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BKI

Black KnightNYSE:BKI Stock Report

Market Cap

US$11.4b

7D

2.3%

1Y

-17.2%

Updated

03 Dec, 2021

Data

Company Financials +
BKI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance2/6
Financial Health3/6
Dividends0/6

BKI Stock Overview

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

Black Knight Competitors

Open Text

NasdaqGS:OTEX

US$12.6b

MeridianLink

NYSE:MLNK

US$1.7b

Accenture

NYSE:ACN

US$227.5b

S&P Global

NYSE:SPGI

US$108.2b

Price History & Performance

Summary of all time highs, changes and price drops for Black Knight
Historical stock prices
Current Share PriceUS$73.62
52 Week HighUS$91.60
52 Week LowUS$68.60
Beta0.69
1 Month Change7.07%
3 Month Change-2.99%
1 Year Change-17.15%
3 Year Change62.52%
5 Year Changen/a
Change since IPO75.29%

Recent News & Updates

Oct 27

Black Knight: Examining Recent Insider Buying

Today, we take a look at Black Knight, a solution provider to the mortgage and financial industry which recently picked up some insider buying. The company is also seeing revenue growth north of 20%, thanks both to organic sales gains and recent acquisitions. A full investment analysis follows in the paragraphs below.

Oct 19
Is There An Opportunity With Black Knight, Inc.'s (NYSE:BKI) 23% Undervaluation?

Is There An Opportunity With Black Knight, Inc.'s (NYSE:BKI) 23% Undervaluation?

Today we will run through one way of estimating the intrinsic value of Black Knight, Inc. ( NYSE:BKI ) by projecting...

Sep 26
Black Knight (NYSE:BKI) Seems To Use Debt Quite Sensibly

Black Knight (NYSE:BKI) Seems To Use Debt Quite Sensibly

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

BKIUS SoftwareUS Market
7D2.3%-3.6%-3.5%
1Y-17.2%33.6%19.4%

Return vs Industry: BKI underperformed the US Software industry which returned 33.6% over the past year.

Return vs Market: BKI underperformed the US Market which returned 19.4% over the past year.

Price Volatility

Is BKI's price volatile compared to industry and market?
BKI volatility
BKI Average Weekly Movement4.1%
Software Industry Average Movement7.6%
Market Average Movement6.1%
10% most volatile stocks in US Market14.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: BKI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BKI's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20135,700Anthony Jabbourhttps://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 and home equity loans; Bankruptcy/Foreclosure solutions for managing and automating a range of various workflow processes involving distressed and non-performing loans; Invoicing, a Web-based solution that helps servicers to save time and eliminate errors; Servicing Digital, a white-labeled mobile solution; Loss Mitigation, an integrated solution that supports retention and liquidation workouts; Claims, an integrated solution which manages default-related claims process; and Empower, a loan origination system used by lenders to originate mortgages, home equity loans, and lines of credit. This segment also provides LendingSpace, a lending platform that facilitates real-time communication between correspondent loan sellers and purchases; Exchange, a platform that provides an interconnected network of originators, agents, settlement services providers, and mortgage loan investors; and Expedite Close, an end-to-end closing solution that offers the flexibility and scalability lenders need in an eClosing software solution; Optimal Blue PPE, a product and pricing solution used by lenders and mortgage brokers; CompassPoint, which provides tools, reporting, calculations, and automation capabilities; and AIVA, an artificial intelligence virtual assistant.

Black Knight Fundamentals Summary

How do Black Knight's earnings and revenue compare to its market cap?
BKI fundamental statistics
Market CapUS$11.43b
Earnings (TTM)US$194.30m
Revenue (TTM)US$1.43b

58.4x

P/E Ratio

7.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BKI income statement (TTM)
RevenueUS$1.43b
Cost of RevenueUS$770.70m
Gross ProfitUS$660.40m
ExpensesUS$466.10m
EarningsUS$194.30m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.26
Gross Margin46.15%
Net Profit Margin13.58%
Debt/Equity Ratio78.0%

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?

25.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BKI ($74.18) is trading below our estimate of fair value ($97.58)

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


Price To Earnings Ratio

PE vs Industry: BKI is poor value based on its PE Ratio (58.8x) compared to the US Software industry average (42.9x).

PE vs Market: BKI is poor value based on its PE Ratio (58.8x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: BKI is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: BKI is good value based on its PB Ratio (5.1x) compared to the US Software industry average (6x).


Future Growth

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

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKI's forecast earnings growth (15.3% per year) is above the savings rate (2%).

Earnings vs Market: BKI's earnings (15.3% per year) are forecast to grow faster than the US market (14.1% per year).

High Growth Earnings: BKI's earnings are forecast to grow, but not significantly.

Revenue vs Market: BKI's revenue (7.5% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: BKI's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BKI's Return on Equity is forecast to be low in 3 years time (11.5%).


Past Performance

How has Black Knight performed over the past 5 years?

21.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BKI has high quality earnings.

Growing Profit Margin: BKI's current net profit margins (13.6%) are lower than last year (19.2%).


Past Earnings Growth Analysis

Earnings Trend: BKI's earnings have grown significantly by 21.8% per year over the past 5 years.

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

Earnings vs Industry: BKI had negative earnings growth (-15.5%) over the past year, making it difficult to compare to the Software industry average (20.5%).


Return on Equity

High ROE: BKI's Return on Equity (5.2%) is considered low.


Financial Health

How is Black Knight's financial position?


Financial Position Analysis

Short Term Liabilities: BKI's short term assets ($352.9M) exceed its short term liabilities ($261.2M).

Long Term Liabilities: BKI's short term assets ($352.9M) do not cover its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: BKI's net debt to equity ratio (75.6%) is considered high.

Reducing Debt: BKI's debt to equity ratio has reduced from 83.1% to 78% over the past 5 years.

Debt Coverage: BKI's debt is not well covered by operating cash flow (19.3%).

Interest Coverage: BKI's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Dividend

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


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.


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 BKI'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?

5.7yrs

Average management tenure


CEO

Anthony Jabbour (53 yo)

3.67yrs

Tenure

US$16,061,435

Compensation

Mr. Anthony M. Jabbour is Non-Executive Director at Paysafe Group Plc since April 2021. He serves as Non-Executive Director at Paysafe Limited since March 30, 2021. He has been Chief Executive Officer and...


CEO Compensation Analysis

Compensation vs Market: Anthony's total compensation ($USD16.06M) is above average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: Anthony's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: BKI's management team is seasoned and experienced (5.7 years average tenure).


Board Members

Experienced Board: BKI's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: BKI 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.


Top Shareholders

Company Information

Black Knight, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Black Knight, Inc.
  • Ticker: BKI
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$11.429b
  • Shares outstanding: 154.07m
  • Website: https://www.blackknightinc.com

Number of Employees


Location

  • Black Knight, Inc.
  • 601 Riverside Avenue
  • Jacksonville
  • Florida
  • 32204
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 23:04
End of Day Share Price2021/12/03 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.