Box
NYSE: BOX
$31.51 ▲ +1.36  (+4.53%)
At close: Jul 28, 2026 · 3:59 PM UTC
Financial Ratios
Market Cap4.55 Bn
P/E52.25
P/S3.86
Div. Yield0.00
ROIC (Qtr)0.00
Total Debt (Qtr)451.01 Mn
Revenue Growth (1y) (Qtr)9.43
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About

Box provides an Intelligent Content Management platform that helps organizations manage unstructured data. The platform stores content in a cloud based architecture and makes it accessible from any device while enforcing security and compliance controls. Box supports workflows such as collaboration e signature generation and automation while integrating with more than fifteen hundred business applications. It offers native tools for workflow automation electronic signatures…

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Sector: Technology Industry: Software - Infrastructure CIK: 0001372612

Investment Thesis

▲ Bull case
  • Box is positioned to capture significant upside from the accelerating adoption of AI agents in enterprise workflows, a trend management highlighted as a core driver of future growth but did not fully quantify in its guidance. The company’s Enterprise Advanced suite, which integrates Box Agent, Box Extract, and Box Automate, is seeing strong traction with net retention rates above the overall 105% and a price premium of 30–40% over Enterprise Plus, indicating deep customer value recognition. This is not merely a product upgrade cycle but a structural shift where enterprises are rearchitecting their unstructured data infrastructure to serve as the secure, governed content layer for AI agents—a role Box is uniquely positioned to own given its early partnerships with NVIDIA, OpenAI, Anthropic, and Google, and its focus on model-agnostic AI integration. The market is underestimating how this transition will drive multi-year expansion in both seat-based revenue and consumption-based monetization (AI units and API calls), which are already showing nice growth and could become material contributors to top-line expansion as AI workloads scale. With 35% of revenue generated outside the U.S. and 70% of that in Japanese Yen, the company’s constant currency guidance already reflects resilience to FX headwinds, and the improving net retention rate of 105%—driven by seat expansion in Enterprise Advanced—suggests a durable, compounding growth engine that is still in its early innings. The disciplined capital return via the expanded $500 million share repurchase program, with $445 million remaining as of April 30, 2026, further signals management’s confidence in intrinsic value and provides a floor for shareholder returns even if growth moderates.
▼ Bear case
  • Despite Box’s strong Q1 performance and optimistic commentary on AI-driven growth, the market may be ignoring the risk that the company’s current momentum is heavily dependent on a narrow set of early-adopter use cases—such as document extraction for contracts and invoices—that may not scale broadly across all enterprise functions. While management emphasized the urgency of customer conversations around connecting AI agents to unstructured data, they acknowledged that enterprises are still in the early stages of agentic strategy execution and face significant change management, technology deployment, and integration hurdles that could slow adoption timelines. The company’s reliance on partnerships with hyperscalers and AI labs (e.g., AWS with OpenAI, NVIDIA’s NemoClaw) introduces execution risk, as Box’s success becomes tied to the pace and priorities of third-party platforms over which it has limited control. Furthermore, the shift toward consumption-based monetization (AI units, API calls) remains nascent and unproven at scale; if customers optimize token usage or leverage alternative AI model routing outside Box’s ecosystem—as hinted at in discussions about token budgeting and model neutrality—the expected upside from these new revenue streams may fail to materialize. Finally, while Box raised its FY27 revenue guidance to $1.28 billion (9% YoY growth in reported currency, 10% in constant currency), this implies a deceleration from Q1’s 11% YoY growth, and the guidance assumes only low double-digit constant currency billings growth in H1 FY27, tapering to high single digits in H2—a pattern that could signal waning momentum or front-loaded deal execution, raising concerns about the sustainability of the current acceleration without a clear, scalable path to broader enterprise AI workflow transformation beyond isolated pilots.

Adjustments For New Accounting Pronouncements Breakdown of Revenue (2019)

Adjustments For New Accounting Pronouncements Breakdown of Revenue (2019)

Peer Comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market CapP/EP/STotal Debt (Qtr)
1 MSFT Microsoft Corp 2,921.46 Bn59.699.1840.26 Bn
2 PAGS PagSeguro Digital Ltd. 2,686.70 Bn4,800.62710.28-
3 ORCL Oracle Corp 344.13 Bn18.425.11122.34 Bn
4 RPAY Repay Holdings Corp 342.29 Bn-2,788.18-0.43 Bn
5 PLTR Palantir Technologies Inc. 294.57 Bn128.4556.39-
6 PANW Palo Alto Networks Inc 224.46 Bn175.1022.69-
7 CRWD CrowdStrike Holdings, Inc. 182.52 Bn-1,132.1537.930.75 Bn
8 FTNT Fortinet, Inc. 111.29 Bn56.9315.650.50 Bn