DB:02B

Stock Analysis Report

Executive Summary

BlackLine, Inc. provides financial accounting close solutions delivered primarily as Software as a Service in the United States and internationally.

Snowflake

Fundamentals

Flawless balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has BlackLine's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.5%

02B

0.3%

DE Software

1.4%

DE Market


1 Year Return

9.1%

02B

19.8%

DE Software

3.8%

DE Market

Return vs Industry: 02B underperformed the German Software industry which returned 19.8% over the past year.

Return vs Market: 02B exceeded the German Market which returned 3.8% over the past year.


Shareholder returns

02BIndustryMarket
7 Day-5.5%0.3%1.4%
30 Day-7.6%5.1%1.3%
90 Day-4.4%3.4%3.1%
1 Year9.1%9.1%21.4%19.8%7.0%3.8%
3 Yearn/a50.0%43.9%18.5%8.3%
5 Yearn/a147.1%129.5%42.2%22.9%

Price Volatility Vs. Market

How volatile is BlackLine's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is BlackLine undervalued compared to its fair value and its price relative to the market?

7.84x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 02B (€41.4) is trading above our estimate of fair value (€20.31)

Significantly Below Fair Value: 02B is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 02B is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: 02B is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 02B's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 02B is overvalued based on its PB Ratio (7.8x) compared to the DE Software industry average (3.2x).


Next Steps

Future Growth

How is BlackLine forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-0.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 02B is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 02B is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 02B is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 02B's revenue (18.9% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 02B's revenue (18.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 02B's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has BlackLine performed over the past 5 years?

-5.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 02B is unprofitable, and losses have increased over the past 5 years at a rate of -5.6% per year.

Accelerating Growth: Unable to compare 02B's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 02B is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (14.5%).


Return on Equity

High ROE: 02B has a negative Return on Equity (-7.99%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 02B is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 02B is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is BlackLine's financial position?


Financial Position Analysis

Short Term Liabilities: 02B's short term assets ($235.8M) exceeds its short term liabilities ($174.7M)

Long Term Liabilities: 02B's short term assets (235.8M) exceeds its long term liabilities (17.5M)


Debt to Equity History and Analysis

Debt Level: 02B is debt free.

Reducing Debt: 02B has no debt compared to 5 years ago when its debt to equity ratio was 12.9%.


Balance Sheet

Inventory Level: 02B has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 02B's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 02B has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 02B is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 108.7% per year.


Next Steps

Dividend

What is BlackLine's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 02B's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 02B's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 02B's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 02B's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 02B's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of BlackLine's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Therese Tucker (58yo)

18.2yrs

Tenure

US$4,749,060

Compensation

Ms. Therese Tucker founded the BlackLine, Inc. (also known as BlackLine Systems, Inc.) in 2011 and has been its Chief Executive Officer since August 2001. Ms. Tucker served as the Chief Technology Officer  ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Therese's total compensation is reasonable compared to companies of similar size in the German market.

Compensation vs Earnings: Therese's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.7yrs

Average Tenure

56yo

Average Age

Experienced Management: 02B's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

6.1yrs

Average Tenure

56yo

Average Age

Experienced Board: 02B's board of directors are considered experienced (6.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$17,160,37108 Mar 19
Mario Spanicciati
EntityIndividual
Role
Member of the Board of Directors
Chief Strategy Officer & Director
Shares400,000
Max PriceUS$42.90
SellUS$21,450,46408 Mar 19
Therese Tucker
EntityIndividual
Role
Chief Executive Officer
Founder
Shares500,000
Max PriceUS$42.90

Ownership Breakdown


Management Team

  • Mark Partin (51yo)

    CFO & Treasurer

    • Tenure: 4.8yrs
    • Compensation: US$2.95m
  • Karole Morgan-Prager (56yo)

    Chief Legal & Administrative Officer and Secretary

    • Tenure: 3yrs
    • Compensation: US$1.72m
  • Pete Hirsch (58yo)

    Chief Technology Officer

    • Tenure: 0.7yrs
  • Andres Botero

    Chief Marketing Officer

    • Tenure: 1.1yrs
  • Therese Tucker (58yo)

    Founder

    • Tenure: 18.2yrs
    • Compensation: US$4.75m
  • Kim Uberti

    Vice President of Global Corporate Communications

    • Tenure: 4.6yrs
  • Marc Huffman (48yo)

    Chief Operating Officer

    • Tenure: 1.7yrs
    • Compensation: US$10.43m
  • Patrick Villanova

    Chief Accounting Officer & Controller

    • Tenure: 0.6yrs
  • Mark Woodhams

    Senior Vice President of Global Sales

    • Tenure: 1.3yrs
  • Alexandra Geller

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Tom Unterman (74yo)

    Member of Advisory Board & Director

    • Tenure: 8.6yrs
    • Compensation: US$213.38k
  • Graham Smith (59yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: US$225.88k
  • Dennis Chookaszian (75yo)

    Member of Advisory Board

    • Tenure: 8.6yrs
  • Will Griffith (47yo)

    Director

    • Tenure: 6.1yrs
  • John Brennan (54yo)

    Chairman of the Board

    • Tenure: 0yrs
  • Therese Tucker (58yo)

    Founder

    • Tenure: 18.2yrs
    • Compensation: US$4.75m
  • Mario Spanicciati (39yo)

    Chief Strategy Officer & Director

    • Tenure: 6.1yrs
  • Carla Hayn

    Member of Advisory Board

    • Tenure: 8.6yrs
  • Jason Babcoke (46yo)

    Director

    • Tenure: 6.1yrs
  • Owen Ryan (56yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$139.57k

Company Information

BlackLine, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BlackLine, Inc.
  • Ticker: 02B
  • Exchange: DB
  • Founded: 2001
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$2.565b
  • Listing Market Cap: US$2.302b
  • Shares outstanding: 55.32m
  • Website: https://www.blackline.com

Number of Employees


Location

  • BlackLine, Inc.
  • 21300 Victory Boulevard
  • 12th Floor
  • Woodland Hills
  • California
  • 91367
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2016
02BDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2016

Biography

BlackLine, Inc. provides financial accounting close solutions delivered primarily as Software as a Service in the United States and internationally. Its solutions enable its customers to address various as ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:59
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.