Box Inc. (BOX)
NYSE:BOX
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Box
(NYSE:BOX)
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Rating:74Outperform
Price Target:
$31.00
▲(30.20% Upside)
Action:Reiterated
Date:05/27/26
The score is driven primarily by strong cash flow and improved profitability, supported by upbeat guidance and margin/FCF momentum from the latest earnings call. The main constraints are balance-sheet leverage and only modest TTM revenue growth, while technicals are moderately supportive and valuation appears reasonable on the provided P/E.
Positive Factors
Free Cash Flow Strength
Sustained, rapidly growing free cash flow improves financial optionality: it funds R&D and product investment, supports buybacks and share-count reduction, and provides a durable buffer versus cyclical revenue swings. Strong cash conversion also underpins continuing margin durability and execution flexibility over the next 2–6 months.
Negative Factors
Balance Sheet Leverage
Relatively high leverage against a small equity base raises financial risk and limits strategic flexibility. In a downturn or if execution weakens, servicing debt and constrained equity could force tougher capital allocation choices, reduce room for acquisitions, or slow pace of reinvestment despite strong cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Sustained, rapidly growing free cash flow improves financial optionality: it funds R&D and product investment, supports buybacks and share-count reduction, and provides a durable buffer versus cyclical revenue swings. Strong cash conversion also underpins continuing margin durability and execution flexibility over the next 2–6 months.
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
$3.83B
Dividend YieldN/A
Average Volume (3M)2.41M
Price to Earnings (P/E)34.7
Beta (1Y)0.57
Revenue Growth9.55%
EPS Growth-50.29%
CountryUS
Employees2,810
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.68
Shares Outstanding138,532,640
10 Day Avg. Volume3,127,499
30 Day Avg. Volume2,407,561
Financial Highlights & Ratios
PEG Ratio-0.63
Price to Book (P/B)-12.12
Price to Sales (P/S)3.08
P/FCF Ratio10.35
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue3.22
Enterprise Value/Gross Profit4.05
Enterprise Value/Ebitda26.65
Forecast
1Y Price Target
$32.66Price Target Upside37.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)1.57
Revenue Forecast (FY)$1.28B
Box Business Overview & Revenue Model
Company Description
Box, Inc. provides a cloud content management platform that enables organizations of various sizes to manage and share their content from anywhere on any device. The company's Software-as-a-Service platform enables users to collaborate on content ...
How the Company Makes Money
Box primarily makes money by selling subscriptions to its cloud content management platform, generally contracted with business and enterprise customers on recurring terms (often annual) and priced based on factors such as user seats and plan tier...
Box Earnings Call Summary
Earnings Call Date:May 26, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Sep 01, 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 | 145.86M | 140.67M | 113.34M | 101.99M | 102.83M | 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 | 530.86M | 1.02B | 721.32M | 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
23.81
Price Trends
24.44
Positive
24.75
Positive
28.16
Negative
Market Momentum
0.75
Negative
61.98
Neutral
89.84
Negative
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 23.81 is below the 20-day moving average (MA) of 25.47, below the 50-day MA of 24.44, and below the 200-day MA of 28.16, indicating a neutral trend. The MACD of 0.75 indicates Negative momentum. The RSI at 61.98 is Neutral, neither overbought nor oversold. The STOCH value of 89.84 is Negative, 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $6.34B | 19.48 | 17.29% | ― | 15.24% | ― | |
74 Outperform | $3.83B | 34.72 | 150.65% | ― | 9.55% | -50.29% | |
73 Outperform | $6.34B | 14.01 | -28.45% | ― | -0.62% | 20.48% | |
65 Neutral | $5.14B | 16.49 | 26.96% | ― | 3.29% | 14.76% | |
63 Neutral | $5.95B | -18.35 | -21.49% | ― | 21.38% | 27.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $4.12B | -31.86 | -26.10% | ― | 15.27% | -39.93% |
* Technology Sector Average
BOX
Box
27.66
-10.89
-28.25%
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VRNS
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35.88
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DBX
Dropbox
28.16
-1.04
-3.56%
PATH
UiPath
12.18
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S
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17.35
-0.62
-3.45%
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.