Loading...

We've got a brand new version of Simply Wall St! Try it out

Benefitfocus

Nasdaq:BNFT
Snowflake Description

Mediocre balance sheet and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BNFT
Nasdaq
$857M
Market Cap
  1. Home
  2. US
  3. Software
Company description

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 12 days ago. More info.


Add to Portfolio Compare Print
  • Benefitfocus has significant price volatility in the past 3 months.
BNFT Share Price and Events
7 Day Returns
-4.7%
NasdaqGM:BNFT
-3%
US Software
-1%
US Market
1 Year Returns
-30.9%
NasdaqGM:BNFT
18.5%
US Software
-0.4%
US Market
BNFT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Benefitfocus (BNFT) -4.7% -0.6% -13.7% -30.9% -34.6% -21.9%
US Software -3% -3.8% 1.5% 18.5% 106.7% 141.9%
US Market -1% -3.3% 0.8% -0.4% 30.4% 37.1%
1 Year Return vs Industry and Market
  • BNFT underperformed the Software industry which returned 18.5% over the past year.
  • BNFT underperformed the Market in United States of America which returned -0.4% over the past year.
Price Volatility
BNFT
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Benefitfocus.

NasdaqGM:BNFT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.3%
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.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:BNFT
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 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.117 (1 + (1- 21%) (32.26%))
1.269
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.27
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.269 * 5.96%)
10.29%

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.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGM:BNFT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.29%)
2020 16.67 Analyst x4 15.12
2021 29.28 Est @ 75.65% 24.07
2022 45.03 Est @ 53.77% 33.56
2023 62.35 Est @ 38.46% 42.13
2024 79.65 Est @ 27.74% 48.80
2025 95.77 Est @ 20.24% 53.20
2026 110.12 Est @ 14.99% 55.46
2027 122.57 Est @ 11.31% 55.97
2028 133.28 Est @ 8.74% 55.18
2029 142.52 Est @ 6.93% 53.49
Present value of next 10 years cash flows $436.97
NasdaqGM:BNFT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $142.52 × (1 + 2.73%) ÷ (10.29% – 2.73%)
$1,935.35
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,935.35 ÷ (1 + 10.29%)10
$726.45
NasdaqGM:BNFT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $436.97 + $726.45
$1,163.42
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,163.42 / 32.70
$35.58
NasdaqGM:BNFT Discount to Share Price
Calculation Result
Value per share (USD) From above. $35.58
Current discount Discount to share price of $26.21
= -1 x ($26.21 - $35.58) / $35.58
26.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Benefitfocus is available for.
Intrinsic value
26%
Share price is $26.21 vs Future cash flow value of $35.58
Current Discount Checks
For Benefitfocus to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 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?
Raw Data
NasdaqGM:BNFT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $-1.67
NasdaqGM:BNFT Share Price ** NasdaqGM (2019-08-16) in USD $26.21
United States of America Software Industry PE Ratio Median Figure of 83 Publicly-Listed Software Companies 48.57x
United States of America Market PE Ratio Median Figure of 3,096 Publicly-Listed Companies 17.26x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Benefitfocus.

NasdaqGM:BNFT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:BNFT Share Price ÷ EPS (both in USD)

= 26.21 ÷ -1.67

-15.68x

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?
Raw Data
NasdaqGM:BNFT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -15.68x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
17.5%per year
United States of America Software Industry PEG Ratio Median Figure of 68 Publicly-Listed Software Companies 2.86x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.4x

*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?
Raw Data
NasdaqGM:BNFT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $-0.58
NasdaqGM:BNFT Share Price * NasdaqGM (2019-08-16) in USD $26.21
United States of America Software Industry PB Ratio Median Figure of 230 Publicly-Listed Software Companies 5.54x
United States of America Market PB Ratio Median Figure of 5,273 Publicly-Listed Companies 1.7x
NasdaqGM:BNFT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:BNFT Share Price ÷ Book Value per Share (both in USD)

= 26.21 ÷ -0.58

-44.84x

* 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.
X
Value checks
We assess Benefitfocus's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Benefitfocus has a total score of 1/6, 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

