(BAND) Bandwidth - Overview
Sector: Technology | Industry: Software - Infrastructure | Exchange: NASDAQ (USA) | Market Cap: 1.728m USD | Total Return: 294.3% in 12m
Industry Rotation: +18.2
Avg Turnover: 45.7M
EPS Trend: 76.8%
Qual. Beats: 0
Rev. Trend: 90.2%
Qual. Beats: 1
Warnings
High Debt/EBITDA (8.3) with thin interest coverage (-7.2)
Interest Coverage Ratio -7.2 is critical
Altman Z'' -0.61 < 1.0 - financial distress zone
Tailwinds
Supp Ema20, Leader, Tailwind, Pullback 52w, Confidence
Bandwidth Inc. (BAND) is a global Communications Platform-as-a-Service (CPaaS) provider that enables enterprises to integrate voice and messaging capabilities into software applications via APIs. The company operates its own nationwide IP voice network, a structural differentiator in the CPaaS sector where many competitors rely on third-party carrier infrastructure. This ownership allows Bandwidth to provide direct access to emergency services, number management, and unified communications (UCaaS) integrations.
The business model centers on recurring software revenue and usage-based fees from technology companies and large-scale enterprises. Beyond standard SMS and SIP trunking, Bandwidth offers specialized tools like Bandwidth Maestro for cloud orchestration and AI-driven conversational integrations. As enterprises transition from legacy hardware to cloud-native communication, the company competes by offering deeper control over the underlying network layer.
You may find additional historical performance trends and valuation metrics for this ticker on ValueRay.
- Enterprise migration to cloud-based CPaaS solutions drives recurring software revenue growth
- High-volume messaging traffic during election cycles impacts short-term revenue fluctuations
- Global expansion of Maestro platform increases cross-selling opportunities for enterprise customers
- Integration of conversational AI tools enhances platform stickiness and per-user margins
- Direct carrier network ownership provides cost advantages over asset-light software competitors
| Net Income: -5.05m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 2.38 > 1.0 |
| NWC/Revenue: -1.35% < 20% (prev 4.75%; Δ -6.09% < -1%) |
| CFO/TA 0.10 > 3% & CFO 101.4m > Net Income -5.05m |
| Net Debt (375.9m) to EBITDA (45.4m): 8.28 < 3 |
| Current Ratio: 0.94 > 1.5 & < 3 |
| Outstanding Shares: last quarter (33.0m) vs 12m ago 13.72% < -2% |
| Gross Margin: 36.59% > 18% (prev 0.38%; Δ 3.62k% > 0.5%) |
| Asset Turnover: 80.92% > 50% (prev 77.95%; Δ 2.97% > 0%) |
| Interest Coverage Ratio: -7.17 > 6 (EBITDA TTM 45.4m / Interest Expense TTM 2.21m) |
| A: -0.01 (Total Current Assets 171.9m - Total Current Liabilities 182.5m) / Total Assets 984.2m |
| B: -0.08 (Retained Earnings -80.2m / Total Assets 984.2m) |
| C: -0.02 (EBIT TTM -15.9m / Avg Total Assets 974.3m) |
| D: -0.16 (Book Value of Equity -92.6m / Total Liabilities 578.5m) |
| Altman-Z'' Score: -0.61 = B |
| DSRI: 1.11 (Receivables 101.2m/87.0m, Revenue 788.4m/751.7m) |
| GMI: 1.04 (GM 36.59% / 38.05%) |
| AQI: 0.99 (AQ_t 0.50 / AQ_t-1 0.50) |
| SGI: 1.05 (Revenue 788.4m / 751.7m) |
| TATA: -0.11 (NI -5.05m - CFO 101.4m) / TA 984.2m) |
| Beneish M-Score: -2.98 (Cap -4..+1) = A |
Over the past week, the price has changed by +12.01%, over one month by +131.87%, over three months by +330.72% and over the past year by +294.29%.
