5%2.3%
30 Day-9.0%0.05%-1.0%
90 Day-12.1%-3.8%-0.7%
1 Year-27.5%-27.5%21.3%19.6%7.9%5.6%
3 Year-39.6%-39.6%120.2%111.6%45.6%36.3%
5 Year-10.7%-10.7%177.4%157.4%65.8%47.6%

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?

33.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BNFT ($23.18) is trading below our estimate of fair value ($34.81)

Significantly Undervalued: BNFT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BNFT is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: BNFT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate BNFT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BNFT has negative assets, so we can't compare its PB Ratio to the US Software industry average.


Next Steps

Future Growth

How is Benefitfocus forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

16.9%

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 (12.5% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: BNFT's revenue (12.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

6.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BNFT is unprofitable, but has reduced losses over the past 5 years at a rate of 6.2% 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 (19.1%).


Return on Equity

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


Return on Assets

ROA vs Industry: BNFT is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: BNFT is currently unprofitable, so its Return on Capital Employed is negative.


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: Insufficient data to determine if BNFT has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

1.8yrs

Average management tenure


CEO

Ray August (57yo)

1.8yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

1.8yrs

Average Tenure

57yo

Average Age

Experienced Management: BNFT's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

5.1yrs

Average Tenure

51.5yo

Average Age

Experienced Board: BNFT's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$27,40003 Jul 19
Lou Gilmore
EntityIndividual
Role
Chief Accounting Officer
Principal Financial and Accounting Officer
Shares1,019
Max PriceUS$27.52
BuyUS$99,68014 May 19
Raymond August
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares3,200
Max PriceUS$31.15
SellUS$22,849,49504 Apr 19
Goldman Sachs Group, Investment Banking and Securities Investments
EntityCompany
Shares488,211
Max PriceUS$46.80
SellUS$410,73204 Apr 19
James Restivo
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares8,646
Max PriceUS$49.68
SellUS$336,43604 Apr 19
Jonathon Dussault
EntityIndividual
Shares7,044
Max PriceUS$49.68
SellUS$152,329,73508 Mar 19
Goldman Sachs Group, Investment Banking and Securities Investments
EntityCompany
Shares3,254,735
Max PriceUS$46.80

Ownership Breakdown


Management Team

  • Steve Swad (57yo)

    Chief Financial Officer

    • Tenure: 0.3yrs
    • Compensation: US$195.15k
  • Andy Howell (52yo)

    Senior Vice President of Community & Legal

    • Tenure: 0.6yrs
    • Compensation: US$2.02m
  • Annmarie Fini

    Senior Vice President of Customer Success Organization

    • Tenure: 0yrs
  • Mason Holland (54yo)

    Co-Founder & Executive Chairman

    • Tenure: 19.3yrs
    • Compensation: US$1.05m
  • Ray August (57yo)

    CEO, President & Director

    • Tenure: 1.8yrs
    • Compensation: US$4.17m
  • Jim Restivo (58yo)

    Chief Technology Officer

    • Tenure: 3.8yrs
    • Compensation: US$1.25m
  • Michael Bauer

    Investor Relations

    • Tenure: 4.8yrs
  • Debi Stafford

    Senior Vice President of Human Resources

    • Tenure: 1.8yrs
  • Lou Gilmore (62yo)

    Principal Financial and Accounting Officer

    • Tenure: 0.3yrs
  • Steve Malme

    Senior VP of Platform Strategy

    • Tenure: 0.3yrs

Board Members

  • A. Napier (49yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$185.02k
  • Doug Dennerline (60yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$187.65k
  • Mason Holland (54yo)

    Co-Founder & Executive Chairman

    • Tenure: 19.3yrs
    • Compensation: US$1.05m
  • Ray August (57yo)

    CEO, President & Director

    • Tenure: 1.8yrs
    • Compensation: US$4.17m
  • Frank Pelzer (49yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$206.27k
  • Ana White (46yo)

    Independent Director

    • Tenure: 0.8yrs

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$757.916m
  • Shares outstanding: 32.70m
  • 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

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 Car ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:23
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
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.