Butterfly Network, Inc. Fundamental Analysis (NYSE: BFLY)
Butterfly Network, Inc. (NYSE: BFLY) shows moderate financial fundamentals with a PE ratio of -33.21, profit margin of -43.56%, and ROE of -28.22%. The company generates $0.1B in annual revenue with strong year-over-year growth of 18.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -13.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BFLY's fundamental strength across five key dimensions:
Efficiency Score
WeakBFLY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBFLY trades at attractive valuation levels.
Growth Score
ModerateBFLY shows steady but slowing expansion.
Financial Health Score
ExcellentBFLY maintains a strong and stable balance sheet.
Profitability Score
WeakBFLY struggles to sustain strong margins.
Key Financial Metrics
Is BFLY Expensive or Cheap?
P/E Ratio
BFLY trades at -33.21 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BFLY's PEG of -0.75 indicates potential undervaluation.
Price to Book
The market values Butterfly Network, Inc. at 10.05 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -43.12 times EBITDA. This is generally considered low.
How Well Does BFLY Make Money?
Net Profit Margin
For every $100 in sales, Butterfly Network, Inc. keeps $-43.56 as profit after all expenses.
Operating Margin
Core operations generate -49.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-28.22 in profit for every $100 of shareholder equity.
ROA
Butterfly Network, Inc. generates $-18.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Butterfly Network, Inc. generates limited operating cash flow of $-23.48M, signaling weaker underlying cash strength.
Free Cash Flow
Butterfly Network, Inc. generates weak or negative free cash flow of $-27.65M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.10 in free cash annually.
FCF Yield
BFLY converts -1.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-33.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
15.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.28
vs 25 benchmark
ROA
Return on assets percentage
-0.19
vs 25 benchmark
ROCE
Return on capital employed
-0.28
vs 25 benchmark
How BFLY Stacks Against Its Sector Peers
| Metric | BFLY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -33.21 | 31.66 | Better (Cheaper) |
| ROE | -28.22% | 501.00% | Weak |
| Net Margin | -43.56% | -3647.00% (disorted) | Weak |
| Debt/Equity | 0.10 | -0.30 (disorted) | Distorted |
| Current Ratio | 3.58 | 5.78 | Strong Liquidity |
| ROA | -18.64% | -262.00% (disorted) | Weak |
BFLY outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Butterfly Network, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-94.83%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
98.84%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
99.62%
Industry Style: Defensive, Growth, Innovation
High Growth