Blackline Safety (BLN) AI Stock Analysis

• Market Cap: C$550.26M
• Dividend Yield: N/A
• Average Volume (3M): 80.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: 27.28%
• EPS Growth: 51.71%
• Country: CA
• Employees: 562
• Sector: Technology
• Sector Strength: 48
• Industry: Software
• EPS (TTM): -0.17
• Shares Outstanding: 86,218,090
• 10 Day Avg. Volume: 37,323
• 30 Day Avg. Volume: 80,283
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.21
• Price to Cash Flow (P/CF): 28.00
• P/FCF Ratio: 45.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$8.83
• Price Target Upside: 31.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Blackline Safety's strong revenue growth and strategic initiatives position it well for future expansion, yet ongoing financial losses and cash flow challenges weigh on its overall performance. Technical indicators suggest mixed momentum, and the lack of profitability impacts valuation attractiveness. Positive earnings call highlights and corporate events provide a supportive backdrop for long-term growth potential.

Positive Factors

Growth Strategy

Investor Day Highlights; Targeting to Double Size.

Stock Rating

Analyst recommends a BUY rating for Blackline Safety stock.

Negative Factors

Performance Outlook

There is a cautious near-term outlook for Blackline Safety's performance.

Blackline Safety Business Overview & Revenue Model

Company Description

Blackline Safety Corp is a Canada-based connected safety monitoring technology company. It designs, manufactures and sells products and services that combine wireless technology and global positioning system (GPS) to protect people and property and provide geographic connectivity. The company offers products such as G7 and Loner connected safety devices, and Safety monitoring software, and services. In addition, it also produces a suite of portable tracking solutions for a variety of applications, including package tracking, loss prevention, surveillance, asset security, and vehicle tracking. It has a presence in Canada, the United States, Europe and Australia, and New Zealand.

How the Company Makes Money

Blackline Safety makes money primarily through the sale of its safety products and the provision of related services. The company's key revenue streams include the sale of hardware devices like gas detectors and wearable safety devices, as well as subscription-based services for real-time monitoring and data analytics. These services provide clients with critical insights and alerts regarding potential safety hazards in the workplace. Additionally, Blackline Safety generates revenue from service contracts, which include maintenance, calibration, and support for its products. Significant partnerships with industry leaders and a strong emphasis on research and development also contribute to its financial performance by driving innovation and expanding its market reach.

Blackline Safety Financial Statement Overview

Summary

Blackline Safety exhibits strong revenue growth and a stable balance sheet with low leverage. However, persistent operating losses and negative free cash flow present risks to financial sustainability. The company should focus on improving profitability and cash flow management to enhance its financial standing.

Income Statement

Blackline Safety has shown significant revenue growth with a 27.3% increase from the previous year, reflecting strong sales performance. However, the company has been operating at a loss, evident from the negative net profit margin of -9.89% and a negative EBIT margin of -8.36%. The gross profit margin stands at 58.33%, which is robust for the software industry, but the negative margins indicate challenges in managing operating expenses.

Balance Sheet

The balance sheet reveals a relatively low debt-to-equity ratio of 0.24, indicating prudent financial leverage. The equity ratio is 39.22%, suggesting that a significant portion of the company's assets are funded by equity. Return on equity is negative at -21.86%, which reflects the company's current unprofitability. Overall, the balance sheet shows stability with manageable debt levels.

Cash Flow

The company has improved operating cash flow to $1.91 million from a negative position, but free cash flow remains negative at -$6.46 million, which is concerning for long-term sustainability. The operating cash flow to net income ratio is -0.15, indicating cash flow challenges. Improvements in free cash flow management are necessary to strengthen financial health.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
127.29M	100.01M	72.93M	54.31M	38.38M
	Gross Profit
74.25M	52.78M	32.24M	26.39M	20.19M
	EBIT
-10.65M	-24.45M	-51.98M	-32.30M	-8.35M
	EBITDA
-1.40M	-15.92M	-46.49M	-27.96M	-3.68M
	Net Income Common Stockholders
-12.60M	-25.55M	-53.65M	-33.30M	-8.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
43.11M	15.99M	30.94M	54.52M	51.52M
	Total Assets
146.88M	109.12M	108.05M	109.30M	88.61M
	Total Debt
13.59M	11.10M	11.25M	2.37M	1.56M
	Net Debt
-2.52M	-384.00K	-11.19M	-32.06M	-26.96M
	Total Liabilities
89.27M	75.92M	55.69M	35.96M	22.28M
	Stockholders Equity
57.61M	33.20M	52.36M	73.34M	66.33M
Cash Flow		Free Cash Flow
-6.46M	-29.42M	-59.22M	-34.43M	-12.67M
	Operating Cash Flow
1.91M	-22.07M	-50.56M	-28.97M	-9.16M
	Investing Cash Flow
-30.46M	-3.46M	249.00K	-3.05M	-9.15M
	Financing Cash Flow
32.59M	9.23M	32.23M	38.72M	34.29M

Blackline Safety Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.69
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BLN, the sentiment is Neutral. The current price of 6.69 is below the 20-day moving average (MA) of 7.05, below the 50-day MA of 6.87, and above the 200-day MA of 5.65, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 40.05 is Neutral, neither overbought nor oversold. The STOCH value of 15.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:BLN.

Blackline Safety Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BLN	62 Neutral	C$550.26M	―	-21.86%	―	27.28%	51.71%
LSPD	61 Neutral	C$2.55B	―	-5.34%	―	23.95%	39.68%
Sector *	59 Neutral	$22.39B	11.53	-18.05%	2.31%	5.00%	-25.89%
VNP	58 Neutral	C$516.45M	25.73	10.55%	―	21.14%	-3.80%
QST	44 Neutral	C$7.16M	―	-13.04%	―	-43.46%	35.70%

Blackline Safety Corporate Events

Blackline Safety Celebrates 20 Years with Charitable Donation

To commemorate its 20th anniversary, Blackline Safety Corp. donated $20,000 to Threads of Life, a Canadian non-profit dedicated to supporting families affected by workplace tragedies. This gesture underscores Blackline’s commitment to workplace safety and innovation, aiming to prevent future incidents and promote safe working environments, especially for lone workers who often feel unsafe.

Blackline Safety to Announce Q1 2025 Financial Results

Blackline Safety Corp. has announced that it will release its fiscal first quarter 2025 financial results on March 12, 2025, before the market opens. The company will host a conference call and webcast to discuss these results, which could provide insights into its financial health and strategic direction, potentially impacting stakeholders and its positioning in the safety technology industry.

Blackline Safety Appoints New VP to Drive North American Sales Growth

Blackline Safety Corp. has appointed Paul Semak as Vice President of North American Sales to spearhead market expansion and revenue growth. With extensive experience from previous roles at Cisco and Extreme Networks, Semak’s leadership is expected to strengthen Blackline’s sales strategy and enhance its presence across North America.

Blackline Safety to Engage Investors in Upcoming Webcast

Blackline Safety announced its participation in an investor webcast hosted by Bristol Investor Relations, scheduled for February 4, 2025. During the webcast, Blackline’s CEO and CFO will discuss the company’s business strategy, product offerings, and financial performance, providing stakeholders an opportunity to engage through a Q&A session, potentially impacting investor relations and market positioning.

Blackline Safety Secures Strategic Investment to Propel Growth

Blackline Safety has completed a strategic private placement financing with the Lowy Family Group, raising approximately $26.98 million. This investment is set to support Blackline’s growth by funding its cloud-based software, data platform enhancements, and scalability initiatives, including expanding manufacturing and improving internal systems. The investment positions Blackline to capitalize on growth opportunities in the connected safety market, with the Lowy Family Group’s expertise expected to bolster Blackline’s expansion and market leadership.

Blackline Safety Achieves Record Fiscal Year 2024 Revenue

Blackline Safety announced record financial results for its fiscal year 2024, achieving $127.3 million in revenue, marking a 27% increase. The company reported a record fourth-quarter EBITDA of $2.5 million and a 31st consecutive quarter of year-over-year revenue growth, highlighting strong market acceptance and the scalability of its business model.

Blackline Safety Secures $1.6 Million Deal with Total Safety for EXO 8 Area Monitors

Blackline Safety has announced a $1.6 million deal with Total Safety, where Total Safety will acquire over 100 of Blackline’s EXO 8 portable area monitors. The EXO 8’s features, such as its advanced connectivity, extended battery life, and real-time monitoring capabilities for up to eight gases, are expected to enhance Total Safety’s rental offerings for critical industrial operations, particularly in the energy sector.

Blackline Safety to Release 2024 Financial Results

Blackline Safety Corp., a leader in connected safety technology, is set to release its fiscal fourth quarter and year-end 2024 financial results on January 16, 2025. The company will hold a conference call and webcast at 11:00 am ET to discuss the results. Investors and stakeholders are encouraged to join the call to gain insights into the company’s performance and future prospects.