NasdaqGM:BNFT

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Adequate balance sheet with weak fundamentals.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BNFT's weekly volatility has decreased from 12% to 6% over the past year.


Market Performance


7 Day Return

19.6%

BNFT

1.7%

US Software

2.1%

US Market


1 Year Return

-39.9%

BNFT

45.4%

US Software

19.8%

US Market

Return vs Industry: BNFT underperformed the US Software industry which returned 45.4% over the past year.

Return vs Market: BNFT underperformed the US Market which returned 19.8% over the past year.


Shareholder returns

BNFTIndustryMarket
7 Day19.6%1.7%2.1%
30 Day37.0%2.7%8.1%
90 Day39.4%-0.6%6.0%
1 Year-39.9%-39.9%46.3%45.4%22.5%19.8%
3 Year-46.1%-46.1%138.9%131.3%46.5%36.8%
5 Year-61.8%-61.8%226.2%208.9%96.9%75.3%

Long-Term 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?


Share Price vs. Fair Value

Below Fair Value: BNFT ($14.41) is trading above our estimate of fair value ($12.33)

Significantly Below Fair Value: BNFT is trading above our estimate of fair value.


Price To Earnings Ratio

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

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 7 analysts?

39.1%

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 (7.3% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: BNFT's revenue (7.3% 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?

5.6%

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 5.6% 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 (8.9%).


Return on Equity

High ROE: BNFT has a negative Return on Equity (-123%), as it is currently unprofitable.


Next Steps

Financial Health

How is Benefitfocus's financial position?


Financial Position Analysis

Short Term Liabilities: BNFT's short term assets ($220.0M) exceed its short term liabilities ($60.9M).

Long Term Liabilities: BNFT's short term assets ($220.0M) do not cover its long term liabilities ($270.5M).


Debt to Equity History and Analysis

Debt Level: BNFT's debt to equity ratio (715.8%) is considered high.

Reducing Debt: BNFT had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet


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: Whilst unprofitable BNFT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BNFT is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 22.8% per 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 recent payouts.

High Dividend: Unable to evaluate BNFT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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?

0.7yrs

Average management tenure


CEO

Steve Swad (58 yo)

0.25

Tenure

US$3,512,544

Compensation

Mr. Stephen M. Swad, also known as Steve, CPA serves as the President, Director and Chief Executive Officer at Benefitfocus, Inc. since August 24, 2020. He served as the Chief Financial Officer of Benefitf...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD3.51M) is above average for companies of similar size in the US market ($USD1.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mason Holland
Co-Founder & Executive Chairman20.42yrsUS$874.89k8.4%
$ 34.9m
Stephen Swad
President0.25yrUS$3.51m0.22%
$ 925.6k
Lou Gilmore
Vice President of Corporate Development1.42yrsUS$430.37k0.024%
$ 98.1k
Raymond August
Executive Officer0.25yrUS$6.78m1.21%
$ 5.0m
James Restivo
0.17yrUS$1.33m0.19%
$ 792.1k
Alpana Wegner
Chief Financial Officer0.25yrno data0.091%
$ 378.2k
Michael Bauer
Investor Relations5.83yrsno datano data
Peter Allen
Senior Vice President of Sales & Marketing0.67yrno datano data
Robin Kirby
Chief Human Resources Officer0.17yrno datano data
Annmarie Fini
Executive VP of Customer Successno datano data0.17%
$ 693.9k
Steve Malme
Senior Vice President of Platform Strategy & Experience0.67yrno datano data
Scott Gibson
Senior Vice President of Human Resources0.67yrno datano data

0.7yrs

Average Tenure

58yo

Average Age

Experienced Management: BNFT's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mason Holland
Co-Founder & Executive Chairman20.42yrsUS$874.89k8.4%
$ 34.9m
A. Napier
Lead Independent Director0.42yrUS$189.43k0.096%
$ 397.4k
Douglas Dennerline
Independent Director6.25yrsUS$188.15k0.080%
$ 331.8k
Barry Libert
Director0.17yrno datano data
Francis Pelzer
Independent Director7.5yrsUS$203.93k0.069%
$ 288.6k
Ana White
Independent Director1.83yrsUS$500.63k0.0099%
$ 41.1k

4.0yrs

Average Tenure

52.5yo

Average Age

Experienced Board: BNFT's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$416.041m
  • Shares outstanding: 32.20m
  • 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, employees, employers, insurance brokers, carriers, and suppliers in the United States. The company’s products for insuran...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 23:15
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
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.