Box (BOX) AI Stock Analysis

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Box

(NYSE:BOX)

Rating:78Outperform

Price Target:

$41.00

▲(19.22%Upside)

Box's overall stock score reflects strong financial performance and positive earnings call sentiment, indicating robust growth and operational efficiency. While technical analysis supports a moderately bullish outlook, the high debt levels and macroeconomic uncertainty introduce some risk. Valuation remains fair, supporting the company's growth narrative.

Positive Factors

Financial Performance

Box reported results above Street expectations, with total revenue significantly higher than estimates.

Innovation and Product Development

Box is strategically well positioned to benefit from the application of AI to unstructured data, enabling better decision-making through unstructured data insights.

Revenue Guidance

Management increased FY26 revenue guidance, which is above consensus.

Negative Factors

Competitive Environment

A discount to the low-growth software group is warranted given BOX's intensifying competitive environment.

Box (BOX) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$4.97B

Dividend YieldN/A

Average Volume (3M)2.88M

Price to Earnings (P/E)26.6

Beta (1Y)0.63

Revenue Growth4.88%

EPS Growth80.94%

CountryUS

Employees2,810

SectorTechnology

Sector Strength82

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)0.30

Shares Outstanding144,811,980

10 Day Avg. Volume2,166,142

30 Day Avg. Volume2,881,545

Financial Highlights & Ratios

PEG Ratio-1.01

Price to Book (P/B)-135.66

Price to Sales (P/S)0.00

P/FCF Ratio16.32

Enterprise Value/Market Cap0.49

Enterprise Value/Revenue0.57

Enterprise Value/Gross Profit2.81

Enterprise Value/Ebitda5.50

Forecast

1Y Price Target

$38.38

Price Target Upside11.60% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering10

Box Business Overview & Revenue Model

Company DescriptionBox, Inc. is a cloud content management and file sharing service that caters to businesses across various sectors. Founded in 2005 and headquartered in Redwood City, California, Box provides a secure, efficient platform for file storage, collaboration, and workflow management. The company's core products and services include cloud-based solutions for document management, collaboration tools, and data security, enabling organizations to streamline their operations and enhance productivity.

How the Company Makes MoneyBox makes money primarily through a subscription-based revenue model. The company offers a range of service plans (such as Starter, Business, Business Plus, and Enterprise) that businesses can subscribe to based on their storage needs, user requirements, and additional features required. These plans are typically billed on a monthly or annual basis, providing Box with a steady stream of recurring revenue. Additionally, Box generates revenue through professional services, which include consulting, implementation, and training services to help enterprises effectively integrate and use their solutions. Significant partnerships with technology companies like Google, Microsoft, and IBM also contribute to Box’s earnings by enhancing its service offerings and extending its market reach.

Box Key Performance Indicators (KPIs)

Any

Remaining Performance Obligations

Remaining Performance Obligations
Represents future revenue from contracts yet to be fulfilled, providing insight into revenue visibility and the strength of customer commitments.

Chart InsightsBox's Remaining Performance Obligations (RPO) have shown a strong upward trend, with a notable 21% year-over-year increase, reflecting robust demand and early renewals. The earnings call highlights this growth, driven by customer adoption of Box AI and Enterprise Advanced. However, early renewals have shifted revenue expectations, potentially impacting future quarters. Despite macroeconomic uncertainties, Box's strategic focus on AI integration and partnerships with tech giants positions it well for sustained growth, as evidenced by raised revenue guidance and strong billings momentum.

Data provided by:

Main Street Data

Box Earnings Call Summary

Earnings Call Date:May 27, 2025

(Q1-2026)

% Change Since: 9.35%|

Next Earnings Date:Aug 20, 2025

Earnings Call Sentiment Positive

The earnings call reflected a strong start to the fiscal year with robust revenue, RPO, and billings growth, driven by the adoption of Box AI and Enterprise Advanced. The company demonstrated strong financial performance, with EPS exceeding guidance. However, the macroeconomic uncertainty and the impact of early renewals suggest a cautious outlook for future quarters.

Q1-2026 Updates

Positive Updates

Revenue and Billings Growth

Q1 revenue grew 4% year-over-year, or 5% in constant currency, with billings up 27% year-over-year. Strong outperformance on billings with a tailwind from early renewals.

Strong RPO and Customer Base Expansion

Remaining performance obligations (RPO) grew 21% year-over-year, and the company now has approximately 1,940 total customers paying at least $100,000 annually, up 8% year-over-year.

Enterprise Advanced Adoption and AI Integration

Strong momentum in customer adoption of Enterprise Advanced, with customers leveraging Box AI for metadata extraction and streamlining operations. Announcements of AI Agent updates and partnerships with major technology providers like Microsoft, Google, and IBM.

Operating Margin and EPS Performance

Q1 operating margins of 25.3% and EPS of $0.30, $0.04 above guidance. Gross margin was 80.5%, up 30 basis points year-over-year.

FedRAMP High Authorization

Received FedRAMP High Authorization, allowing U.S. government agencies to leverage Box's platform for handling highly sensitive data.

Negative Updates

Macro Environment and IT Spending Concerns

Prudent outlook for fiscal 2026 due to macroeconomic uncertainty and potential impact on IT spending, despite current positive trends.

Early Renewals Impact on Future Quarters

Early renewals in Q1 provided a 400 basis point benefit, but resulted in a shift of expected revenue from Q2, impacting future quarter comparisons.

