Fundamental Analysis: BLACK KNIGHT (#BKI)
- Francesco Bergamini
- Mar 11, 2021
- 1 min read
Black Knight, Inc., formerly known as Black Knight Financial Services, is an American corporation that provides integrated technology, services, data and analytics to the mortgage and real estate industries
💡Experts consider the divergence of the directions of the dynamics of BKI stocks and the NYSE index as a favorable opportunity.
⚡️Growth factors
Negative correlation between the stocks of the company and the index (NYSE) : #BKI after the publication of the reporting for the 3rd quarter decreased against the growing broad market.
BKI's management is targeting revenue growth of 13% -15% in 2021 compared to 5% last year.
In 2021 the increase of cross-selling activities led to win additional contracts with service providers: this has direct effect on the service for mortgage lending and its refinancing business.
The market share for mortgage lending and refinancing is expected to grow by 64% and 30% by 2022
📖 Financial indicators:
Growing Profit Margin: BKI's current net profit margins (21.3%) are higher than last year (9.3%)
Earnings Trend: BKI's earnings have grown significantly by 29% per year over the past 5 years
Short Term Liabilities: BKI's short term assets ($287.3M) do not cover its short term liabilities ($291.3M)
Long Term Liabilities: BKI's short term assets ($287.3M) do not cover its long term liabilities ($2.6B)
Debt Level: BKI's debt to equity ratio (69.6%) is considered high
Reducing Debt: BKI's debt to equity ratio has reduced from 90% to 69.6% over the past 5 years
✅ Black Knight #BKI
🎯 Target price - $ 100, growth potential + 40%

OTB Global Investments
London, 11 March 2021
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