BlackLine Inc. Common Stock (BL)
StalwartFairStock Score: 17/100 — RISKY
Key Financials
| Current Price | $27.25 |
| Market Cap | $1.7B |
| P/E Ratio | 64.88 |
| ROE | 6.54% |
| Dividend Yield | —% |
| Sector | Technology |
Strengths
- Generates $128 million in annual free cash flow (7.4% yield on market cap)
Concerns
- Trades significantly above Graham Number ($7) with negative 316% margin of safety—limited downside protection
- High leverage at 2.48x debt-to-equity increases financial risk and interest expense burden
- Altman Z-Score of 1.1 places it in the financial distress zone—elevated bankruptcy risk
- No meaningful dividend despite modest growth—total return depends entirely on multiple expansion
AI Analysis
BlackLine Inc. Common Stock is a micro-cap technology company valued at $1.7 billion. The business generates $700 million in annual revenue with a 0.7% net margin and $128 million in free cash flow. From a quality standpoint, BlackLine shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.1 warrants caution. On valuation, the stock is commanding a steep 75.4x multiple, with trades far above its Graham Number ($7) with no margin of safety. Growth dynamics show revenue growing at 8.1% and profit growth of -91.3%. Our composite FairStock Score of 17/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $128 million in annual free cash flow (7.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
At 75x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer