Headquartered in Redwood City, CALIFORNIA, Box Inc (BOX) provides a cloud content management platform that enables organizations of various sizes to manage and share their content from anywhere on any device.
Sales Growth of 14% y/y
Box Inc reports an enormous sales growth of 14% y/y with a gross profit ratio of 69%. Moreover, operating income is another valuable feature of BOX. The company’s operating income grows at 4% y/y. Besides, traders will most likely appreciate that BOX’s EPS grew 3%. Taking this into account, many market participants will most likely have a look at BOX.
Regarding the share count, I wouldn’t say I like that the shares outstanding increased a 5%. In short, the intrinsic valuation of each share declined.
Balance Sheet: Cash In Hand
With an asset/liability ratio of more than 1x, BOX’s balance sheet looks stable. BOX reports $275 million in cash and cash equivalents. In my opinion, the company has a good amount of cash to conduct additional R&D and increase its marketing efforts.
BOX’s short-term debt is less significant than the cash in hand. In my experience, financial risk is not an issue for BOX. BOX trades at 135x EBITDA, which may not seem cheap. Despite that, with the company’s EBITDA margin of -11% the EV/EBITDA ratio makes sense.
In Q3 BOX reported quarterly sales of $196 million and gross profit of $139 million. Besides, the company’s R&D expenses were equal to $49.454 million, with selling and marketing expenses of $9.2351 million. Additionally, BOX is profitable, which is helpful. Box Inc released a positive quarterly EBITDA of $16 million. I do appreciate it.
In my opinion, considering the quality of the business, I see room for BOX to grow into its valuation over time.
Disclosure: No Position In Box.
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