Bandwidth Inc.
Bandwidth Inc. Fundamental Analysis
Bandwidth Inc. (BAND) shows moderate financial fundamentals with a PE ratio of -54.20, profit margin of -1.71%, and ROE of -3.39%. The company generates $0.8B in annual revenue with strong year-over-year growth of 24.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BAND's fundamental strength across five key dimensions:
Efficiency Score
WeakBAND struggles to generate sufficient returns from assets.
Valuation Score
ModerateBAND shows balanced valuation metrics.
Growth Score
ExcellentBAND delivers strong and consistent growth momentum.
Financial Health Score
ModerateBAND shows balanced financial health with some risks.
Profitability Score
WeakBAND struggles to sustain strong margins.
Key Financial Metrics
Is BAND Expensive or Cheap?
P/E Ratio
BAND trades at -54.20 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BAND's PEG of 5.28 indicates potential overvaluation.
Price to Book
The market values Bandwidth Inc. at 1.75 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.93 times EBITDA. This is generally considered low.
How Well Does BAND Make Money?
Net Profit Margin
For every $100 in sales, Bandwidth Inc. keeps $-1.71 as profit after all expenses.
Operating Margin
Core operations generate -1.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-3.39 in profit for every $100 of shareholder equity.
ROA
Bandwidth Inc. generates $-1.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bandwidth Inc. produces operating cash flow of $91.18M, showing steady but balanced cash generation.
Free Cash Flow
Bandwidth Inc. produces free cash flow of $66.00M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.10 in free cash annually.
FCF Yield
BAND converts 9.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-54.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.95
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.75
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.03
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How BAND Stacks Against Its Sector Peers
| Metric | BAND Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -54.20 | 34.96 | Better (Cheaper) |
| ROE | -3.39% | 1045.00% | Weak |
| Net Margin | -1.71% | 5914873418.00% | Weak |
| Debt/Equity | 1.75 | 0.46 | Weak (High Leverage) |
| Current Ratio | 1.39 | 5.00 | Neutral |
| ROA | -1.15% | -295222.00% (disorted) | Weak |
BAND outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bandwidth Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
167.76%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-317.66%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
5670.31%
Industry Style: Growth, Innovation, High Beta
High Growth