Benefitfocus
Benefitfocus, Inc. provides cloud-based benefits management platform for consumers, employers, insurance carriers, suppliers, and brokers in the United States. The last earnings update was 25 days ago. More info.
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- Benefitfocus has significant price volatility in the past 3 months.
BNFT Share Price and Events
7 Day Returns
1 Year Returns
BNFT Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Benefitfocus (BNFT) | -2.3% | -22.4% | 6.9% | 71.8% | 50.2% | -8.2% |
| US Software | 1.4% | 5.2% | 22.7% | 26.7% | 110.9% | 140.1% |
| US Market | 0.4% | 1.6% | 16.4% | 3.5% | 39.4% | 44% |
1 Year Return vs Industry and Market
- BNFT outperformed the Software industry which returned 26.7% over the past year.
- BNFT outperformed the Market in United States of America which returned 3.5% over the past year.
BNFT Value
Is Benefitfocus undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Benefitfocus
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Benefitfocus.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 10 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.8% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Software Unlevered Beta | Simply Wall St/ S&P Global | 1.14 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.141 (1 + (1- 21%) (16.46%)) |
1.194 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.19 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.194 * 5.96%) |
9.85% |
Discounted Cash Flow Calculation for NasdaqGM:BNFT using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Benefitfocus is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.85%) |
|
|---|---|---|---|
| 2019 | 9.54 | Analyst x3 | 8.69 |
| 2020 | 22.18 | Analyst x1 | 18.39 |
| 2021 | 34.72 | Est @ 56.49% | 26.19 |
| 2022 | 48.73 | Est @ 40.36% | 33.47 |
| 2023 | 62.89 | Est @ 29.07% | 39.33 |
| 2024 | 76.21 | Est @ 21.17% | 43.38 |
| 2025 | 88.12 | Est @ 15.64% | 45.67 |
| 2026 | 98.49 | Est @ 11.77% | 46.47 |
| 2027 | 107.41 | Est @ 9.05% | 46.13 |
| 2028 | 115.09 | Est @ 7.16% | 45.00 |
| Present value of next 10 years cash flows | $352.70 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $115.09 × (1 + 2.73%) ÷ (9.85% – 2.73%) |
$1,661.66 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $1,661.66 ÷ (1 + 9.85%)10 |
$649.70 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $352.70 + $649.70 |
$1,002.41 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $1,002.41 / 32.04 |
$31.29 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $31.29 |
| Current discount | Discount to share price of
$45.18
= -1 x ($45.18 - $31.29) / $31.29 |
-44.4% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Benefitfocus is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Benefitfocus's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Benefitfocus's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $-1.66 |
| NasdaqGM:BNFT Share Price ** | NasdaqGM (2019-03-22) in USD | $45.18 |
| United States of America Software Industry PE Ratio | Median Figure of 84 Publicly-Listed Software Companies | 52.88x |
| United States of America Market PE Ratio | Median Figure of 3,058 Publicly-Listed Companies | 17.52x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Benefitfocus.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGM:BNFT Share Price ÷ EPS (both in USD) = 45.18 ÷ -1.66 |
-27.26x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Benefitfocus is loss making, we can't compare its value to the US Software industry average.
- Benefitfocus is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does
Benefitfocus's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | -27.26x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts |
42.5%per year |
| United States of America Software Industry PEG Ratio | Median Figure of 66 Publicly-Listed Software Companies | 3.6x |
| United States of America Market PEG Ratio | Median Figure of 2,103 Publicly-Listed Companies | 1.48x |
*Line of best fit is calculated by linear regression .
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to calculate PEG ratio for Benefitfocus, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on
Benefitfocus's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $-0.32 |
| NasdaqGM:BNFT Share Price * | NasdaqGM (2019-03-22) in USD | $45.18 |
| United States of America Software Industry PB Ratio | Median Figure of 220 Publicly-Listed Software Companies | 5.79x |
| United States of America Market PB Ratio | Median Figure of 5,157 Publicly-Listed Companies | 1.88x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGM:BNFT Share Price ÷ Book Value per Share (both in USD) = 45.18 ÷ -0.32 |
-141.68x |
* Primary Listing of Benefitfocus.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Benefitfocus has negative assets, we can't compare the value of its assets to the US Software industry average.
