Black Knight (NYSE:BKI) - Share price, News & Analysis

BKI fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	5/6
Financial Health	1/6
Dividends	0/6

BKI Stock Overview

Black Knight, Inc. provides integrated software, data, and analytics solutions in North America and Internationally.

Rewards

Trading at 32.6% below our estimate of its fair value

Earnings grew by 93.4% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 8.3% per year for the next 3 years

Debt is not well covered by operating cash flow

Black Knight Competitors

Open Text

NasdaqGS:OTEX

US$10.2b

Fair Isaac

NYSE:FICO

US$10.1b

MeridianLink

NYSE:MLNK

US$1.4b

Accenture

NYSE:ACN

US$176.9b

Price History & Performance

Summary of all time highs, changes and price drops for Black Knight
Historical stock prices
Current Share Price	US$69.95
52 Week High	US$84.27
52 Week Low	US$52.00
Beta	0.68
1 Month Change	6.34%
3 Month Change	31.68%
1 Year Change	-4.17%
3 Year Change	22.42%
5 Year Change	n/a
Change since IPO	66.55%

Recent News & Updates

May 09

Merger Arbitrage Mondays: Black Knight To Be Acquired By Intercontinental

Two of the three new deals announced last week were potential deals in the works. Black Knight entered into a definitive agreement to be acquired by Intercontinental Exchange in a deal valued at $13.1 billion. Welltower made a nearly $5 billion all-cash bid for Healthcare Realty Trust.

Shareholder Returns

	BKI	US Software	US Market
7D	-2.7%	-3.3%	-4.0%
1Y	-4.2%	-15.5%	-13.2%

Return vs Industry: BKI exceeded the US Software industry which returned -13.6% over the past year.

Return vs Market: BKI exceeded the US Market which returned -12.3% over the past year.

Price Volatility

Is BKI's price volatile compared to industry and market?
BKI volatility
BKI Average Weekly Movement	6.7%
Software Industry Average Movement	10.9%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: BKI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: BKI's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2017	6,400	Joe Nackashi	https://www.blackknightinc.com

Black Knight, Inc. provides integrated software, data, and analytics solutions in North America and Internationally. The Software Solutions segment offers software and hosting solutions comprising MSP, a software as a service application platform for mortgage, home equity loans, and lines of credit; Servicing Digital, a web and mobile solution for consumers that provides easy access to customized timely information about their mortgages; Loss Mitigation, an integrated solution that supports retention and liquidation workouts; and Empower, a loan origination system used by lenders to originate mortgages, home equity loans, and HELOCs. This segment also provides LoanCatcher, a cloud-based loan origination system designed for the needs of brokers; and LoanSifter PPE designed to meet the needs of the broker community by providing access to investors and loan products.

Black Knight Fundamentals Summary

How do Black Knight's earnings and revenue compare to its market cap?
BKI fundamental statistics
Market Cap	US$10.81b
Earnings (TTM)	US$518.40m
Revenue (TTM)	US$1.51b

20.8x

P/E Ratio

7.1x

P/S Ratio

Is BKI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BKI income statement (TTM)
Revenue	US$1.51b
Cost of Revenue	US$814.90m
Gross Profit	US$697.80m
Other Expenses	US$179.40m
Earnings	US$518.40m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.36
Gross Margin	46.13%
Net Profit Margin	34.27%
Debt/Equity Ratio	109.7%

How did BKI perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

32.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BKI ($69.95) is trading below our estimate of fair value ($103.84)

Significantly Below Fair Value: BKI is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: BKI is good value based on its Price-To-Earnings Ratio (20.8x) compared to the US Software industry average (41.1x).

PE vs Market: BKI is poor value based on its Price-To-Earnings Ratio (20.8x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: BKI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: BKI is overvalued based on its Price-To-Book Ratio (4.4x) compared to the US Software industry average (3.6x).

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-8.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKI's earnings are forecast to decline over the next 3 years (-8.3% per year).

Earnings vs Market: BKI's earnings are forecast to decline over the next 3 years (-8.3% per year).

High Growth Earnings: BKI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BKI's revenue (6.7% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: BKI'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 BKI's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Black Knight performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

22.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BKI has high quality earnings.

Growing Profit Margin: BKI's current net profit margins (34.3%) are higher than last year (20.7%).

Past Earnings Growth Analysis

Earnings Trend: BKI's earnings have grown significantly by 22.1% per year over the past 5 years.

Accelerating Growth: BKI's earnings growth over the past year (93.4%) exceeds its 5-year average (22.1% per year).

Earnings vs Industry: BKI earnings growth over the past year (93.4%) exceeded the Software industry 27.1%.

Return on Equity

High ROE: BKI's Return on Equity (19.9%) is considered low.

Financial Health

How is Black Knight's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BKI's short term assets ($307.1M) do not cover its short term liabilities ($365.9M).

Long Term Liabilities: BKI's short term assets ($307.1M) do not cover its long term liabilities ($3.1B).

Debt to Equity History and Analysis

Debt Level: BKI's net debt to equity ratio (108.6%) is considered high.

Reducing Debt: BKI's debt to equity ratio has increased from 80.9% to 109.7% over the past 5 years.

Debt Coverage: BKI's debt is not well covered by operating cash flow (16.7%).

Interest Coverage: BKI's interest payments on its debt are well covered by EBIT (3.9x coverage).

Balance Sheet

Dividend

What is Black Knight current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as BKI has not reported any payouts.

Discover strong dividend paying companies

Management

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

7.4yrs

Average management tenure

CEO

Joe Nackashi (57 yo)

no data

Tenure

US$5,862,545

Compensation

Mr. Joseph M. Nackashi, also known as Joe, has been the Chief Executive Officer of Black Knight, Inc. since May 16, 2022. He had been the President of Black Knight, Inc. since July 18, 2017 until May 16, 2...

CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD5.86M) is below average for companies of similar size in the US market ($USD13.26M).

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

Leadership Team

Experienced Management: BKI's management team is seasoned and experienced (7.4 years average tenure).

Board Members

Experienced Board: BKI's board of directors are considered experienced (4 years average tenure).

Ownership

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

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31