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Box
(NYSE:BOX)
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Rating:69Neutral
Price Target:
$36.00
▲(24.10% Upside)
Action:Downgraded
Date:07/02/26
BOX’s score is primarily driven by strong cash generation and improving operational momentum (record free cash flow, raised FY guidance, and margin expansion targets). These positives are tempered by balance-sheet leverage/low equity history and a relatively high P/E (~39.6) versus the slower TTM revenue growth profile, while technicals show improving near-term trend but not a fully confirmed long-term uptrend (below the 200-day average).
Positive Factors
Strong Cash Generation
High cash conversion and sharply rising free cash flow provide internal funding for product investment, debt management and buybacks. Because FCF is about 0.98x net income, the reported profitability is supported by tangible cash generation rather than accounting gains.
Negative Factors
Balance Sheet Leverage
Debt materially exceeds the current equity base, and the history of negative equity indicates limited balance-sheet resilience. If operating performance weakens, leverage could constrain investment flexibility and increase dependence on cash generation or refinancing.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
High cash conversion and sharply rising free cash flow provide internal funding for product investment, debt management and buybacks. Because FCF is about 0.98x net income, the reported profitability is supported by tangible cash generation rather than accounting gains.
Read all positive factors
Box Key Performance Indicators (KPIs)
Any
Total Remaining Performance Obligations
Represents future revenue from contracts yet to be fulfilled, providing insight into revenue visibility and the strength of customer commitments.
Represents future revenue from contracts yet to be fulfilled, providing insight into revenue visibility and the strength of customer commitments.
Data provided by:
The Fly
The FlyBox (BOX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.52B
Dividend YieldN/A
Average Volume (3M)2.48M
Price to Earnings (P/E)47.9
Beta (1Y)0.61
Revenue Growth9.55%
EPS Growth-50.29%
CountryUS
Employees2,912
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.68
Shares Outstanding138,532,640
10 Day Avg. Volume3,015,759
30 Day Avg. Volume2,477,544
Financial Highlights & Ratios
PEG Ratio-0.74
Price to Book (P/B)-12.12
Price to Sales (P/S)3.08
P/FCF Ratio10.35
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$34.50Price Target Upside18.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)1.58
Revenue Forecast (FY)$1.28B
Box Business Overview & Revenue Model
Company Description
Box, Inc. delivers a robust cloud-based platform designed for comprehensive content management. This Software-as-a-Service (SaaS) solution empowers organizations of all scales to effortlessly manage, distribute, and access their digital assets acr...
How the Company Makes Money
Box primarily makes money through subscription-based software-as-a-service (SaaS) contracts, generally sold to businesses and other organizations on a recurring term basis (e.g., annual subscriptions). Revenue is largely driven by seat-based and/o...
Box Earnings Call Summary
Earnings Call Date:May 26, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Aug 25, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: return to double‑digit revenue growth, expanded margins, record free cash flow, improving net retention, and meaningful product/partner momentum around AI and agentic workflows. Headwinds are largely related to foreign exchange volatility, early‑stage monetization of AI consumption, and the time and effort customers need to migrate legacy content and optimize token costs. Overall, the positives (revenue, margins, cash flow, product launches, partnership traction and customer wins) materially outweigh the modest execution and macro headwinds highlighted.Positive Updates
Return to Double‑Digit Revenue Growth
Q1 revenue of $306 million, up 11% year‑over‑year (10% in constant currency) — the first double‑digit YoY revenue growth rate in over 12 quarters; company raised FY27 revenue guide to ~$1.28 billion (≈9% YoY, 10% CC).
Negative Updates
Billings Growth Lag and FX Volatility
Q1 billings increased only 5% YoY (but 13% CC). Management flagged significant FX headwinds (Q1 FX impact ~260 bps worse than prior expectation). Guidance assumes multiple FX headwinds (Q2 revenue ~170 bps, FY ~90 bps; FY billings FX headwind ~150 bps), adding uncertainty to reported growth.
Read all updates
Q1-2027 Updates
Positive
Negative
Return to Double‑Digit Revenue Growth
Q1 revenue of $306 million, up 11% year‑over‑year (10% in constant currency) — the first double‑digit YoY revenue growth rate in over 12 quarters; company raised FY27 revenue guide to ~$1.28 billion (≈9% YoY, 10% CC).
