NasdaqGS:BCOR

Stock Analysis Report

Executive Summary

Blucora, Inc. provides technology-enabled financial solutions to consumers, small business owners, and tax professionals in the United States.

Rewards

Earnings are forecast to grow 103.95% per year

Risk Analysis

Large one-off items impacting financial results

Profit margins (1.9%) are lower than last year (13.1%)

Shareholders have been diluted in the past year



Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BCOR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

BCOR

-1.9%

US Capital Markets

-1.3%

US Market


1 Year Return

-22.5%

BCOR

16.8%

US Capital Markets

22.0%

US Market

Return vs Industry: BCOR underperformed the US Capital Markets industry which returned 21.7% over the past year.

Return vs Market: BCOR underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

BCORIndustryMarket
7 Day-1.4%-1.9%-1.3%
30 Day-11.0%2.0%1.8%
90 Day6.0%11.3%9.3%
1 Year-22.5%-22.5%19.2%16.8%24.6%22.0%
3 Year49.8%49.8%42.6%34.7%49.2%39.6%
5 Year70.0%70.0%97.7%79.4%77.9%58.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

89.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BCOR ($24.16) is trading above our estimate of fair value ($7.24)

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


Price To Earnings Ratio

PE vs Industry: BCOR is poor value based on its PE Ratio (94.2x) compared to the Capital Markets industry average (36.1x).

PE vs Market: BCOR is poor value based on its PE Ratio (94.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: BCOR is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: BCOR is good value based on its PB Ratio (1.8x) compared to the US Capital Markets industry average (6.6x).


Next Steps

Future Growth

How is Blucora forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

103.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BCOR's forecast earnings growth (103.9% per year) is above the savings rate (1.7%).

Earnings vs Market: BCOR's earnings (103.9% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BCOR's revenue (13.8% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: BCOR's revenue (13.8% 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 BCOR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Blucora performed over the past 5 years?

55.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BCOR has a large one-off loss of $73.0M impacting its September 30 2019 financial results.

Growing Profit Margin: BCOR's current net profit margins (1.9%) are lower than last year (13.1%).


Past Earnings Growth Analysis

Earnings Trend: BCOR's earnings have grown significantly by 55.6% per year over the past 5 years.

Accelerating Growth: BCOR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BCOR had negative earnings growth (-83%) over the past year, making it difficult to compare to the Capital Markets industry average (20.6%).


Return on Equity

High ROE: BCOR's Return on Equity (2.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Blucora's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: BCOR's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: BCOR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BCOR has a sufficient allowance for bad loans.

Low Risk Liabilities: BCOR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BCOR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BCOR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BCOR has an appropriate level of bad loans.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if BCOR'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 BCOR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Blucora has no CEO, or we have no data on them.


Management Age and Tenure

1.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: BCOR's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

51.5yo

Average Age

Experienced Board: BCOR's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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$86,61107 Jun 19
Georganne Proctor
EntityIndividual
Role
Chairman of the Board
Chairman
Shares2,768
Max PriceUS$31.29
SellUS$202,73706 Jun 19
Mary Zappone
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,432
Max PriceUS$31.52
SellUS$80,13724 May 19
H. Gardner
EntityIndividual
Shares2,500
Max PriceUS$32.05
SellUS$41,22615 May 19
John Palmer
EntityIndividual
Shares1,304
Max PriceUS$31.64

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.


Management Team

  • Tran Taylor (53yo)

    Chief Human Resources Officer

    • Tenure: 1.3yrs
  • Enrique Vasquez (54yo)

    President of Wealth Management

    • Tenure: 0.6yrs
  • Bill Michalek

    Vice President of Investor Relations

    • Ann Bruder (55yo)

      Chief Legal Officer & Secretary

      • Tenure: 2.6yrs
      • Compensation: US$1.63m
    • Todd Mackay (44yo)

      Chief Business Development & Operations Officer

      • Tenure: 0.6yrs
      • Compensation: US$1.30m
    • Davinder Athwal (52yo)

      Chief Financial Officer

      • Tenure: 1.9yrs
      • Compensation: US$2.37m
    • Mike Hogan (57yo)

      President of Tax-Smart Innovation

      • Tenure: 1.3yrs
    • Stacy Murray (44yo)

      VP of Accounting & Principal Accounting Officer

      • Tenure: 0.6yrs
    • Amit Seshan

      Executive Vice President of Business Operations

      • Tenure: 0.6yrs
    • Curtis Campbell (47yo)

      President of TaxAct

      • Tenure: 1.3yrs

    Board Members

    • John MacIlwaine (49yo)

      Independent Director

      • Tenure: 1.5yrs
      • Compensation: US$286.55k
    • Georganne Proctor (63yo)

      Chairman

      • Tenure: 0.5yrs
      • Compensation: US$194.98k
    • Steven Aldrich (48yo)

      Independent Director

      • Tenure: 2.6yrs
      • Compensation: US$168.98k
    • Mary Zappone (54yo)

      Independent Director

      • Tenure: 4.8yrs
      • Compensation: US$176.48k
    • Chris Walters (45yo)

      Independent Director

      • Tenure: 5.7yrs
      • Compensation: US$176.93k
    • E. Hayles (57yo)

      Independent Director

      • Tenure: 1.5yrs
      • Compensation: US$289.52k

    Company Information

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


    Key Information

    • Name: Blucora, Inc.
    • Ticker: BCOR
    • Exchange: NasdaqGS
    • Founded: 1996
    • Industry: Asset Management and Custody Banks
    • Sector: Diversified Financials
    • Market Cap: US$1.138b
    • Shares outstanding: 48.94m
    • Website: https://www.blucora.com

    Number of Employees


    Location

    • Blucora, Inc.
    • 6333 State Highway 161
    • 4th Floor
    • Irving
    • Texas
    • 75038
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    BCORNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1998
    3EVDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1998

    Biography

    Blucora, Inc. provides technology-enabled financial solutions to consumers, small business owners, and tax professionals in the United States. The company operates through two segments, Wealth Management and Tax Preparation. The Wealth Management segment offers an integrated platform of brokerage, investment advisory, and insurance services to financial advisors. The Tax Preparation segment provides digital do-it-yourself tax preparation solutions for consumers and small business owners through TaxAct.com; and ancillary services, including refund payment transfer, audit defense, stored value cards, retirement investment accounts, tax preparation support services, data archive services, and e-filing services. This segment also offers professional tax preparer software. The company was formerly known as InfoSpace, Inc. and changed its name to Blucora, Inc. in June 2012. Blucora, Inc. was founded in 1996 and is headquartered in Irving, Texas. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/24 23:42
    End of Day Share Price2020/01/24 00:00
    Earnings2019/09/30
    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.