NYSE:BOX

Stock Analysis Report

Executive Summary

Box, Inc. provides a cloud content management platform that enables organizations of various sizes to manage and share their content from anywhere or any device.

Rewards

Trading at 13.7% below its fair value

Revenue is forecast to grow 10.61% per year

Earnings have grown 8.3% per year over the past 5 years

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year



Snowflake Analysis

Imperfect balance sheet with limited growth.


Similar Companies

Share Price & News

How has Box's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BOX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

BOX

2.7%

US Software

2.0%

US Market


1 Year Return

-18.2%

BOX

39.3%

US Software

23.5%

US Market

Return vs Industry: BOX underperformed the US Software industry which returned 39.8% over the past year.

Return vs Market: BOX underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

BOXIndustryMarket
7 Day-3.2%2.7%2.0%
30 Day-7.4%7.8%4.3%
90 Day3.1%19.7%12.2%
1 Year-18.2%-18.2%40.5%39.3%26.1%23.5%
3 Year-4.1%-4.1%144.5%134.7%53.1%43.2%
5 Year-30.0%-30.0%198.8%177.5%75.5%56.1%

Price Volatility Vs. Market

How volatile is Box's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Box undervalued compared to its fair value and its price relative to the market?

13.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BOX ($16.22) is trading below our estimate of fair value ($18.79)

Significantly Below Fair Value: BOX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BOX is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: BOX 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 BOX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BOX is overvalued based on its PB Ratio (116.7x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

How is Box forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

24.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BOX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: BOX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: BOX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: BOX's revenue (10.6% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: BOX's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BOX's Return on Equity is forecast to be very high in 3 years time (60.3%).


Next Steps

Past Performance

How has Box performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BOX is currently unprofitable.

Growing Profit Margin: BOX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BOX is unprofitable, but has reduced losses over the past 5 years at a rate of 8.3% per year.

Accelerating Growth: Unable to compare BOX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BOX is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (20.8%).


Return on Equity

High ROE: BOX has a negative Return on Equity (-643.33%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Box's financial position?


Financial Position Analysis

Short Term Liabilities: BOX's short term assets ($355.1M) do not cover its short term liabilities ($467.5M).

Long Term Liabilities: BOX's short term assets ($355.1M) do not cover its long term liabilities ($355.6M).


Debt to Equity History and Analysis

Debt Level: BOX's debt to equity ratio (192.5%) is considered high.

Reducing Debt: BOX's debt to equity ratio has increased from 32.9% to 192.5% over the past 5 years.


Balance Sheet

Inventory Level: BOX has a high level of physical assets or inventory.

Debt Coverage by Assets: BOX's debt is covered by short term assets (assets are 8.9x debt).


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 BOX has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BOX is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 86.2% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate BOX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BOX'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 BOX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BOX'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 BOX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Aaron Levie (34yo)

14.8yrs

Tenure

US$3,348,231

Compensation

Mr. Aaron Levie co-founded Box, Inc. in 2005 and has been its Chief Executive Officer since April 2005. Mr. Levie is the visionary behind Box's product and platform strategy, which is focused on incorporat ...


CEO Compensation Analysis

Compensation vs Market: Aaron's total compensation ($USD3.35M) is below average for companies of similar size in the US market ($USD4.99M).

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


Management Age and Tenure

2.2yrs

Average Tenure

34yo

Average Age

Experienced Management: BOX's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

7.1yrs

Average Tenure

50yo

Average Age

Experienced Board: BOX's board of directors are considered experienced (7.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$9,727,00003 Sep 19
Starboard Value LP
EntityCompany
Shares710,000
Max PriceUS$13.70
BuyUS$106,268,39803 Sep 19
Starboard Value LP
EntityCompany
Shares6,183,896
Max PriceUS$17.18
SellUS$363,80019 Jun 19
Josh Stein
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$18.19
SellUS$197,40005 Apr 19
Jeff Mannie
EntityIndividual
Role
Chief Accounting Officer
VP, Controller & Chief Accounting Officer
Shares10,000
Max PriceUS$19.74

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.7%.


Management Team

  • Dylan Smith (33yo)

    Co-Founder

    • Tenure: 14.8yrs
    • Compensation: US$2.46m
  • Jeff Queisser

    Senior VP of Engineering & Co-Founder

    • Aaron Levie (34yo)

      Co-Founder

      • Tenure: 14.8yrs
      • Compensation: US$3.35m
    • Jeff Mannie

      VP, Controller & Chief Accounting Officer

      • Paul Chapman

        Chief Information Officer

        • Tenure: 4.5yrs
      • Christy Lake

        Chief People Officer

        • Tenure: 2yrs
      • Stephanie Carullo (50yo)

        Chief Operating Officer

        • Tenure: 2.4yrs
        • Compensation: US$512.50k
      • David Leeb

        General Counsel & Corporate Secretary

        • Tenure: 1.7yrs
      • Alice Lopatto

        Director of Investor Relations

        • Chris Koehler

          Chief Marketing Officer

          • Tenure: 1yrs

        Board Members

        • Rory O’Driscoll (54yo)

          Lead Independent Director

          • Compensation: US$260.85k
        • Dana Evan (59yo)

          Independent Director

          • Tenure: 8.1yrs
          • Compensation: US$266.56k
        • Josh Stein (45yo)

          Independent Director

          • Tenure: 13.5yrs
          • Compensation: US$248.85k
        • Jonathan Heiliger (42yo)

          Member of Tech Advisory Board

          • Dan Levin (55yo)

            Director

            • Tenure: 10yrs
          • Sue Barsamian (58yo)

            Independent Director

            • Tenure: 1.7yrs
            • Compensation: US$496.31k
          • Dylan Smith (33yo)

            Co-Founder

            • Tenure: 14.8yrs
            • Compensation: US$2.46m
          • Aaron Levie (34yo)

            Co-Founder

            • Tenure: 14.8yrs
            • Compensation: US$3.35m
          • Peter Leav (48yo)

            Independent Director

            • Tenure: 0.7yrs
          • Kim Hammonds (52yo)

            Independent Director

            • Tenure: 1.3yrs
            • Compensation: US$374.89k

          Company Information

          Box, Inc.'s company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Box, Inc.
          • Ticker: BOX
          • Exchange: NYSE
          • Founded: 2005
          • Industry: Application Software
          • Sector: Software
          • Market Cap: US$2.434b
          • Shares outstanding: 149.63m
          • Website: https://www.box.com

          Number of Employees


          Location

          • Box, Inc.
          • 900 Jefferson Avenue
          • Redwood City
          • California
          • 94063
          • United States

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          BOXNYSE (New York Stock Exchange)YesNew Class A Common StockUSUSDJan 2015
          3BXDB (Deutsche Boerse AG)YesNew Class A Common StockDEEURJan 2015
          0HP1LSE (London Stock Exchange)YesNew Class A Common StockGBUSDJan 2015

          Biography

          Box, Inc. provides a cloud content management platform that enables organizations of various sizes to manage and share their content from anywhere or any device. The company’s Software-as-a-Service platform enables users to collaborate on content internally and with external parties, automate content-driven business processes, develop custom applications, and implement data protection, security, and compliance features. It provides its solution in 24 languages. The company serves financial services, government, healthcare and life sciences, media and entertainment, retail, education, and nonprofit industries in the United States and internationally. The company was formerly known as Box.net, Inc. and changed its name to Box, Inc. in November 2011. Box, Inc. was founded in 2005 and is headquartered in Redwood City, California. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/18 00:35
          End of Day Share Price2020/01/17 00:00
          Earnings2019/10/31
          Annual Earnings2019/01/31


          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.