Read all positive updates
Company Guidance
Box gave Q2 revenue guidance of approximately $319M (≈9% YoY, ≈10% constant currency, with an ~170 bps FX headwind), Q2 billings growth in the low-double-digits (includes ~140 bps FX tailwind), Q2 gross margin of 81–81.5%, Q2 operating margin of ~28.5% (includes ~100 bps FX headwind), Q2 EPS of ~$0.39 (includes ~ $0.03 FX headwind) and weighted average diluted shares of ~139M; for FY27 they raised revenue to ~ $1.28B (≈9% YoY, ≈10% CC, ~90 bps FX headwind), expect billings growth roughly in line with revenue (with ~150 bps FX headwind), FY gross margin 81–81.5%, FY operating margin ~28% (≈28.7% constant currency), FY EPS of ~$1.56 (~$1.64 CC), weighted shares ~139M (≈2M fewer than prior), and continue to target a 105% net retention rate exiting FY (Q1 RPO was $1.6B, ~55% of which is expected to be recognized in the next 12 months).Box Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
86
Very Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.21B | 1.18B | 1.09B | 1.04B | 990.87M | 874.33M |
| Gross Profit | 960.21M | 932.61M | 862.02M | 777.13M | 738.32M | 624.85M |
| EBITDA | 162.97M | 140.67M | 113.34M | 113.83M | 105.27M | 53.62M |
| Net Income | 110.84M | 101.31M | 244.62M | 129.03M | 26.78M | -41.46M |
Balance Sheet | ||||||
| Total Assets | 1.42B | 1.55B | 1.67B | 1.24B | 1.21B | 1.39B |
| Cash, Cash Equivalents and Short-Term Investments | 477.04M | 478.06M | 722.82M | 480.69M | 461.25M | 586.27M |
| Total Debt | 563.68M | 1.02B | 746.73M | 491.80M | 535.10M | 621.50M |
| Total Liabilities | 1.26B | 1.85B | 1.47B | 1.18B | 1.24B | 1.79B |
| Stockholders Equity | 158.50M | -299.28M | 197.28M | 61.03M | -33.86M | -395.09M |
Cash Flow | ||||||
| Free Cash Flow | 352.75M | 350.38M | 329.68M | 316.88M | 293.55M | 230.12M |
| Operating Cash Flow | 369.58M | 356.45M | 332.26M | 318.73M | 297.98M | 234.82M |
| Investing Cash Flow | -38.46M | -42.70M | -23.21M | -82.79M | 120.60M | -239.37M |
| Financing Cash Flow | -633.58M | -569.52M | -62.36M | -272.90M | -396.50M | -172.86M |
Box Technical Analysis
Positive
29.01
Price Trends
28.98
Positive
26.77
Positive
27.23
Positive
Market Momentum
1.11
Positive
56.72
Neutral
63.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BOX, the sentiment is Positive. The current price of 29.01 is below the 20-day moving average (MA) of 31.52, above the 50-day MA of 28.98, and above the 200-day MA of 27.23, indicating a bullish trend. The MACD of 1.11 indicates Positive momentum. The RSI at 56.72 is Neutral, neither overbought nor oversold. The STOCH value of 63.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BOX.
Box Risk Analysis
Box disclosed 56 risk factors in its most recent earnings report. Box reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Box Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $8.30B | 26.52 | 17.29% | ― | 15.24% | ― | |
69 Neutral | $4.52B | 47.93 | 150.65% | ― | 9.55% | -50.29% | |
66 Neutral | $7.92B | -22.73 | -21.49% | ― | 21.38% | 27.92% | |
65 Neutral | $7.49B | 18.34 | -23.53% | ― | -0.05% | 9.77% | |
64 Neutral | $5.17B | -35.39 | -26.91% | ― | 15.86% | -33.39% | |
63 Neutral | $6.54B | 18.57 | 28.22% | ― | 7.46% | 27.03% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
BOX
Box
32.44
0.93
2.95%
WEX
WEX
191.73
20.58
12.02%
VRNS
Varonis Systems
43.72
-14.49
-24.89%
DBX
Dropbox
33.87
5.58
19.72%
PATH
UiPath
15.58
4.59
41.77%
S
SentinelOne
22.49
5.54
32.68%
Box Corporate Events
Executive/Board ChangesShareholder Meetings
Box shareholders approve equity plan and board directors
Positive
Jul 1, 2026
On June 25, 2026, Box, Inc. held its annual meeting of stockholders, where investors approved an amendment to the company’s Amended and Restated 2015 Equity Incentive Plan to add 7,200,000 shares of Class A common stock reserved for issuance...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.