Bandwidth Inc. operates as a cloud-based software-powered communications platform-as-a-service (CPaaS) provider in the United States.
+ 1 more risk
Flawless balance sheet and overvalued.
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.
7 Day Return
1 Year Return
Return vs Industry: BAND exceeded the US Telecom industry which returned 12% over the past year.
Return vs Market: BAND exceeded the US Market which returned 24.7% over the past year.
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
2 weeks ago | Simply Wall StDoes Bandwidth's (NASDAQ:BAND) Share Price Gain of 60% Match Its Business Performance?
1 month ago | Simply Wall StHow Much Are Bandwidth Inc. (NASDAQ:BAND) Insiders Taking Off The Table?
2 months ago | Simply Wall StA Closer Look At Bandwidth Inc.'s (NASDAQ:BAND) Uninspiring ROE
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 ($70.51) is trading below our estimate of fair value ($86.07)
Significantly Below Fair Value: BAND is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: BAND is poor value based on its PE Ratio (482.2x) compared to the Telecom industry average (16.5x).
PE vs Market: BAND is poor value based on its PE Ratio (482.2x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: BAND's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: BAND is overvalued based on its PB Ratio (6.1x) compared to the US Telecom industry average (1.5x).
How is Bandwidth forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BAND's earnings are forecast to decline over the next 3 years (-74.7% per year).
Earnings vs Market: BAND's earnings are forecast to decline over the next 3 years (-74.7% per year).
High Growth Earnings: BAND's earnings are forecast to decline over the next 3 years.
Revenue vs Market: BAND's revenue (16.2% per year) is forecast to grow faster than the US market (7.5% per year).
High Growth Revenue: BAND's revenue (16.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BAND is forecast to be unprofitable in 3 years.
How has Bandwidth performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BAND has a high level of non-cash earnings.
Growing Profit Margin: BAND's current net profit margins (1.4%) are lower than last year (9.7%).
Past Earnings Growth Analysis
Earnings Trend: BAND's earnings have declined by -14.1% per year over the past 5 years.
Accelerating Growth: BAND's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: BAND had negative earnings growth (-83.2%) over the past year, making it difficult to compare to the Telecom industry average (-43.1%).
Return on Equity
High ROE: BAND's Return on Equity (1.2%) is considered low.
Return on Assets
Return on Capital Employed
How is Bandwidth's financial position?
Financial Position Analysis
Short Term Liabilities: BAND's short term assets ($233.3M) exceed its short term liabilities ($41.1M).
Long Term Liabilities: BAND's short term assets ($233.3M) exceed its long term liabilities ($9.5M).
Debt to Equity History and Analysis
Debt Level: BAND is debt free.
Reducing Debt: BAND had no debt 5 years ago.
Debt Coverage: BAND has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: BAND has no debt, therefore coverage of interest payments is not a concern.
Inventory Level: BAND has a low level of unsold assets or inventory.
Debt Coverage by Assets: BAND's debt is not covered by short term assets (assets are -13724.2x debt).
What is Bandwidth's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate BAND's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate BAND's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if BAND's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if BAND's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of BAND's dividend in 3 years as they are not forecast to pay a notable one for the US market.
What is the CEO of Bandwidth's salary, the management and board of directors tenure and is there insider trading?
Average board tenure
David Morken (50yo)
Mr. David A. Morken serves as an Advisor of Sovereign's Capital. He focuses on investments in IT at the firm. He Co-Founded Bandwidth.com Inc. in 1999 and serves as its Chairman and Chief Executive Officer ...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD1.41M) is below average for companies of similar size in the US market ($USD3.86M).
Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.
Board Age and Tenure
Experienced Board: BAND's board of directors are considered experienced (3.1 years average tenure).
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Member of the Board of Directors
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 23.8%.
David Morken (50yo)
- Compensation: US$1.41m
Chief Marketing Officer
Chris Matton (49yo)
General Counsel & Secretary
- Tenure: 10yrs
- Compensation: US$546.78k
Chief People officer
Chief Information Officer
- Tenure: 0.3yrs
Jeff Hoffman (50yo)
Chief Financial Officer
- Compensation: US$1.14m
Senior Vice President of Customer & Business Operations
Senior Vice President of Product
Chief Technology Officer
Vice President of Investor Relations
Brian Bailey (52yo)
- Tenure: 6.9yrs
- Compensation: US$148.64k
Julius Genachowski (56yo)
Member of Advisory Board
David Morken (50yo)
- Compensation: US$1.41m
Luke Roush (41yo)
- Tenure: 1.3yrs
- Compensation: US$28.32k
John Murdock (54yo)
- Tenure: 4yrs
- Compensation: US$1.71m
Doug Suriano (58yo)
- Tenure: 2.3yrs
- Compensation: US$151.25k
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$1.671b
- Shares outstanding: 23.49m
- Website: https://www.bandwidth.com
Number of Employees
- Bandwidth Inc.
- 900 Main Campus Drive
- Suite 500
- North Carolina
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|BAND||NasdaqGS (Nasdaq Global Select)||Yes||Class A Common Stock||US||USD||Nov 2017|
|5XB||DB (Deutsche Boerse AG)||Yes||Class A Common Stock||DE||EUR||Nov 2017|
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 platform enables enterprises to create, scale, and operate voice or text communications services across mobile application or connected device. The company also provides SIP trunking, data resale, and hosted voice over Internet protocol services. It serves large enterprises, small and medium-sized businesses, technology companies, and other business. Bandwidth Inc. was founded in 2000 and is headquartered in Raleigh, North Carolina.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/01/18 00:46|
|End of Day Share Price||2020/01/17 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.