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Fundamental Analysis: BLACK KNIGHT (#BKI)

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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