NasdaqGS:BLKB

Stock Analysis Report

Executive Summary

Blackbaud, Inc. provides cloud software solutions to nonprofits, foundations, companies, education institutions, healthcare organizations, individual change agents, and other charitable giving entities.

Rewards

Earnings are forecast to grow 40.93% per year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Profit margins (1.3%) are lower than last year (5.3%)



Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.9%

BLKB

1.7%

US Software

1.5%

US Market


1 Year Return

4.6%

BLKB

42.3%

US Software

20.1%

US Market

Return vs Industry: BLKB underperformed the US Software industry which returned 42.2% over the past year.

Return vs Market: BLKB underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

BLKBIndustryMarket
7 Day3.9%1.7%1.5%
30 Day-0.5%7.7%1.4%
90 Day-2.8%18.4%8.7%
1 Year5.2%4.6%43.9%42.3%22.7%20.1%
3 Year12.6%10.8%152.8%142.4%50.1%40.5%
5 Year81.8%75.8%224.7%201.5%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

325.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BLKB ($81.34) is trading above our estimate of fair value ($29.99)

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


Price To Earnings Ratio

PE vs Industry: BLKB is poor value based on its PE Ratio (325.8x) compared to the Software industry average (52.1x).

PE vs Market: BLKB is poor value based on its PE Ratio (325.8x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: BLKB is poor value based on its PEG Ratio (8x)


Price to Book Ratio

PB vs Industry: BLKB is overvalued based on its PB Ratio (9.8x) compared to the US Software industry average (6x).


Next Steps

Future Growth

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

40.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLKB's forecast earnings growth (40.9% per year) is above the savings rate (1.7%).

Earnings vs Market: BLKB's earnings (40.9% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: BLKB's revenue (5.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BLKB's revenue (5.1% 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 BLKB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Blackbaud performed over the past 5 years?

6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BLKB has a large one-off loss of $5.8M impacting its December 31 2019 financial results.

Growing Profit Margin: BLKB's current net profit margins (1.3%) are lower than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: BLKB's earnings have grown by 6.3% per year over the past 5 years.

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

Earnings vs Industry: BLKB had negative earnings growth (-73.4%) over the past year, making it difficult to compare to the Software industry average (17.1%).


Return on Equity

High ROE: BLKB's Return on Equity (3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Blackbaud's financial position?


Financial Position Analysis

Short Term Liabilities: BLKB's short term assets ($734.5M) do not cover its short term liabilities ($988.8M).

Long Term Liabilities: BLKB's short term assets ($734.5M) exceed its long term liabilities ($607.4M).


Debt to Equity History and Analysis

Debt Level: BLKB's debt to equity ratio (112.8%) is considered high.

Reducing Debt: BLKB's debt to equity ratio has reduced from 151.1% to 112.8% over the past 5 years.

Debt Coverage: BLKB's debt is well covered by operating cash flow (40.8%).

Interest Coverage: BLKB's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: BLKB's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

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

0.59%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Blackbaud before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years0.6%

Current dividend yield vs market & industry

Notable Dividend: BLKB's dividend (0.59%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: BLKB's dividend (0.59%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: BLKB is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: BLKB is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: BLKB is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BLKB'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?

7.2yrs

Average management tenure


CEO

Mike Gianoni (58yo)

6.1yrs

Tenure

US$9,289,690

Compensation

Mr. Michael P. Gianoni, also known as Mike, has been Independent Non-Executive Chairman of Teradata Corporation since February 6, 2020. Mr. Gianoni was the Independent Lead Director of Teradata Corporation ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD9.29M) is above average for companies of similar size in the US market ($USD4.88M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Gianoni
President6.1yrsUS$9.29m0.49% $19.0m
Anthony Boor
Executive VP of Finance & Administration and CFO8.3yrsUS$3.70m0.17% $6.5m
Jon Olson
Senior VP11.4yrsUS$1.71m0.082% $3.2m
Kevin Mooney
Executive VP & President of General Markets Group11.6yrsUS$2.69m0.14% $5.6m
Kevin Gregoire
Executive VP & President of Enterprise Market Group (EMG) - North America1.8yrsUS$2.90m0.076% $3.0m
Stephen Halleck
Senior Vice President of Business Operations0yrsno datano data
Mary Westmoreland
CTO & Senior VP4.3yrsno datano data
Charles Longfield
Senior VP & Chief Scientist13.1yrsUS$749.08kno data
Todd Lant
Chief Information Officer3.1yrsno datano data
Nicole McGougan
Public Relations Manager0yrsno datano data

7.2yrs

Average Tenure

57yo

Average Age

Experienced Management: BLKB's management team is seasoned and experienced (7.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Gianoni
President6.1yrsUS$9.29m0.49% $19.0m
Peter Kight
Independent Director5.2yrsUS$301.54k0.18% $7.1m
Timothy C. Chou
Independent Director12.7yrsUS$277.13k0.044% $1.7m
George Ellis
Independent Director13.9yrsUS$298.13k0.015% $569.0k
Andrew Leitch
Independent Chairman10.6yrsUS$393.13k0.050% $1.9m
Joyce Nelson
Independent Director7.4yrsUS$287.13k0.025% $980.2k
Sarah Nash
Independent Director9.6yrsUS$297.84k0.046% $1.8m
Thomas Ertel
Independent Director2.2yrsUS$398.33k0.013% $506.6k

8.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: BLKB's board of directors are considered experienced (8.5 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Blackbaud, Inc.
  • Ticker: BLKB
  • Exchange: NasdaqGS
  • Founded: 1981
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$3.894b
  • Shares outstanding: 47.88m
  • Website: https://www.blackbaud.com

Number of Employees


Location

  • Blackbaud, Inc.
  • 65 Fairchild Street
  • Charleston
  • South Carolina
  • 29492
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BLKBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2004
BNKDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2004

Biography

Blackbaud, Inc. provides cloud software solutions to nonprofits, foundations, companies, education institutions, healthcare organizations, individual change agents, and other charitable giving entities. The company offers fundraising and relationship management solutions and services, including Blackbaud Raiser's Edge NXT, Blackbaud CRM, Blackbaud Luminate CRM, Blackbaud eTapestry, Blackbaud TeamRaiser, everydayhero, Blackbaud Peer-to-Peer Fundraising, and Blackbaud Guided Fundraising; and marketing and engagement solutions, such as Blackbaud Luminate Online, Blackbaud Online Express, Blackbaud NetCommunity, Blackbaud Attentive.ly, and Blackbaud School Website System. It also provides Blackbaud Financial Edge NXT, Blackbaud Smart Tuition, and Blackbaud Smart Aid financial management solutions and services; and Blackbaud Grantmaking, Blackbaud Award Management, FIMS, and Blackbaud Outcomes grant and award management solutions. In addition, the company offers organizational and program management solutions and services comprising Blackbaud Student Information System, Blackbaud Learning Management System, Blackbaud Enrollment Management System, Blackbaud Altru, and Blackbaud Church Management; and Blackbaud Employee Giving and Blackbaud Employee Volunteering, and YourCause corporate social responsibility solutions. Further, it provides Blackbaud’s SKY Intelligence analytics solutions, as well as donor acquisition, prospect research, data enrichment, and benchmarking and performance management solutions and services; and Blackbaud Merchant Services and Blackbaud Purchase Cards payment services. Additionally, the company offers customer support and maintenance, professional and managed, and training services. It has operations primarily in the United States, the United Kingdom, Canada, and Australia. The company was founded in 1981 and is headquartered in Charleston, South Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:56
End of Day Share Price2020/02/14 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.