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BlackLine

BL
48
Software - Application · Technology
Price
$30.29
+0.01 (+0.03%)
Market Cap
$1.78B
Exchange
NASDAQ
Winston Score
48
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+22.7% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 58.4M (2021) → 71.6M (2025)

BlackLine, Inc. provides cloud-based solutions to automate and streamline accounting and finance operations worldwide. It offers financial close management solutions, such as account reconciliations that provides a centralized workspace for users to collaborate on account reconciliations; transaction matching that analyzes and reconciles high volumes of individual transactions; and task management to create and manage processes and task lists. The company's financial close management solutions a

Winston Score History

Politician Trades

7 trades / 12mo

3 Congressional buys and 4 sells on BL in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+9.7% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+45.2% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$112M/ year

Rising (+11% vs prior year)

16.1% of revenue

In line with sector average (15%)

Investing heavily in future products and technology

Insider Activity

20.0%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$242M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

BlackLine is putting 16% of revenue into R&D and that number is rising. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
76.0%
Premium pricing power — 76.0% gross margin
Operating Margin
4.3%
Thin — 4.3% operating margin
ROCE
0.8%
Weak — 0.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+8.1%
Steady sales growth (8.1% YoY)
EPS YoY
-82.9%
Earnings shrinking (-82.9% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
636%
Turns 636% of profit into real cash
FCF Margin
23.0%
Converts sales into free cash efficiently (23.0%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
2.25
Heavy debt load (2.25)
Interest Cover
3.73x
Tight — interest eats into profit (3.7x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
69.1x
Expensive — P/E 69.1

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+57.0
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (69.1 → 12.1)

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Dividends

Not applicable for this business.
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