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ZYBERNO

Stock Report

Updated Aug 31, 2026

BANDWIDTH INC. (BAND)

Technology • NASDAQ

$49.00

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

35.0/100

WEAK BUSINESS

BANDWIDTH INC. (BAND) scores 35/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full BAND quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

+38.7%

Undervalued

Growth gap unavailable — insufficient data for reverse DCF calculation.

🎯 Expected Annual Return →

32.4%

Margin of Safety convergence — your return if the market re-prices to intrinsic value (5-yr annualised)

6.0%

Yield + growth — what the business alone earns you, even if the market never re-rates

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full BAND valuation analysis · → View full BAND Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-1.3%)

Debt-to-Equity (Solvency Risk):POOR (1.10x)

Operating Margin (Operational Efficiency):CRITICAL (-1.8%)

Return on Capital (Capital Efficiency):CRITICAL (-2.0%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

BANDWIDTH INC. (BAND) stock report — Zyberno Score 35/100 (WEAK BUSINESS), Margin of Safety +38.7%, 32% expected annual return. Full financial analysis on Zyberno.

According to Zyberno's DCF model, BANDWIDTH INC. (BAND) trades at $49.00 against an estimated intrinsic value per share of $79.99 — a +38.7% Margin of Safety based on Owner Earnings of $81.44M TTM, projected at 22.4% growth for 10 years with a 2.5% terminal growth rate. Zyberno's model translates this into a 5-year expected return of 32.4% annually.

Over the trailing twelve months, BAND generated $81.44M in Owner Earnings. Capital was deployed as follows: $5.01M returned via share buybacks, $21.99M invested in capital expenditures. Reinvestment rate: -35.5%. Owner Earnings have grown at 22.4% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:49.00

Market Cap:$1.55B

Valuation Multiples (3)

P/B Ratio:3.83x

P/S Ratio:1.97x

Peg Ratio:-999.00x

Enterprise Metrics (3)

Enterprise Value:$1.68B

Ev Ebitda Ratio:29.00x

Pfcf Ratio:19.56x

Price Action & Momentum (1)

% of 52-Week High:62.0%

B. Profitability Assessment

Return Metrics (5)

ROE:

-1.3%

📊 Click to view full BAND ROE analysis →

ROA:-0.5%

Roic:

-2.0%

📊 Click to view full BAND ROIC analysis →

Reinvestment Rate:-35.5%

Fundamental Growth Rate (g):0.7%

Margin Analysis (3)

Operating Margin Ttm:-1.8%

Net Margin Ttm:-0.6%

Ebitda Margin:7.3%

TTM Performance (3)

Gross Margin Ttm:38.2%

Operating Margin Ttm:-1.8%

Net Margin Ttm:-0.6%

Yield Metrics (3)

Earnings Yield:-$0.78

Owner Earnings Yield:$5.25

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.07

📊 Click to view full BAND Earnings Surprise analysis →

EPS Surprise vs Expected:12.9%

Latest Earnings Filed:2026-04-30

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):11.6%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):1.0%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):21.9%

Operating Cash Flow Growth Rate (Linear):30.0%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:0.94x

Quick Ratio:0.94x

Cash Ratio:0.26x

Leverage Analysis (3)

Debt To Equity Ttm:1.10x

Debt-to-Equity Ratio:1.10x

Debt To Ebitda:2.98x

Coverage Ratios (2)

Interest Coverage Ratio:-5.94x

Times Interest Earned:-5.94

Capital Structure (4)

Working Capital:-10,636,000.00

Cash And Cash Equivalents:47,283,000.00

Long Term Debt:$148.70M

Net Debt:$124.77M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $788.36M

Linear Growth: 11.6%

📊 Click to view full BAND Revenue analysis & methodology →

Cost Of Revenue Ttm:$486.91M

Profitability Breakdown (2)

Gross profit TTM: $301.45M

Linear Growth: 9.1%

📊 Click to view full BAND Gross Profit analysis & methodology →

-$14.30M

Bottom Line Performance (3)