Value checks
We assess Benefitfocus's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Software industry average (and greater than 0)? (1 check) Benefitfocus has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
BNFT Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Unable to compare Benefitfocus's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
- Unable to compare Benefitfocus's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
- Benefitfocus's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGM:BNFT Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts | 42.5% |
| NasdaqGM:BNFT Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts | 15.3% |
| United States of America Software Industry Earnings Growth Rate | Market Cap Weighted Average | 16.1% |
| United States of America Software Industry Revenue Growth Rate | Market Cap Weighted Average | 10.9% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.2% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 10 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 419 | 61 | 3 | |
| 2020-12-31 | 355 | 36 | -21 | 10 |
| 2019-12-31 | 305 | 25 | -38 | 9 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 259 | 9 | -53 |
| 2018-09-30 | 272 | 5 | -22 |
| 2018-06-30 | 267 | -4 | -25 |
| 2018-03-31 | 261 | -2 | -24 |
| 2017-12-31 | 237 | -6 | -50 |
| 2017-09-30 | 232 | -17 | -51 |
| 2017-06-30 | 233 | -9 | -45 |
| 2017-03-31 | 236 | -10 | -42 |
| 2016-12-31 | 237 | -23 | -40 |
| 2016-09-30 | 225 | -27 | -45 |
| 2016-06-30 | 212 | -35 | -54 |
| 2016-03-31 | 197 | -45 | -61 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 10 Analyst Estimates (S&P Global) | See Below |
All data from Benefitfocus Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | -1.23 | -1.23 | -1.23 | 1.00 |
| 2020-12-31 | -0.89 | -0.36 | -1.80 | 7.00 |
| 2019-12-31 | -1.35 | -0.96 | -2.28 | 6.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | -1.66 |
| 2018-09-30 | -0.70 |
| 2018-06-30 | -0.78 |
| 2018-03-31 | -0.77 |
| 2017-12-31 | -1.62 |
| 2017-09-30 | -1.64 |
| 2017-06-30 | -1.49 |
| 2017-03-31 | -1.41 |
| 2016-12-31 | -1.36 |
| 2016-09-30 | -1.55 |
| 2016-06-30 | -1.83 |
| 2016-03-31 | -2.10 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Unable to establish if Benefitfocus will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Future performance checks
We assess Benefitfocus's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Benefitfocus has a total score of 1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
BNFT Past Performance
How has Benefitfocus performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Benefitfocus does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
- Unable to compare Benefitfocus's 1-year earnings growth to the 5-year average as it is not currently profitable.
- Unable to compare Benefitfocus's 1-year growth to the US Software industry average as it is not currently profitable.
Earnings and Revenue History
All data from Benefitfocus Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 258.72 | -52.63 | 121.24 | 47.90 |
| 2018-09-30 | 271.72 | -22.09 | 109.03 | 47.15 |
| 2018-06-30 | 266.97 | -24.50 | 105.43 | 49.05 |
| 2018-03-31 | 261.48 | -24.09 | 100.38 | 49.39 |
| 2017-12-31 | 236.84 | -50.29 | 97.85 | 49.55 |
| 2017-09-30 | 231.61 | -50.54 | 94.72 | 50.53 |
| 2017-06-30 | 233.38 | -45.14 | 92.75 | 51.54 |
| 2017-03-31 | 236.17 | -42.29 | 92.05 | 53.25 |
| 2016-12-31 | 236.52 | -40.35 | 89.06 | 56.61 |
| 2016-09-30 | 225.03 | -45.45 | 86.60 | 57.02 |
| 2016-06-30 | 212.43 | -53.51 | 86.24 | 56.40 |
| 2016-03-31 | 197.27 | -60.79 | 85.40 | 55.49 |
| 2015-12-31 | 185.14 | -62.08 | 84.32 | 52.25 |
| 2015-09-30 | 170.99 | -63.29 | 81.21 | 49.12 |
| 2015-06-30 | 159.76 | -65.51 | 77.35 | 47.63 |
| 2015-03-31 | 149.39 | -65.43 | 73.49 | 44.73 |
| 2014-12-31 | 137.42 | -63.18 | 67.12 | 41.73 |
| 2014-09-30 | 127.49 | -57.77 | 61.76 | 37.33 |
| 2014-06-30 | 119.61 | -45.72 | 54.60 | 32.39 |
| 2014-03-31 | 111.60 | -37.15 | 49.61 | 27.77 |
| 2013-12-31 | 104.75 | -30.36 | 47.05 | 23.53 |
| 2013-09-30 | 96.70 | -24.11 | 43.63 | 20.34 |
| 2013-06-30 | 91.22 | -19.75 | 41.89 | 17.21 |
| 2013-03-31 | 86.52 | -15.77 | 38.22 | 15.43 |
| 2012-12-31 | 81.74 | -14.87 | 35.40 | 14.62 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- It is difficult to establish if Benefitfocus has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
- It is difficult to establish if Benefitfocus has efficiently used its assets last year compared to the US Software industry average (Return on Assets) as it is loss-making.
