Box (BOX) AI Stock Analysis

• Market Cap: $3.71B
• Dividend Yield: N/A
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.52
• Revenue Growth: 7.21%
• EPS Growth: 58.61%
• Country: US
• Employees: 2,810
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.31
• Shares Outstanding: 143,227,810
• 10 Day Avg. Volume: 2,157,891
• 30 Day Avg. Volume: 2,125,591
• PEG Ratio: 0.19
• Price to Book (P/B): 24.41
• Price to Sales (P/S): 4.42
• P/FCF Ratio: 14.61
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 3.10
• Enterprise Value/Gross Profit: 3.93
• Enterprise Value/Ebitda: 27.12
• 1Y Price Target: $36.67
• Price Target Upside: 50.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $27.00 ▲(11.16% Upside)

Box's overall score is driven by strong earnings call performance and solid financials, offset by bearish technical indicators and moderate valuation. The company's strategic focus on AI and partnerships is promising, but operational efficiency and market momentum require improvement.

Positive Factors

Subscription model & strategic partnerships

A recurring subscription model provides predictable, high-visibility revenue and facilitates customer stickiness via multi-year contracts. Large tech partnerships enable deep integrations, increasing retention and cross-sell potential and supporting durable enterprise adoption and platform leverage.

Strong cash flow generation

Robust free cash flow and a near-1.0 free cash flow to net income ratio indicate the business converts earnings into cash efficiently. Reliable cash generation funds R&D, strategic AI investments, and debt reduction without depending entirely on external financing, supporting long-term flexibility.

High gross margins

Sustained high gross margins reflect scalable cloud economics and low incremental costs for additional users. This structural margin advantage supports reinvestment in product and go-to-market, enabling profitable growth as enterprise adoption and suite upsell continue over time.

Negative Factors

Elevated leverage reliance

Although leverage has improved, a still-elevated debt position and low equity ratio constrain strategic flexibility and increase interest and refinancing exposure. Persistent debt reliance can limit capital allocation choices and raise risks during macro shocks or rising rates.

Pressure on profitability margins

Declining net and operating margins signal weakening operational efficiency or rising operating costs. If persistent, margin erosion can reduce free cash flow growth and make it harder to fund AI initiatives and sales expansion without further cost control or higher pricing.

Revenue concentration in large customers

Heavy reliance on a concentrated base of large enterprise suites increases exposure to churn or big-account downsells. While profitable when retained, this concentration heightens single-account risk and makes growth more dependent on sustaining and expanding a smaller set of large customers.

Box Business Overview & Revenue Model

Company Description

Box, Inc. provides a cloud content management platform that enables organizations of various sizes to manage and share their content from anywhere on any device. The company's Software-as-a-Service platform enables users to collaborate on content internally and with external parties, automate content-driven business processes, develop custom applications, and implement data protection, security, and compliance features to comply with legal and regulatory requirements, internal policies, and industry standards and regulations. It offers web, mobile, and desktop applications for cloud content management on a platform for developing custom applications, as well as industry-specific capabilities. As of January 31, 2022, the company had approximately 100,000 paying organizations, and its solution was offered in 25 languages. It serves financial services, health care, government, and legal services industries in the United States and internationally. The company was formerly known as Box.net, Inc. and changed its name to Box, Inc. in November 2011. Box, Inc. was incorporated in 2005 and is headquartered in San Francisco Bay Area, California.

How the Company Makes Money

Box generates revenue primarily through a subscription-based model, offering tiered pricing plans that cater to businesses of different sizes and needs. The key revenue streams include monthly or annual subscriptions for its cloud storage and collaboration services, which are charged based on the number of users or volume of storage required. Additionally, Box earns revenue from premium features and services, such as enhanced security options and advanced administrative tools. Significant partnerships with other technology companies, such as Microsoft and Google, also contribute to its earnings by integrating Box's services with widely used applications, thereby increasing its user base and driving subscription growth.

Box Financial Statement Overview

Summary

Box shows solid revenue growth and strong cash flow generation. However, declining profitability margins and a high reliance on debt financing pose potential risks. The improved debt-to-equity ratio is a positive sign, but operational efficiency needs attention.

Income Statement

Box has demonstrated consistent revenue growth, with a TTM revenue growth rate of 2.24%. The gross profit margin remains strong at 78.92%, indicating efficient cost management. However, the net profit margin has decreased to 19.79% from 22.44% in the previous year, suggesting some pressure on profitability. EBIT and EBITDA margins have also declined, indicating potential challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 1.33 from 3.66, reflecting better leverage management. However, the return on equity is exceptionally high at 137.02%, which may indicate aggressive financial strategies. The equity ratio is relatively low, suggesting a higher reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Box has shown strong cash flow performance, with a free cash flow growth rate of 5.49% in the TTM. The operating cash flow to net income ratio is healthy at 0.41, indicating good cash generation relative to net income. The free cash flow to net income ratio is also robust at 0.96, highlighting efficient cash management.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.09B	1.04B	990.87M	874.33M	770.77M
Gross Profit	862.02M	777.13M	738.32M	624.85M	546.03M
EBITDA	113.34M	101.99M	102.83M	53.62M	37.84M
Net Income	244.62M	129.03M	26.78M	-41.46M	-43.43M
Balance Sheet
Total Assets	1.67B	1.24B	1.21B	1.39B	1.35B
Cash, Cash Equivalents and Short-Term Investments	722.82M	480.69M	461.25M	586.27M	595.08M
Total Debt	721.32M	491.80M	535.10M	621.50M	648.15M
Total Liabilities	1.47B	1.18B	1.24B	1.79B	1.20B
Stockholders Equity	197.28M	61.03M	-33.86M	-395.09M	151.06M
Cash Flow
Free Cash Flow	329.68M	316.88M	293.55M	230.12M	187.78M
Operating Cash Flow	332.26M	318.73M	297.98M	234.82M	196.83M
Investing Cash Flow	-23.21M	-82.79M	120.60M	-239.37M	-16.38M
Financing Cash Flow	-62.36M	-272.90M	-396.50M	-172.86M	218.68M

Box Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BOX, the sentiment is Negative. The current price of 24.29 is below the 20-day moving average (MA) of 27.09, below the 50-day MA of 28.95, and below the 200-day MA of 31.75, indicating a bearish trend. The MACD of -1.16 indicates Positive momentum. The RSI at 27.49 is Positive, neither overbought nor oversold. The STOCH value of 21.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BOX.

Box Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEX	73 Outperform	$5.25B	18.74	20.30%	―	-1.15%	-2.52%
PATH	69 Neutral	$6.71B	28.66	12.56%	―	10.05%	―
BOX	65 Neutral	$3.71B	19.59	204.27%	―	7.21%	58.61%
DBX	62 Neutral	$6.43B	14.23	―	―	-0.44%	2.47%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
S	57 Neutral	$4.89B	-10.48	-25.79%	―	24.09%	-34.25%
VRNS	50 Neutral	$3.45B	-26.18	-22.17%	―	11.37%	-34.44%