Start here if you're new
what it is
Box sells software that helps companies store, share, and control files in one place.
how it gets paid
Last year Box made $1.2B in revenue. Cloud content management was the main engine at $0.55B, or 46% of sales.
why it's growing
Revenue grew 8.0% last year. Revenue was $306M in the quarter, up 9% vs. prior year.
what just happened
Box beat by $0.31 per share when it printed $0.49 versus $0.18 expected.
At a glance
B+ balance sheet — decent shape, but not bulletproof
35/100 earnings predictability — expect surprises
86.2x trailing p/e — you're paying up for this one
20.0% return on capital — nothing to write home about
xvary composite: 56/100 — below average
What they do
Box sells software that helps companies store, share, and control files in one place.
You do not rip out Box lightly. Files, permissions, and audit trails are already wired in, and 2,810 employees support that setup. Gross margin, the money left after direct costs, was 78.9%, so the software keeps a lot of each revenue dollar.
How they make money
$1.2B
annual revenue · their business grew +8.0% last year
Cloud content management
$0.55B
+4.0%
Security and compliance
$0.25B
+5.0%
Collaboration and workflow
$0.20B
+4.0%
Integrations and APIs
$0.12B
+6.0%
Services and support
$0.08B
+2.0%
The products that matter
enterprise content platform
Cloud Content Management
$1.2B revenue
it is the whole business today, generating the full $1.2B revenue base. That makes the story easy to understand and harder to diversify.
100% of revenue
secure file sharing and workflow
Secure Collaboration Tools
$420M · 35% of sales
this subset accounts for $420M, or 35% of sales. It matters because collaboration is where Box has to prove it is more than digital storage.
35% of sales
profitability profile
Operating Model
8.3% net margin
an 8.3% net margin on $1.2B means Box keeps about 8 cents of every revenue dollar. That is respectable, but it leaves less room for mistakes than the best software names.
margin matters
Key numbers
$1.2B
annual revenue
That is the whole business. You are buying a $4B market cap against a $1.2B sales base.
78.9%
gross margin
This means 78.9 cents of every revenue dollar survives direct costs.
7.1%
operating margin
That is the slice left after running the company.
86.2x
trailing p/e
You are paying 86.2 dollars for $1 of trailing earnings.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 55 / 100
- long-term debt $450M (11% of capital)
- net profit margin 11.0% — keeps 11 cents of every dollar in revenue
- return on equity 30% — $0.30 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in BOX 3 years ago → it's now worth $8,480.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Box beat by $0.31 per share when it printed $0.49 versus $0.18 expected.
Revenue was $306M in the quarter, up 9% vs. prior year. Gross margin held at 78.9%, which left room for profit even in a slow-growing business.
$306.0M
revenue
$0.49
eps
78.9%
gross margin
the number that mattered
The $0.49 EPS print mattered most because it beat the $0.18 estimate by 172%, and that keeps the profit story alive.
-
box shares are down more than 20% in value since our late october review.investor sentiment has soured a bit of late, largely due to concerns of rising competition in the ai content management space and lingering macroeconomic headwinds, as well as pressured near-term operating margins. indeed, financial results for the october period (fiscal years end january 31st) were fairly uninspiring.
-
at this time, the stock is ranked to mirror the year-ahead broader market averages (timeliness: 3).
-
for this fiscal year, revenues should advance decently, but earnings are apt to take a step back.
-
the company posted revenues of $301 million and earnings of $0.05 per share for the third quarter.
-
the top line improved 9% vs. prior year, but missed our call by roughly $10 million, while earnings, which also fell short of our mark, were flat on both a sequential and annual basis.
source: company earnings report, 2026
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What could go wrong
the #1 risk is cloud content management getting commoditized faster than Box can widen its workflow edge.
med
one-platform concentration
All $1.2B of revenue comes from the same platform family. That keeps the story simple. It also means a slowdown hits the entire business, not a side segment.
Because 100% of revenue sits in one engine, weaker demand would pressure the whole model at once.
med
margin expansion that never quite arrives
Quarterly revenue is expected to rise 9%, while EPS is expected to stay flat at $0.23. That is the definition of growth without much operating leverage.
At an 8.3% net margin, even modest cost pressure can eat a meaningful share of profit.
med
valuation still assumes cleaner execution
The stock trades at 86.2x trailing earnings and about 36.9x this year's $0.70 EPS estimate. You are still paying for improvement, not just current results.
If growth stalls near 8.0% and margins stay ordinary, the multiple has room to compress even if the business stays profitable.
Box is profitable, but the combined risk picture is simple: 100% of its $1.2B revenue is tied to one platform while the stock still asks you to underwrite roughly 36.9x forward earnings.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next quarter's margin read
Revenue is expected at +9%, but EPS is flat at $0.23. You want to see profit start moving with sales.
valuation
the gap between trailing and forward p/e
86.2x trailing versus roughly 36.9x forward only works if earnings actually inflect. If not, that "cheapening" is just wishful math.
flow
whether institutions keep heading for the exit
Net selling for two straight quarters is not a thesis by itself, but it tells you big holders have not been using this drawdown to add.
business quality
proof that Box is more than storage
With $420M tied to secure collaboration tools, you want evidence the workflow layer is deepening customer dependence rather than just decorating the core product.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts do not see a strong short-term edge here.
risk profile
average
stability score 3 — about average risk. Not a bunker stock, not a chaos stock.
chart momentum
average
technical score 3 — the chart is not giving you a strong signal either way.
earnings predictability
35 / 100
earnings predictability is low. Translation: surprises are part of the deal.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 186 buyers vs. 207 sellers in 3q2025. total institutional holdings: 0.2B shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$20
$41
$26
current price
$31
target midpoint · +20% from current · 3-5yr high: $65 (+150% · 26% ann'l return)
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