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Box (BOX) stock: not-so-profitable growth

Carla Olson | 5:50 am ET, 28 Aug 2018

Box, Inc. (BOX) shares are trading at $26.05, prior to the earnings today. What should investors be aware of--and what will the market be watching out for in the upcoming earnings?

Box continues to ride on increasing adoption of its cloud content management platform by its existing customers as well as new customers. The company is witnessing a solid growth in its paid customer base which is aiding its top-line growth.

The company’s efforts toward enriching its cloud management and AI platforms will drive growth in fiscal 2019.  Its platform today integrates with some of the biggest enterprise technology providers such as Microsoft, Apple, IBM, Google, and Salesforce. The company enables in-house enterprise developers and independent software developers to create applications with ease. As a result, the company has a strong user base that includes more than 60 million registered users. 

What worries investors about Box is its profitability.  Box has been incurring losses since it went public in 2005; the company had an accumulated a deficit of $1.04 billion. Box’s current focus is on scaling its business through making significant investments in its cloud infrastructure, development, professional services, sales, marketing and so on. The company said that it will continue making such investments and as result does not expect profit in the foreseeable future.

What is the sentiment towards the Box stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is trending negative. 

Box, Inc. (BOX) forward P/E ratio is 428.5, and it’s high compared to its industry peers’ P/E ratios.

Box, Inc. (BOX) short share of float is 7.7%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Box, Inc. (BOX) average analyst price target ($26.00) is -0.46% below its current price ($26.12).

For the latest price and information on Box, Inc., please visit Finstead and search for "BOX price" or "BOX news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Box beat the street: what is the stock price forecast?

Carla Olson | 3:44 pm ET, 30 May 2018

Box, Inc. (NYSE: BOX) announced financial results for the first quarter of fiscal 2019 today.   The company beat the street by $0.01; however, the stock is down after-hours. 

What is the BOX stock price forecast?

First of all, let's look at the financials.  The revenue increased to $140.5 Million, up 20 % year-over-year. However, the bookings didn't grow as fast--only 17% year-over-year.  This is an indication that the growth is slowing down.

The technical analysis shows weak short-term sentiment.  Over time, the sentiment is forecast to improve.  The technical analysis also predicts strong mid- and long-term sentiment.  

Finstead research points to the average price target of $24.75, indicating a negative price upside.  For the latest price target and upside analysis, visit Finstead and type "BOX price target" or "BOX upside".    

 

Aaron Levie, Box CEO, pointed out to strong attach rates for new products, expansion in the international customer base and product innovation and security.  Some of Box's customers include the largest and most regulated enterprises in the world, such as Mitsubishi Motors Corporation, Dignity Health and the Defense Advanced Research Projects Agency (DARPA).  

You can follow the latest news on Box at Finstead (type "Box news" on Finstead.com).

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Box, Inc. (BOX) Buy or Sell Stock Guide

Updated at: 4:02 am ET, 12 Jul 2019

Are you looking for the analysis of Box, Inc. (BOX) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 5 reasons to buy and 4 reasons to sell BOX stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about BOX stock:

  • Is BOX a buy or a sell?
  • Should I sell or hold BOX stock today?
  • Is BOX a good buy / investment?
  • What are BOX analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy BOX stock:

1. BOX quarterly revenue growth was 13.50%, higher than the industry and sector average revenue growth (7.41% and 5.11%, respectively). See BOX revenue growth chart.

2. BOX profitability is improving. The YoY profit margin change was 7.46percentage points. See BOX profitability chart.

3. BOX Price/Sales ratio is 3.95, and it’s low compared to its industry peers’ P/S ratios. See BOX forward Price/Sales ratio chart.

4. BOX average analyst rating is Buy. See BOX analyst rating chart.

5. BOX average analyst price target ($19.50) is above its current price ($17.45). See BOX price target chart.

Now that you understand the bull case, let’s look at the reasons to sell BOX stock (i.e., the bear case):

1. BOX forward P/E ratio is 2000.00, and it’s high compared to its industry peers’ P/E ratios. See BOX forward P/E ratio chart.

2. BOX Price/Book ratio is 83.62, and it’s high compared to its industry peers’ P/B ratios. See BOX forward Price/Book ratio chart.

3. BOX PEG ratio (P/E adjusted for growth) is 253.00, and it’s high compared to its industry peers’ PEG ratios. See BOX PEG chart.

4. BOX short share of float is 5.60%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See BOX short share of float chart.

Now let's look at the key statistics for BOX:

Metrics BOX
Price $17.11
Average Price Target / Upside $19.50 / 13.97%
Average Analyst Rating Buy
Industry Software - Infrastructure
Sector Technology
Number of Employees 1,662
Market Cap $2.54B
Forward P/E Ratio 2000
Price/Book Ratio 3.9248
PEG 253
Revenue (TTM) $630.85M
YoY Quarterly Revenue Growth 13.496932515337424%
Profit Margin -21.36799556154395%

What are your thoughts on BOX?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


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