Box Inc (NYSE: BOX)

Sector: Technology Industry: Software - Infrastructure CIK: 0001372612
Market Cap 4.26 Bn
P/B -14.88
P/E 22.85
P/S 3.71
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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Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.65 2.69
EV to Cash from Ops. EV/CFO 12.24 28.91
EV to Debt EV to Debt 5.86 19.83
EV to EBIT EV/EBIT 41.82 -9.95
EV to EBITDA EV/EBITDA 42.73 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 13.80 26.09
EV to Market Cap EV to Market Cap 1.00 0.36
EV to Revenue EV/Rev 3.70 -9.34
Price to Book Value [P/B] P/B -14.88 3.88
Price to Earnings [P/E] P/E 22.85 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 4.54 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) 6.15 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -150.00 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 4.01 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 56.29 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -10.18 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) -2.21 20.13
EBT Growth (1y) % EBT 1y % (Qtr) -4.91 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 58.54 67.50
FCF Growth (1y) % FCF 1y % (Qtr) 1.67 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 7.95 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.72 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.74 1.22
Current Ratio Curr Ratio (Qtr) 1.20 2.59
Debt to Equity Ratio Debt/Equity (Qtr) -2.54 -0.96
Interest Cover Ratio Int Coverage (Qtr) 6.15 -14.20
Times Interest Earned Times Interest Earned (Qtr) 6.15 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 11.40 -548.16
EBIT Margin % EBIT Margin % (Qtr) 8.85 -199.84
EBT Margin % EBT Margin % (Qtr) 7.41 -607.20
Gross Margin % Gross Margin % (Qtr) 78.90 51.88
Net Profit Margin % Net Margin % (Qtr) 16.20 -610.00