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1. Company Snapshot

1.a. 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 internally and with external parties, automate content-driven business processes, develop custom applications, and implement data protection, security, and compliance features to comply with legal and regulatory requirements, internal policies, and industry standards and regulations.


It offers web, mobile, and desktop applications for cloud content management on a platform for developing custom applications, as well as industry-specific capabilities.As of January 31, 2022, the company had approximately 100,000 paying organizations, and its solution was offered in 25 languages.It serves financial services, health care, government, and legal services industries in the United States and internationally.


The company was formerly known as Box.net, Inc.and changed its name to Box, Inc.in November 2011.


Box, Inc.was incorporated in 2005 and is headquartered in San Francisco Bay Area, California.

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1.b. Last Insights on BOX

Box, Inc. faces negative drivers, including rising costs, which pressure margins. Congress Asset Management Co. lowered its stake in Box by 4.4%, selling 84,605 shares. Despite beating Q4 earnings estimates with 17% EPS growth and a 9% revenue rise, the company's high costs, particularly in AI tools, are a concern. The company's CEO flagged soaring AI costs as usage expands beyond engineers. However, a $500 million share repurchase plan, authorized by the board, could provide support.

1.c. Company Highlights

2. Box's Strong Q4 and Fiscal Year 2026 Earnings Report

Box reported revenue of $306 million for Q4, up 9% year-over-year, and EPS of $0.49, above the estimated $0.33. For fiscal year 2026, revenue reached $1.18 billion, up 8% year-over-year, with operating margins of 28%. The company's strong financial performance was driven by the success of its Enterprise Advanced offering and growth in customer demand for Box AI. The company generated record free cash flow of $313 million, up 3% year-over-year, and ended Q4 with $480 million in cash, cash equivalents, restricted cash, and short-term investments.

Publication Date: Mar -05

📋 Highlights
  • Revenue Growth:: FY 2026 revenue reached $1.18 billion, up 8% year-over-year, with Q4 revenue of $306 million, a 9% YoY increase.
  • Enterprise Advanced Momentum:: 10% of revenue now comes from Enterprise Advanced, with pricing uplifts of 30–40% over Enterprise Plus driving growth.
  • Operating Margin Expansion:: FY 2026 operating margins hit 28%, up 50 basis points YoY, with Q1 2027 guidance at 27.5% (220 bps improvement YoY).
  • Free Cash Flow Strength:: Q4 free cash flow was $98 million, up 7% YoY, and FY 2026 free cash flow totaled $313 million, a 3% increase.
  • AI-Driven Innovation:: Box plans to launch next-gen AI agents in FY 2027, enhancing Box Automate and Box Extract for advanced content workflows and unstructured data processing.

Enterprise Advanced Driving Growth

Enterprise Advanced customers have reached 10% of revenue, and the company is excited about the early traction and continued momentum. The pricing uplift for Enterprise Advanced is expected to remain around 30-40% relative to Enterprise Plus, with the overall contract value increase driven by the monetization of platform components and new use cases. As Aaron Levie, Box Co-Founder and CEO, noted, "Nearly every enterprise leader is looking to transform how their company operates with AI, and they quickly find that for AI agents to be effective in a workflow, they need critical context about their business."

AI Adoption and Innovation

The company is seeing strong adoption of applied AI use cases, particularly in regulated industries, and expects this trend to continue. Box is innovating and delivering more value to customers, with improvements in AI models and agentic abilities. Customers are becoming more comfortable automating content workflows as these models improve, and Box is seeing a trajectory of increased adoption.

Valuation and Outlook

With a P/E Ratio of 37.21 and P/S Ratio of 3.21, the market is pricing in significant growth expectations for Box. Analysts estimate next year's revenue growth at 8.5%. The company's strong financial performance, driven by the success of Enterprise Advanced and growth in AI adoption, positions it well for continued growth. The expected operating margin improvement, driven by efficiencies in sales and marketing and R&D, will likely contribute to further growth.

