One-glance verdict
Undervalued
$171.73 our estimate vs market $49.01
Wall Street consensus: $57.15 (-66.7% lower than our fair-value estimate)
71% below our estimate, below the bear case
Fundamentals snapshot
BILL Holdings, Inc.
BILL · NYQ · Technology · Software - Application
Current price
$49.01
52-week range
$31.41 - $57.21
Market cap
$4.18B
Balance sheet
Healthy
0.90x Concerning
Net cash $40.06M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 13.0% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Return on equity was -0.3% last year — the company lost money on shareholders' equity.
What this company does
BILL Holdings, Inc.
BILL Holdings, Inc. helps small and medium-sized businesses manage their money by offering software that handles payments, bills, and expenses, making it easier for them to get paid and pay others. Their main money comes from fees associated with these financial services, and this matters because it shows how much they're helping businesses streamline their operations.
How the company got here
BILL Holdings, Inc., originally founded as Cashboard, Inc. in April 2006, has evolved into a significant player in the financial technology space. The company's journey began with a focus on enabling small businesses to manage their bills and maintain their financial records in the cloud. A key turning point was its initial public offering (IPO) on the New York Stock Exchange in December 2019, which provided capital for further expansion. Subsequent strategic acquisitions, such as Divvy for expense management and Invoice2go for accounts receivable, have broadened its service offerings and customer base. The company officially changed its name from Bill.com Holdings, Inc. to BILL Holdings, Inc. in February 2023, reflecting its expanded scope.
What it actually does
BILL Holdings provides a comprehensive financial operations platform designed for small and midsize businesses (SMBs). Essentially, it's a digital toolkit that helps companies manage their money more efficiently. This includes automating tasks like paying bills (accounts payable) and sending invoices (accounts receivable), as well as managing company spending and employee expenses. The platform uses artificial intelligence (AI) to streamline these processes, connecting businesses with their suppliers and customers to speed up transactions and reduce manual work.
Accounts Payable
This part of BILL's business focuses on helping companies manage the money they owe to others, like suppliers or vendors. Instead of manually processing paper invoices and writing checks, the software automates the entire process. It can read invoices, get them approved, and then schedule payments, often through electronic methods like ACH (Automated Clearing House) transfers, which are direct bank-to-bank payments. This ensures bills are paid on time and helps businesses maintain good relationships with their suppliers.
Accounts Receivable
This segment is all about helping businesses get paid by their customers. BILL's platform allows companies to create and send professional-looking invoices digitally. Customers can then pay these invoices easily through an online portal, often with options for electronic payments. This speeds up the collection of money owed to the business, improving its cash flow (the movement of money into and out of the business).
Spend and Expense Management
This business line provides tools for companies to manage their spending and employee expenses. It includes offering corporate charge cards to employees, which allows managers to set spending limits and monitor expenditures in real-time. The system also helps employees submit expense reports, often eliminating the need for manual paperwork and receipts. This gives businesses better control over their overall spending and helps prevent unauthorized expenses.
What management is betting on now
BILL's management is heavily focused on integrating artificial intelligence more deeply into its platform to automate even more complex financial tasks. This includes developing AI agents that can handle things like tax form filings and categorizing invoices automatically. They are also expanding their "Embed 2.0" initiative, which involves integrating BILL's payment tools directly into other software that businesses already use, like accounting or payroll systems. This strategy aims to make BILL's services more accessible and seamless for a wider range of businesses, driving future growth and customer acquisition.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$88.56M
FY2025 Q2
$78.33M
FY2025 Q3
$98.38M
FY2025 Q4
$81.03M
FY2026 Q1
$95.56M
FY2026 Q2
$103.83M
FY2026 Q3
$102.51M
FY2026 Q4
$110.61M
Revenue
$436.19M
Net income
$-18.48M
Diluted EPS
-0.17
Operating cash flow
$110.99M
Free cash flow
$110.61M
Fetching…
Sources
Revenue
$406.56M
Net income
$12.79M
Diluted EPS
0.12
Operating cash flow
$102.67M
Free cash flow
$102.51M
Fetching…
Sources
Revenue
$414.67M
Net income
$-2.59M
Diluted EPS
-0.03
Operating cash flow
$105.32M
Free cash flow
$103.83M
Fetching…
Sources
Revenue
$395.74M
Net income
$-2.96M
Diluted EPS
-0.03
Operating cash flow
$96.86M
Free cash flow
$95.56M
Fetching…
Sources
Revenue
$383.35M
Net income
$-7.07M
Diluted EPS
0.02
Operating cash flow
$83.82M
Free cash flow
$81.03M
Fetching…
Sources
Revenue
$358.22M
Net income
$-11.59M
Diluted EPS
-0.11
Operating cash flow
$99.53M
Free cash flow
$98.38M
Fetching…
Sources
Revenue
$362.55M
Net income
$33.55M
Diluted EPS
-0.06
Operating cash flow
$78.72M
Free cash flow
$78.33M
Fetching…
Sources
Revenue
$358.45M
Net income
$8.91M
Diluted EPS
0.08
Operating cash flow
$88.58M
Free cash flow
$88.56M
Fetching…
Sources
Is it cheap or expensive?
Fair value $171.73 vs current price $49.01
Wall Street consensus is the average analyst price target: $57.15 (-66.7% lower than our fair-value estimate).
Our most-likely fair value is $171.73 a share — about 250.4% above today's price of $49.01, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $40.1M - more cash than debt. Interest coverage 0.9x.
Net debt
$-40.06M
Interest coverage
0.90x
BILL Holdings, Inc.'s profit covers its interest bill about 0.9 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
BILL
BASELINE
BILL Holdings, Inc.
Total debt $1.90B Interest coverage 0.90x This is the baseline the peer rows are being compared against.
Total debt $10.74B Interest coverage 4.83x +438% vs BILL Carries about 5.4x more debt cushion than BILL.
Total debt $5.38M Interest coverage -11.46x -100% vs BILL This peer has almost no interest-payment cushion compared with BILL.
Total debt $1.46B Interest coverage 71.61x +7,876% vs BILL Carries about 79.8x more debt cushion than BILL.
What you should know
The case for and against BILL
2 Rewards
1 Risk
Rewards
-
Revenue grew 13.0% last year.
-
Free cash flow was positive in 4/10 years.
Risks
-
Return on equity was -0.3% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
11.27x
P/B
1.28x
P/S
2.53x
EV/EBITDA
41.35x
PEG ratio
0.44x
Profitability
How much profit each dollar creates
Gross margin
83.9%
Operating margin
9.7%
Net margin
-0.7%
ROE
-0.3%
ROA
0.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.54x
Current ratio
1.51x
Quick ratio
0.57x
Total debt
$1.90B
Total cash
$1.94B
Growth
How the business has been compounding
Revenue TTM
$1.65B
Revenue 5Y CAGR
26.7%
EPS TTM
-0.11
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$415.83M
Free CF TTM
$412.50M
FCF margin
25.0%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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