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

Carla Olson | 6:50 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 | 4:44 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: 5:50 am ET, 24 Dec 2018

The analysis below may be 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 / a good investment?
  • What are BOX analyst opinions, recommendations, ratings?

Here are BOX stock buy reasons/signals:

1. BOX stock price ($16.03) is at the 52-week low. Perhaps now is a good time to buy?

2. BOX quarterly revenue growth was 20.60%, higher than the industry and sector average revenue growth (8.56% and 5.17%, respectively).

3. BOX profitability is improving. The YoY profit margin change was 7.46pp.

4. BOX average analyst rating is Buy.

5. BOX average analyst price target ($25.77) is above its current price ($16.03).

Here are BOX stock sell reasons/signals:

1. BOX forward P/E ratio is 909.00, and it’s high compared to its industry peers’ P/E ratios.

2. BOX Price/Book ratio is 101.56, and it’s high compared to its industry peers’ P/B ratios.

3. BOX short share of float is 6.92%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

4. BOX short interest (days to cover the shorts) ratio is 3.68. The stock garners more short interest than the average industry, sector or S&P 500 stock.

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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