NasdaqGS:BL

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 Analysis

Adequate 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

Stable Share Price: BL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.8%

BL

-2.7%

US Software

-1.1%

US Market


1 Year Return

24.4%

BL

35.1%

US Software

17.8%

US Market

Return vs Industry: BL underperformed the US Software industry which returned 35.5% over the past year.

Return vs Market: BL exceeded the US Market which returned 17.9% over the past year.


Shareholder returns

BLIndustryMarket
7 Day-1.8%-2.7%-1.1%
30 Day8.4%5.5%1.5%
90 Day21.0%12.6%6.6%
1 Year24.4%24.4%36.5%35.1%20.2%17.8%
3 Year121.1%121.1%145.5%135.2%47.5%38.1%
5 Yearn/a212.4%190.0%71.2%52.4%

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

Valuation

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

9.15x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: BL ($65.37) is trading above our estimate of fair value ($18.21)

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


Price To Earnings Ratio

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

PE vs Market: BL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BL is overvalued based on its PB Ratio (9.1x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

How is BlackLine forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: BL's revenue (17.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: BL's revenue (17.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BL's Return on Equity is forecast to be low in 3 years time (6.3%).


Next Steps

Past Performance

How has BlackLine performed over the past 5 years?

-4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BL is currently unprofitable.

Growing Profit Margin: BL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BL is unprofitable, and losses have increased over the past 5 years at a rate of -4.2% per year.

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

Earnings vs Industry: BL is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.4%).


Return on Equity

High ROE: BL has a negative Return on Equity (-7.97%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BlackLine's financial position?


Financial Position Analysis

Short Term Liabilities: BL's short term assets ($723.4M) exceed its short term liabilities ($207.0M).

Long Term Liabilities: BL's short term assets ($723.4M) exceed its long term liabilities ($404.0M).


Debt to Equity History and Analysis

Debt Level: BL's debt to equity ratio (95.2%) is considered high.

Reducing Debt: BL's debt to equity ratio has increased from 14% to 95.2% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: BL's debt is covered by short term assets (assets are 1.9x debt).


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 BL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BL is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 50.5% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate BL'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 BL's dividends per share have been stable in the past.

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Therese Tucker (58yo)

18.5yrs

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: Therese's total compensation ($USD4.75M) is about average for companies of similar size in the US market ($USD4.87M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Therese Tucker
Founder18.5yrsUS$4.75m9.1% $330.9m
Mark Partin
CFO & Treasurer5.1yrsUS$2.95m0.011% $387.0k
Marc Huffman
Chief Operating Officer2yrsUS$10.43m0.059% $2.1m
Karole Morgan-Prager
Chief Legal & Administrative Officer and Secretary3.3yrsUS$1.72m0.0048% $176.0k
Patrick Villanova
Chief Accounting Officer & Controller0.9yrsno data0.0032% $116.0k
Peter Hirsch
Chief Technology Officer1yrsno datano data
Alexandra Geller
Vice President of Investor Relations0yrsno datano data
Kimberly Uberti
Vice President of Global Corporate Communications4.9yrsno datano data
Mark Woodhams
Senior Vice President of Global Sales1.6yrsno datano data
Andres Botero
Chief Marketing Officer1.4yrsno datano data

2.0yrs

Average Tenure

56yo

Average Age

Experienced Management: BL's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Therese Tucker
Founder18.5yrsUS$4.75m9.1% $330.9m
Mario Spanicciati
Chief Strategy Officer & Director6.4yrsno data4.11% $149.5m
Thomas Unterman
Member of Advisory Board & Director10.1yrsUS$213.38k0.22% $8.1m
Graham Smith
Independent Director4.8yrsUS$225.88k0.042% $1.5m
Dennis Chookaszian
Member of Advisory Board8.9yrsno datano data
William Griffith
Independent Director6.4yrsno data0.40% $14.7m
John Brennan
Chairman of the Board0yrsno datano data
Carla Hayn
Member of Advisory Board8.9yrsno datano data
Jason Babcoke
Independent Director6.4yrsno datano data
Owen Ryan
Independent Director1.5yrsUS$139.57k0.0023% $84.7k

6.4yrs

Average Tenure

56yo

Average Age

Experienced Board: BL's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: BlackLine, Inc.
  • Ticker: BL
  • Exchange: NasdaqGS
  • Founded: 2001
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$3.637b
  • Shares outstanding: 55.64m
  • 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 aspects of their financial closing process, including account reconciliations, variance analysis of account balances, journal entry capabilities, and range of data matching capabilities. The company’s platform consists of nine core cloud-based products, including Transaction Matching, Account Reconciliations, Consolidation Integrity Manager, Daily Reconciliations, Journal Entry, Variance Analysis, Task Management, Compliance, and Insights. Its solutions include balance sheet integrity, close process management, accounting process automation, finance transformation, intercompany hub, and smart close. The company designs its products to complement enterprise resource planning and other financial systems, including NetSuite, Oracle, SAP, and Workday; and financial close management and accounting automation from within a single, unified cloud platform. It has strategic alliances with technology vendors, such as SAP and NetSuite; professional services firms, including Deloitte, Ernst & Young, and KPMG; and business process outsourcers, such as Cognizant, Genpact, and IBM. The company sells its solutions primarily through direct sales force to multinational corporations, large domestic enterprises and mid-market companies across various industries. The company was founded in 2001 and is headquartered in Woodland Hills, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 03:30
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.