Blackbaud Inc (BLKB) stock analysis
Close on Nov 12, 2026Market cap $2.41BP/E 16.5Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed11 of 30 checks passed
Blackbaud passes 11 of the 30 checks behind our score; 8 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 4/6
- Growth
- 1/6
- Past performance
- 5/6
- Financial health
- 1/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 52.4% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $54.40 is below our fair value estimate of $114.39.
Return on capital over 10%
Return on invested capital was 17.4%, above the 10% that usually covers the cost of capital.
Earnings grew over 5 years
Net income grew 71.6% a year on average over the last five fiscal years.
What to watch
Return on equity under 15%
Return on equity was 131% over the last twelve months and averaged 7.9% over five years; we look for 15% on both.
High debt
Debt is 874% of shareholders' equity, above the 40% we consider low.
Revenue growing under 10% a year
Revenue grew 2.2% a year over the last three fiscal years, short of the 10% we look for.
Interest not well covered
Operating income covers interest expense 3.5 times; we look for at least 5.
Valuation4/6
P/E against its history
Not enough price and earnings history to compare.
P/E below the industry
Blackbaud's P/E of 16.8 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
EV/EBITDA below its 5-year median
Blackbaud's EV/EBITDA of 10.9 is below its 5-year median of 34.5.
P/B above the industry
Blackbaud's price-to-book of 20.48 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading below fair value
The share price of $54.40 is below our fair value estimate of $114.39.
Margin of safety over 20%
The price is 52.4% below fair value, more than the 20% cushion we look for.
Growth1/6
Revenue growing under 10% a year
Revenue grew 2.2% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew 2.2% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Guidance lowered
Blackbaud lowered its for the year capitalized software development costs outlook on Oct 28, 2026.
Gross margin improving
Gross margin was 59.9% over the last twelve months, against 57.6% a year earlier.
Past performance5/6
Return on equity under 15%
Return on equity was 131% over the last twelve months and averaged 7.9% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 17.4%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Blackbaud's return on equity of 131% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Earnings grew over 5 years
Net income grew 71.6% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 12.9% over the last twelve months, against a 5-year average of -3.8%.
Net margin above the industry
Blackbaud's net margin of 12.9% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.
Financial health1/6
High debt
Debt is 874% of shareholders' equity, above the 40% we consider low.
Debt rising against equity
Debt to equity rose from 125% five years ago to 874%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 32.8% of total debt.
Interest not well covered
Operating income covers interest expense 3.5 times; we look for at least 5.
Short-term assets don't cover short-term debts
Current assets are 0.68 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is 1.57; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Blackbaud has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$114.39
The share price is 52% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 27.6× | – | 27.6× | $89.34 | 44% |
| EV/EBITDA | 26.7× | 34.5× | 18.8× | $165.61 | 39% |
| Earnings power | 8.9% cost of equity | – | – | $61.72 | 17% |
| Fair value | $114.39 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Computer Programming, Data Processing, and Other Computer Related Services median 27.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $23.23M
- Value traded per 1% price move
- $11.34M
Downside
Medium risk
- Typical loss in a bad month
- 23.9%
- Volatility (annualized)
- 49%
- Sharpe ratio, 1 year
- -0.24
- Beta to the S&P 500 (5Y)
- 0.80
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -2.3% | +2.2% | +4.3% | +5.9% | |
| Gross profit | +5.0% | +6.3% | +6.5% | +7.1% | |
| Operating income | – | – | +38.6% | +15.1% | |
| Net income | – | – | +71.6% | +16.2% | |
| EPS, diluted | – | – | +71.4% | +15.7% | |
| Free cash flow | -10.7% | +10.4% | +16.9% | +8.8% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 18.9% | 1.9% | 108.5% | |
| Return on assets | 3.6% | 0.4% | 4.7% | |
| Current ratio | 0.75 | 0.81 | 0.79 | |
| Debt to equity | 1.27 | 1.25 | 13.05 | |
| Net debt to EBITDA | 2.35× | 3.81× | 3.87× | |
| Interest coverage | 6.4× | 2.2× | 2.8× | |
| Capex to revenue | 2.4% | 3.3% | 0.7% | |
| Diluted shares | 47M | 49M | 48M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Blackbaud generated $1.18B from operations and spent $806.28M on capital expenditure, dividends and share buybacks. 5% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 10.2% | 0.46× | 23.06× | 108.5% |
| FY2024 | -25.9% | 0.43× | 5.77× | -64.0% |
| FY2023 | 0.3% | 0.37× | 3.80× | 0.4% |
| FY2022 | -4.3% | 0.35× | 4.08× | -6.2% |
| FY2021 | 0.6% | 0.37× | 4.39× | 1.0% |
| FY2020 | 0.8% | 0.45× | 4.91× | 1.9% |
| FY2019 | 1.3% | 0.50× | 4.68× | 3.1% |
| FY2018 | 5.3% | 0.50× | 4.81× | 12.6% |
| FY2017 | 9.3% | 0.51× | 5.13× | 24.3% |
| FY2016 | 6.2% | 0.58× | 5.28× | 18.9% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$114.97M
- Cash generatingOperating cash flow above zero$265.55M
- Return on assets improvedROA up on the prior year-10.3% → 4.6%
- Earnings backed by cashOperating cash flow above net income$265.55M vs $114.97M
- Less leverageLong-term debt to assets fell42.1% → 45.5%
- Better liquidityCurrent ratio rose0.78 → 0.79
- No dilutionShare count did not rise51M → 48M
- Gross margin improvedGross margin up on the prior year54.69% → 58.78%
- More efficientAsset turnover rose0.40 → 0.45
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