- It is difficult to establish if Benefitfocus improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
Past performance checks
We assess Benefitfocus's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Benefitfocus has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
BNFT Health
How is Benefitfocus's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Benefitfocus's finances.
The net worth of a company is the difference between its assets and liabilities.
- Benefitfocus is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Benefitfocus's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Benefitfocus has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Benefitfocus Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | -10.21 | 238.29 | 190.93 |
| 2018-09-30 | -35.57 | 130.03 | 51.07 |
| 2018-06-30 | -27.51 | 128.41 | 53.29 |
| 2018-03-31 | -17.97 | 122.69 | 54.79 |
| 2017-12-31 | -8.72 | 115.27 | 55.34 |
| 2017-09-30 | -36.96 | 119.77 | 54.57 |
| 2017-06-30 | -35.09 | 112.13 | 59.40 |
| 2017-03-31 | -34.16 | 108.54 | 57.67 |
| 2016-12-31 | -33.31 | 100.78 | 58.86 |
| 2016-09-30 | -35.44 | 70.30 | 55.31 |
| 2016-06-30 | -31.79 | 75.23 | 68.00 |
| 2016-03-31 | -26.67 | 40.70 | 38.05 |
| 2015-12-31 | -18.01 | 65.08 | 88.52 |
| 2015-09-30 | -8.74 | 50.85 | 85.24 |
| 2015-06-30 | 3.64 | 40.65 | 88.52 |
| 2015-03-31 | 19.07 | 45.37 | 107.43 |
| 2014-12-31 | -42.82 | 54.09 | 56.21 |
| 2014-09-30 | -31.16 | 41.98 | 60.91 |
| 2014-06-30 | -14.59 | 38.35 | 71.69 |
| 2014-03-31 | 0.26 | 24.21 | 74.95 |
| 2013-12-31 | 11.43 | 24.31 | 78.81 |
| 2013-09-30 | 18.98 | 16.58 | 84.67 |
| 2013-06-30 | -43.87 | 8.33 | 13.67 |
| 2013-03-31 | -34.86 | 8.63 | 17.73 |
| 2012-12-31 | -31.13 | 16.80 | 19.70 |
- Benefitfocus has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
- Irrelevant to check if Benefitfocus's debt level has increased considering it has negative shareholder equity.
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.
- Whilst loss making Benefitfocus has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
- Whilst loss making Benefitfocus has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -70.2% per year.
Financial health checks
We assess Benefitfocus's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Benefitfocus has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
BNFT Dividends
What is Benefitfocus's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Benefitfocus
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Benefitfocus's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Benefitfocus's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 10 Analyst Estimates (S&P Global) | See Below |
| United States of America Software Industry Average Dividend Yield | Market Cap Weighted Average of 24 Stocks | 1.6% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2006 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 0.00 | 1.00 |
| 2020-12-31 | 0.00 | 1.00 |
| 2019-12-31 | 0.00 | 1.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Benefitfocus has not reported any payouts.