Net income TTM: -$5.05M

Linear Growth: 97.0%

📊 Click to view full BAND Net Income analysis & methodology →

Income Before Tax:-$3.49M

Ebitda Ttm:57,830,000.00

Operating Expenses (5)

Operating Expenses:315,756,000.00

R And D Expense:140,351,000.00

Sga Expense:75,551,000.00

Income Tax Expense:-$5.14M

Interest Expense:2,421,000.00

Expense Ratios (3)

R And D To Revenue Percentage:67.2%

Sga To Revenue Percentage:36.2%

Ebitda Margin:7.3%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$984.20M

Current Assets:$171.88M

Ppe Net:0.00

Goodwill:348,694,000.00

Intangible Assets:$128.83M

Liability Structure (4)

Total Liabilities:578,525,000.00

Current Liabilities:182,520,000.00

Long Term Debt:$148.70M

Short Term Debt:$23.36M

Equity & Capital (3)

Equity:$405.67M

Retained Earnings:-$80.21M

Common Stock:120,000,000.00

Working Capital Items (3)

Accounts Receivable:101,170,000.00

Inventory:0.00

Accounts Payable:31,694,000.00

Special Items (2)

Contract Liabilities:12,765,000.00

Stock Based Compensation:12,990,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $101.34M

Linear Growth: 30.0%

Free cash flow TTM: $79.36M

Linear Growth: 21.9%

📊 Click to view full BAND Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:-$3.86M

Capital Expenditures Ttm:21,985,000.00

Financing Activities (3)

Financing Cash Flow:-$59.76M

Dividends Paid Ttm:0.00

Stock Repurchase:5,009,000.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:72,133,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-0.17

-$0.38

Earnings Per Share Ttm:-$0.16

Revenue & Cash Per Share (3)

Sales Per Share Ttm:24.88

Operating Cash Flow Per Share:$2.82

Fcf Per Share Ttm:2.50

Book Value & Capital (2)

Book Value Per Share:$12.80

Cash Per Share:1.49

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.77x

Working Capital Turnover Ttm:-999.00x

Receivables Management (2)

Receivables Turnover Ttm:7.79x

Days Sales Outstanding Ttm:46.84

Inventory Management (2)

Inventory Turnover Ttm:-999.00x

Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:23.76

Cash Conversion Cycle:-975.92

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:40.00

Quality Score:40.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $81.44M

Linear Growth: 22.4%

📊 Click to view full BAND Owner Earnings analysis & methodology →

Owner Earnings Per Share:$2.57

Owner Earnings Yield:$5.25

Growth Assessment (1)

Owner Earnings Growth Rate:$22.36

Damodaran Growth Analysis (2)

Reinvestment Rate:-35.5%

Fundamental Growth Rate (g):0.7%

Intrinsic Value Models (1)

Intrinsic Value:

$2.53B

📊 Click to view full BAND DCF valuation →

Margin of Safety (1)

Margin Of Safety:

38.7%

📊 Click to view full BAND valuation analysis →

Return Scenarios (2)

Theoretical 5-Year Return:

32.4%

📊 Click to view full BAND expected return analysis →

Forward Expected Return (Yield + Growth):

6.0%

📊 Click to view full BAND expected return analysis →

Investment Assessment (1)

Buffett Assessment:Excellent margin of safety

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (2)

Revenue Growth Rate (Linear):11.6%

Net Income Growth Rate (Linear):1.0%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):21.9%

Operating Cash Flow Growth Rate (Linear):30.0%

Other Growth Rates (3)

Gross Profit Growth Rate (Linear):9.1%

Book Value Growth Rate (Linear):9.9%

Owner Earnings Growth Rate:$22.36

C. Company Profile & Context

Corporate Information (6)

Symbol:BAND

Company Name:BANDWIDTH INC.

Sector:Technology

Industry:Software

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:medium

Volume Category:N/A

Share Structure (3)

Shares Outstanding:31.68M

Shares Outstanding Basic:31.68M

Shares Outstanding Diluted:32.96M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-31 06:38:05 UTC

Data Timestamp:2026-08-31T06:38:05.563405