Black Knight Inc (BKI) Stock Fundamental Analysis
NYSE:BKI - New York Stock Exchange, Inc. - US09215C1053 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to BKI. BKI was compared to 283 industry peers in the Software industry. While BKI has a great profitability rating, there are quite some concerns on its financial health. BKI is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BKI had positive earnings in the past year.
In the past year BKI had a positive cash flow from operations.
BKI had positive earnings in each of the past 5 years.
Each year in the past 5 years BKI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BKI (4.24%) is better than 83.33% of its industry peers.
With an excellent Return On Equity value of 8.79%, BKI belongs to the best of the industry, outperforming 85.87% of the companies in the same industry.
BKI has a better Return On Invested Capital (4.55%) than 81.52% of its industry peers.
BKI had an Average Return On Invested Capital over the past 3 years of 4.50%. This is significantly below the industry average of 11.99%.
The last Return On Invested Capital (4.55%) for BKI is above the 3 year average (4.50%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 8.79% | ||
| ROIC | 4.55% |
ROA(3y)5.12%
ROA(5y)4.55%
ROE(3y)12.53%
ROE(5y)10.55%
ROIC(3y)4.5%
ROIC(5y)5.4%
1.3 Margins
With an excellent Profit Margin value of 16.09%, BKI belongs to the best of the industry, outperforming 89.13% of the companies in the same industry.
BKI's Profit Margin has improved in the last couple of years.
BKI has a Operating Margin of 19.41%. This is amongst the best in the industry. BKI outperforms 90.22% of its industry peers.
In the last couple of years the Operating Margin of BKI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.41% | ||
| PM (TTM) | 16.09% | ||
| GM | N/A |
OM growth 3Y-7.28%
OM growth 5Y-5.29%
PM growth 3Y46.66%
PM growth 5Y10.96%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
BKI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BKI has more shares outstanding than it did 1 year ago.
BKI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.23 indicates that BKI is not in any danger for bankruptcy at the moment.
The Altman-Z score of BKI (3.23) is better than 63.04% of its industry peers.
The Debt to FCF ratio of BKI is 26.41, which is on the high side as it means it would take BKI, 26.41 years of fcf income to pay off all of its debts.
BKI has a Debt to FCF ratio of 26.41. This is comparable to the rest of the industry: BKI outperforms 51.45% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that BKI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.86, BKI is doing worse than 71.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 26.41 | ||
| Altman-Z | 3.23 |
ROIC/WACC0.44
WACC10.39%
2.3 Liquidity
A Current Ratio of 1.43 indicates that BKI should not have too much problems paying its short term obligations.
BKI has a Current ratio (1.43) which is comparable to the rest of the industry.
A Quick Ratio of 1.43 indicates that BKI should not have too much problems paying its short term obligations.
BKI's Quick ratio of 1.43 is in line compared to the rest of the industry. BKI outperforms 47.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
BKI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.11%.
The Earnings Per Share has been growing by 11.33% on average over the past years. This is quite good.
The Revenue has decreased by -1.64% in the past year.
The Revenue has been growing by 8.09% on average over the past years. This is quite good.
EPS 1Y (TTM)-18.11%
EPS 3Y6.03%
EPS 5Y11.33%
EPS Q2Q%-32.31%
Revenue 1Y (TTM)-1.64%
Revenue growth 3Y9.65%
Revenue growth 5Y8.09%
Sales Q2Q%-6.67%
3.2 Future
BKI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.33% yearly.
Based on estimates for the next years, BKI will show a small growth in Revenue. The Revenue will grow by 4.70% on average per year.
EPS Next Y-15.35%
EPS Next 2Y0.47%
EPS Next 3Y4.42%
EPS Next 5Y9.33%
Revenue Next Year-3.37%
Revenue Next 2Y0.82%
Revenue Next 3Y2.9%
Revenue Next 5Y4.7%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 36.42, which means the current valuation is very expensive for BKI.
Compared to the rest of the industry, the Price/Earnings ratio of BKI indicates a somewhat cheap valuation: BKI is cheaper than 75.72% of the companies listed in the same industry.
BKI is valuated rather expensively when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 31.80, which means the current valuation is very expensive for BKI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BKI indicates a somewhat cheap valuation: BKI is cheaper than 69.57% of the companies listed in the same industry.
