Box (BOX) AI Stock Analysis

• Market Cap: $4.32B
• Dividend Yield: N/A
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.56
• Revenue Growth: 5.05%
• EPS Growth: 103.11%
• Country: US
• Employees: 2,810
• Sector: Technology
• Sector Strength: 49
• Industry: Software - Infrastructure
• EPS (TTM): 1.34
• Shares Outstanding: 143,789,200
• 10 Day Avg. Volume: 2,092,253
• 30 Day Avg. Volume: 2,107,598
• PEG Ratio: 0.22
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.01
• Price to Cash Flow (P/CF): 10.70
• P/FCF Ratio: 11.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $36.14
• Price Target Upside: 19.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Box demonstrates solid financial performance with strong revenue growth and improved profitability, countered slightly by potential equity vulnerabilities. Technical analysis indicates bearish momentum, while valuation is moderate, balancing growth prospects with current earnings. The recent earnings call highlights positive sentiment despite some challenges, contributing to a stable outlook.

Positive Factors

Market Opportunity

Box is targeting a massive $100+ billion market opportunity by building the leading ICM platform and leveraging Enterprise Advanced to accelerate customer transformation.

Revenue Growth

Box remains steadfast in its ability to deliver double-digit revenue growth, highlighting Enterprise Advanced and Box AI as key growth drivers.

Negative Factors

Financial Performance

Box reported lackluster 4Q:FY25 results and issued a tepid 1Q:FY26 outlook, indicating potential challenges in financial performance.

Investor Sentiment

Investor sentiment seems low, as most investors are focused on topline growth and are not impressed by the free cash flow profile of this mature company.

Box Business Overview & Revenue Model

Company Description

Box, Inc. is a cloud content management and file sharing service for businesses. Headquartered in Redwood City, California, Box's core products and services enable users to securely manage, share, and collaborate on their content across various devices and platforms. The company focuses on providing enterprise-grade solutions that facilitate seamless workflow and content management for a range of industries, including finance, healthcare, and education.

How the Company Makes Money

Box makes money primarily through a subscription-based revenue model. The company offers various pricing tiers, catering to businesses of different sizes and needs, and charges a recurring fee for access to its cloud-based services. Its revenue streams are largely driven by enterprise subscriptions, which offer advanced features and additional storage and security capabilities. Box also generates income from professional services, which include consulting and implementation support to help organizations optimize their use of Box's platform. Significant partnerships with technology providers, such as Microsoft, Google, and IBM, enhance its service offerings and contribute to customer acquisition and retention, further driving revenue growth.

Box Financial Statement Overview

Summary

Box has shown significant improvement in its financial performance across all verticals. The income statement highlights strong growth and improved profitability. The balance sheet reflects a healthier capital structure, albeit with some vulnerability due to low equity. Cash flow analysis indicates effective cash management, supporting the company's growth. Overall, Box is on a positive financial trajectory, but should monitor its equity position closely.

Income Statement

Box demonstrated a strong revenue growth with a 5.04% increase in TTM compared to the previous year, continuing its positive trajectory from past years. The gross profit margin remains robust at 79.08%, indicating efficient cost management. Box's net profit margin significantly improved to 20.06% in TTM, a notable increase from previous years, showcasing enhanced profitability. The EBIT and EBITDA margins also saw improvements, reflecting better operational efficiency.

Balance Sheet

Box's balance sheet shows improvement with a declining debt-to-equity ratio, now standing at 1.38, indicating reduced reliance on debt. The equity ratio improved to 11.83%, but remains relatively low, suggesting potential vulnerability. Return on Equity (ROE) surged to 110.85%, driven by increased net income, but is partially influenced by low equity levels, which could pose risks.

Cash Flow

Box reported strong free cash flow growth of 5.89% in TTM, indicating solid cash generation capabilities. The operating cash flow to net income ratio of 1.52 reflects efficient conversion of net income into cash, while the free cash flow to net income ratio of 1.45 further underscores robust cash flow management. Overall, Box demonstrates healthy cash flow practices.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
1.09B	1.04B	990.87M	874.33M	770.77M
	Gross Profit
862.02M	777.13M	738.32M	624.85M	546.03M
	EBIT
79.63M	50.75M	36.84M	-27.63M	-35.22M
	EBITDA
79.63M	101.99M	102.83M	50.61M	37.84M
	Net Income Common Stockholders
201.57M	129.03M	26.78M	-41.46M	-43.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
722.82M	480.69M	461.25M	586.27M	595.08M
	Total Assets
1.67B	1.24B	1.21B	1.39B	1.35B
	Total Debt
272.68M	491.80M	564.42M	642.33M	648.15M
	Net Debt
-351.90M	108.06M	135.96M	226.06M	53.07M
	Total Liabilities
1.47B	1.18B	1.24B	1.30B	1.20B
	Stockholders Equity
197.28M	61.03M	-33.86M	92.79M	151.06M
Cash Flow		Free Cash Flow
329.68M	300.32M	281.49M	224.33M	180.34M
	Operating Cash Flow
332.26M	318.73M	297.98M	234.82M	196.83M
	Investing Cash Flow
-23.21M	-82.79M	120.60M	-239.37M	-16.38M
	Financing Cash Flow
-62.36M	-272.90M	-396.50M	-172.86M	218.68M

Box Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BOX, the sentiment is Negative. The current price of 30.21 is below the 20-day moving average (MA) of 30.56, below the 50-day MA of 32.24, and below the 200-day MA of 31.30, indicating a bearish trend. The MACD of -0.46 indicates Negative momentum. The RSI at 47.00 is Neutral, neither overbought nor oversold. The STOCH value of 61.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BOX.

Box Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QLYS	73 Outperform	$4.59B	26.38	41.09%	―	10.40%	14.78%
BOX	72 Outperform	$4.32B	22.49	189.40%	―	5.05%	103.11%
SWI	70 Outperform	$3.20B	28.86	7.87%	―	5.03%	―
S	64 Neutral	$5.77B	―	-17.68%	―	32.25%	20.56%
TENB	63 Neutral	$3.95B	―	-9.73%	―	12.68%	54.80%
Sector *	57 Neutral	$19.52B	9.58	-12.47%	2.79%	5.43%	-24.71%
VRNS	57 Neutral	$4.65B	―	-20.26%	―	10.38%	6.88%

Box Corporate Events

Box Amends Credit Agreement and Grants Stock Units

Box, Inc. has amended its Credit Agreement with Wells Fargo Bank, reducing its revolving commitments from $150 million to $75 million, which may impact its financial flexibility. Additionally, the company has granted performance-based restricted stock units to CEO Aaron Levie as part of its strategy to incentivize leadership in a rapidly evolving AI-driven market, tying his compensation to the company’s stock performance.