Box Inc.
Find Ratings ReportsBOX INC's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. BOX INC has weak liquidity. Currently, the Quick Ratio is 0.94 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 79.97% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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| Income Statement | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Net Sales ($mil) | 136.68 | 109.93 |
| EBITDA ($mil) | -21.63 | -27.75 |
| EBIT ($mil) | -32.49 | -36.39 |
| Net Income ($mil) | -32.67 | -36.88 |
| Balance Sheet | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Cash & Equiv. ($mil) | 208.08 | 177.39 |
| Total Assets ($mil) | 553.57 | 493.67 |
| Total Debt ($mil) | 85.82 | 75.45 |
| Equity ($mil) | 14.97 | 74.73 |
| Profitability | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Gross Profit Margin | 82.11 | 80.94 |
| EBITDA Margin | -15.82 | -25.24 |
| Operating Margin | -23.77 | -33.11 |
| Sales Turnover | 0.91 | 0.81 |
| Return on Assets | -27.99 | -30.74 |
| Return on Equity | -1035.27 | -203.1 |
| Debt | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Current Ratio | 1.01 | 1.08 |
| Debt/Capital | 0.85 | 0.5 |
| Interest Expense | 0.21 | 0.31 |
| Interest Coverage | -153.97 | -117.78 |
| Share Data | Q4 FY17 | Q4 FY16 |
|---|---|---|
| Shares outstanding (mil) | 134.26 | 127.56 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.24 | -0.28 |
| Book value / share | 0.11 | 0.59 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2036961.0 | 1896699.0 |
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 191.29 indicates a significant premium versus the S&P 500 average of 3.18 and a significant premium versus the industry average of 7.32. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, BOX INC proves to trade at a premium to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BOX NM | Peers 58.18 | BOX 46.28 | Peers 36.01 | |||||||||||||||||||||
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Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. BOX's P/E is negative making this valuation measure meaningless. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. BOX is trading at a significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| BOX 236.78 | Peers 26.54 | BOX NA | Peers 0.32 | |||||||||||||||||||||
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Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings. BOX's ratio is negative making this valuation measure meaningless. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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| Price/Book |
|
Earnings Growth |
|
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| BOX 191.29 | Peers 7.32 | BOX 2.53 | Peers 21.28 | |||||||||||||||||||||
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Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. BOX is trading at a significant premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, BOX is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
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| BOX 5.65 | Peers 9.02 | BOX 26.97 | Peers 35.32 | |||||||||||||||||||||
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Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. BOX is trading at a significant discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. BOX trails its peers on the basis of sales growth |
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