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

Mediocre balance sheet and overvalued.

Risks

  • Benefitfocus has significant price volatility in the past 3 months.

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

-4.6%

NasdaqGM:BNFT

-1.3%

US Software

0.9%

US Market


1 Year Return

-33.8%

NasdaqGM:BNFT

19.3%

US Software

0.3%

US Market

BNFT underperformed the Software industry which returned 18.3% over the past year.

BNFT underperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

BNFTIndustryMarket
7 Day-4.6%-1.3%0.9%
30 Day-1.4%-2.8%-1.9%
90 Day-14.9%2.3%1.6%
1 Year-33.8%-33.8%20.9%19.3%2.6%0.3%
3 Year-37.3%-37.3%116.9%108.3%41.0%31.8%
5 Year-23.2%-23.2%163.4%144.3%55.2%38.0%

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 based on future cash flows and its price relative to the stock market?

27%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Benefitfocus's share price is below the future cash flow value, and at a moderate discount (> 20%).

Benefitfocus's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Unable to calculate PEG ratio for Benefitfocus, we can't assess if its growth is good value.


Price Based on Value of Assets

Benefitfocus has negative assets, we can't compare the value of its assets to the US Software industry average.


Next Steps

Future Growth

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

17.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Benefitfocus's revenue is expected to grow by 12.5% yearly, however this is not considered high growth (20% yearly).

Benefitfocus is not considered high growth as it is expected to be loss making for the next 1-3 years.

Benefitfocus's revenue growth is expected to exceed the United States of America market average.

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.

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.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Benefitfocus will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

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.


Return on Equity

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.


Return on 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.


Return on Capital Employed

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.


Next Steps

Financial Health

How is Benefitfocus's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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.


Balance Sheet

High level of physical assets or inventory.

Benefitfocus 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.

Benefitfocus has sufficient cash runway for more than 3 years based on current free cash flow.

Benefitfocus has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -55.8% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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.

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.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Benefitfocus has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Benefitfocus's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Ray August (57yo)

1.6yrs

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

Ray's remuneration is higher than average for companies of similar size in United States of America.

Ray's compensation has increased whilst company is loss making.


Management Age and Tenure

1.6yrs

Average Tenure

57yo

Average Age

The average tenure for the Benefitfocus management team is less than 2 years, this suggests a new team.


Board Age and Tenure

5.0yrs

Average Tenure

54yo

Average Age

The tenure for the Benefitfocus board of directors is about average.


Insider Trading

Benefitfocus individual insiders have only sold shares in the past 3 months, but not in substantial volumes.


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
Role
Senior Key Executive
Executive Officer
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: 5.7yrs
    • Compensation: US$195.15k
  • Annmarie Fini

    Senior Vice President of Customer Success Organization

    • Tenure: 0.0yrs
  • Mason Holland (54yo)

    Co-Founder & Executive Chairman

    • Tenure: 19.2yrs
    • Compensation: US$1.05m
  • Ray August (57yo)

    CEO, President & Director

    • Tenure: 1.6yrs
    • Compensation: US$4.17m
  • Jim Restivo (58yo)

    Chief Technology Officer

    • Tenure: 3.6yrs
    • Compensation: US$1.25m
  • Jonathon Dussault (46yo)

    Executive Officer

    • Tenure: 0.2yrs
    • Compensation: US$1.46m
  • Michael Bauer

    Investor Relations

    • Tenure: 4.6yrs
  • Debi Stafford

    Senior Vice President of Human Resources

    • Tenure: 1.6yrs
  • Lou Gilmore (62yo)

    Principal Financial and Accounting Officer

    • Tenure: 0.2yrs
  • Steve Malme

    Senior VP of Platform Strategy

    • Tenure: 0.1yrs

Board Members

  • A. Napier (49yo)

    Director

    • Tenure: 4.9yrs
    • Compensation: US$185.02k
  • Doug Dennerline (60yo)

    Director

    • Tenure: 5.0yrs
    • Compensation: US$187.65k
  • Steve Swad (57yo)

    Chief Financial Officer

    • Tenure: 5.7yrs
    • Compensation: US$195.15k
  • Mason Holland (54yo)

    Co-Founder & Executive Chairman

    • Tenure: 19.2yrs
    • Compensation: US$1.05m
  • Ray August (57yo)

    CEO, President & Director

    • Tenure: 1.6yrs
    • Compensation: US$4.17m
  • Frank Pelzer (49yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$206.27k
  • Ana White (46yo)

    Independent Director

    • Tenure: 0.6yrs

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$850.122m
  • 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 Analysis2019/08/20 00:31
End of Day Share Price2019/08/19 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.