BKI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.42 | ||
| Fwd PE | 31.8 |
4.2 Price Multiples
BKI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BKI is cheaper than 85.14% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as BKI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 128.25 | ||
| EV/EBITDA | 22.16 |
4.3 Compensation for Growth
BKI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.22
EPS Next 2Y0.47%
EPS Next 3Y4.42%
5. Dividend
5.1 Amount
BKI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
75.76
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins Owners2.6%
Ins Owner Change0%
Market Cap11.88B
Analysts51.43
Price Target76.09 (0.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.83%
Min EPS beat(2)-11.99%
Max EPS beat(2)10.34%
EPS beat(4)1
Avg EPS beat(4)-5.72%
Min EPS beat(4)-15.74%
Max EPS beat(4)10.34%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.23%
Min Revenue beat(2)-3.17%
Max Revenue beat(2)0.72%
Revenue beat(4)1
Avg Revenue beat(4)-2.38%
Min Revenue beat(4)-4.98%
Max Revenue beat(4)0.72%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)9.06%
PT rev (3m)18.79%
EPS NQ rev (1m)-2.33%
EPS NQ rev (3m)-8.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-8%
Revenue NQ rev (1m)-0.91%
Revenue NQ rev (3m)-2.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.42 | ||
| Fwd PE | 31.8 | ||
| P/S | 7.81 | ||
| P/FCF | 128.25 | ||
| P/OCF | 57.54 | ||
| P/B | 4.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.16 |
EPS(TTM)2.08
EY2.75%
EPS(NY)2.38
Fwd EY3.14%
FCF(TTM)0.59
FCFY0.78%
OCF(TTM)1.32
OCFY1.74%
SpS9.7
BVpS17.76
TBVpS-11.47
PEG (NY)N/A
PEG (5Y)3.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 8.79% | ||
| ROCE | 5.36% | ||
| ROIC | 4.55% | ||
| ROICexc | 4.56% | ||
| ROICexgc | 27.41% | ||
| OM | 19.41% | ||
| PM (TTM) | 16.09% | ||
| GM | N/A | ||
| FCFM | 6.09% |
ROA(3y)5.12%
ROA(5y)4.55%
ROE(3y)12.53%
ROE(5y)10.55%
ROIC(3y)4.5%
ROIC(5y)5.4%
ROICexc(3y)4.53%
ROICexc(5y)5.44%
ROICexgc(3y)26.95%
ROICexgc(5y)32.47%
ROCE(3y)5.3%
ROCE(5y)6.37%
ROICexcg growth 3Y-3.03%
ROICexcg growth 5Y-10.42%
ROICexc growth 3Y-11.28%
ROICexc growth 5Y-7.12%
OM growth 3Y-7.28%
OM growth 5Y-5.29%
PM growth 3Y46.66%
PM growth 5Y10.96%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 26.41 | ||
| Debt/EBITDA | 3.72 | ||
| Cap/Depr | 32.49% | ||
| Cap/Sales | 7.48% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 37.84% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 3.23 |
F-Score5
WACC10.39%
ROIC/WACC0.44
Cap/Depr(3y)37.92%
Cap/Depr(5y)41.05%
Cap/Sales(3y)8.83%
Cap/Sales(5y)8.91%
Profit Quality(3y)98.25%
Profit Quality(5y)148.84%
High Growth Momentum
Growth
EPS 1Y (TTM)-18.11%
EPS 3Y6.03%
EPS 5Y11.33%
EPS Q2Q%-32.31%
EPS Next Y-15.35%
EPS Next 2Y0.47%
EPS Next 3Y4.42%
EPS Next 5Y9.33%
Revenue 1Y (TTM)-1.64%
Revenue growth 3Y9.65%
Revenue growth 5Y8.09%
Sales Q2Q%-6.67%
Revenue Next Year-3.37%
Revenue Next 2Y0.82%
Revenue Next 3Y2.9%
Revenue Next 5Y4.7%
EBIT growth 1Y-13.1%
EBIT growth 3Y1.67%
EBIT growth 5Y2.38%
EBIT Next Year17.44%
EBIT Next 3Y9.04%
EBIT Next 5Y10.61%
FCF growth 1Y-68.07%
FCF growth 3Y-21.76%
FCF growth 5Y-13.44%
OCF growth 1Y-50.78%
OCF growth 3Y-12.7%
OCF growth 5Y-6.44%