BLACKLINE INC (BL) Stock Fundamental Analysis
NASDAQ:BL - Nasdaq - US09239B1098 - Common Stock - Currency: USD
BL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 282 industry peers in the Software industry. While BL is still in line with the averages on profitability rating, there are concerns on its financial health. BL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BL was profitable.
In the past year BL had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BL reported negative net income in multiple years.
In the past 5 years BL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.78%, BL belongs to the top of the industry, outperforming 84.75% of the companies in the same industry.
Looking at the Return On Equity, with a value of 37.42%, BL belongs to the top of the industry, outperforming 92.91% of the companies in the same industry.
BL has a Return On Invested Capital of 1.85%. This is in the better half of the industry: BL outperforms 69.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.78% | ||
| ROE | 37.42% | ||
| ROIC | 1.85% |
ROA(3y)3.28%
ROA(5y)-0.14%
ROE(3y)10.02%
ROE(5y)-3.3%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of BL (23.60%) is better than 91.49% of its industry peers.
BL has a Operating Margin of 4.06%. This is in the better half of the industry: BL outperforms 70.21% of its industry peers.
The Gross Margin of BL (75.29%) is better than 67.02% of its industry peers.
In the last couple of years the Gross Margin of BL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.06% | ||
| PM (TTM) | 23.6% | ||
| GM | 75.29% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.78%
GM growth 5Y-1.12%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BL is destroying value.
BL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for BL has been increased compared to 5 years ago.
The debt/assets ratio for BL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.20 indicates that BL is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.20, BL is in line with its industry, outperforming 49.65% of the companies in the same industry.
BL has a debt to FCF ratio of 5.84. This is a neutral value as BL would need 5.84 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.84, BL perfoms like the industry average, outperforming 56.74% of the companies in the same industry.
A Debt/Equity ratio of 1.59 is on the high side and indicates that BL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.59, BL is doing worse than 78.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.2
WACC9.48%
2.3 Liquidity
BL has a Current Ratio of 1.66. This is a normal value and indicates that BL is financially healthy and should not expect problems in meeting its short term obligations.
BL has a Current ratio of 1.66. This is comparable to the rest of the industry: BL outperforms 51.42% of its industry peers.
BL has a Quick Ratio of 1.66. This is a normal value and indicates that BL is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.66, BL perfoms like the industry average, outperforming 51.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
BL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.47%.
Measured over the past years, BL shows a very strong growth in Earnings Per Share. The EPS has been growing by 41.21% on average per year.
Looking at the last year, BL shows a quite strong growth in Revenue. The Revenue has grown by 8.93% in the last year.
Measured over the past years, BL shows a quite strong growth in Revenue. The Revenue has been growing by 17.72% on average per year.
EPS 1Y (TTM)-0.47%
EPS 3Y55.72%
EPS 5Y41.21%
EPS Q2Q%-9.26%
Revenue 1Y (TTM)8.93%
Revenue growth 3Y15.35%
Revenue growth 5Y17.72%
Sales Q2Q%6.01%
3.2 Future
Based on estimates for the next years, BL will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.28% on average per year.
The Revenue is expected to grow by 9.39% on average over the next years. This is quite good.
EPS Next Y0.74%
EPS Next 2Y3.69%
EPS Next 3Y8.28%
EPS Next 5YN/A
Revenue Next Year7.06%
Revenue Next 2Y7.87%
Revenue Next 3Y9.39%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.07, which means the current valuation is very expensive for BL.
BL's Price/Earnings ratio is a bit cheaper when compared to the industry. BL is cheaper than 73.40% of the companies in the same industry.
When comparing the Price/Earnings ratio of BL to the average of the S&P500 Index (27.30), we can say BL is valued inline with the index average.
BL is valuated rather expensively with a Price/Forward Earnings ratio of 22.78.
Based on the Price/Forward Earnings ratio, BL is valued a bit cheaper than the industry average as 70.92% of the companies are valued more expensively.
BL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.07 | ||
| Fwd PE | 22.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BL indicates a somewhat cheap valuation: BL is cheaper than 68.44% of the companies listed in the same industry.
