Carbonite Inc (NASDAQ:CARB) stock had a great day in the market on Friday March 16. Shares jumped 9.95% and closed the day at $33.43. They're now trading 0.22% below their 52-week high of $33.5.
With today's big gain, Carbonite now has a market cap of $954 million. That makes it a small cap company.
The business operates in the computer services industry and employs 941 people. Its shares trade primarily on the NASDAQ GM stock exchange.
Carbonite has 28.52 million shares outstanding and 1.61 million traded hands for the day. That's above the average 30-day volume of 394,157 shares. The amount of Carbonite stock is also dropping as the company buys back its own shares. In the last 12 months, it repurchased $21 million worth.
Over the last five years, Carbonite's revenue is up by 184.93%. You can see this growth in annual revenue chart below...
In the last year alone, Carbonite's revenue has grown by 15.69%. That's a solid sign for Carbonite stock owners.
We like to invest in companies that grow their sales. A growing top line is a sign of a healthy business.
For now, Carbonite will continue to pull in revenue. So let's take a closer look at the company's total financial health. And the best way to do that is by looking at its balance sheet... Carbonite's cash comes in at $129 million and the company's debt is $112 million...
Carbonite's cash pile is larger than its total debt. This and a steady cash flow has allowed the company to buy back shares.
What is Carbonite Stock Worth?
Let's look at a few key ratios to determine the value of Carbonite stock…
Price-to-Earnings (P/E): This ratio comes in at 172.86 for Carbonite. That's high. A high P/E ratio shows that investors are already expecting high earnings growth.
Price-to-Book (P/B): This ratio is a cornerstone for value investors. A lower number here indicates a better value play. And at 24.62, Carbonite looks expensive… but P/B varies greatly based on the industry.
These two metrics are a great place to start when valuing a company... but your analysis should go much deeper...