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 Margin1.1%
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 Margin3.1%
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
B
Years to Pay Off Debt147.5 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$1.1B
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$2.9B
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
D
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book0.85x
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
C
Free Cash Flow$85M
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.
CapEx % of Net Income140.3%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$59M
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. It provides software-as-a-service, cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable businesses to connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve back-office efficiency. The company also offers onboarding implementation support, and ongoing support and training services. In addition, 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. It provides software-as-a-service, cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable businesses to connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve back-office efficiency. The company also offers onboarding implementation support, and ongoing support and training services. In addition, 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.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
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.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
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.
Mr. Market is currently offering BILL Holdings, Inc. at $32.47.
The business passes only 1 of 6 of Graham's defensive criteria — well below his required standard.
At $32.47, the stock trades at a 220% premium to its Graham Number of $10.15. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Trading at 3.2x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Gross Profit %
81.6%▲
79.8%•
N/A
Operating Margin %
1.1%▲
-4.3%•
N/A
Net Income %
3.1%▲
-0.6%•
N/A
Diluted EPS
0.12▲
-0.03•
N/A
Balance Sheet Highlights
Metric
Q1 2026
Q4 2025
Q4 2024
Total Assets
$10.1B
$10.1B
N/A
Total Debt
$1.9B▼
$1.9B•
N/A
Working Capital
$2.9B▲
$2.9B•
N/A
Years to Pay Debt
147.49
-729.17
N/A
Cash Flow Highlights
Metric
Q1 2026
Q4 2025
Free Cash Flow
$85M▼
$91M
Owner Earnings
$59M
$47M
CapEx % of Net Income
140.3%
N/A
Income Statement
2026
2025
2024
Tax Effect Of Unusual Items
-679
-87
Tax Rate For Calcs
0
0
Normalized EBITDA
52,808
38,807
Total Unusual Items
-5,044
-412
Total Unusual Items Excluding Goodwill
-5,044
-412
Net Income From Continuing Operation Net Minority Interest
12,786
-2,588
Reconciled Depreciation
28,382
35,390
Reconciled Cost Of Revenue
54,805
56,579
EBITDA
47,764
38,395
EBIT
19,382
3,005
Net Interest Income
15,671
16,629
Interest Expense
4,607
5,071
Interest Income
21,869
23,325
Normalized Income
17,151
-2,263
Net Income From Continuing And Discontinued Operation
12,786
-2,588
Total Expenses
401,918
432,335
Total Operating Income As Reported
-399
-18,076
Diluted Average Shares
112,677
100,532
Basic Average Shares
99,285
100,532
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
13,744
-2,588
Average Dilution Earnings
958
0
-39,983
Net Income Common Stockholders
12,786
-2,588
Net Income
12,786
-2,588
Net Income Including Noncontrolling Interests
12,786
-2,588
Net Income Continuous Operations
12,786
-2,588
Tax Provision
1,989
522
Pretax Income
14,775
-2,066
Other Income Expense
-5,541
-1,031
Other Non Operating Income Expenses
-497
-619
Special Income Charges
-5,044
-412
Other Special Charges
-40,472
Restructuring And Mergern Acquisition
5,044
412
Net Non Operating Interest Income Expense
15,671
16,629
Total Other Finance Cost
1,591
1,625
1,003
Interest Expense Non Operating
4,607
5,071
Interest Income Non Operating
21,869
23,325
Operating Income
4,645
-17,664
Operating Expense
327,210
348,747
Provision For Doubtful Accounts
18,834
22,624
Depreciation Amortization Depletion Income Statement
8,479
8,381
Depreciation And Amortization In Income Statement
8,479
8,381
Research And Development
74,385
82,806
Selling General And Administration
225,512
234,936
Selling And Marketing Expense
153,226
155,439
General And Administrative Expense
72,286
79,497
Other Gand A
72,286
79,497
Gross Profit
331,855
331,083
Cost Of Revenue
74,708
83,588
Total Revenue
406,563
414,671
Operating Revenue
406,563
414,671
Balance Sheet
2026
2025
2024
Ordinary Shares Number
99,581
99,967
Share Issued
99,581
99,967
Net Debt
840,182
739,070
Total Debt
1,885,854
1,887,090
Tangible Book Value
1,228,915
1,217,825
Invested Capital
5,637,589
5,640,409
Working Capital
2,898,024
2,895,191
Net Tangible Assets
1,228,915
1,217,825
Capital Lease Obligations
51,000
53,490
Common Stock Equity
3,802,735
3,806,809
Total Capitalization
5,637,589
5,640,409
Total Equity Gross Minority Interest
3,802,735
3,806,809
Stockholders Equity
3,802,735
3,806,809
Gains Losses Not Affecting Retained Earnings
1,992
13,775
Other Equity Adjustments
1,992
13,775
Retained Earnings
-1,770,362
-1,731,047
Additional Paid In Capital
5,571,103
5,524,079
Capital Stock
2
2
Common Stock
2
2
Total Liabilities Net Minority Interest
6,276,071
6,319,625
Total Non Current Liabilities Net Minority Interest
1,890,311
1,889,385
Other Non Current Liabilities
4,077
1,871
Non Current Deferred Liabilities
380
424
Non Current Deferred Revenue
380
424
