Bandwidth Operating Margin vs. Revenue

BAND Stock  USD 21.61  0.35  1.65%   
Considering the key profitability indicators obtained from Bandwidth's historical financial statements, Bandwidth may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Bandwidth's ability to earn profits and add value for shareholders.

Bandwidth Operating Profit Margin

(0.056)

As of November 29, 2024, Price To Sales Ratio is expected to decline to 0.59. In addition to that, Days Sales Outstanding is expected to decline to 36.58. At present, Bandwidth's Total Other Income Expense Net is projected to increase significantly based on the last few years of reporting. The current year's Net Income Applicable To Common Shares is expected to grow to about 18.5 M, whereas Interest Income is forecasted to decline to about 1.6 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.480.3929
Fairly Up
Slightly volatile
For Bandwidth profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Bandwidth to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Bandwidth utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Bandwidth's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Bandwidth over time as well as its relative position and ranking within its peers.
  

Bandwidth's Revenue Breakdown by Earning Segment

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For information on how to trade Bandwidth Stock refer to our How to Trade Bandwidth Stock guide.
Is Diversified Telecommunication Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Bandwidth. If investors know Bandwidth will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Bandwidth listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.61)
Revenue Per Share
26.367
Quarterly Revenue Growth
0.275
Return On Assets
(0.02)
Return On Equity
(0.05)
The market value of Bandwidth is measured differently than its book value, which is the value of Bandwidth that is recorded on the company's balance sheet. Investors also form their own opinion of Bandwidth's value that differs from its market value or its book value, called intrinsic value, which is Bandwidth's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Bandwidth's market value can be influenced by many factors that don't directly affect Bandwidth's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Bandwidth's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bandwidth is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bandwidth's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Bandwidth Revenue vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Bandwidth's current stock value. Our valuation model uses many indicators to compare Bandwidth value to that of its competitors to determine the firm's financial worth.
Bandwidth is number one stock in operating margin category among its peers. It also is the top company in revenue category among its peers . At present, Bandwidth's Operating Profit Margin is projected to slightly decrease based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Bandwidth by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Bandwidth Revenue vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Bandwidth

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(0) %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Bandwidth

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
601.12 M
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Bandwidth Revenue vs Competition

Bandwidth is the top company in revenue category among its peers. Market size based on revenue of Communication Services industry is currently estimated at about 30.89 Billion. Bandwidth claims roughly 601.12 Million in revenue contributing just under 2% to stocks in Communication Services industry.

Bandwidth Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Bandwidth, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Bandwidth will eventually generate negative long term returns. The profitability progress is the general direction of Bandwidth's change in net profit over the period of time. It can combine multiple indicators of Bandwidth, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-28.8 M-27.4 M
Interest Income2.8 M1.6 M
Operating Income-35.5 M-33.7 M
Net Income From Continuing Ops28 M29.4 M
Income Before Tax-19.3 M-18.3 M
Total Other Income Expense Net16.2 M17 M
Net Income Applicable To Common Shares17.6 M18.5 M
Net Loss-16.3 M-15.5 M
Income Tax Expense-3 M-3.1 M
Net Interest Income-1.4 M-1.4 M
Non Operating Income Net Other51.4 M53.9 M
Change To Netincome-22.5 M-21.4 M
Net Loss(0.64)(0.61)
Income Quality(2.39)(2.27)
Net Income Per E B T 0.85  0.70 

Bandwidth Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Bandwidth. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Bandwidth position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Bandwidth's important profitability drivers and their relationship over time.

Use Bandwidth in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Bandwidth position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bandwidth will appreciate offsetting losses from the drop in the long position's value.

Bandwidth Pair Trading

Bandwidth Pair Trading Analysis

The ability to find closely correlated positions to Bandwidth could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bandwidth when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Bandwidth - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Bandwidth to buy it.
The correlation of Bandwidth is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Bandwidth moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bandwidth moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Bandwidth can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Bandwidth position

In addition to having Bandwidth in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Insurance Providers
Insurance Providers Theme
Companies providing all types of insurance and insurance services. The Insurance Providers theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Insurance Providers Theme or any other thematic opportunities.
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When determining whether Bandwidth is a strong investment it is important to analyze Bandwidth's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Bandwidth's future performance. For an informed investment choice regarding Bandwidth Stock, refer to the following important reports:
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For information on how to trade Bandwidth Stock refer to our How to Trade Bandwidth Stock guide.
You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
To fully project Bandwidth's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Bandwidth at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Bandwidth's income statement, its balance sheet, and the statement of cash flows.
Potential Bandwidth investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Bandwidth investors may work on each financial statement separately, they are all related. The changes in Bandwidth's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Bandwidth's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.