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

Flawless balance sheet with concerning outlook.


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

-4.6%

BAND

1.0%

US Telecom

1.8%

US Market


1 Year Return

18.6%

BAND

10.4%

US Telecom

7.3%

US Market

Return vs Industry: BAND exceeded the US Telecom industry which returned 10.4% over the past year.

Return vs Market: BAND exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

BANDIndustryMarket
7 Day-4.6%1.0%1.8%
30 Day-17.2%0.9%-0.7%
90 Day-22.5%10.1%0.06%
1 Year18.6%18.6%16.2%10.4%9.7%7.3%
3 Yearn/a22.5%4.7%46.3%36.9%
5 Yearn/a41.9%9.5%64.5%46.5%

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?

182.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate BAND's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate BAND's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: BAND is poor value based on its PE Ratio (182.7x) compared to the Telecom industry average (18.8x).

PE vs Market: BAND is poor value based on its PE Ratio (182.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low 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 (5.2x) compared to the US Telecom industry average (1.4x).


Next Steps

Future Growth

How is Bandwidth forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAND's earnings are forecast to decline over the next 3 years (-77.5% per year).

Earnings vs Market: BAND's earnings are forecast to decline over the next 3 years (-77.5% per year).

High Growth Earnings: BAND's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BAND's revenue (18.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: BAND's revenue (18.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BAND is forecast to be unprofitable in 3 years.


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

Earnings Trend: BAND's earnings have declined by -5.6% 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 (-62.3%) over the past year, making it difficult to compare to the Telecom industry average (-23%).


Return on Equity

High ROE: BAND's Return on Equity (2.5%) is considered low.


Return on Assets

ROA vs Industry: BAND's Return on Assets is below or equal to the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: BAND is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Bandwidth's financial position?


Financial Position Analysis

Short Term Liabilities: BAND's short term assets ($233.2M) exceeds its short term liabilities ($34.8M)

Long Term Liabilities: BAND's short term assets (233.2M) exceeds its long term liabilities (9.6M)


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.


Balance Sheet

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 -13718.8x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage4.8%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

2.9yrs

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

Compensation vs. Market: Insufficient data to establish whether David's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Board Age and Tenure

2.9yrs

Average Tenure

53yo

Average Age

Experienced Board: BAND's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: BAND 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: 9.8yrs
    • 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: 6.7yrs
    • 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: 1yrs
    • Compensation: US$28.32k
  • John Murdock (54yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$1.71m
  • Doug Suriano (58yo)

    Director

    • Tenure: 2yrs
    • 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$1.392b
  • 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 Analysis2019/10/18 00:50
End of Day Share Price2019/10/17 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.