Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin9.7%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin-4.2%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
C
Years to Pay Off Debt-102.0 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt$797M
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$2.5B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
B
Price-to-Book1.14x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
A
Free Cash Flow$97M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings$25M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About BILL Holdings, Inc.
BILL Holdings, Inc. provides financial operations platform for small and midsize businesses worldwide. The company offers cloud-based payments, accounts payable, accounts receivable, and spend and expense management solutions. It also provides BILL Spend and Expense, a spend and expense management suite that provides a solution for businesses to have charge cards, build and monitor budgets, manage payments, and eliminate the need for manual expense reports. In addition, the company offers onboarding implementation support, and ongoing support and training services. Additionally, it provides payment services, including ACH, card, real-time, and cross-border payments, as well as checks and pay by card services; lending and deposit products; and value-added services. The company's artificial intelligence enabled financial software platform provides connections between suppliers and clients. It serves accounting firms, financial institutions, and software provider companies. The company was formerly known as Bill.com Holdings, Inc. and changed its name to BILL Holdings, Inc. in February 2023. BILL Holdings, Inc. was incorporated in 2006 and is headquartered in San Jose, California.
BILL Holdings, Inc. provides financial operations platform for small and midsize businesses worldwide. The company offers cloud-based payments, accounts payable, accounts receivable, and spend and expense management solutions. It also provides BILL Spend and Expense, a spend and expense management suite that provides a solution for businesses to have charge cards, build and monitor budgets, manage payments, and eliminate the need for manual expense reports. In addition, the company offers onboarding implementation support, and ongoing support and training services. Additionally, it provides payment services, including ACH, card, real-time, and cross-border payments, as well as checks and pay by card services; lending and deposit products; and value-added services. The company's artificial intelligence enabled financial software platform provides connections between suppliers and clients. It serves accounting firms, financial institutions, and software provider companies. The company was formerly known as Bill.com Holdings, Inc. and changed its name to BILL Holdings, Inc. in February 2023. BILL Holdings, Inc. was incorporated in 2006 and is headquartered in San Jose, California.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Net Income From Continuing Operation Net Minority Interest
-18,476
-2,588
Reconciled Depreciation
29,269
35,390
Reconciled Cost Of Revenue
58,966
56,579
EBITDA
13,879
38,395
EBIT
-15,390
3,005
Net Interest Income
14,808
16,629
Interest Expense
4,637
5,071
Interest Income
21,053
23,325
Normalized Income
52,163
-2,263
Net Income From Continuing And Discontinued Operation
-18,476
-2,588
Total Expenses
393,869
432,335
Total Operating Income As Reported
-34,252
-18,076
Diluted Average Shares
97,896
100,532
Basic Average Shares
97,896
100,532
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
-18,476
-2,588
Average Dilution Earnings
0
0
-39,983
Net Income Common Stockholders
-18,476
-2,588
Net Income
-18,476
-2,588
Net Income Including Noncontrolling Interests
-18,476
-2,588
Net Income Continuous Operations
-18,476
-2,588
Tax Provision
-1,551
522
Pretax Income
-20,027
-2,066
Other Income Expense
-77,152
-1,031
Other Non Operating Income Expenses
-583
-619
Special Income Charges
-76,569
-412
Other Special Charges
-40,472
Restructuring And Mergern Acquisition
