Box, Inc.BOX
NYSE • Technology
$23.50
P/E
38.92
PEG
—
FCF Yield
—
Rev Growth YoY
+9.4% YoY
Gross Margin
80.1%
Health Score
7/10
D/E Ratio
-3.42
Confidence
MEDIUM
Business Snapshot
Box, Inc. operates a cloud content management platform that enables secure file sharing, collaboration, and workflow automation for enterprises. It competes in the competitive software-as-a-service (SaaS) infrastructure market alongside peers like Dropbox, Google Drive, and Microsoft OneDrive, positioning itself as a niche leader in regulated industries that require strong compliance and security features. The company generated $1.18 billion in trailing twelve-month (TTM) revenue, placing it in the mid-cap revenue tier despite an undisclosed market capitalisation. A defining characteristic is its high gross margin of 80.1%, reflecting a scalable software model with low cost of goods sold, and a net margin of 9.8% that demonstrates improving profitability.
Financial Health
Gross margin improved slightly to 80.1% from 79.6% in the prior year, while net margin landed at 9.8%, indicating operating leverage is beginning to materialise. The balance sheet is conservative: debt-to-equity is negative at -3.42x (indicating more cash than debt) and the current ratio of 1.05x suggests adequate short-term liquidity...
Risk Assessment
- VALUATION — P/E of 38.92x sits modestly above the sector average of 35x, leaving limited margin for error if earnings deteriorate further.
- EARNINGS QUALITY — Net income growth fell 64.7% year-over-year, and quarterly net income swung from $68.49M to $8.19M, raising questions about earnings sustainability.
- REVENUE DECELERATION — Year-over-year revenue growth of 9.4% outpaces the sequential quarter-over-quarter rate of 1.6%, signalling a potential slowdown in momentum.
- 52-WEEK POSITION — The current price of $23.50 is well below the 52-week high of $38.80 and below the midpoint of the annual range ($30.07), reflecting significant downside from prior highs.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....