Company Guidance

During the Box, Inc. First Quarter Fiscal 2026 Earnings Conference Call, several key metrics and guidance highlights were provided. Box reported a 4% year-over-year increase in revenue, reaching $276 million, with a 5% growth in constant currency. The company achieved a gross margin of 80.5% and an operating margin of 25.3%. Box also highlighted a 21% year-over-year growth in remaining performance obligations (RPO) and a 27% increase in billings, driven by strong bookings and early renewals. The net retention rate improved to 102%, with a full churn rate of 3%. For the second quarter, Box expects revenue between $290 million and $291 million, representing approximately 8% year-over-year growth at the high end. For the full fiscal year, Box raised its revenue guidance to between $1.165 billion and $1.17 billion, reflecting a $10 million increase from previous guidance and incorporating a 120 basis point foreign exchange tailwind. The company aims for a full-year billings growth of about 9%. Additionally, Box anticipates maintaining a gross margin of approximately 81% and expects a non-GAAP operating margin of about 28% for the fiscal year.

Box Financial Statement Overview

Summary

Box's financial performance is strong with consistent revenue growth and profitability. The company has a high gross profit margin of 79% and a net profit margin of 21.4%. Its cash flow management is impressive, with a significant free cash flow growth of 37.3%. However, high leverage with a debt-to-equity ratio of 3.38 poses a risk.

Income Statement

Very Positive

Box has demonstrated a strong upward trend in its financial performance, with significant improvements in revenue and profitability metrics. The company achieved a TTM gross profit margin of 79% and a net profit margin of 21.4%, indicating efficient cost management and scalability. Revenue growth has been consistent, with a notable increase from $874 million in 2022 to $1,102 million TTM in 2025. EBIT and EBITDA margins are healthy at 6.2% and 10.3% respectively, showing robust operational efficiency. However, the EBIT margin is slightly below industry leaders, suggesting potential for further improvement.

Balance Sheet

Positive

Box's balance sheet reflects a mixed picture with strong equity growth but high leverage. The debt-to-equity ratio is elevated due to substantial debt levels, with a TTM value of 3.38, posing a potential risk in volatile markets. However, the company has improved its equity position significantly from -$395 million in 2022 to $215 million in 2025, enhancing financial stability. The equity ratio stands at 13.1%, which is below optimal levels, indicating a reliance on debt financing. Despite these challenges, the overall trend towards positive equity is encouraging.

Cash Flow

Very Positive

Box has shown impressive cash flow management, with strong free cash flow generation and growth. The TTM free cash flow stands at $303 million, reflecting a solid 37.3% year-over-year increase, driven by effective cost control and operational efficiency. The operating cash flow to net income ratio is robust at 1.39, indicating healthy cash conversion. Additionally, the free cash flow to net income ratio of 1.29 underscores the company's ability to generate cash profits, which supports future growth and debt servicing.

TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
1.10B	1.09B	1.04B	990.87M	874.33M	770.77M
	Gross Profit
871.22M	862.02M	777.13M	738.32M	624.85M	546.03M
	EBIT
67.97M	79.63M	50.75M	36.84M	-27.63M	-35.22M
	EBITDA
113.38M	113.34M	101.99M	102.83M	50.61M	37.84M
	Net Income Common Stockholders
235.59M	244.62M	129.03M	26.78M	-41.46M	-43.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
790.40M	722.82M	480.69M	461.25M	586.27M	595.08M
	Total Assets
1.64B	1.67B	1.24B	1.21B	1.39B	1.35B
	Total Debt
724.96M	721.32M	491.80M	535.10M	621.50M	648.15M
	Net Debt
35.33M	96.74M	108.06M	106.64M	205.22M	53.07M
	Total Liabilities
1.43B	1.47B	1.18B	1.24B	1.79B	1.20B
	Stockholders Equity
214.58M	197.28M	61.03M	-33.86M	-395.09M	151.06M
Cash Flow		Free Cash Flow
303.34M	329.68M	300.32M	281.49M	224.33M	180.34M
	Operating Cash Flow
328.11M	332.26M	318.73M	297.98M	234.82M	196.83M
	Investing Cash Flow
-10.43M	-23.21M	-82.79M	120.60M	-239.37M	-16.38M
	Financing Cash Flow
-88.44M	-62.36M	-272.90M	-396.50M	-172.86M	218.68M

Box Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price34.39

Price Trends

50DMA

33.01

Positive

100DMA

32.68

Positive

200DMA

32.64

Positive

Market Momentum

MACD

0.51

Positive

RSI

45.88

Neutral

STOCH

6.41

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BOX, the sentiment is Neutral. The current price of 34.39 is below the 20-day moving average (MA) of 36.07, above the 50-day MA of 33.01, and above the 200-day MA of 32.64, indicating a neutral trend. The MACD of 0.51 indicates Positive momentum. The RSI at 45.88 is Neutral, neither overbought nor oversold. The STOCH value of 6.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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

Overall Rating

UnderperformOutperform

Sector (50)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOX	78 Outperform	$4.97B	26.61	152.34%	―	4.88%	80.94%
QLYS	78 Outperform	$4.93B	27.74	40.23%	―	9.58%	12.41%
TENB	67 Neutral	$3.94B	―	-12.09%	―	11.79%	35.35%
VRNS	64 Neutral	$5.48B	―	-22.21%	―	13.34%	13.71%
S	64 Neutral	$5.78B	―	-26.98%	―	32.25%	20.56%
Sector *	50 Neutral	AU$1.43B	1.87	-28.24%	3.35%	15.64%	-7.01%

* Technology Sector Average

Performance Comparison

BOX

Box

34.39

8.73

34.02%

QLYS

Qualys

140.38

1.54

1.11%

VRNS

Varonis Systems

49.44

6.12

14.13%

TENB

Tenable Holdings

33.47

-7.05

-17.40%

SentinelOne

17.50

-1.29

-6.87%

Box Corporate Events

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy

Box Amends Credit Agreement and Grants Stock Units

Neutral

Dec 20, 2024

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.

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.