NasdaqGS:BAND

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Executive Summary

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


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


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

Stable Share Price: BAND's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.2%

BAND

-3.3%

US Telecom

-2.4%

US Market


1 Year Return

228.0%

BAND

-16.8%

US Telecom

18.2%

US Market

Return vs Industry: BAND exceeded the US Telecom industry which returned -15.7% over the past year.

Return vs Market: BAND exceeded the US Market which returned 19.5% over the past year.


Shareholder returns

BANDIndustryMarket
7 Day-5.2%-3.3%-2.4%
30 Day18.3%-5.4%4.2%
90 Day32.6%-3.4%6.3%
1 Year228.0%228.0%-12.3%-16.8%20.9%18.2%
3 Yearn/a7.8%-7.8%41.2%31.8%
5 Yearn/a20.7%-6.6%84.8%63.9%

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 compared to its fair value and its price relative to the market?

14.13x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: BAND ($183.02) is trading above our estimate of fair value ($14.19)

Significantly Below Fair Value: BAND is trading above our estimate of fair value.


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 (14.1x) compared to the US Telecom industry average (1.2x).


Next Steps

Future Growth

How is Bandwidth forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

108.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAND is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: BAND is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BAND's is expected to become profitable in the next 3 years.

Revenue vs Market: BAND's revenue (19.3% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: BAND's revenue (19.3% 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 (3.7%).


Next Steps

Past Performance

How has Bandwidth performed over the past 5 years?

-44.4%

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 44.4% 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 (6%).


Return on Equity

High ROE: BAND has a negative Return on Equity (-7.88%), as it is currently unprofitable.


Next Steps

Financial Health

How is Bandwidth's financial position?


Financial Position Analysis

Short Term Liabilities: BAND's short term assets ($577.3M) exceed its short term liabilities ($48.7M).

Long Term Liabilities: BAND's short term assets ($577.3M) exceed its long term liabilities ($296.3M).


Debt to Equity History and Analysis

Debt Level: BAND's debt to equity ratio (87.2%) is considered high.

Reducing Debt: Insufficient data to determine if BAND's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: BAND's debt is not well covered by operating cash flow (1.4%).

Interest Coverage: Insufficient data to determine if BAND's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.8yrs

Average management tenure


CEO

David Morken (51 yo)

no data

Tenure

US$2,247,490

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 Inc. (formerly known as Bandwidth.com, Inc.) in 1999 and serves as its ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD2.25M) is below average for companies of similar size in the US market ($USD5.61M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Morken
Co-Founderno dataUS$2.25m4.93%
$ 218.2m
Jeffrey Hoffman
Chief Financial Officerno dataUS$1.31m0.031%
$ 1.4m
W. Matton
General Counsel & Secretary10.75yrsUS$911.82k0.047%
$ 2.1m
Noreen Allen
Chief Marketing Officer8.75yrsUS$746.58k0.031%
$ 1.4m
Rebecca Bottorff
Chief People Officer10.75yrsUS$1.02m0.026%
$ 1.1m
Scott Mullen
Chief Technology Officerno datano data0.13%
$ 5.8m
Kade Ross
Chief Information Officer1yrno data0.019%
$ 848.0k
Sarah Walas
Vice President of Investor Relationsno datano datano data
Ryan Henley
Chief Customer Officerno datano datano data
Tom Steffens
Senior Vice President of Productno datano datano data
John Bell
Chief Product Officer0.75yrno datano data
Gabriela Gonzalez
Controller & Assistant Treasurerno datano data0.030%
$ 1.3m

8.8yrs

Average Tenure

51yo

Average Age

Experienced Management: BAND's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Morken
Co-Founderno dataUS$2.25m4.93%
$ 218.2m
Brian Bailey
Independent Director7.67yrsUS$140.00k0.036%
$ 1.6m
Julius Genachowski
Member of Advisory Boardno datano datano data
Lukas Roush
Independent Director2yrsUS$132.50k0.013%
$ 570.2k
John Murdock
Director4.75yrsUS$125.00k1.31%
$ 58.0m
Douglas Suriano
Independent Director3yrsUS$132.50k0.022%
$ 975.8k

3.9yrs

Average Tenure

54yo

Average Age

Experienced Board: BAND's board of directors are considered experienced (3.9 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.3%.


Top Shareholders

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$4.423b
  • Shares outstanding: 24.17m
  • 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 in two segments, CPaaS and Other. Its platform ena ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:19
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.