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Box (BOX)
NYSE:BOX
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Box
(NYSE:BOX)69Neutral
Positive Factors
Revenue Growth
Box's new higher-tier plan, Enterprise Advanced, infused with AI capabilities, has proven successful in driving upgrades and presents a potential revenue driver.
Valuation
The combination of Box's modest valuation, generous stock repurchases, and improved margin profile may attract value investors.
Negative Factors
Competition
Large platform vendors including Microsoft and Adobe are formidable competitive threats.
Box (BOX) vs. S&P 500 (SPY)
Market Cap
$4.70B
Dividend YieldN/A
Average Volume (3M)1.44M
Price to Earnings (P/E)40.9
Beta (1Y)0.68
Revenue Growth4.09%
EPS Growth299.27%
CountryUS
Employees2,530
SectorTechnology
Sector Strength48
IndustrySoftware
Share Statistics
EPS (TTM)0.80
Shares Outstanding143,703,770
10 Day Avg. Volume1,755,498
30 Day Avg. Volume1,439,164
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)N/A
Price to Sales (P/S)4.38
Price to Cash Flow (P/CF)18.80
P/FCF Ratio21.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$36.57Price Target Upside9.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Box Business Overview & Revenue Model
Company DescriptionBox, Inc. is a cloud content management and file sharing service for businesses. Headquartered in Redwood City, California, Box's core products and services enable users to securely manage, share, and collaborate on their content across various devices and platforms. The company focuses on providing enterprise-grade solutions that facilitate seamless workflow and content management for a range of industries, including finance, healthcare, and education.
How the Company Makes MoneyBox makes money primarily through a subscription-based revenue model. The company offers various pricing tiers, catering to businesses of different sizes and needs, and charges a recurring fee for access to its cloud-based services. Its revenue streams are largely driven by enterprise subscriptions, which offer advanced features and additional storage and security capabilities. Box also generates income from professional services, which include consulting and implementation support to help organizations optimize their use of Box's platform. Significant partnerships with technology providers, such as Microsoft, Google, and IBM, enhance its service offerings and contribute to customer acquisition and retention, further driving revenue growth.
Box Financial Statement Overview
Summary
Box shows solid performance in terms of revenue growth and improving margins, especially in net income. While the company maintains strong cash flow management, its high leverage and minimal equity could pose financial risks. Overall, Box's financial health appears to be on a positive trajectory, but attention to balance sheet improvements is advisable.Income Statement
Box has shown a strong revenue growth trajectory with a revenue increase from $990.87 million in 2023 to $1.07 billion in TTM (Trailing-Twelve-Months) 2024, while maintaining a solid gross profit margin of 78.4%. The net profit margin improved significantly to 13.96% in TTM 2024, showcasing enhanced profitability. However, the EBIT and EBITDA margins, at 7.72% and 10.34% respectively, leave room for improvement compared to industry standards.75
Positive
Balance Sheet
Box's balance sheet reveals a low equity position with stockholders' equity at just $13.8 million in TTM 2024, resulting in a high debt-to-equity ratio of 7.36. The equity ratio is minimal at 1.02%, indicating potential financial risk. However, the company has a strong liquidity position with substantial cash and short-term investments totaling $697.92 million.60
Neutral
Cash Flow
Box demonstrates robust cash flow management, with free cash flow growing steadily to $302.55 million in TTM 2024. The operating cash flow to net income ratio stands at an impressive 2.13, indicating strong cash generation relative to earnings. The free cash flow to net income ratio of 2.02 further underscores effective cash utilization and stability.80
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.09B | 1.04B | 990.87M | 874.33M | 770.77M | 696.26M | Gross Profit |
| 862.02M | 777.13M | 738.32M | 624.85M | 546.03M | 480.69M | EBIT |
| 79.63M | 50.75M | 36.84M | -27.63M | -35.22M | -139.47M | EBITDA |
| 95.54M | 101.99M | 102.83M | 50.61M | 37.84M | -82.40M | Net Income Common Stockholders |
| 218.68M | 129.03M | 26.78M | -41.46M | -43.43M | -144.35M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 480.69M | 480.69M | 461.25M | 586.27M | 595.08M | 195.59M | Total Assets |
| 1.24B | 1.24B | 1.21B | 1.39B | 1.35B | 955.11M | Total Debt |
| 491.80M | 491.80M | 564.42M | 642.33M | 648.15M | 424.54M | Net Debt |
| 108.06M | 108.06M | 135.96M | 226.06M | 53.07M | 228.96M | Total Liabilities |
| 1.18B | 1.18B | 1.24B | 1.30B | 1.20B | 932.76M | Stockholders Equity |
| 61.03M | 61.03M | -33.86M | 92.79M | 151.06M | 22.36M |
| Cash Flow | Free Cash Flow | ||||
| 318.01M | 300.32M | 281.49M | 224.33M | 180.34M | 31.30M | Operating Cash Flow |
| 332.26M | 318.73M | 297.98M | 234.82M | 196.83M | 44.71M | Investing Cash Flow |
| -23.21M | -82.79M | 120.60M | -239.37M | -16.38M | -13.30M | Financing Cash Flow |
| -62.36M | -272.90M | -396.50M | -172.86M | 218.68M | -53.42M |
Box Technical Analysis
Positive
33.47
Price Trends
32.78
Positive
32.91
Positive
30.68
Positive
Market Momentum
-0.05
Positive
50.47
Neutral
26.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BOX, the sentiment is Positive. The current price of 33.47 is below the 20-day moving average (MA) of 34.05, above the 50-day MA of 32.78, and above the 200-day MA of 30.68, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 26.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BOX.
