Black Beneish M Score

BKI
 Stock
  

USD 66.21  0.85  1.30%   

This module uses fundamental data of Black Knight to approximate the value of its Beneish M Score. Black Knight M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Continue to Black Knight Piotroski F Score and Black Knight Altman Z Score analysis.
  
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Black Knight Long Term Debt to Equity is most likely to slightly decrease in the upcoming years. The last year's value of Long Term Debt to Equity was reported at 0.93. Black Knight Quick Ratio is most likely to slightly decrease in the upcoming years. The last year's value of Quick Ratio was reported at 1.04. The current Net Current Assets as percentage of Total Assets is estimated to increase to 1.58, while Interest Coverage is projected to decrease to 3.25.
At this time, it appears that Black Knight is an unlikely manipulator. The earnings manipulation may begin if Black Knight's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Black Knight executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Black Knight's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.55
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.09Focus
Asset Quality0.99Focus
Expense Coverage1.02Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.02Focus
Depreciation Resistance1.08Focus
Net Sales Growth0.96Focus
Financial Leverage Condition1.03Focus

Black Knight Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Black Knight's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues1.4 B1.5 B
Sufficiently Down
Increasing
Slightly volatile
Selling General and Administrative Expense775.3 M793.9 M
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations426.6 M449.9 M
Notably Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion328.6 M365 M
Moderately Down
Increasing
Slightly volatile
Total Assets5.9 B6.4 B
Significantly Down
Increasing
Slightly volatile
Investments440.5 M490.5 M
Moderately Down
Increasing
Slightly volatile
Investments Non Current440.5 M490.5 M
Moderately Down
Increasing
Slightly volatile
Property Plant and Equipment Net176.8 M154.5 M
Fairly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables202 M192 M
Sufficiently Up
Increasing
Slightly volatile
Total Liabilities2.9 B3.1 B
Notably Down
Increasing
Slightly volatile
Current Assets357 M352.1 M
Fairly Up
Increasing
Slightly volatile
Assets Non Current5.5 BB
Significantly Down
Increasing
Slightly volatile
Current Liabilities276.6 M264.8 M
Sufficiently Up
Increasing
Slightly volatile
Liabilities Non Current2.6 B2.8 B
Notably Down
Increasing
Slightly volatile
Total Debt2.3 B2.4 B
Sufficiently Down
Decreasing
Very volatile
Debt Current41.5 M32.5 M
Significantly Up
Decreasing
Slightly volatile
Debt Non Current2.2 B2.4 B
Notably Down
Decreasing
Very volatile
Operating Income292.6 M303 M
Sufficiently Down
Increasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

Black Knight Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Black Knight's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Black Knight in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Black Knight's degree of accounting gimmicks and manipulations.

About Black Knight Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

1.13 Billion

Share
Black Knight Operating Expenses is most likely to increase significantly in the upcoming years. The last year's value of Operating Expenses was reported at 1.17 Billion

Black Knight Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Black Knight. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues1.05 B1.11 B1.18 B1.24 B1.48 B1.42 B
Total Assets3.66 B3.65 B3.96 B6.09 B6.35 B5.86 B
Current Assets280.7 M266.1 M255.5 M287.3 M352.1 M356.98 M
Assets Non Current3.38 B3.39 B3.71 B5.8 B6 B5.5 B
Total Liabilities1.95 B1.87 B2.06 B2.88 B3.07 B2.91 B
Current Liabilities231.6 M239 M260.8 M291.3 M264.8 M276.55 M
Total Debt1.43 B1.34 B1.54 B2.19 B2.4 B2.29 B
Debt Current55.1 M52.5 M79.1 M73 M32.5 M41.5 M
Debt Non Current1.38 B1.28 B1.47 B2.12 B2.36 B2.24 B
Operating Income262.5 M265 M289.6 M266.8 M303 M292.56 M

About Black Knight Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Black Knight's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Black Knight using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Black Knight based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Black Knight, Inc. provides integrated software, data, and analytics solutions in North America and Internationally. Black Knight, Inc. was founded in 2013 and is headquartered in Jacksonville, Florida. Black Knight operates under SoftwareApplication classification in the United States and is traded on New York Stock Exchange. It employs 6400 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Black Knight without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Black Knight

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Black Knight position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Black Knight will appreciate offsetting losses from the drop in the long position's value.

Black Knight Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

The ability to find closely correlated positions to Black Knight could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Black Knight when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Black Knight - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Black Knight to buy it.
The correlation of Black Knight is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Black Knight moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Black Knight moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Black Knight can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to Black Knight Piotroski F Score and Black Knight Altman Z Score analysis. Note that the Black Knight information on this page should be used as a complementary analysis to other Black Knight's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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When running Black Knight price analysis, check to measure Black Knight's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Black Knight is operating at the current time. Most of Black Knight's value examination focuses on studying past and present price action to predict the probability of Black Knight's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Black Knight's price. Additionally, you may evaluate how the addition of Black Knight to your portfolios can decrease your overall portfolio volatility.
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Is Black Knight's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Black Knight. If investors know Black will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Black Knight listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
5.76
Market Capitalization
10.3 B
Quarterly Revenue Growth YOY
0.11
Return On Assets
0.0341
Return On Equity
0.17
The market value of Black Knight is measured differently than its book value, which is the value of Black that is recorded on the company's balance sheet. Investors also form their own opinion of Black Knight's value that differs from its market value or its book value, called intrinsic value, which is Black Knight's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Black Knight's market value can be influenced by many factors that don't directly affect Black Knight's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Black Knight's value and its price as these two are different measures arrived at by different means. Investors typically determine Black Knight value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Black Knight's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.