76,569
412
Net Non Operating Interest Income Expense
14,808
16,629
Total Other Finance Cost
1,608
1,625
Interest Expense Non Operating
4,637
5,071
Interest Income Non Operating
21,053
23,325
Operating Income
42,317
-17,664
Operating Expense
313,874
348,747
Provision For Doubtful Accounts
13,502
22,624
Depreciation Amortization Depletion Income Statement
8,240
8,381
Depreciation And Amortization In Income Statement
8,240
8,381
Research And Development
63,091
82,806
Selling General And Administration
229,041
234,936
Selling And Marketing Expense
158,331
155,439
General And Administrative Expense
70,710
79,497
Other Gand A
70,710
79,497
Gross Profit
356,191
331,083
Cost Of Revenue
79,995
83,588
Total Revenue
436,186
414,671
Operating Revenue
436,186
414,671
Balance Sheet
2026
2025
2024
Ordinary Shares Number
92,063
99,967
Share Issued
92,063
99,967
Net Debt
805,070
739,070
Total Debt
1,884,591
1,887,090
Tangible Book Value
971,947
1,217,825
Invested Capital
5,366,725
5,640,409
Working Capital
2,510,209
2,895,191
Net Tangible Assets
971,947
1,217,825
Capital Lease Obligations
48,468
53,490
Common Stock Equity
3,530,602
3,806,809
Total Capitalization
5,243,668
5,640,409
Total Equity Gross Minority Interest
3,530,602
3,806,809
Stockholders Equity
3,530,602
3,806,809
Gains Losses Not Affecting Retained Earnings
-6,415
13,775
Other Equity Adjustments
-6,415
13,775
Retained Earnings
-2,089,312
-1,731,047
Additional Paid In Capital
5,626,327
5,524,079
Capital Stock
2
2
Common Stock
2
2
Total Liabilities Net Minority Interest
6,687,537
6,319,625
Total Non Current Liabilities Net Minority Interest
1,762,644
1,889,385
Other Non Current Liabilities
777
1,871
Non Current Deferred Liabilities
333
424
Non Current Deferred Revenue
333
424
Long Term Debt And Capital Lease Obligation
1,761,534
1,887,090
Long Term Capital Lease Obligation
48,468
53,490
Long Term Debt
1,713,066
1,833,600
Current Liabilities
4,924,893
4,430,240
Current Deferred Liabilities
4,372,010
4,053,098
Current Deferred Revenue
4,372,010
4,053,098
Current Debt And Capital Lease Obligation
123,057
33,373
Current Debt
123,057
33,373
Other Current Borrowings
123,057
33,373
Pensionand Other Post Retirement Benefit Plans Current
32,930
33,081
Payables And Accrued Expenses
396,896
344,061
Current Accrued Expenses
387,259
339,017
Payables
9,637
5,044
Accounts Payable
9,637
5,044
Total Assets
10,218,139
10,126,434
Total Non Current Assets
2,783,037
2,801,003
Other Non Current Assets
31,616
32,974
Goodwill And Other Intangible Assets
2,558,655
2,588,984
Other Intangible Assets
162,146
192,475
Goodwill
2,396,509
2,396,509
Net PPE
192,766
179,045
Accumulated Depreciation
-144,931
Gross PPE
337,697
179,045
Leases
41,792
Other Properties
47,821
179,045
Machinery Furniture Equipment
248,084
Current Assets
7,435,102
7,325,431
Other Current Assets
302,158
278,473
Restricted Cash
4,352,633
4,032,211
Receivables
842,802
773,247
Other Receivables
811,807
732,084
Accounts Receivable
30,995
41,163
Cash Cash Equivalents And Short Term Investments
1,937,509
2,241,500
Other Short Term Investments
906,456
1,146,970
Cash And Cash Equivalents
1,031,053
1,094,530
Cash Flow
2026
2025
Free Cash Flow
96,549
91,133
Repurchase Of Capital Stock
-287,827
-132,651
Issuance Of Debt
0
0
Capital Expenditure
-14,437
-14,184
End Cash Position
3,765,233
3,669,067
Beginning Cash Position
3,361,260
3,540,194
Effect Of Exchange Rate Changes
-192
-2
Changes In Cash
404,166
128,875
Financing Cash Flow
48,643
-113,016
Cash Flow From Continuing Financing Activities
48,643
-113,016
Net Other Financing Charges
327,769
47,892
Proceeds From Stock Option Exercised
8,701
5,206
Net Common Stock Issuance
-287,827
-132,651
Common Stock Payments
-287,827
-132,651
Net Issuance Payments Of Debt
0
-33,463
Net Long Term Debt Issuance
-150,000
-33,463
Long Term Debt Issuance
0
Investing Cash Flow
244,537
136,574
Cash Flow From Continuing Investing Activities
244,537
136,574
Net Other Investing Changes
-722
8,344
Net Investment Purchase And Sale
259,696
142,414
Sale Of Investment
543,531
453,200
Purchase Of Investment
-283,835
-310,786
Net PPE Purchase And Sale
