For those who appreciate growth without the sticker shock, NASDAQ:BL is worth considering.

Last update: Dec 4, 2024

Here's BLACKLINE INC (NASDAQ:BL) for you, a growth stock our stock screener believes is undervalued. NASDAQ:BL is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

ChartMill's Evaluation of Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:BL was assigned a score of 8 for growth:

The Earnings Per Share has grown by an impressive 49.69% over the past year.
Measured over the past years, BL shows a very strong growth in Earnings Per Share. The EPS has been growing by 74.65% on average per year.
Looking at the last year, BL shows a quite strong growth in Revenue. The Revenue has grown by 11.37% in the last year.
Measured over the past years, BL shows a very strong growth in Revenue. The Revenue has been growing by 20.96% on average per year.
Based on estimates for the next years, BL will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.60% on average per year.
BL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.70% yearly.

Analyzing Valuation Metrics

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:BL boasts a 5 out of 10:

BL's Price/Earnings ratio is a bit cheaper when compared to the industry. BL is cheaper than 79.14% of the companies in the same industry.
Based on the Price/Forward Earnings ratio, BL is valued a bit cheaper than the industry average as 73.74% of the companies are valued more expensively.
Based on the Enterprise Value to EBITDA ratio, BL is valued a bit cheaper than 68.35% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BL is valued cheaply inside the industry as 83.81% of the companies are valued more expensively.
The decent profitability rating of BL may justify a higher PE ratio.

How do we evaluate the Health for NASDAQ:BL?

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:BL, the assigned 5 reflects its health status:

A Current Ratio of 2.69 indicates that BL has no problem at all paying its short term obligations.
BL has a better Current ratio (2.69) than 72.66% of its industry peers.
BL has a Quick Ratio of 2.69. This indicates that BL is financially healthy and has no problem in meeting its short term obligations.
BL has a Quick ratio of 2.69. This is in the better half of the industry: BL outperforms 73.02% of its industry peers.

Evaluating Profitability: NASDAQ:BL

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:BL was assigned a score of 6 for profitability:

BL has a better Return On Assets (7.48%) than 81.65% of its industry peers.
Looking at the Return On Equity, with a value of 34.47%, BL belongs to the top of the industry, outperforming 92.81% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.68%, BL is in the better half of the industry, outperforming 66.91% of the companies in the same industry.
With an excellent Profit Margin value of 19.83%, BL belongs to the best of the industry, outperforming 87.05% of the companies in the same industry.
The Operating Margin of BL (4.38%) is better than 70.14% of its industry peers.
BL's Gross Margin of 75.27% is fine compared to the rest of the industry. BL outperforms 67.27% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Check the latest full fundamental report of BL for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.