- Unable to verify if Benefitfocus's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Benefitfocus's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Benefitfocus afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Benefitfocus has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
BNFT Management
CEO
| COMPENSATION | $2,676,544 |
| AGE | 56 |
| TENURE AS CEO | 1.2 years |
CEO Bio
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 Benefitfocus, Inc. since April 2018. Mr. August served as Chief Operating Officer of Benefitfocus, Inc. from August 11, 2014 to January 1, 2018, overseeing its operations, customer success and financial growth. He joined Benefitfocus in 2014. With more than 30 years of experience in technology, insurance and banking, Ray is passionate about delivering world-class customer service and organizational excellence. Prior to joining Benefitfocus, Mr. August served as the General Manager of the Computer Sciences Corp. (now DXC Technology Co. (NYSE: DXC)), or CSC, Financial Services Group since October 2012. Prior to that, from March 2008 to September 2012, he served as CSC’s President of the Financial Services Group. During his 16 years at CSC, Mr. August held several leadership roles. Prior to CSC, Mr. August was Group Vice President and Chief Technology Officer at Great Plains Software. Previously Mr. August held a management position at Price Waterhouse. Since July 2013 he has served as a member of the Executive Advisory council for Arthur Ventures Private Equity Fund. Mr. August earned a B.S. in Accounting and Management Science from the Moore School of Business at the University of South Carolina and is a Certified Public Accountant.
CEO Compensation
- Ray's compensation has increased whilst company is loss making.
- Ray's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Benefitfocus management team in years:
- The average tenure for the Benefitfocus management team is less than 2 years, this suggests a new team.
Management Team
Ray August
CEO, President & Director
$3M
56
1.2 yrs
Jonathon Dussault
CFO & Treasurer
$2M
45
1.6 yrs
Mason Holland
Co-Founder & Executive Chairman
53
18.8 yrs
Ken Haderer
Executive Vice President of Global Operations
0.7 yrs
Jim Restivo
Chief Technology Officer
57
3.2 yrs
Michael Bauer
Investor Relations
4.2 yrs
Paris Cavic
VP & General Counsel
Rob Dahdah
Executive Vice President of Global Sales & Marketing
50
1.7 yrs
Debi Stafford
Senior Vice President of Human Resources
1.2 yrs
Annmarie Fini
Senior Vice President of Platform Strategy
Board of Directors Tenure
Average tenure and age of the Benefitfocus board of directors in years:
- The tenure for the Benefitfocus board of directors is about average.
Board of Directors
Mason Holland
Co-Founder & Executive Chairman
53
18.8 yrs
Frank Pelzer
Director
$169K
48
5.8 yrs
Ray August
CEO, President & Director
$3M
56
0.9 yrs
Steve Swad
Director
$154K
56
5.3 yrs
A. Napier
Director
$182K
48
4.5 yrs
Joe DiSabato
Director
51
12.1 yrs
Doug Dennerline
Director
$144K
59
4.6 yrs
Ana White
Independent Director
44
0.2 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 08. Mar 19 | Sell | Goldman Sachs Group, Investment Banking and Securities Investments | Company | 05. Mar 19 | 05. Mar 19 | -3,254,735 | $46.80 | $-152,329,735 | ||
| 16. Aug 18 | Sell | Jonathon Dussault | Individual | 14. Aug 18 | 14. Aug 18 | -4,045 | $36.81 | $-148,896 | ||
| 29. May 18 | Sell | Goldman Sachs Group, Investment Banking and Securities Investments | Company | 24. May 18 | 24. May 18 | -2,500,000 | $33.03 | $-82,575,000 | ||
Management checks
We assess Benefitfocus's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Benefitfocus has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
BNFT News
Simply Wall St News
One Thing To Remember About The Benefitfocus, Inc. (NASDAQ:BNFT) Share Price
Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider.
Simply Wall St - – Full articleHave Insiders Been Selling Benefitfocus, Inc. (NASDAQ:BNFT) Shares?
We often see insiders buying up shares in companies that perform well over the long term. … So we'll take a look at whether insiders have been buying or selling shares in Benefitfocus, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares.
Simply Wall St - – Full articleWhen Will Benefitfocus Inc (NASDAQ:BNFT) Turn A Profit?
The US$1.12b market-cap company’s loss lessens since it announced a -US$25.87m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$24.09m, as it approaches breakeven. … Many investors are wondering the rate at which BNFT will turn a profit, with the big question being “when will the company breakeven?” … In this article, I will touch on the expectations for BNFT’s growth and when analysts expect the company to become profitable
Simply Wall St - – Full articleBenefitfocus Inc (NASDAQ:BNFT): Has Recent Earnings Growth Beaten Long-Term Trend?
