What Should You know About Bill.com (BILL) Before Investing?

After moving 0.9% during today's afternoon session, Bill.com is now trading at a price of $115.31 per share. On average, analysts give it a target price of $116.41.

BILL Holdings, Inc. provides cloud-based software that simplifies, digitizes, and automates back-office financial operations for small and midsize businesses worldwide. The company provides software-as-a-service, cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable users to connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve office efficiency.

Potential Bill.com Investors Should Analyze the Following:

  • Bill.com has moved 8.9% over the last year.

  • The company has a price to earnings growth (PEG) ratio of -2.71. A number between 0 and 1 could mean that the market is undervaluing Bill.com's estimated growth potential

  • Its Price to Book (P/B) ratio is 3.0

Understanding Bill.com's Operating Margins

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2022-06-30 641,959 813,773 -49.35 -3.18
2021-06-30 238,265 290,426 -47.83 -120.41
2020-06-30 157,600 152,654 -21.7 -139.78
2019-06-30 108,351 88,236 -9.05 n/a

Averaging out to -32.0% over the last 4 years, Bill.com's operating margins also have a high coefficient of variability, which stands at 62.1%. The firm's margins are declining at a -52.8% compounded yearly rate.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.