Benefitfocus
Market Cap
US$277.3m
Last Updated
2020/04/04 10:28 UTC
Data Sources
Company Financials +
Executive Summary
Benefitfocus, Inc. provides cloud-based benefits management platform for consumers, employers, insurance carriers, suppliers, and brokers in the United States.
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
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
| BNFT | Industry | Market | |
|---|---|---|---|
| 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
4 weeks ago | Simply Wall St
Benefitfocus, Inc. Consensus Forecasts Have Become A Little Darker Since Its Latest Report1 month ago | Simply Wall St
How Much Are Benefitfocus, Inc. (NASDAQ:BNFT) Insiders Taking Off The Table?2 months ago | Simply Wall St
One Thing To Remember About The Benefitfocus, Inc. (NASDAQ:BNFT) Share PriceValuation
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
- Take a look at our analysis of BNFT’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- Explore potentially undervalued companies in the Software industry.
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Executive Chairman | 19.83yrs | US$1.05m | 8.2% $22.7m | |
| CEO, President & Director | 2.25yrs | US$4.17m | 0.96% $2.7m | |
| Chief Financial Officer | 0.75yr | US$195.15k | 0.11% $304.5k | |
| Chief Technology Officer | 4.25yrs | US$1.25m | 0.12% $324.6k | |
| Principal Financial and Accounting Officer | 0.83yr | no data | 0.10% $287.6k | |
| Investor Relations | 5.25yrs | no data | no data | |
| Senior Vice President of Sales & Marketing | 0.083yr | no data | no data | |
| Senior Vice President of Human Resources | 0.083yr | no data | no data | |
| Executive VP of Customer Success | no data | no data | 0.16% $436.3k | |
| Senior Vice President of Platform Strategy & Experience | 0.083yr | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Executive Chairman | 19.83yrs | US$1.05m | 8.2% $22.7m | |
| CEO, President & Director | 2.25yrs | US$4.17m | 0.96% $2.7m | |
| Independent Director | 5.58yrs | US$185.02k | 0.094% $259.9k | |
| Independent Director | 5.67yrs | US$187.65k | 0.058% $160.4k | |
| Independent Director | 6.92yrs | US$206.27k | 0.048% $132.2k | |
| Independent Director | 1.25yrs | no data | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BNFT | NasdaqGM (Nasdaq Global Market) | Yes | Common Stock | US | USD | Sep 2013 |
| BTF | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Sep 2013 |
| BTF | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | Sep 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/04 10:28 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.