- StrongBuy: 1
- Buy: 2
- Hold: 2
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 55.8 | -0.4% |
P/S = 2.1919
P/B = 3.9375
Revenue TTM = 788.4m USD
EBIT TTM = -15.9m USD
EBITDA TTM = 45.4m USD
Long Term Debt = 148.7m USD (from longTermDebt, last quarter)
Short Term Debt = 54.6m USD (from shortTermDebt, last quarter)
Debt = 423.2m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 375.9m USD (from netDebt column, last quarter)
Enterprise Value = 2.10b USD (1.73b + Debt 423.2m - CCE 50.3m)
Interest Coverage Ratio = -7.17 (Ebit TTM -15.9m / Interest Expense TTM 2.21m)
EV/FCF = 27.31x (Enterprise Value 2.10b / FCF TTM 76.9m)
FCF Yield = 3.66% (FCF TTM 76.9m / Enterprise Value 2.10b)
FCF Margin = 9.76% (FCF TTM 76.9m / Revenue TTM 788.4m)
Net Margin = -0.64% (Net Income TTM -5.05m / Revenue TTM 788.4m)
Gross Margin = 36.59% ((Revenue TTM 788.4m - Cost of Revenue TTM 499.9m) / Revenue TTM)
Gross Margin QoQ = 34.21% (prev 34.48%)
Tobins Q-Ratio = 2.13 (Enterprise Value 2.10b / Total Assets 984.2m)
Interest Expense / Debt = 0.16% (Interest Expense 673k / Debt 423.2m)
Taxrate = 21.0% (US default 21%)
NOPAT = -12.5m (EBIT -15.9m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 0.94 (Total Current Assets 171.9m / Total Current Liabilities 182.5m)
Debt / Equity = 1.04 (Debt 423.2m / totalStockholderEquity, last quarter 405.7m)
Debt / EBITDA = 8.28 (Net Debt 375.9m / EBITDA 45.4m)
Debt / FCF = 4.89 (Net Debt 375.9m / FCF TTM 76.9m)
Total Stockholder Equity = 395.7m (last 4 quarters mean from totalStockholderEquity)
RoA = -0.52% (Net Income -5.05m / Total Assets 984.2m)
RoE = -1.28% (Net Income TTM -5.05m / Total Stockholder Equity 395.7m)
RoCE = -2.91% (EBIT -15.9m / Capital Employed (Equity 395.7m + L.T.Debt 148.7m))
RoIC = -1.97% (negative operating profit) (NOPAT -12.5m / Invested Capital 636.7m)
WACC = 11.61% (E(1.73b)/V(2.15b) * Re(14.42%) + D(423.2m)/V(2.15b) * Rd(0.16%) * (1-Tc(0.21)))
Discount Rate = 14.42% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 82.22 | Cagr: 11.44%
[DCF] Terminal Value 70.73% ; FCFF base≈67.1m ; Y1≈82.8m ; Y5≈141.3m
[DCF] Fair Price = 33.42 (EV 1.38b - Net Debt 375.9m = Equity 1.00b / Shares 30.1m; r=11.61% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 76.84 | EPS CAGR: 102.6% | SUE: 0.38 | # QB: 0
Revenue Correlation: 90.19 | Revenue CAGR: 12.00% | SUE: 1.74 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.36 | Chg30d=+8.33% | Revisions=+14% | Analysts=5
EPS next Quarter (2026-09-30): EPS=0.46 | Chg30d=-3.80% | Revisions=+0% | Analysts=5
EPS current Year (2026-12-31): EPS=1.80 | Chg30d=+5.42% | Revisions=+50% | GrowthEPS=+25.9% | GrowthRev=+18.2%
EPS next Year (2027-12-31): EPS=2.24 | Chg30d=+19.52% | Revisions=+50% | GrowthEPS=+24.3% | GrowthRev=+4.5%
[Analyst] Revisions Ratio: +50%