Bill.com Holdings (BILL) AI Stock Analysis

• Market Cap: $4.61B
• Dividend Yield: N/A
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): 482.7
• Beta (1Y): 1.25
• Revenue Growth: 16.42%
• EPS Growth: N/A
• Country: US
• Employees: 2,187
• Sector: Technology
• Sector Strength: 63
• Industry: Software - Application
• EPS (TTM): 0.09
• Shares Outstanding: 101,946,890
• 10 Day Avg. Volume: 1,550,565
• 30 Day Avg. Volume: 2,127,075
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.52
• Price to Cash Flow (P/CF): 15.50
• P/FCF Ratio: 16.60
• Enterprise Value/Market Cap: 1.80
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 8.35
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $72.81
• Price Target Upside: 60.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

Bill.com Holdings' strong financial performance and strategic advancements in product offerings and partnerships are significant strengths. However, the high P/E ratio indicates potential overvaluation, and technical indicators suggest bearish momentum. Challenges in profitability and market uncertainties further temper the overall outlook.

Positive Factors

Cross-sell Opportunities

Management is optimistic about the improved cross-sell opportunity from the newly integrated Spend & Expense (Divvy) solution.

Market Leadership

Bill.com is a leader in a massive U.S. SMB accounting market which is quickly digitizing back office functions.

Profitability and Performance

The company continues to make progress on the core business profitability with EBIT margin ex float of approximately 6.2% expanding almost 600bps year over year.

Negative Factors

After-Hours Stock Reaction

An unexpected decline in AR/AP take rate driven by international payment FX headwinds and unfavorable higher seasonal payment mix shift have shares down ~30% after hours.

Revenue Forecast Revision

The company revised lower the upper bound of total core revenue to $1.31B from $1.32B.

Take Rate Performance

Take-rate performance disappointed, and uncertainty on the pace of improvement in monetization has been an important reason analysts have remained on the sidelines.

Bill.com Holdings Business Overview & Revenue Model

Company Description

Bill.com Holdings, Inc. is a leading provider of cloud-based software that simplifies, digitizes, and automates complex back-office financial operations for small and midsize businesses (SMBs). The company's platform connects businesses with their suppliers and clients to help manage cash inflows and outflows, offering services such as accounts payable, accounts receivable, and workflow automation. Bill.com serves a broad range of sectors and has become a crucial tool for SMBs seeking to streamline their financial operations.

How the Company Makes Money

Bill.com makes money primarily through subscription fees for its cloud-based software services. Businesses pay a regular fee to access the platform, which is tiered based on the features and the number of users or transactions. Additionally, Bill.com generates revenue from transaction fees when customers use payment services, such as ACH transfers, checks, and international payments. The company also collaborates with accounting firms and financial institutions, providing them with tools to better serve their clients, which can lead to additional revenue streams. These partnerships enhance the platform's reach and adoption, contributing significantly to Bill.com's earnings.

Bill.com Holdings Financial Statement Overview

Summary

Bill.com Holdings demonstrates strong revenue and cash flow growth, supported by a sound equity base. Despite high leverage, the company maintains a solid operating cash flow position. The main challenge is improving profitability metrics like EBIT and net profit margins to further bolster financial health.

Income Statement

Bill.com Holdings shows strong revenue growth with a TTM increase to $1.39 billion, a growth rate of approximately 7.57% from the previous annual report. The gross profit margin remains robust at 79.75% for TTM, highlighting efficient cost management. However, the company has negative EBIT and a modest net profit margin of 5.90%, indicating that while revenue is growing, profitability remains a challenge.

Balance Sheet

The balance sheet reflects a solid equity ratio of 39.38%, indicating a healthy capital structure. The debt-to-equity ratio is relatively high at 41.87%, suggesting significant leverage but manageable within the industry norms. Return on equity for the TTM stands at 2.15%, highlighting limited profitability on equity investment.

Cash Flow

Operating cash flow has improved significantly, with a TTM figure of $312.73 million, showing effective cash generation. The free cash flow to net income ratio is strong at 3.71, indicating efficient cash usage relative to profits. Free cash flow growth is robust, up by 17.63% from the previous period. The company effectively manages its cash flows despite substantial financing and investing activities.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.29B	1.06B	641.96M	238.26M	157.60M
	Gross Profit
997.12M	864.49M	496.95M	176.46M	118.46M
	EBIT
-146.58M	-295.77M	-316.82M	-113.97M	-34.20M
	EBITDA
96.03M	-102.54M	-225.16M	-96.36M	-26.55M
	Net Income Common Stockholders
-28.88M	-223.72M	-326.36M	-98.72M	-31.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.59B	2.66B	2.71B	1.16B	697.62M
	Total Assets
9.18B	9.64B	9.26B	5.97B	2.40B
	Total Debt
976.85M	1.91B	1.86B	1.08B	2.30M
	Net Debt
-9.09M	295.15M	259.27M	566.40M	-571.34M
	Total Liabilities
5.04B	5.55B	5.21B	3.44B	1.69B
	Stockholders Equity
4.13B	4.09B	4.04B	2.53B	710.72M
Cash Flow		Free Cash Flow
257.88M	156.56M	-33.73M	-16.58M	-16.51M
	Operating Cash Flow
278.77M	187.77M	-18.09M	4.62M	-4.43M
	Investing Cash Flow
-409.37M	259.29M	-1.13B	-1.43B	-249.49M
	Financing Cash Flow
-742.60M	235.11M	2.88B	1.64B	863.13M

Bill.com Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 45.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BILL, the sentiment is Neutral. The current price of 45.23 is above the 20-day moving average (MA) of 42.49, below the 50-day MA of 47.48, and below the 200-day MA of 62.73, indicating a neutral trend. The MACD of -1.80 indicates Negative momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 87.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BILL.

Bill.com Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FROG	68 Neutral	$3.89B	―	-9.53%	―	22.47%	-5.48%
BILL	66 Neutral	$4.61B	482.71	2.11%	―	16.42%	―
FRSH	64 Neutral	$4.26B	―	-8.63%	―	20.79%	32.50%
ASAN	63 Neutral	$3.73B	―	-92.26%	―	10.94%	4.54%
Sector *	59 Neutral	$10.73B	10.11	-6.65%	3.02%	7.41%	-11.17%
QTWO	55 Neutral	$4.80B	―	-7.98%	―	11.50%	42.50%

Bill.com Holdings Corporate Events

Bill.com Holdings Appoints New Directors Amid Board Changes

On January 12, 2025, BILL Holdings, Inc. announced the appointment of Keri Gohman and Dan Wernikoff as directors, effective January 15, 2025. Gohman will join the Audit Committee and Compliance and Payments Operations Risks subcommittee, while Wernikoff will serve on the Compensation Committee. Both bring extensive experience from leadership roles in technology and financial services companies. Additionally, the company announced the retirements of Peter Kight and Scott Wagner from the board, effective the same date, with Kight continuing as Director Emeritus. Their retirements were not due to disagreements with the company.