NASDAQ:BL stands out as a growth opportunity that won't break the bank.

Last update: Jan 17, 2025

Discover BLACKLINE INC (NASDAQ:BL), an undervalued growth gem identified by our stock screener. NASDAQ:BL is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Analyzing Growth Metrics

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.
The Earnings Per Share has been growing by 74.65% on average over the past years. This is a very strong growth
Looking at the last year, BL shows a quite strong growth in Revenue. The Revenue has grown by 11.37% in the last year.
BL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.96% yearly.
The Earnings Per Share is expected to grow by 10.60% on average over the next years. This is quite good.
Based on estimates for the next years, BL will show a quite strong growth in Revenue. The Revenue will grow by 8.95% on average per year.

Evaluating Valuation: NASDAQ:BL

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:BL has earned a 5 for valuation:

Compared to the rest of the industry, the Price/Earnings ratio of BL indicates a somewhat cheap valuation: BL is cheaper than 76.70% of the companies listed in the same industry.
BL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BL is cheaper than 74.19% of the companies in the same industry.
BL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BL is cheaper than 69.18% of the companies in the same industry.
82.44% of the companies in the same industry are more expensive than BL, based on the Price/Free Cash Flow ratio.
The decent profitability rating of BL may justify a higher PE ratio.

A Closer Look at Health for NASDAQ:BL

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:BL was assigned a score of 5 for health:

A Current Ratio of 2.69 indicates that BL has no problem at all paying its short term obligations.
BL's Current ratio of 2.69 is fine compared to the rest of the industry. BL outperforms 72.76% 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.
Looking at the Quick ratio, with a value of 2.69, BL is in the better half of the industry, outperforming 73.12% of the companies in the same industry.

Evaluating Profitability: NASDAQ:BL

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:BL scores a 6 out of 10:

With an excellent Return On Assets value of 7.48%, BL belongs to the best of the industry, outperforming 81.72% of the companies in the same industry.
Looking at the Return On Equity, with a value of 34.47%, BL belongs to the top of the industry, outperforming 92.47% of the companies in the same industry.
BL has a better Return On Invested Capital (1.68%) than 66.31% of its industry peers.
With an excellent Profit Margin value of 19.83%, BL belongs to the best of the industry, outperforming 86.38% of the companies in the same industry.
With a decent Operating Margin value of 4.38%, BL is doing good in the industry, outperforming 69.53% of the companies in the same industry.
BL has a Gross Margin of 75.27%. This is in the better half of the industry: BL outperforms 68.10% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Our latest full fundamental report of BL contains the most current fundamental analsysis.

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.