Long Term Debt And Capital Lease Obligation
1,885,854
1,887,090
Long Term Capital Lease Obligation
51,000
53,490
Long Term Debt
1,834,854
1,833,600
Current Liabilities
4,385,760
4,430,240
Current Deferred Liabilities
4,020,426
4,053,098
Current Deferred Revenue
4,020,426
4,053,098
Current Debt And Capital Lease Obligation
33,373
Current Debt
33,373
Other Current Borrowings
33,373
Pensionand Other Post Retirement Benefit Plans Current
32,665
33,081
Payables And Accrued Expenses
332,669
344,061
Current Accrued Expenses
325,521
339,017
Payables
7,148
5,044
Accounts Payable
7,148
5,044
Total Assets
10,078,806
10,126,434
Total Non Current Assets
2,795,022
2,801,003
Other Non Current Assets
32,749
32,974
Goodwill And Other Intangible Assets
2,573,820
2,588,984
Other Intangible Assets
177,311
192,475
Goodwill
2,396,509
2,396,509
Net PPE
188,453
179,045
Accumulated Depreciation
Gross PPE
188,453
179,045
Leases
Other Properties
188,453
179,045
Machinery Furniture Equipment
Current Assets
7,283,784
7,325,431
Other Current Assets
259,804
278,473
Restricted Cash
3,999,136
4,032,211
Receivables
851,499
773,247
Other Receivables
819,359
732,084
Accounts Receivable
32,140
41,163
Cash Cash Equivalents And Short Term Investments
2,173,345
2,241,500
Other Short Term Investments
1,178,673
1,146,970
Cash And Cash Equivalents
994,672
1,094,530
Cash Flow
2026
2025
Free Cash Flow
84,732
91,133
Repurchase Of Capital Stock
-56,862
-132,651
Issuance Of Debt
0
0
Capital Expenditure
-17,942
-14,184
End Cash Position
3,361,260
3,669,067
Beginning Cash Position
3,669,067
3,540,194
Effect Of Exchange Rate Changes
69
-2
Changes In Cash
-307,876
128,875
Financing Cash Flow
-109,562
-113,016
Cash Flow From Continuing Financing Activities
-109,562
-113,016
Net Other Financing Charges
-53,383
47,892
Proceeds From Stock Option Exercised
683
5,206
Net Common Stock Issuance
-56,862
-132,651
Common Stock Payments
-56,862
-132,651
Net Issuance Payments Of Debt
0
-33,463
Net Long Term Debt Issuance
0
-33,463
Long Term Debt Issuance
0
0
Investing Cash Flow
-300,988
136,574
Cash Flow From Continuing Investing Activities
-300,988
136,574
Net Other Investing Changes
-98,846
8,344
Net Investment Purchase And Sale
-184,200
142,414
Sale Of Investment
465,876
453,200
Purchase Of Investment
-650,076
-310,786
Net PPE Purchase And Sale
-168
-1,492
Purchase Of PPE
-168
-1,492
Capital Expenditure Reported
-17,774
-12,692
Operating Cash Flow
102,674
105,317
Cash Flow From Continuing Operating Activities
102,674
105,317
Change In Working Capital
-2,708
-4,942
Change In Other Working Capital
359
183
Change In Other Current Liabilities
-1,654
-2,360
Change In Other Current Assets
284
1,168
Change In Payables And Accrued Expense
-9,395
-2,368
Change In Accrued Expense
-11,441
-1,644
Change In Payable
2,046
-724
Change In Account Payable
2,046
-724
Change In Prepaid Assets
-1,514
7,510
Change In Receivables
9,212
-9,075
Changes In Account Receivables
9,212
-9,075
Other Non Cash Items
3,785
4,143
Stock Based Compensation
53,937
64,256
Provisionand Write Offof Assets
18,834
22,624
Amortization Of Securities
-12,341
-13,566
Depreciation Amortization Depletion
28,382
35,390
Depreciation And Amortization
28,382
35,390
Amortization Cash Flow
23,085
27,775
Amortization Of Intangibles
23,085
27,775
Depreciation
5,297
7,615
Net Income From Continuing Operations
12,785
-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: $358M▲ $407M+13.5%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 81.2%▲ 81.6%+0.4pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 1.3%▲ 1.1%-0.2pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: -3.2%▲ 3.1%+6.4pp
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.
$407M/qtr (≈$1.6B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.66x 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.
$85M
vs Positive
Operating Cash Flow
$103M
Latest quarter · Buffett's cash reality check
ROIC
0.1%
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
0.9x
Net Assets: $3.8B
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.
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
12.33%
High — management has strong skin in the game
Return on Equity (ROE)
0.3%
Weak — poor returns on equity
Return on Assets (ROA)
0.1%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$430M
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
9.998% of net income
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
ER Collective Holdings, LLC
8.55%
8,518,300
Blackrock Inc.
8.39%
8,357,143
Starboard Value LP
7.05%
7,024,848
Vanguard Portfolio Management LLC
5.71%
5,684,842
Vanguard Capital Management LLC
3.94%
3,921,018
Wellington Management Group, LLP
3.88%
3,862,663
Senvest Management LLC
3.85%
3,835,348
Contour Asset Management LLC
3.36%
3,341,743
Risk Analysis
Beta (Market Risk)
1.18
Moderate volatility — moves slightly more than market
Short Interest
14.7% of float
Moderate short interest
Debt-to-Equity
0.50x
Conservative balance sheet — low financial risk
Current Ratio
1.66x
Adequate liquidity
52-Week Price Range
Low: $31.41Current: $32.47High: $57.21
Currently at 4% of 52-week range
BILL Holdings, Inc. (BILL) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $10.15. Margin of safety: 0%. Gross profit margin: 81.6%. Operating margin: 1.1%. Net margin: 3.1%. Market cap: $3.2B. Sector: Technology. Industry: Software - Application. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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