To account for any quarterly or half-yearly updates, I use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … Scanning growth from a sector-level, the US internet industry has been growing its average earnings by double-digit 22.15% in the prior year, and 18.02% over the past five. … This means although Benefitfocus is currently loss-making, it may have gained from industry tailwinds, moving earnings into a more favorable position.What does this mean?
Simply Wall St - – Full articleBefore You Buy Benefitfocus Inc's (NASDAQ:BNFT), You Should Consider This
A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one. … With a five-year beta of 0.98, Benefitfocus appears to be a less volatile company compared to the rest of the market. … With a market cap of $758.38M, BNFT falls within the small-cap spectrum of stocks, which are found to experience higher relative risk compared to larger companies.
Simply Wall St - – Full articleWill Benefitfocus Inc (NASDAQ:BNFT) Ride The Tech Growth Wave?
Below, I will examine the sector growth prospects, and also determine whether Benefitfocus is a laggard or leader relative to its tech sector peers. … Software tech companies are typically trading at a PE of 24x, in-line with the US stock market PE of 20x. … If Benefitfocus has been on your watchlist for a while, now may be the time to enter into the stock, if you like its growth prospects and are not highly concentrated in the tech industry.
Simply Wall St - – Full articleWho Are Benefitfocus Inc's (NASDAQ:BNFT) Major Shareholders?
Insider Ownership Another important group of shareholders are company insiders. … Public Company Ownership Potential investors in BNFT should also look at another important group of investors: other public companies, with a stake of 9.01%, who are primarily invested because of strategic and capital gain interests. … Thus, potential investors should look into these business relations and check how it can impact long-term shareholder returns.What this means for you: The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.
Simply Wall St - – Full articleWill Benefitfocus Inc (NASDAQ:BNFT) Need To Raise More Money?
The single most important question to ask when you’re investing in a loss-making company is – will they need to raise cash again, and if so, when? … NasdaqGM:BNFT Income Statement Dec 14th 17 When will Benefitfocus need to raise more cash? … Not surprisingly, if Benefitfocus continues to ramp up expenditure at this rate for the upcoming year, it’ll likely need to come to market within the next few months, given the its current level of cash reserves.
Simply Wall St - – Full articleWith 45.4% Earnings Growth Lately, Did Benefitfocus Inc (BNFT) Outperform The Industry?
See our latest analysis for BNFT Commentary On BNFT's Past Performance For the most up-to-date info, I use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … Benefitfocus's latest twelve-month earnings -$26.0M, which compared to the prior year's level, has become less negative. … Though Benefitfocus's past data is helpful, it is only one aspect of my investment thesis.
Simply Wall St - – Full articleIs Benefitfocus Inc's (BNFT) CEO Overpaid Relative To Its Peers?
Therefore I will use earnings as a proxy of Jenkins's performance in the past year. … NasdaqGM:BNFT Past Future Earnings Nov 17th 17 Is BNFT's CEO overpaid relative to the market? … Usually I would use earnings and market cap to account for variations in performance, however, BNFT's negative earnings lower the usefulness of my formula.
Simply Wall St - – Full articleBNFT Company Info
Description
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.
Details
| Name: | Benefitfocus, Inc. |
| BNFT | |
| Exchange: | NasdaqGM |
| Founded: | 2000 |
| $1,447,607,590 | |
| 32,040,894 | |
| Website: | http://www.benefitfocus.com |
| Address: |
Benefitfocus, Inc. 100 Benefitfocus Way, Charleston, South Carolina, 29492, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGM | BNFT | Common Stock | Nasdaq Global Market | US | USD | 18. Sep 2013 | |
| DB | BTF | Common Stock | Deutsche Boerse AG | DE | EUR | 18. Sep 2013 |
Number of employees
Current staff
Industry
| Application Software | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/23 00:25 |
| End of day share price update: | 2019/03/22 00:00 |
| Last estimates confirmation: | 2019/03/18 |
| Last earnings filing: | 2019/02/26 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