BL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BL is cheaper than 78.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.86 | ||
| EV/EBITDA | 41.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BL does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of BL may justify a higher PE ratio.
PEG (NY)33.94
PEG (5Y)0.61
EPS Next 2Y3.69%
EPS Next 3Y8.28%
5. Dividend
5.1 Amount
No dividends for BL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
53.65
-2.36 (-4.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners95.67%
Inst Owner Change0%
Ins Owners8.54%
Ins Owner Change16.49%
Market Cap3.34B
Analysts74.78
Price Target58.75 (9.51%)
Short Float %13.45%
Short Ratio9.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.65%
Min EPS beat(2)-9.1%
Max EPS beat(2)24.4%
EPS beat(4)3
Avg EPS beat(4)10.01%
Min EPS beat(4)-9.1%
Max EPS beat(4)24.4%
EPS beat(8)7
Avg EPS beat(8)19.09%
EPS beat(12)11
Avg EPS beat(12)113%
EPS beat(16)14
Avg EPS beat(16)101.83%
Revenue beat(2)0
Avg Revenue beat(2)-2.53%
Min Revenue beat(2)-2.79%
Max Revenue beat(2)-2.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.95%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)-1.24%
Revenue beat(8)0
Avg Revenue beat(8)-2%
Revenue beat(12)0
Avg Revenue beat(12)-2.09%
Revenue beat(16)0
Avg Revenue beat(16)-1.98%
PT rev (1m)2.67%
PT rev (3m)-11.79%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)4.63%
EPS NY rev (1m)0.08%
EPS NY rev (3m)5%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.07 | ||
| Fwd PE | 22.78 | ||
| P/S | 5.04 | ||
| P/FCF | 21.86 | ||
| P/OCF | 17.86 | ||
| P/B | 8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 41.12 |
EPS(TTM)2.14
EY3.99%
EPS(NY)2.35
Fwd EY4.39%
FCF(TTM)2.45
FCFY4.57%
OCF(TTM)3
OCFY5.6%
SpS10.64
BVpS6.71
TBVpS-2.14
PEG (NY)33.94
PEG (5Y)0.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.78% | ||
| ROE | 37.42% | ||
| ROCE | 2.34% | ||
| ROIC | 1.85% | ||
| ROICexc | 7.48% | ||
| ROICexgc | N/A | ||
| OM | 4.06% | ||
| PM (TTM) | 23.6% | ||
| GM | 75.29% | ||
| FCFM | 23.08% |
ROA(3y)3.28%
ROA(5y)-0.14%
ROE(3y)10.02%
ROE(5y)-3.3%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.78%
GM growth 5Y-1.12%
F-Score8
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 5.84 | ||
| Debt/EBITDA | 8.72 | ||
| Cap/Depr | 69.54% | ||
| Cap/Sales | 5.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 245.82% | ||
| Profit Quality | 97.79% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | 2.2 |
F-Score8
WACC9.48%
ROIC/WACC0.2
Cap/Depr(3y)59.63%
Cap/Depr(5y)71.52%
Cap/Sales(3y)4.85%
Cap/Sales(5y)5.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-0.47%
EPS 3Y55.72%
EPS 5Y41.21%
EPS Q2Q%-9.26%
EPS Next Y0.74%
EPS Next 2Y3.69%
EPS Next 3Y8.28%
EPS Next 5YN/A
Revenue 1Y (TTM)8.93%
Revenue growth 3Y15.35%
Revenue growth 5Y17.72%
Sales Q2Q%6.01%
Revenue Next Year7.06%
Revenue Next 2Y7.87%
Revenue Next 3Y9.39%
Revenue Next 5YN/A
EBIT growth 1Y-35.49%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year46.19%
EBIT Next 3Y23.2%
EBIT Next 5YN/A
FCF growth 1Y231.41%
FCF growth 3Y42.38%
FCF growth 5Y52.28%
OCF growth 1Y137.81%
OCF growth 3Y33.57%
OCF growth 5Y45.05%