Box Inc (NYSE: BOX)

Sector: Technology Industry: Software - Infrastructure CIK: 0001372612
P/B -15.03
P/E 23.08
P/S 3.74
Market Cap 4.31 Bn
ROIC (Qtr) 7.45
Div Yield % 0.00
Rev 1y % (Qtr) 9.13
Total Debt (Qtr) 727.59 Mn
Debt/Equity (Qtr) -2.54

About

Box, Inc., a company with the ticker symbol BOX, operates in the content management industry. The company provides a secure and intelligent content platform for organizations to manage their unstructured data. This cloud-based platform enables businesses to store, manage, and share their content securely. Box's primary product is its Content Cloud platform. This platform aims to provide a single platform for organizations to manage their content, from creation to disposition. It comes with a range of features, including advanced data protection...

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Stock Price Chart

Analysis

Pros

  • Strong operating cash flow of 348.24M provides robust 0.48x coverage of total debt 727.59M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 633.16M provide 3.09x coverage of short-term debt 204.76M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 348.24M provides exceptional 21.01x coverage of interest expenses 16.57M, showing strong debt service capability.
  • Robust free cash flow of 308.66M exceeds capital expenditure of 39.58M by 7.80x, indicating strong organic growth funding capability.
  • Free cash flow of 308.66M provides exceptional 18.63x coverage of interest expense 16.57M, showing strong debt service ability.

Cons

  • Operating cash flow of 348.24M barely covers its investment activities of (43.60M), with a coverage ratio of -7.99, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (43.60M) provide weak support for R&D spending of 286.83M, which is -0.15x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 348.24M provides insufficient coverage of deferred revenue obligations of 533.93M, which is 0.65x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 348.24M shows concerning coverage of stock compensation expenses of 232.11M, with a 1.50 ratio indicating potential earnings quality issues.
  • Operating cash flow of 348.24M provides minimal -2.45x coverage of tax expenses of (142.40M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer Comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,542.10 Bn 33.76 12.06 60.56 Bn
2 ORCL Oracle Corp 533.93 Bn 34.61 8.75 124.39 Bn
3 PLTR Palantir Technologies Inc. 437.56 Bn 399.47 112.31 0.24 Bn
4 PANW Palo Alto Networks Inc 125.16 Bn 112.03 13.10 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 120.85 Bn -384.67 26.47 0.82 Bn
6 SNPS Synopsys Inc 71.69 Bn 35.89 11.14 15.14 Bn
7 NET Cloudflare, Inc. 67.84 Bn -658.43 33.70 3.50 Bn
8 FTNT Fortinet, Inc. 63.33 Bn 33.80 9.66 1.00 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 2.67 2.56
EV to Cash from Ops. 12.36 38.32
EV to Debt 5.92 -11.37
EV to EBIT 42.24 -12.79
EV to EBITDA 43.16 7.72
EV to Free Cash Flow [EV/FCF] 13.94 24.22
EV to Market Cap 1.00 0.58
EV to Revenue 3.74 -35.00
Price to Book Value [P/B] -15.03 3.74
Price to Earnings [P/E] 23.08 -18.61

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 4.54 -0.30
Dividend Payout Ratio % 0.00 2.69
Dividend per Basic Share 0.00 0.10
FCF Dividend Payout Ratio % 0.00 1.67
Interest Coverage 6.15 -13.15

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -150.00 -404.11
Cash and Equivalents Growth (1y) % 4.01 226.02
Dividend Growth (1y) % 0.00 -0.27
EBIAT Growth (1y) % 56.29 31.15
EBITDA Growth (1y) % -10.18 49.02
EBIT Growth (1y) % -2.21 25.85
EBT Growth (1y) % -4.91 17.82
EPS Growth (1y) % 58.54 70.69
FCF Growth (1y) % 1.67 295.45
Gross Profit Growth (1y) % 7.95 49.96

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.72 0.68
Cash Payout Ratio 0.00 0.02
Cash Ratio 0.74 1.21
Current Ratio 1.20 2.57
Debt to Equity Ratio -2.54 -0.93
Interest Cover Ratio 6.15 -13.15
Times Interest Earned 6.15 -13.15

Profitability

Metric Value Industry Percentile
EBITDA Margin % 11.40 -544.82
EBIT Margin % 8.85 -197.78
EBT Margin % 7.41 -602.74
Gross Margin % 78.90 52.06
Net Profit Margin % 16.20 -605.52