NYSE:BKI

Stock Analysis Report

Executive Summary

Black Knight, Inc. provides integrated software, data, and analytics solutions to the mortgage and consumer loan, real estate, and capital market verticals in the United States.


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-10.2%

BKI

-12.0%

US IT

-11.2%

US Market


1 Year Return

26.5%

BKI

16.6%

US IT

4.1%

US Market

Return vs Industry: BKI exceeded the US IT industry which returned 16.6% over the past year.

Return vs Market: BKI exceeded the US Market which returned 4.1% over the past year.


Shareholder returns

BKIIndustryMarket
7 Day-10.2%-12.0%-11.2%
30 Day-1.4%-9.3%-9.5%
90 Day5.9%-1.9%-5.4%
1 Year26.5%26.5%17.7%16.6%6.2%4.1%
3 Yearn/a81.6%73.8%30.3%21.9%
5 Yearn/a118.1%98.7%55.0%38.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

90.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BKI ($66.71) is trading above our estimate of fair value ($54.14)

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


Price To Earnings Ratio

PE vs Industry: BKI is poor value based on its PE Ratio (90.6x) compared to the IT industry average (28.5x).

PE vs Market: BKI is poor value based on its PE Ratio (90.6x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: BKI is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: BKI is overvalued based on its PB Ratio (5.2x) compared to the US IT industry average (3.7x).


Next Steps

Future Growth

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

36.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKI's forecast earnings growth (36.1% per year) is above the savings rate (1.7%).

Earnings vs Market: BKI's earnings (36.1% per year) are forecast to grow faster than the US market (12.9% per year).

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

Revenue vs Market: BKI's revenue (4.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BKI's revenue (4.7% 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 (14%).


Next Steps

Past Performance

How has Black Knight performed over the past 5 years?

45.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BKI has high quality earnings.

Growing Profit Margin: BKI's current net profit margins (9.2%) are lower than last year (15.1%).


Past Earnings Growth Analysis

Earnings Trend: BKI's earnings have grown significantly by 45.6% 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 (-35.4%) over the past year, making it difficult to compare to the IT industry average (12.8%).


Return on Equity

High ROE: BKI's Return on Equity (5.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Black Knight's financial position?


Financial Position Analysis

Short Term Liabilities: BKI's short term assets ($255.5M) do not cover its short term liabilities ($260.8M).

Long Term Liabilities: BKI's short term assets ($255.5M) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: BKI's debt to equity ratio (80%) is considered high.

Reducing Debt: BKI's debt to equity ratio has reduced from 164.9% to 80% over the past 5 years.

Debt Coverage: BKI's debt is well covered by operating cash flow (24.9%).

Interest Coverage: BKI's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: BKI's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.1%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate BKI'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 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?

2.6yrs

Average management tenure


CEO

Anthony Jabbour (51yo)

1.8yrs

Tenure

US$20,859,599

Compensation

Mr. Anthony M. Jabbour has been Chief Executive Officer of Black Knight Inc. since April 1, 2018 and Director since May 1, 2018. Mr. Jabbour has been Chief Executive Officer and Director of Dun & Bradstree ...


CEO Compensation Analysis

Compensation vs Market: Anthony's total compensation ($USD20.86M) is above average for companies of similar size in the US market ($USD10.84M).

Compensation vs Earnings: Insufficient data to compare Anthony's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Anthony Jabbour
CEO & Director1.8yrsUS$20.86m0.38% $37.7m
Joseph Nackashi
President2.6yrsUS$4.24m0.17% $16.5m
Kirk Larsen
Executive VP & CFO5.2yrsUS$2.89m0.31% $30.2m
Anthony Orefice
Executive VP & COO (Leave of Absence)5.2yrsUS$3.37m0.072% $7.0m
Michele Meyers
Chief Accounting Officer & Treasurer0.9yrsno data0.014% $1.4m
Peter Carrara
Chief Information Officer0.6yrsno datano data
Steven Eagerton
Vice President of Investor Relations0yrsno datano data
Michael Gravelle
Executive VP & General Counsel5.2yrsUS$732.26k0.098% $9.7m
Robert Pinder
Chief Compliance Officer0yrsno datano data
Michelle Kersch
Chief Marketing Officer0yrsno datano data

2.6yrs

Average Tenure

53yo

Average Age

Experienced Management: BKI's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anthony Jabbour
CEO & Director1.8yrsUS$20.86m0.38% $37.7m
Thomas Hagerty
Independent Director5.2yrsUS$225.99k0.028% $2.7m
William Foley
Chairman5.2yrsUS$12.10m3.24% $319.0m
Ganesh Rao
Independent Director5.2yrsUS$210.99k0.0027% $270.9k
Richard Massey
Independent Director5.2yrsUS$252.49k0.048% $4.7m
John Rood
Independent Director5.2yrsUS$243.82k0.050% $4.9m
David Hunt
Independent Director5.2yrsUS$248.65k0.041% $4.0m
Nancy Shanik
Director0.2yrsno data0.0018% $175.4k

5.2yrs

Average Tenure

63.5yo

Average Age

Experienced Board: BKI's board of directors are considered experienced (5.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BKI 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

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


Key Information

  • Name: Black Knight, Inc.
  • Ticker: BKI
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$9.851b
  • Shares outstanding: 147.67m
  • Website: https://www.blackknightinc.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKINYSE (New York Stock Exchange)YesNew Common SharesUSUSDOct 2017

Biography

Black Knight, Inc. provides integrated software, data, and analytics solutions to the mortgage and consumer loan, real estate, and capital market verticals in the United States. Its Software Solutions segment offers software and hosting solutions comprises MSP, a software as a service application platform for mortgage and home equity loans that automates various areas of loan servicing; Bankruptcy / Foreclosure solutions for managing and automating a range of different workflow processes involving distressed and non-performing loans; Invoicing, a Web-based solution that helps servicers to save time and eliminate errors by automating billing and invoice process; and Empower, a loan origination system used by lenders to originate mortgages, home equity loans, and lines of credit. This segments 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 investors; and Expedite, a suite of products and services to automate and streamline internal business processes, as well as to manage compliance and enhance the application-to-close cycle; Servicing Digital solution that delivers information about the value of consumer’s home and wealth that can be built from the underlying real estate asset; AIVA, an artificial intelligence virtual assistant; and Rapid Analytics platform, a cloud-based virtual analytics lab. The Data and Analytics segment include property ownership data, lien data, servicing data, automated valuation models, collateral risk scores, prepayment and default models, lead generation, multiple listing service, and other data solutions. The company was formerly known as Black Knight Financial Services, Inc. and changed its name to Black Knight, Inc. in October 2017. Black Knight, Inc. was founded in 2013 and is headquartered in Jacksonville, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/29 02:24
End of Day Share Price2020/02/28 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.