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

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!
Annual Growth Rate
17.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Benefitfocus expected to grow at an attractive rate?
  • 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
Raw Data
NasdaqGM:BNFT Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:BNFT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 17.5%
NasdaqGM:BNFT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 12.5%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 15.6%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*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
Raw Data
NasdaqGM:BNFT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:BNFT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 481 1
2022-12-31 426 1
2021-12-31 391 48 4
2020-12-31 343 28 -44 11
2019-12-31 296 13 -55 11
NasdaqGM:BNFT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 273 -7 -54
2019-03-31 265 -8 -53
2018-12-31 259 9 -53
2018-09-30 272 5 -22
2018-06-30 247 -4 -49
2018-03-31 242 -2 -49
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Benefitfocus is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Benefitfocus's revenue is expected to grow by 12.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:BNFT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Benefitfocus Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:BNFT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 -0.38 -0.38 -0.38 1.00
2020-12-31 -1.25 -0.95 -1.78 8.00
2019-12-31 -1.68 -1.49 -2.02 8.00
NasdaqGM:BNFT Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 -1.67
2019-03-31 -1.66
2018-12-31 -1.66
2018-09-30 -0.70
2018-06-30 -1.56
2018-03-31 -1.55
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

*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.
X
Future performance checks
We assess Benefitfocus's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Benefitfocus's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Benefitfocus's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Benefitfocus Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:BNFT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 272.66 -53.71 124.91 51.30
2019-03-31 264.66 -53.03 122.86 48.97
2018-12-31 258.72 -52.63 121.24 47.90
2018-09-30 271.72 -22.09 109.03 47.15
2018-06-30 247.07 -48.92 106.73 49.05
2018-03-31 241.58 -48.51 101.68 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.
X
Past performance checks
We assess Benefitfocus's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Benefitfocus's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • 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.
Raw Data

All data from Benefitfocus Company Filings, last reported 1 month ago.

NasdaqGM:BNFT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 -19.08 183.67 138.39
2019-03-31 -10.39 181.06 144.16
2018-12-31 -10.21 176.69 190.93
2018-09-30 -35.57 69.25 51.07
2018-06-30 -27.51 67.25 53.29
2018-03-31 -17.97 63.25 54.79
2017-12-31 -8.72 56.25 55.34
2017-09-30 -36.96 60.25 54.57
2017-06-30 -35.09 52.25 59.40
2017-03-31 -34.16 48.25 57.67
2016-12-31 -33.31 40.25 58.86
2016-09-30 -35.44 35.25 55.31
2016-06-30 -31.79 39.25 68.00
2016-03-31 -26.67 5.25 38.05
2015-12-31 -18.01 30.25 88.52
2015-09-30 -8.74 15.25 85.24
2015-06-30 3.64 5.25 88.52
2015-03-31 19.07 9.25 107.43
2014-12-31 -42.82 17.66 56.21
2014-09-30 -31.16 12.76 60.91
2014-06-30 -14.59 12.76 71.69
2014-03-31 0.26 5.76 74.95
2013-12-31 11.43 5.76 78.81
2013-09-30 18.98 5.76 84.67
2013-06-30 -43.87 6.21 13.67
2013-03-31 -34.86 6.27 17.73
2012-12-31 -31.13 5.98 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.

  • 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.
X
Financial health checks
We assess Benefitfocus's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Benefitfocus has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
0%
Current annual income from Benefitfocus dividends. Estimated to be 0% next year.
If you bought $2,000 of Benefitfocus shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
NasdaqGM:BNFT Annualized Past and Future Dividends
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 11 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2010 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 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:BNFT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
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.
Current Payout to shareholders
What portion of Benefitfocus's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess Benefitfocus's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ray August
COMPENSATION $4,172,997
AGE 57
TENURE AS CEO 1.6 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 higher than 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:

1.6
Average Tenure
57
Average Age
  • The average tenure for the Benefitfocus management team is less than 2 years, this suggests a new team.
Management Team

Mason Holland

TITLE
Co-Founder & Executive Chairman
COMPENSATION
$1M
AGE
54
TENURE
19.2 yrs

Ray August

TITLE
CEO, President & Director
COMPENSATION
$4M
AGE
57
TENURE
1.6 yrs

Steve Swad

TITLE
Chief Financial Officer
COMPENSATION
$195K
AGE
57
TENURE
0.1 yrs

Jim Restivo

TITLE
Chief Technology Officer
COMPENSATION
$1M
AGE
58
TENURE
3.6 yrs

Jonathon Dussault

TITLE
Executive Officer
COMPENSATION
$1M
AGE
46
TENURE
0.2 yrs

Lou Gilmore

TITLE
Principal Financial and Accounting Officer
AGE
62
TENURE
0.2 yrs

Michael Bauer

TITLE
Investor Relations
TENURE
4.6 yrs

Steve Malme

TITLE
Senior VP of Platform Strategy
TENURE
0.1 yrs

Debi Stafford

TITLE
Senior Vice President of Human Resources
TENURE
1.6 yrs

Annmarie Fini

TITLE
Senior Vice President of Customer Success Organization
Board of Directors Tenure

