NasdaqGS:BAND

Stock Analysis Report

Executive Summary

Bandwidth Inc. operates as a cloud-based software-powered communications platform-as-a-service (CPaaS) provider in the United States.

Snowflake

Fundamentals

Mediocre balance sheet with concerning outlook.

Risks

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

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.6%

BAND

-0.0001%

US Telecom

-0.6%

US Market


1 Year Return

33.6%

BAND

8.1%

US Telecom

0.7%

US Market

BAND outperformed the Telecom industry which returned 7.1% over the past year.

BAND outperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

BANDIndustryMarket
7 Day0.6%-0.0001%-0.6%
30 Day-18.1%6.3%2.9%
90 Day-6.4%10.0%1.3%
1 Year33.6%33.6%13.9%8.1%2.9%0.7%
3 Yearn/a15.7%-1.1%44.6%35.2%
5 Yearn/a36.3%5.1%61.9%44.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

214.96x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Bandwidth to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Bandwidth to establish if it is available at substantial discount.


Price Based on Earnings

Bandwidth is overvalued based on earnings compared to the US Telecom industry average.

Bandwidth is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Bandwidth earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Bandwidth is overvalued based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is Bandwidth expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

-77.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Bandwidth's revenue is expected to grow by 18.4% yearly, however this is not considered high growth (20% yearly).

Bandwidth's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

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

Bandwidth's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Bandwidth's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Bandwidth will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has Bandwidth performed over the past 5 years?

-5.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Bandwidth's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Bandwidth's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Bandwidth's 1-year earnings growth is negative, it can't be compared to the US Telecom industry average.


Return on Equity

Bandwidth has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Bandwidth used its assets less efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Bandwidth 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 Bandwidth's financial position?


Financial Position Analysis

Bandwidth is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Bandwidth's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Unable to establish if Bandwidth's level of debt is high without past debt data.

Unable to establish if Bandwidth's debt level has increased without past 5-year debt data.

Operating cash flow is negative therefore debt is not well covered.

Bandwidth has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are -13718.8x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Bandwidth's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Bandwidth's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Bandwidth has not reported any payouts.

Unable to verify if Bandwidth's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

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


Future Payout to Shareholders

No need to calculate the sustainability of Bandwidth'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 Bandwidth's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average board tenure


CEO

David Morken (50yo)

0yrs

Tenure

US$1,414,860

Compensation

Mr. David A. Morken serves as an Advisor of Sovereign's Capital. He focuses on investments in IT at the firm. He Co-Founded Bandwidth.com Inc. in 1999 and serves as its Chairman and Chief Executive Officer ...


CEO Compensation Analysis

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

David's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

2.8yrs

Average Tenure

53yo

Average Age

The average tenure for the Bandwidth board of directors is less than 3 years, this suggests a new board.


Insider Trading

Bandwidth individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,425,75921 Aug 19
Henry Kaestner
EntityIndividual
Shares16,685
Max PriceUS$86.29
SellUS$2,923,57410 Jul 19
Amdg 1, Llc
EntityCompany
Shares37,741
Max PriceUS$78.45
SellUS$4,792,04702 Jul 19
Amdg 1, Llc
EntityCompany
Shares62,977
Max PriceUS$78.95
SellUS$773,50018 Jun 19
Amdg 1, Llc
EntityCompany
Shares10,000
Max PriceUS$77.35
SellUS$3,773,72013 Jun 19
Amdg 1, Llc
EntityCompany
Shares50,000
Max PriceUS$76.19
SellUS$57,40510 Jun 19
Lukas Roush
EntityIndividual
Role
Member of the Board of Directors
Director
Shares750
Max PriceUS$76.54

Ownership Breakdown


Management Team

  • David Morken (50yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: US$1.41m
  • Noreen Allen

    Chief Marketing Officer

    • Tenure: 0yrs
  • Chris Matton (49yo)

    General Counsel & Secretary

    • Tenure: 9.7yrs
    • Compensation: US$546.78k
  • Rebecca Bottorff

    Chief People officer

    • Tenure: 0yrs
  • Jeff Hoffman (50yo)

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: US$1.14m
  • Ryan Henley

    Senior Vice President of Customer & Business Operations

    • Tenure: 0yrs
  • Tom Steffens

    Senior Vice President of Product

    • Tenure: 0yrs
  • Scott Mullen

    Chief Technology Officer

    • Tenure: 0yrs
  • Brian Truesdale

    • Tenure: 0yrs

Board Members

  • Brian Bailey (52yo)

    Director

    • Tenure: 6.6yrs
    • Compensation: US$148.64k
  • Julius Genachowski (56yo)

    Member of Advisory Board

    • Tenure: 0yrs
  • David Morken (50yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: US$1.41m
  • Luke Roush (41yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$28.32k
  • John Murdock (54yo)

    Director

    • Tenure: 3.7yrs
    • Compensation: US$1.71m
  • Doug Suriano (58yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$151.25k

Company Information

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


Key Information

  • Name: Bandwidth Inc.
  • Ticker: BAND
  • Exchange: NasdaqGS
  • Founded: 2000
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: US$1.638b
  • Shares outstanding: 23.39m
  • Website: https://www.bandwidth.com

Number of Employees


Location

  • Bandwidth Inc.
  • 900 Main Campus Drive
  • Suite 500
  • Raleigh
  • North Carolina
  • 27606
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BANDNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDNov 2017
5XBDB (Deutsche Boerse AG)YesClass A Common StockDEEURNov 2017

Biography

Bandwidth Inc. operates as a cloud-based software-powered communications platform-as-a-service (CPaaS) provider in the United States. The company operates through two segments, CPaaS and Other. Its platfor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/22 00:41
End of Day Share Price2019/09/20 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.