Motley Fool says take a closer look at fintech Bill after 36% YTD slump

Now may be a good time to buy Bill Holdings, a mid-cap fintech that develops solutions to automate the finances of small and mid-sized businesses, argues Motley Fool contributing analyst Jennifer Saibil. The market has yet to recognize the company’s potential: Bill is still growing quickly and has recently turned profitable, yet its stock price, way off its 2021 all-time high, has yet to recover, she noted.

Wall Street sees a strong future for Bill, and long-term investors might want to take a position in the stock at these prices, Saibil writes. The company provides a cloud-based platform that connects all of a company's back-office financial management to a list of more than 8 million financial institutions and more than 9,000 accounting firms for instant transactions and interconnected payments. 

The stock is 84% off its autumn 2021 all-time high, to $54.18 per share at the close on Friday, September 26. Investors were disappointed by a slowdown in the growth of the business, explains Saibil. She believes that there were objective reasons for this: COVID-19 hurting small business spending.

Bill is now growing at a slower, but still double-digit percentage pace: its fiscal-2025 full-year revenue increased 13% to $1.46 billion, while the company turned a profit for the first time ($23.8 million net income). Thanks to this, it has announced a $300 million share buyback.

Saibil says the management sees plenty of ways to expand the business, from attracting new clients and adding new features to increasing engagement with existing members and expanding internationally. It also sees a strong network effect: as it increases membership, more institutions want to be on its network, and as it expands, it is able to invest in more features that attract new clients.

The market is still pessimistic about its slowing sales, Saibil thinks, even though the flip side is that it has become cost-efficient and it still has a huge long-term opportunity. Still, Bill stock trades at a reasonable, in Saibil's view, valuation of 21 times next year's earnings and less than four times last year's sales.   

Bill got another boost in early September when activist hedge fund Starboard Value took an 8.5% stake. It is trying to get new board members in that will lead it in a different direction and create shareholder value.

Since the beginning of 2025, Bill’s stock price has fallen 36%. Wall Street generally sees room for a rebound, according to MarketWatch. Analysts have issued 16 "buy" ratings ("buy" and "overweight") versus 11 "hold" ratings. The average target price is $58.96 per share, implying nearly 9% upside from the last close.

The AI translation of this story was reviewed by a human editor.