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  • Writer's pictureIshfaaq Peerally

Boxlight Stock Analysis

Many of you asked me to analyze Boxlight $BOXL as it seems to be undervalued. The stock gained 700% last year before crashing. Those people who are bullish on the stock seem to be bullish for the wrong reasons. My opinion on the stock changed so much throughout my analysis.

๐Ÿซ Boxlight is a ๐™‹๐™ง๐™ค๐™ซ๐™ž๐™™๐™š๐™ง ๐™ค๐™› ๐™ž๐™ฃ๐™ฉ๐™š๐™ง๐™–๐™˜๐™ฉ๐™ž๐™ซ๐™š ๐™ฉ๐™š๐™˜๐™๐™ฃ๐™ค๐™ก๐™ค๐™œ๐™ฎ, ๐™™๐™ž๐™œ๐™ž๐™ฉ๐™–๐™ก ๐™จ๐™ž๐™œ๐™ฃ๐™–๐™œ๐™š, ๐™จ๐™ค๐™›๐™ฉ๐™ฌ๐™–๐™ง๐™š, ๐™–๐™ฃ๐™™ ๐™Ž๐™๐™€๐™ˆ ๐™จ๐™ค๐™ก๐™ช๐™ฉ๐™ž๐™ค๐™ฃ๐™จ under the brand names Clevertouch and Mimio.It makes and sells interactive education systems to schools. For example, they sell interactive displays which are set to replace blackboards. They also sell 3D printers that can help children study. There is certainly a big market for these products as schools have not changed in decades.

๐Ÿ’ธ The problem, however, with Boxlight is that the ๐™ฅ๐™ง๐™ค๐™™๐™ช๐™˜๐™ฉ๐™จ ๐™ฉ๐™๐™–๐™ฉ ๐™ฉ๐™๐™š๐™ฎ ๐™ข๐™–๐™ ๐™š ๐™ค๐™ง ๐™จ๐™š๐™ก๐™ก ๐™–๐™ง๐™š ๐™š๐™ญ๐™ฅ๐™š๐™ฃ๐™จ๐™ž๐™ซ๐™š. This significantly limits their potential market. They only had $29 million in sales in the TTM. They found a way to expand their market by acquiring British company Sahara. They got a really good deal for a company which is much bigger than them and which makes cheaper products. Sahara is even profitable. This is the main reason to be bullish on Boxlight.

The proforma revenues are $105 million and Boxlight today has a market cap of $119 million. ๐™„๐™ฉ ๐™ก๐™ค๐™ค๐™ ๐™จ ๐™ก๐™ž๐™ ๐™š ๐™– ๐™œ๐™ค๐™ค๐™™ ๐™™๐™š๐™–๐™ก.

๐Ÿ’ฐ However, Boxlight made a huge share dilution to acquire Sahara. Most of their debts are convertible, there's going to be more dilution in the future. Since the IPO in 2017, the market cap gained over 200% with the stock price down 50% since they issued nearly 500% in shares. ๐™๐™๐™š๐™ฎ ๐™–๐™ง๐™š ๐™ช๐™จ๐™ž๐™ฃ๐™œ ๐™ฉ๐™๐™š๐™ž๐™ง ๐™จ๐™๐™–๐™ง๐™š๐™จ ๐™–๐™จ ๐™˜๐™ช๐™ง๐™ง๐™š๐™ฃ๐™˜๐™ฎ.

Just because a stock looks cheap doesn't mean it is. Sometimes, the market is right on the price.

Watch the full video on YouTube:

Hereโ€™s the full analysis of Boxlight:


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