_edited.png)
RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
BKI
Primary Facts
Software�Infrastructure
Name:
-
Sector:
57.70M
Industry:
66.36
CEO:
Mr. Anthony Jabbour
Total Employees:
Mid Cap
Our Technological Advancement Rating
Our Rating:
-0.540446645
-1.940873402
Black Knight, Inc. (XNYS:BKI) In-Depth Stock/Fundamental/Options Analysis Today
Primary Targets/Price Insights
Previous Close ($) :
BLACK KNIGHT, INC. (XNYS:BKI)
One Month Price Target:
Six Month Price Target :
$66.59
Likely Price in One Year's Time:
Ticker:
$67.75
Likely Trading Range Today Under (Normal Volatility)
$66.6
Price Upper limit ($) :
$69.13
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
P156
This week:
$63.65
This month :
$60.3
Other Primary facts
Market Cap:
156.04M
Market Cap Classification:
10.20B
Number of Shares
IPO Date:
D
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
-11.88%
$54.24
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$73.18
14.47%
$59.54
$78.94
Medium risk (<10%) entry points
Buy Call
Sell Call
$70.07
Buy Put:
Sell Put:
$53.78
$62.65
$71.30
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
Software�Infrastructure
Sharpe Ratio:
BKI, is amongst the top 60% highest yielding stocks in terms of daily returns
Comparison:
1.63%
-0.392963325
Sharpe ratio is -39.30% lower than the industry
Average Returns/Yield of
Software�Infrastructure
Daily returns:
1
Weekly returns:
0.03%
Monthly returns:
0.14%
Yearly returns:
6.89%
Comparison of returns:
-0.520751731
Classification:
Average annual returns/yield (last 3 years) is -52.08% below industry average
Results of T-Test of Returns:
BKI is a riskier investment compared to Nasdaq (IXIC)
Statistical test of Returns:
0.77
Volatility (measured by Standard Deviation)
Daily Volatility:
& is -56.46% lower than the market/S&P 500 average
Weekly Volatility:
2.00%
Monthly Volatility:
4.48%
Yearly Volatility:
8.95%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
39.03%
-33.84%
Value at Risk Analysis (VaR)
Daily VaR:
Volatility in last five trading days has been -33.84% below long-term volatility
Weekly VaR:
-4.08%
Monthly VaR:
-9.13%
How Much Can the price of
Software�Infrastructure
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
Risk of crash in next 6/12 months: Medium (<50%)
Worst case (decline):
$55.86
This translates to price declining to:
-16%
This translates to price declining to:
-63.26%
Severe Crash Probability
-18.26%
What is Value at Risk (VaR)?
Risk Fundamentals
10.42%
BKI is a 28.89% riskier investment compared to the market/S&P 500 & is 10.42% riskier than Nasdaq (IXIC)
BKI is a 28.89% riskier investment compared to the market/S&P 500
Beta Examination of
Software�Infrastructure
0.622
Expected beta in 1 year's time:
0.464
Expected beta in 3 year's time:
0.602
Unlevered (debt free) Beta:
Beta in relation to market/S&P 500--0.62
Beta in relation to Nasdaq (XNAS):
Returns are right (positive) skewed; mean returns are greater than median and mode returns
Beta in relation to all global stocks::
Beta is -44.06% below industry average
Beta Comparison & Analysis
Beta of competitors/peers::
0.316
-0.494
Average Industry Beta:
Beta is -49.38% lower than peers
-0.440607921
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
WACC is -32.51% below industry mean WACC
-97.93%
Alpha provided | Alpha Analysis
Alpha provided:
0.852
-1.143
-0.329
Analysis of Cost of Capital of
Software�Infrastructure
Equity cost of capital:
Alpha is -33% below the market average
-0.312
Unlevered (without debt) cost of capital:
Equity cost of capital is -31.17% below industry mean WACC
Before-tax cost of debt:
3.77%
After-tax cost of debt:
3.05%
Overall debt rating:
2.41%
Weighted average cost of capital (WACC):
3.05%
-32.51%
Key Per-Share Metrics & Analysis
Revenue per share:
-
Revenue growth rate per share of (3Y):
Price to sales ratio is -37.67% below the industry mean
-60.79%
EPS:
Five Hundred Nineteen Million Three Hundred Sixty-Six Thousand Seven Hundred Eighty Dollars
Expected Annual growth rate of EPS (3Y):
Price to free cash flow ratio is -52.70% lower than the industry
-28.36%
Free cash flow (FCF) per share:
Price to book ratio is -74.92% below the industry mean
-
-
Debt per share
Debt repayment rate in last quarter: 4.33%
EBITDA per share
Each employee generates 139% more EBITDA than industry average revenue per employee