Average tenure and age of the Benefitfocus board of directors in years:

5
Average Tenure
54
Average Age
  • The tenure for the Benefitfocus board of directors is about average.
Board of Directors

Mason Holland

TITLE
Co-Founder & Executive Chairman
COMPENSATION
$1M
AGE
54
TENURE
19.2 yrs

Ray August

TITLE
CEO, President & Director
COMPENSATION
$4M
AGE
57
TENURE
1.3 yrs

Steve Swad

TITLE
Chief Financial Officer
COMPENSATION
$195K
AGE
57
TENURE
5.7 yrs

Frank Pelzer

TITLE
Director
COMPENSATION
$206K
AGE
49
TENURE
6.3 yrs

A. Napier

TITLE
Director
COMPENSATION
$185K
AGE
49
TENURE
4.9 yrs

Ana White

TITLE
Independent Director
AGE
46
TENURE
0.6 yrs

Doug Dennerline

TITLE
Director
COMPENSATION
$188K
AGE
60
TENURE
5 yrs
Who owns this company?
Recent Insider Trading
  • Benefitfocus individual insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
03. Jul 19 Sell Lou Gilmore Individual 01. Jul 19 01. Jul 19 -1,019 $27.52 $-27,400
14. May 19 Buy Raymond August Individual 13. May 19 13. May 19 3,200 $31.15 $99,680
04. Apr 19 Sell Goldman Sachs Group, Investment Banking and Securities Investments Company 02. Apr 19 02. Apr 19 -488,211 $46.80 $-22,849,495
04. Apr 19 Sell James Restivo Individual 01. Apr 19 01. Apr 19 -8,646 $49.68 $-410,732
04. Apr 19 Sell Jonathon Dussault Individual 01. Apr 19 01. Apr 19 -7,044 $49.68 $-336,436
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
X
Management checks
We assess Benefitfocus's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

Is Benefitfocus (NASDAQ:BNFT) A Risky Investment?

NasdaqGM:BNFT Historical Debt, August 12th 2019 How Healthy Is Benefitfocus's Balance Sheet? … When we look at that and recall the liabilities on its balance sheet, relative to cash, it seems unwise to us for the company to have any debt. … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

Simply Wall St -

Is It Time To Consider Buying Benefitfocus, Inc. (NASDAQ:BNFT)?

However, given that Benefitfocus’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. … Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BNFT.

Simply Wall St -

How Does Benefitfocus, Inc. (NASDAQ:BNFT) Affect Your Portfolio Volatility?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … Given that it has a beta of 1.46, we can surmise that the Benefitfocus share price has been fairly sensitive to market volatility (over the last 5 years).

Simply Wall St -

Is There An Opportunity With Benefitfocus, Inc.'s (NASDAQ:BNFT) 39% Undervaluation?

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $11.03 $31.50 $57.40 $79.20 $101.20 $119.32 $135.25 $149.00 $160.82 $171.07 Growth Rate Estimate Source Analyst x4 Analyst x2 Analyst x1 Analyst x1 Analyst x1 Est @ 17.9% Est @ 13.35% Est @ 10.17% Est @ 7.93% Est @ 6.37% Present Value ($, Millions) Discounted @ 10.4% $9.99 $25.84 $42.66 $53.31 $61.70 $65.90 $67.66 $67.51 $66.01 $63.60 Present Value of 10-year Cash Flow (PVCF)= $524.18m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$171m × (1 + 2.7%) ÷ (10.4% – 2.7%) = US$2.3b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$2.3b ÷ ( 1 + 10.4%)10 = $851.72m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $1.38b. … NasdaqGM:BNFT Intrinsic value, June 13th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

What Should Investors Know About Benefitfocus, Inc.'s (NASDAQ:BNFT) Future?

The most recent earnings release Benefitfocus, Inc.'s (NASDAQ:BNFT) announced in December 2018 … that losses became smaller relative to the prior year's level … as a result of recent tailwinds

Simply Wall St -

What Does Benefitfocus, Inc.'s (NASDAQ:BNFT) Share Price Indicate?

received a lot of attention from a substantial price movement on the NASDAQGM over the last few months, increasing to $60 at one point, and dropping to the lows of $45.05. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether Benefitfocus's current trading price of $45.95 reflective of the actual value of the?

Simply Wall St -

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 -

Have 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 -

When 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 -

Benefitfocus 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 -

BNFT 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
$856,988,291
32,696,997
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
Staff numbers
1,450
Benefitfocus employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/19 00:34
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/08
Last earnings filing: 2019/08/07
Last earnings reported: 2019/06/30
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.