Box Risk Analysis
Box disclosed 57 risk factors in its most recent earnings report. Box reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Box Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $16.80B | 16.83 | 50.85% | ― | 7.52% | 1855.81% | |
79 Outperform | $67.47B | 129.59 | 5.82% | ― | 17.04% | -62.24% | |
73 Outperform | $22.64B | 23.40 | 11.31% | ― | 3.05% | 55.96% | |
69 Neutral | $4.70B | 40.89 | 1086.23% | ― | 4.09% | 299.27% | |
68 Neutral | $7.82B | 18.77 | -60.11% | ― | 1.86% | 6.21% | |
66 Neutral | $71.69B | ― | -28.38% | ― | 23.19% | 11.01% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% |
* Technology Sector Average
Performance Comparison
BOX
Box
33.47
6.22
22.83%
WDAY
Workday
253.63
-13.11
-4.91%
TEAM
Atlassian
273.62
77.29
39.37%
DBX
Dropbox
26.32
2.42
10.13%
DOCU
DocuSign
82.06
30.28
58.48%
ZM
Zoom Video Communications
74.93
8.44
12.69%
Box Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: 0.00% | Next Earnings Date: Jun 3, 2025
Earnings Call Sentiment Positive
The earnings call presented a mix of strong financial performance and strategic product launches, such as the Enterprise Advanced plan, which shows potential for future growth. However, challenges including foreign exchange impacts, flat operating margin guidance, and tax expense headwinds were also highlighted. Despite these challenges, the company's strong cash flow, growing customer base, and innovative offerings contribute to an overall positive sentiment.Highlights
Strong Q4 Operating Results
Q4 revenue was $280 million, up 6% year over year or 8% in constant currency. Operating margins were 27.3%, and EPS was 42 cents, one cent above guidance.
Successful Launch of Enterprise Advanced
The new Enterprise Advanced plan was launched, with several dozen deals closed in Q4. The plan includes AI-powered document processing and no-code app functionalities.
Record Free Cash Flow
Free cash flow for fiscal 2025 was $305 million, up 13% year over year.
Increase in Operating Margin
Year-over-year operating margin increased by 320 basis points to 27.9%.
Expanding Customer Base
Approximately 1,920 total customers are paying at least $100,000 annually, up 8% year over year.
Lowlights
Impact of Foreign Exchange on Revenue
Q4 revenue had an incremental FX headwind of 70 basis points, and Q1 revenue guidance includes a 120 basis point headwind due to the leap year.
Flat Operating Margin Guidance for FY 2026
Fiscal year 2026 operating margin is expected to be approximately 28%, implying flat year-over-year growth due to planned investments.
Tax Expense Headwinds
Non-GAAP EPS is facing a $0.52 headwind from incremental non-cash deferred tax expenses.
Company Guidance
During the Box, Inc. fourth quarter and fiscal 2025 earnings call, the company provided several key metrics and financial guidance for the upcoming fiscal year 2026. Box reported a Q4 revenue of $280 million, a 6% year-over-year increase, with operating margins of 27.3% and an EPS of $0.42, surpassing their guidance by one cent. For the full fiscal year 2025, Box achieved a revenue growth of 5% year-over-year, reaching $1.09 billion, and expanded operating margins by 320 basis points to 28%. The company also reported a record free cash flow of $305 million, a 13% increase from the previous year. Looking ahead to fiscal 2026, Box anticipates revenue between $1.155 billion and $1.16 billion, representing a 6% increase, and aims for a gross margin of approximately 81%. The company expects billings growth of 7% and a non-GAAP operating margin of about 28%, despite a 60 basis point impact from previous data center equipment sales. Box is also planning strategic investments to enhance its partner ecosystem and AI capabilities, while maintaining cost discipline to drive future growth and profitability.Box Corporate Events
Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Box Amends Credit Agreement and Grants Stock Units
Neutral
Dec 20, 2024
Box, Inc. has amended its Credit Agreement with Wells Fargo Bank, reducing its revolving commitments from $150 million to $75 million, which may impact its financial flexibility. Additionally, the company has granted performance-based restricted stock units to CEO Aaron Levie as part of its strategy to incentivize leadership in a rapidly evolving AI-driven market, tying his compensation to the company’s stock performance.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.