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Analyzing Box’s Revenue and Earnings Estimates

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Box is trading at $19.45

Box (BOX) stock is trading at $19.45. The stock is trading 24.4% above its 52-week low of $15.64 and 35.0% below its 52-week high of $29.79. Box investors have lost considerable value in the last 12 months. Does the recent pullback provide an investment opportunity or will the stock fall more?

A lot depends on Box’s quarterly results and guidance. What does the company’s valuation tell us? Box’s forward PE ratio is high at 108.06x. The company’s EPS is expected to rise 83.3% this year and by 1,000.0% in 2020. Box’s high valuation is supported by high earnings growth.

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Revenue and earnings estimates

Analysts expect Box’s sales to rise from $608 million in fiscal 2019 to $945 million in fiscal 2022—a compound annual growth rate of 15.8% between 2019 and 2022. The company’s EBITDA is estimated to rise 55.5% annually between 2019 and 2022.

Box reported a non-GAAP (generally accepted accounting principles) profitability for the first time in the fourth quarter of fiscal 2019. Analysts expect the company’s non-GAAP EPS to improve from -$0.12 in fiscal 2019 to -$0.02 in fiscal 2020 and $0.18 in 2021.

Box has an operating leverage of 5.72x, which means that it will add $5.72 in operating profit for every dollar of growth in its sales. The high operating leverage will help Box expand its bottom line at a fast rate.

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