Bandwidth Inc. operates as a cloud-based software-powered communications platform-as-a-service (CPaaS) provider in the United States. More Details
Slightly overvalued with imperfect balance sheet.
Share Price & News
How has Bandwidth's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BAND is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: BAND's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: BAND underperformed the US Telecom industry which returned -3.6% over the past year.
Return vs Market: BAND underperformed the US Market which returned 33% over the past year.
Long-Term 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
3 weeks ago | Simply Wall StBe Wary Of Bandwidth (NASDAQ:BAND) And Its Returns On Capital
1 month ago | Simply Wall StHow Much Are Bandwidth Inc. (NASDAQ:BAND) Insiders Taking Off The Table?
2 months ago | Simply Wall StCalculating The Fair Value Of Bandwidth Inc. (NASDAQ:BAND)
Is Bandwidth undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BAND ($101.42) is trading below our estimate of fair value ($282.26)
Significantly Below Fair Value: BAND is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: BAND is unprofitable, so we can't compare its PE Ratio to the US Telecom industry average.
PE vs Market: BAND 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 BAND's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: BAND is overvalued based on its PB Ratio (5.7x) compared to the US Telecom industry average (3.2x).
How is Bandwidth forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BAND is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: BAND is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: BAND is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: BAND's revenue (16% per year) is forecast to grow faster than the US market (9.8% per year).
High Growth Revenue: BAND's revenue (16% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BAND's Return on Equity is forecast to be low in 3 years time (5.5%).
How has Bandwidth performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BAND is currently unprofitable.
Growing Profit Margin: BAND is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: BAND is unprofitable, and losses have increased over the past 5 years at a rate of 77.4% per year.
Accelerating Growth: Unable to compare BAND's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: BAND is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (155.1%).
Return on Equity
High ROE: BAND has a negative Return on Equity (-7.76%), as it is currently unprofitable.
How is Bandwidth's financial position?
Financial Position Analysis
Short Term Liabilities: BAND's short term assets ($408.2M) exceed its short term liabilities ($92.3M).
Long Term Liabilities: BAND's short term assets ($408.2M) do not cover its long term liabilities ($557.1M).
Debt to Equity History and Analysis
Debt Level: BAND's debt to equity ratio (106.1%) is considered high.
Reducing Debt: BAND's debt to equity ratio has reduced from 2819.9% to 106.1% over the past 5 years.
Debt Coverage: BAND's debt is not well covered by operating cash flow (2.9%).
Interest Coverage: BAND's interest payments on its debt are not well covered by EBIT (0.2x coverage).
What is Bandwidth current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate BAND's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate BAND's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if BAND's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if BAND's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of BAND's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
David Morken (52 yo)
Mr. David A. Morken serves as an Advisor of Sovereign's Capital. Mr. Morken is also a Co-Founder, Chairman of the board of directors of Republic Wireless, Inc. He was Chief Executive Officer of Republic Wi...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD3.70M) is about average for companies of similar size in the US market ($USD5.25M).
Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.
Experienced Management: BAND's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.
Experienced Board: BAND's board of directors are considered experienced (4.8 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.9%.
Bandwidth Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Bandwidth Inc.
- Ticker: BAND
- Exchange: NasdaqGS
- Founded: 2000
- Industry: Alternative Carriers
- Sector: Telecom
- Market Cap: US$2.547b
- Shares outstanding: 25.11m
- Website: https://www.bandwidth.com
Number of Employees
- Bandwidth Inc.
- 900 Main Campus Drive
- Suite 500
- North Carolina
- United States
Bandwidth Inc. operates as a cloud-based software-powered communications platform-as-a-service (CPaaS) provider in the United States. The company operates in two segments, CPaaS and Other. Its platform ena...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/22 00:16|
|End of Day Share Price||2021/09/21 00:00|
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.