Margin Expansion and Investment

The company can improve operating margin with incremental improvement in constant currency. The investment phase is expected to take shape next year, with efficiencies in sales and marketing and R&D that can percolate through to drive margin expansion. The opportunities and efficiencies being driven, including the use of AI, will help achieve the next several points of growth.

3. NewsRoom

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A VP at Box Sold 24,500 Shares. Should Investors Avoid the Stock?

Apr -11

Source: fool.com

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Box: Valuation Is Still Too Cheap At This Level

Apr -03

Source: seekingalpha.com

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Jack in the Box Drops Smashed Jack Sliders Munchie Meal With Surprise Cups and a Chance to Win $75,000

Apr -02

Source: businesswire.com

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Box Unveils the Box Agent to Transform How Enterprises Work With Content

Apr -02

Source: businesswire.com

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AMC Shares Up Tuesday As Box Office Optimism Meets Investor Frustration

Mar -31

Source: benzinga.com

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Jack in the Box Inc. Announces Katelyn Zborowski as Chief Marketing Officer

Mar -30

Source: businesswire.com

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State and Local Governments Turn to Box to Modernize Workflows with Secure AI

Mar -25

Source: businesswire.com

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Box, Inc. $BOX Shares Sold by Congress Asset Management Co.

Mar -24

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.10%)

6. Segments

Internet Software & Services

Expected Growth: 8.0%

The cloud content management market is expected to grow rapidly, driven by increasing demand for digital transformation and collaboration tools. Box is well-positioned to benefit from this trend, with a strong platform and growing customer base. As a result, we expect revenue growth to exceed the global average, driven by increasing adoption of cloud-based content management solutions.

7. Detailed Products

Content Cloud

A cloud-based content management platform that enables users to store, share, and collaborate on files and content

Box Platform

A cloud-based platform that enables developers to build custom applications and integrations with Box's content management capabilities

Box Governance

A cloud-based governance platform that enables organizations to manage and retain electronic records and content

Box Relay

A cloud-based workflow automation platform that enables users to automate business processes and workflows

Box Shield

A cloud-based security platform that enables organizations to detect and respond to security threats and data breaches

Box Sign

A cloud-based electronic signature platform that enables users to sign and send documents electronically

8. Box, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Box, Inc. faces moderate threat from substitutes due to the presence of alternative cloud storage and collaboration tools such as Google Drive, Microsoft OneDrive, and Dropbox.

Bargaining Power Of Customers

Box, Inc. has a large customer base, but individual customers do not have significant bargaining power due to the company's diversified customer base and the lack of dependence on a single customer.

Bargaining Power Of Suppliers

Box, Inc. has a diversified supplier base, and no single supplier has significant bargaining power over the company.

Threat Of New Entrants

The cloud storage and collaboration market is highly competitive, and new entrants can easily enter the market, posing a significant threat to Box, Inc.'s market share.

Intensity Of Rivalry

The cloud storage and collaboration market is highly competitive, with many established players such as Microsoft, Google, and Dropbox, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 86.69%
Debt Cost 3.95%
Equity Weight 13.31%
Equity Cost 8.22%
WACC 4.52%
Leverage 651.51%

11. Quality Control: Box, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Box

A-Score: 5.0/10

Value: 2.6

Growth: 8.0

Quality: 7.4

Yield: 0.0

Momentum: 3.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
AvidXchange

A-Score: 4.5/10

Value: 3.6

Growth: 6.4

Quality: 5.6

Yield: 0.0

Momentum: 4.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Shift4 Payments

A-Score: 4.2/10

Value: 4.2

Growth: 9.4

Quality: 5.1

Yield: 0.0

Momentum: 2.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
UiPath

A-Score: 4.0/10

Value: 1.7

Growth: 7.2

Quality: 7.8

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

1-Year Total Return ->

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SPS Commerce

A-Score: 3.6/10

Value: 2.0

Growth: 8.1

Quality: 7.8

Yield: 0.0

Momentum: 0.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
SentinelOne

A-Score: 3.3/10

Value: 5.1

Growth: 6.7

Quality: 3.4

Yield: 0.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.37$

Current Price

21.37$

Potential

-0.00%

Expected Cash-Flows