Box, Inc. Fundamental Analysis (NYSE: BOX)
Box, Inc. (NYSE: BOX) shows weak financial fundamentals with a PE ratio of 47.93, profit margin of 9.45%, and ROE of 2.17%. The company generates $1.2B in annual revenue with moderate year-over-year growth of 5.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BOX's fundamental strength across five key dimensions:
Efficiency Score
WeakBOX struggles to generate sufficient returns from assets.
Valuation Score
ModerateBOX shows balanced valuation metrics.
Growth Score
ModerateBOX shows steady but slowing expansion.
Financial Health Score
ExcellentBOX maintains a strong and stable balance sheet.
Profitability Score
ModerateBOX maintains healthy but balanced margins.
Key Financial Metrics
Is BOX Expensive or Cheap?
P/E Ratio
BOX trades at 47.93 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BOX's PEG of -1.06 indicates potential undervaluation.
Price to Book
The market values Box, Inc. at 32.06 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 30.47 times EBITDA. This signals the market has high growth expectations.
How Well Does BOX Make Money?
Net Profit Margin
For every $100 in sales, Box, Inc. keeps $9.45 as profit after all expenses.
Operating Margin
Core operations generate 9.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.17 in profit for every $100 of shareholder equity.
ROA
Box, Inc. generates $8.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Box, Inc. generates strong operating cash flow of $395.27M, reflecting robust business health.
Free Cash Flow
Box, Inc. generates strong free cash flow of $380.35M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.75 in free cash annually.
FCF Yield
BOX converts 8.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
47.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
32.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
2.17
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How BOX Stacks Against Its Sector Peers
| Metric | BOX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 47.93 | 33.76 | Worse (Expensive) |
| ROE | 217.31% | 777.00% | Weak |
| Net Margin | 9.45% | -3141.00% (disorted) | Weak |
| Debt/Equity | 0.50 | 0.59 | Neutral |
| Current Ratio | 1.06 | 6.20 | Neutral |
| ROA | 8.30% | 337.00% | Weak |
BOX outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Box, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
60.40%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
273.62%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
661.30%
Industry Style: Growth, Innovation, High Beta
High Growth