Black Knight Inc (BKI)

US09215C1053 - Common Stock

75.76  0 (0%)

After market: 75.77 +0.01 (+0.01%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to BKI. BKI was compared to 279 industry peers in the Software industry. BKI has an excellent profitability rating, but there are concerns on its financial health. BKI is valied quite expensively at the moment, while it does show a decent growth rate.



7

1. Profitability

1.1 Basic Checks

In the past year BKI was profitable.
BKI had a positive operating cash flow in the past year.
BKI had positive earnings in each of the past 5 years.
In the past 5 years BKI always reported a positive cash flow from operatings.

1.2 Ratios

BKI has a Return On Assets of 4.24%. This is amongst the best in the industry. BKI outperforms 83.33% of its industry peers.
BKI has a Return On Equity of 8.79%. This is amongst the best in the industry. BKI outperforms 85.87% of its industry peers.
BKI has a Return On Invested Capital of 4.55%. This is amongst the best in the industry. BKI outperforms 81.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BKI is significantly below the industry average of 10.09%.
The 3 year average ROIC (4.50%) for BKI is below the current ROIC(4.55%), indicating increased profibility in the last year.
Industry RankSector 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

Looking at the Profit Margin, with a value of 16.09%, BKI belongs to the top 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 better Operating Margin (19.41%) than 90.22% of its industry peers.
In the last couple of years the Operating Margin of BKI has declined.
Industry RankSector 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

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BKI is destroying value.
BKI has more shares outstanding than it did 1 year ago.
BKI has more shares outstanding than it did 5 years 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.
BKI's Altman-Z score of 3.23 is fine compared to the rest of the industry. BKI outperforms 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's Debt to FCF ratio of 26.41 is in line compared 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.
BKI has a Debt to Equity ratio of 0.86. This is in the lower half of the industry: BKI underperforms 71.01% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.86
Debt/FCF 26.41
Altman-Z 3.23
ROIC/WACC0.44
WACC10.39%

2.3 Liquidity

BKI has a Current Ratio of 1.43. This is a normal value and indicates that BKI is financially healthy and should not expect problems in meeting its short term obligations.
BKI has a Current ratio (1.43) which is in line with its industry peers.
A Quick Ratio of 1.43 indicates that BKI should not have too much problems paying its short term obligations.
The Quick ratio of BKI (1.43) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.43
Quick Ratio 1.43

4

3. Growth

3.1 Past

The earnings per share for BKI have decreased strongly by -18.11% in the last year.
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.
Measured over the past years, BKI shows a quite strong growth in Revenue. The Revenue has been growing by 8.09% on average per year.
EPS 1Y (TTM)-18.11%
EPS 3Y6.03%
EPS 5Y11.33%
EPS growth Q2Q-32.31%
Revenue 1Y (TTM)-1.64%
Revenue growth 3Y9.65%
Revenue growth 5Y8.09%
Revenue growth 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.
The Revenue is expected to grow by 4.70% on average over the next years.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 36.42, BKI can be considered very expensive at the moment.
Based on the Price/Earnings ratio, BKI is valued a bit cheaper than 75.72% of the companies in the same industry.
BKI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.42.
A Price/Forward Earnings ratio of 31.80 indicates a quite expensive valuation of 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 is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 36.42
Fwd PE 31.8

4.2 Price Multiples

85.14% of the companies in the same industry are more expensive than BKI, based on the Enterprise Value to EBITDA ratio.
BKI's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 128.25
EV/EBITDA 22.16

4.3 Compensation for Growth

The decent profitability rating of BKI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.22
EPS Next 2Y0.47%
EPS Next 3Y4.42%

0

5. Dividend

5.1 Amount

No dividends for BKI!.
Industry RankSector Rank
Dividend Yield 0%

Black Knight Inc

NYSE:BKI (9/1/2023, 7:04:00 PM)

After market: 75.77 +0.01 (+0.01%)

75.76

0 (0%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.88B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 36.42
Fwd PE 31.8
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)3.22
Profitability
Industry RankSector Rank
ROA 4.24%
ROE 8.79%
ROCE
ROIC
ROICexc
ROICexgc
OM 19.41%
PM (TTM) 16.09%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.26
Health
Industry RankSector Rank
Debt/Equity 0.86
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.43
Quick Ratio 1.43
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-18.11%
EPS 3Y6.03%
EPS 5Y
EPS growth Q2Q
EPS Next Y-15.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.64%
Revenue growth 3Y9.65%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y