Box: Getting Closer, But Wait For A Deeper Dip Before Buying

Mar. 06, 2025 1:04 PM ETBox, Inc. (BOX) StockBOX
Gary Alexander
30.91K Followers
(9min)

Summary

  • Box's stock fell post-earnings despite strong Q4 results due to a modest FY25 outlook, but shares have rallied ~20% over the past year.
  • At $32/share, Box's ~13x FCF valuation isn't attractive yet. I recommend waiting for a drop to $28 for a better buying opportunity.
  • Box's revenue and billings growth accelerated slightly in Q4, and the company is expecting ~6% growth in FY26.
  • Box's predictable growth and strong cash flow make it a reliable long-term investment, but timing the buy until the valuation drops further is the best move.
Mobile application of cloud storage

ngkaki

With volatility returning to the markets in full force, driven by an action-packed earnings season and heightening geopolitical tensions, many rebound rallies have fallen apart in the last few months, as investors have demanded nothing short of perfection amid high valuations.

This article was written by

30.91K Followers
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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