Black Knight Profitability Analysis

BKI
 Stock
  

USD 67.71  0.57  0.85%   

For Black Knight profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Black Knight to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Black Knight utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Black Knight's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Black Knight over time as well as its relative position and ranking within its peers. Continue to Trending Equities.
  
The current Return on Sales is estimated to increase to 0.23, while Price to Sales Ratio is projected to decrease to 8.07. The current Income Tax Expense is estimated to increase to about 38.5 M, while Accumulated Other Comprehensive Income is projected to decrease to (18 M).

Black Knight Revenues

1.42 Billion

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
0.04
Market Capitalization
10.6 B
Quarterly Revenue Growth YOY
0.092
Return On Assets
0.0352
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.

Black Knight Total Debt vs. Price to Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Black Knight's current stock value. Our valuation model uses many indicators to compare Black Knight value to that of its competitors to determine the firm's financial worth.
Black Knight is number one stock in price to sales category among related companies. It is the top company in total debt category among related companies making up about  409,956,076  of Total Debt per Price to Sales. Black Knight Total Debt is most likely to decrease significantly in the upcoming years. The last year's value of Total Debt was reported at 2.4 Billion. Comparative valuation analysis is a catch-all model that can be used if you cannot value Black Knight by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Black Knight's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Black Knight's earnings, one of the primary drivers of an investment's value.

Black Total Debt vs. Price to Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Black Knight 
P/S 
 = 
MV Per Share 
Revenue Per Share 
6.83 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Black Knight 
Total Debt 
 = 
Bonds 
+  
Notes 
2.8 B
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.

Black Total Debt vs Competition

Black Knight is the top company in total debt category among related companies. Total debt of Software—Application industry is currently estimated at about 312 Billion. Black Knight maintains roughly 2.8 Billion in total debt contributing less than 1% to equities listed under Software—Application industry.
Total debt  Valuation  Revenue  Workforce  Capitalization

Black Knight Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Black Knight, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Black Knight will eventually generate negative long term returns. The profitability progress is the general direction of Black Knight's change in net profit over the period of time. It can combine multiple indicators of Black Knight, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-17.5 M-18 M
Consolidated Income179.9 M171.8 M
Net Income207.9 M191.9 M
Net Income Common Stock207.9 M191.9 M
Net Loss Income from Discontinued Operations720 K715.8 K
Net Income to Non Controlling Interests-28 M-28.7 M
Operating Income303 M292.6 M
Income Tax Expense35.7 M38.5 M
Net Income Per Employee37 K30.4 K
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.

Black Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Black Knight. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Black Knight position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Black Knight's important profitability drivers and their relationship over time.

Black Knight Profitability Trends

Black Knight profitability trend refers to the progression of profit or loss within a business. An upward trend means that Black Knight's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Black Knight's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Black Knight Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Black Knight different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Black Knight in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Black Knight's future profitability.

Use Black Knight in pair-trading

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 Trading

Black Knight Pair Trading Analysis

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

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Continue to Trending Equities. 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

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To fully project Black Knight's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Black Knight at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Black Knight's income statement, its balance sheet, and the statement of cash flows.
Potential Black Knight investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Black Knight investors may work on each financial statement separately, they are all related. The changes in Black Knight's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Black Knight's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.