-375
-1,492
Purchase Of PPE
-375
-1,492
Capital Expenditure Reported
-14,062
-12,692
Operating Cash Flow
110,986
105,317
Cash Flow From Continuing Operating Activities
110,986
105,317
Change In Working Capital
43,240
-4,942
Change In Other Working Capital
-1,961
183
Change In Other Current Liabilities
-4,689
-2,360
Change In Other Current Assets
1,093
1,168
Change In Payables And Accrued Expense
56,053
-2,368
Change In Accrued Expense
53,449
-1,644
Change In Payable
2,604
-724
Change In Account Payable
2,604
-724
Change In Prepaid Assets
-8,264
7,510
Change In Receivables
1,008
-9,075
Changes In Account Receivables
1,008
-9,075
Other Non Cash Items
2,898
4,143
Stock Based Compensation
52,780
64,256
Provisionand Write Offof Assets
13,502
22,624
Amortization Of Securities
-12,227
-13,566
Depreciation Amortization Depletion
29,269
35,390
Depreciation And Amortization
29,269
35,390
Amortization Cash Flow
24,023
27,775
Amortization Of Intangibles
24,023
27,775
Depreciation
5,246
7,615
Net Income From Continuing Operations
-18,476
-2,588
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $383M▲ $436M+13.8%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 80.8%▲ 81.7%+0.9pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 11.0%▲ 9.7%-1.3pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: -1.8%▼ -4.2%-2.4pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$436M/qtr (≈$1.7B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.51x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$97M
vs Positive
Operating Cash Flow
$111M
Latest quarter · Buffett's cash reality check
ROIC
0.6%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
1.1x
Net Assets: $3.5B
Asset Context — Software - Application
Software companies store most of their value in code, IP, recurring revenue, and customer relationships — none of which appear on the balance sheet under GAAP. Book value and Net Assets are poor proxies for intrinsic value here. Focus on ROIC, gross margin trajectory, and free cash flow instead.
⚠️Operating income is positive but net income is negative. This typically reflects below-the-line items: interest expense, impairment charges, tax adjustments, or one-time write-offs. The core business may be healthy — operating margin is a better signal of ongoing profitability here.
Peers & Industry
No auto-detected peers for Software - Application. You can manually compare BILL against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
4.30%
Moderate — some alignment with shareholders
Return on Equity (ROE)
-0.5%
Weak — poor returns on equity
Return on Assets (ROA)
-0.2%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$560M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-0.1% YoY
Debt is declining — management is deleveraging
Leadership Team
Rene Lacerte
Founder, CEO & Chairperson of the Board
Age 57
Pay: $1,278,354
Rohini Jain
Chief Financial Officer & Principal Accounting Officer
Age 45
Jon Philip Andrews Jr.
Vice President of Investor Relations
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
10.24%
8,735,197
ER Collective Holdings, LLC
9.99%
8,518,300
Starboard Value LP
8.24%
7,025,748
Vanguard Portfolio Management LLC
6.67%
5,688,580
Ameriprise Financial, Inc.
6.52%
5,558,053
Senvest Management LLC
4.81%
4,102,668
Vanguard Capital Management LLC
4.61%
3,933,392
Wellington Management Group, LLP
4.18%
3,562,810
Risk Analysis
Beta (Market Risk)
1.10
Moderate volatility — moves slightly more than market
Short Interest
18.1% of float
Heavy short selling — market has significant bearish bets
Debt-to-Equity
0.54x
Conservative balance sheet — low financial risk
Current Ratio
1.51x
Adequate liquidity
52-Week Price Range
Low: $31.41Current: $47.06High: $57.21
Currently at 61% of 52-week range
BILL Holdings, Inc. (BILL) fundamental analysis — Overall grade B based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: 81.7%. Operating margin: 9.7%. Net margin: -4.2%. Market cap: $4.0B. Sector: Technology. Industry: Software - Application. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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