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 31.61% per year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Profit margins (2.3%) are lower than last year (8.5%)



Snowflake Analysis

Moderate growth potential with poor track record.


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

-3.6%

BLKB

-0.9%

US Software

0.3%

US Market


1 Year Return

20.9%

BLKB

32.9%

US Software

18.5%

US Market

Return vs Industry: BLKB underperformed the US Software industry which returned 32.9% over the past year.

Return vs Market: BLKB exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

BLKBIndustryMarket
7 Day-3.6%-0.9%0.3%
30 Day-1.2%1.9%1.5%
90 Day-11.0%6.6%5.7%
1 Year21.6%20.9%34.9%32.9%21.1%18.5%
3 Year23.2%21.1%127.5%118.4%45.9%36.4%
5 Year91.6%85.3%182.5%162.4%71.4%52.5%

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?

190.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BLKB ($79.88) is trading above our estimate of fair value ($64.68)

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 (190.8x) compared to the Software industry average (44.9x).

PE vs Market: BLKB is poor value based on its PE Ratio (190.8x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: BLKB is poor value based on its PEG Ratio (6x)


Price to Book Ratio

PB vs Industry: BLKB is overvalued based on its PB Ratio (10x) compared to the US Software industry average (5.6x).


Next Steps

Future Growth

How is Blackbaud forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

31.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLKB's forecast earnings growth (31.6% per year) is above the savings rate (1.7%).

Earnings vs Market: BLKB's earnings (31.6% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: BLKB's revenue (6.7% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: BLKB's revenue (6.7% 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?

10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BLKB has a large one-off loss of $8.7M impacting its September 30 2019 financial results.

Growing Profit Margin: BLKB's current net profit margins (2.3%) are lower than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: BLKB's earnings have grown by 10.7% 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 (-72.4%) over the past year, making it difficult to compare to the Software industry average (20.8%).


Return on Equity

High ROE: BLKB's Return on Equity (5.2%) 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 ($445.9M) do not cover its short term liabilities ($677.4M).

Long Term Liabilities: BLKB's short term assets ($445.9M) do not cover its long term liabilities ($651.1M).


Debt to Equity History and Analysis

Debt Level: BLKB's debt to equity ratio (132.5%) is considered high.

Reducing Debt: BLKB's debt to equity ratio has increased from 93.6% to 132.5% over the past 5 years.

Debt Coverage: BLKB's debt is well covered by operating cash flow (36.7%).

Interest Coverage: BLKB's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: BLKB's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

0.60%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years0.6%

Current dividend yield vs market & industry

Notable Dividend: BLKB's dividend (0.6%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: BLKB's dividend (0.6%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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

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

7.0yrs

Average management tenure


CEO

Mike Gianoni (58yo)

5.9yrs

Tenure

US$9,289,690

Compensation

Mr. Michael P. Gianoni, also known as Mike, has been Independent Lead Director of Teradata Corp. since January 15, 2019. He has been the Chief Executive Officer and President of Blackbaud, Inc. since Janua ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD9.29M) is above average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

7.0yrs

Average Tenure

57yo

Average Age

Experienced Management: BLKB's management team is seasoned and experienced (7 years average tenure).


Board Age and Tenure

8.3yrs

Average Tenure

64.5yo

Average Age

Experienced Board: BLKB's board of directors are considered experienced (8.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$165,55815 Nov 19
Anthony Boor
EntityIndividual
Role
Chief Financial Officer
Executive VP of Finance & Administration and CFO
Shares2,050
Max PriceUS$80.76
SellUS$124,70014 Nov 19
Sarah Nash
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,546
Max PriceUS$80.66
SellUS$280,50714 Nov 19
Andrew Leitch
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares3,449
Max PriceUS$81.33
SellUS$571,14412 Nov 19
Anthony Boor
EntityIndividual
Role
Chief Financial Officer
Executive VP of Finance & Administration and CFO
Shares6,899
Max PriceUS$83.30
SellUS$21,03105 Nov 19
George Ellis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares250
Max PriceUS$84.12
SellUS$88,61609 Aug 19
Joyce Nelson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$88.62
SellUS$176,40006 Aug 19
George Ellis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$88.20
SellUS$30,79231 May 19
Timothy C. Chou
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares400
Max PriceUS$76.98
SellUS$747,53928 Feb 19
Anthony Boor
EntityIndividual
Role
Chief Financial Officer
Executive VP of Finance & Administration and CFO
Shares9,606
Max PriceUS$77.82
SellUS$770,70026 Feb 19
Jon Olson
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares10,000
Max PriceUS$77.07
SellUS$2,290,53021 Feb 19
Michael Gianoni
EntityIndividual
Role
Chief Executive Officer
President
Shares30,000
Max PriceUS$76.79
SellUS$523,67219 Feb 19
Michael Gianoni
EntityIndividual
Role
Chief Executive Officer
President
Shares6,763
Max PriceUS$77.46
SellUS$1,220,33619 Feb 19
Kevin Mooney
EntityIndividual
Role
Senior Key Executive
Executive VP & President of General Markets Group
Shares15,728
Max PriceUS$77.59
SellUS$1,050,66819 Feb 19
Anthony Boor
EntityIndividual
Role
Chief Financial Officer
Executive VP of Finance & Administration and CFO
Shares13,585
Max PriceUS$77.73
SellUS$76,32014 Feb 19
Joyce Nelson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$76.32
SellUS$58,08814 Feb 19
Timothy C. Chou
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares750
Max PriceUS$77.45

Ownership Breakdown

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


Management Team

  • Kevin Mooney (61yo)

    Executive VP & President of General Markets Group

    • Tenure: 11.4yrs
    • Compensation: US$2.69m
  • Tony Boor (56yo)

    Executive VP of Finance & Administration and CFO

    • Tenure: 8.1yrs
    • Compensation: US$3.70m
  • Mike Gianoni (58yo)

    President

    • Tenure: 5.9yrs
    • Compensation: US$9.29m
  • Mary Westmoreland

    CTO & Senior VP

    • Tenure: 4.2yrs
  • Chuck Longfield (62yo)

    Senior VP & Chief Scientist

    • Tenure: 12.9yrs
    • Compensation: US$749.08k
  • Jon Olson (55yo)

    Senior VP

    • Tenure: 11.3yrs
    • Compensation: US$1.71m
  • Kevin Gregoire (51yo)

    Executive VP & President of Enterprise Market Group (EMG) - North America

    • Tenure: 1.7yrs
    • Compensation: US$2.90m
  • Steve Halleck

    Senior Vice President of Business Operations

    • Tenure: 0yrs
  • Todd Lant

    Chief Information Officer

    • Tenure: 2.9yrs
  • Nicole McGougan

    Public Relations Manager

    • Tenure: 0yrs

Board Members

  • Pete Kight (63yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$301.54k
  • Timothy C. Chou (64yo)

    Independent Director

    • Tenure: 12.5yrs
    • Compensation: US$277.13k
  • George Ellis (70yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$298.13k
  • Andy Leitch (76yo)

    Independent Chairman

    • Tenure: 10.4yrs
    • Compensation: US$393.13k
  • Joyce Nelson (68yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$287.13k
  • Mike Gianoni (58yo)

    President

    • Tenure: 5.9yrs
    • Compensation: US$9.29m
  • Sarah Nash (65yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$297.84k
  • Thomas Ertel (63yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$398.33k

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$3.822b
  • Shares outstanding: 47.92m
  • 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. Th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 23:55
End of Day Share Price2019/12/06 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.