Valuation Analysis Today of
Software�Infrastructure
P/E Ratio:
Sustainable growth rate is -97.93% below industry average
P/E Ratio of Competitors/Peers:
19.88
-0.695202942
217.234341
-0.694523436
$2.22
-
P/S (Price to Sales ratio):
$9.69
-0.376721672
P/B (Price to book value ratio):
Price to sales ratio is -37.67% below the industry mean
-
-0.527006351
Net income growth rate (3Y):
Annual revenue growth rate is -60.79% below industry average
-99.77%
Dividend Analysis
Net income growth rate is -99.77% lower than the industry average net income growth rate
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
-
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
111.64%
Net debt to equity ratio:
-
Debt to assets ratio:
46.04%
Net debt to assets ratio:
110.98%
-34.36%
Ability to repay debt:
Interest coverage ratio:
Debt-to-asset ratio is -34.36% below industry average
-1.06
Looking forward:
Debt growth rate:
1.8x
-90.57%
4.33%
Analysis of Key Statistics
Correlation of price movement with the market:
16.2799117
Statistical significance of correlation:
-0.31%
Average Correlation of the industry with the market:
0.528
10.12%
R Squared (percentage of price movement explained by movement of the market):
0.528
Correlation of price movement with Nasdaq (^IXIC):
0.279
Covariance of price movement with the market:
-0.01
Kurtosis
-0.012
8.859
Skewness of returns:
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
0.654
Fundamental Analysis & Dupont Analysis of
Software�Infrastructure
Gross Profit Margin Ratio:
386.20M
Operating Profit Margin Ratio:
Net profit margin is -388.74% lower than the industry
-275.67%
Net Profit Margin Ratio:
386.20M
Effective Tax Rate:
2.06%
-0.585850925
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
Return on assets (ROA) is -330.34% lower than the industry
-80.19%
Financial Leverage
Asset Turnover Ratio (ROA):
Operating profit margin is -275.67% lower than the industry
-330.34%
Financial Leverage:
Interest coverage ratio is -105.62% less than industry average
Current Ratio:
Return on equity (ROE) is -80.19% lower than the industry
-0.639460139
Cash Conversion Cycle (days):
$17.43
-
Current ratio is -63.95% below industry average
Stock based compensation to net income ratio:
-
In-depth Efficiency Analysis
Revenue generated per employee:
-
-0.400210511
EBITDA generated per employee:
Each employee generates -40% less revenue than industry average revenue per employee
1.392653214
Profit generated per employee:
$6.41
287%
Free cash flow (FCF) generated per employee:
Each employee generates 287% more net income/profit than industry average revenue per employee
-0.544402246
Assets/Capital per employee
Each employee generates -54% less free cash flow than industry average revenue per employee
-0.544402246
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
Software�Infrastructure
$93.84
FAIR ISAAC CORPORATION (XNYS:FICO)
Wolfspeed, Inc. (XNYS:WOLF)
ZENDESK, INC. (XNYS:ZEN)
GODADDY INC. (XNYS:GDDY)
LEIDOS HOLDINGS, INC. (XNYS:LDOS)
SAMSARA INC. (XNYS:IOT)
ASANA, INC. (XNYS:ASAN)
CIENA CORPORATION (XNYS:CIEN)
Current Analyst Ratings
$3.33
Strong buy�25%
Buy�21%
Hold�17%
Sell�0%
Strong sell�0%
Income Statement
Period:
3/31/2022
Date:
Value
Revenue:
TTM
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
1.51B
-
100%
-
-
-
-
1.18B
1.18B
-
84.40M
368.70M
263%
29.40M
- 88800.00K
60%
29.40M
Statement of Cash Flow
Date:
Period:
362.10M
Differed Income Tax :
91.50M
Stock Based Compensation :
- 135800.00K
Change in Working Capital :
10.70M
Accounts Receivables:
58.80M
Other Working Capital:
89.30M
Other Non-Cash Items:
- 16100.00K
Net Cash Provided by Operating Activities:
- 302200.00K
Investments in PP&E:
85.10M
Net Acquisitions:
- 6600.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
Value
3/31/2022
2022
Q1
27.60M
-
27.60M
216.90M
-
62.60M
307.10M
181.80M
3.82B
1.06B
170.00M
-
408.10M
5.64B
-
5.94B
10.10M
43.80M
145.60M
68.10M
243.90M
365.90M
2.72B
40.40M
3.09B
-
3.45B
-
1.33B
- 7000.0K
Value
1.18B
-
2.45B
5.90B
-
2.76B
-
-
- 20800.00K
- 27400.00K
- 123100.00K
-
-
-
15.90M
- 107200.00K
-
- 49500.00K
27.60M
77.10M
85.10M
- 27400.00K
Our Proprietary Portfolio Rating
Our Rating:
-439.7058071
Price Forecast/Expected Price in Next 5 Years of
Software�Infrastructure
2023
2024
2025
2026
2027
79.66163477
$79.66
$82.99
$86.46
$90.07