Braze, Inc.
Braze, Inc. Fundamental Analysis
Braze, Inc. (BRZE) shows moderate financial fundamentals with a PE ratio of -17.55, profit margin of -17.79%, and ROE of -22.84%. The company generates $0.7B in annual revenue with strong year-over-year growth of 25.78%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 10.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BRZE's fundamental strength across five key dimensions:
Efficiency Score
WeakBRZE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBRZE trades at attractive valuation levels.
Growth Score
ExcellentBRZE delivers strong and consistent growth momentum.
Financial Health Score
ExcellentBRZE maintains a strong and stable balance sheet.
Profitability Score
WeakBRZE struggles to sustain strong margins.
Key Financial Metrics
Is BRZE Expensive or Cheap?
P/E Ratio
BRZE trades at -17.55 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BRZE's PEG of 1.61 indicates fair valuation.
Price to Book
The market values Braze, Inc. at 3.69 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -17.41 times EBITDA. This is generally considered low.
How Well Does BRZE Make Money?
Net Profit Margin
For every $100 in sales, Braze, Inc. keeps $-17.79 as profit after all expenses.
Operating Margin
Core operations generate -19.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-22.84 in profit for every $100 of shareholder equity.
ROA
Braze, Inc. generates $-11.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Braze, Inc. generates limited operating cash flow of $67.31M, signaling weaker underlying cash strength.
Free Cash Flow
Braze, Inc. produces free cash flow of $57.28M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.56 in free cash annually.
FCF Yield
BRZE converts 2.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-17.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.23
vs 25 benchmark
ROA
Return on assets percentage
-0.12
vs 25 benchmark
ROCE
Return on capital employed
-0.21
vs 25 benchmark
How BRZE Stacks Against Its Sector Peers
| Metric | BRZE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -17.55 | 34.04 | Better (Cheaper) |
| ROE | -22.84% | 1149.00% | Weak |
| Net Margin | -17.79% | -87420.00% (disorted) | Weak |
| Debt/Equity | 0.13 | 7.86 | Strong (Low Leverage) |
| Current Ratio | 1.35 | 5.90 | Neutral |
| ROA | -11.79% | -306991.00% (disorted) | Weak |
BRZE outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Braze, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
2.54%
Industry Style: Growth, Innovation, High Beta
GrowingEPS CAGR
45.69%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
182.93%
Industry Style: Growth, Innovation, High Beta
High Growth