Box Inc (BOX) stock analysis

P/E above its 5-year median

Box's P/E of 63.1 is above its own 5-year median of 41.6.

P/E above the industry

Box's P/E of 63.1 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.

EV/EBITDA below its 5-year median

Box's EV/EBITDA of 40.8 is below its 5-year median of 45.1.

P/S above the industry

Box's price-to-sales of 4.84 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 2.77 (book value is negative, so we use sales).

Trading above fair value

The share price of $43.55 is above our fair value estimate of $27.43.

Margin of safety under 20%

The price is 58.8% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 5.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 113% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 9.6% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

Guidance raised

Box raised its Full Year FY27 Revenue outlook on Aug 25, 2026.

Gross margin improving

Gross margin was 79.5% over the last twelve months, against 79.0% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 10.6% over the last twelve months, against a 5-year average of 8.5%.

Net margin above the industry

Box's net margin of 10.6% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 87.2% of total debt.

Interest well covered

Operating income covers interest expense 11.5 times.

Short-term assets cover short-term debts

Current assets are 1.06 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.23; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Box has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.