tiprankstipranks
Trending News
More News >
Blackline Safety (TSE:BLN)
:BLN
Canadian Market
Advertisement

Blackline Safety (BLN) AI Stock Analysis

Compare
95 Followers

Top Page

TSE:BLN

Blackline Safety

(TSX:BLN)

Rating:56Neutral
Price Target:
C$7.00
▲(12.00% Upside)
The overall score reflects strong corporate events and financial stability, counterbalanced by technical weaknesses and valuation challenges. The company's innovative product launches and market expansion are significant positives, but negative profitability and cash flow remain critical concerns.
Positive Factors
Analyst Recommendation
Analyst recommends a BUY rating for Blackline Safety stock.
Stock Target Price
The stock has a target price set at C$70.00.
Negative Factors
Financial Performance
EBITDA guidance is in line with expectations but falls 4% below industry estimates.
Near-Term Outlook
There is a cautious near-term outlook for Blackline Safety's performance.
Operational Challenges
Another guidance revision has occurred due to ongoing power availability issues.

Blackline Safety (BLN) vs. iShares MSCI Canada ETF (EWC)

Blackline Safety Business Overview & Revenue Model

Company DescriptionBlackline Safety (BLN) is a leading provider in the connected safety technology sector, specializing in comprehensive safety solutions for industrial workplaces. The company designs, manufactures, and sells wearable safety devices and software services that help protect workers in hazardous environments. Blackline Safety's core products include personal gas detection and lone worker monitoring devices, which are integrated with cloud-connected software to offer real-time safety data and insights.
How the Company Makes MoneyBlackline Safety generates revenue primarily through the sale of its safety devices and associated cloud-based software services. The company offers a subscription model for its software services, which provides recurring revenue streams. Key revenue streams include the sale of hardware devices like gas detectors and lone worker monitors, as well as subscription fees for software that provides real-time data, analytics, and emergency response management. Blackline Safety's earnings are bolstered by partnerships with industrial companies seeking to improve workplace safety and comply with regulatory standards. Additionally, the company may engage in strategic alliances and collaborations to expand its market reach and product offerings.

Blackline Safety Earnings Call Summary

Earnings Call Date:Jun 11, 2025
(Q4-2024)
|
% Change Since: -19.97%|
Next Earnings Date:Sep 10, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record revenues, improved margins, and significant EBITDA growth. Despite these positive results, the company faces challenges such as deal delays and potential impacts from tariffs, as well as a contraction in the Canadian market.
Q4-2024 Updates
Positive Updates
Record Revenue and Growth
Blackline Safety reported a record revenue of CAD 35.7 million in Q4 and CAD 127.3 million for fiscal 2024. Service revenue increased by 31% to CAD 69.5 million, and product revenue grew 23% to CAD 57.8 million.
Significant EBITDA Improvement
Achieved a record CAD 2.5 million in EBITDA in Q4, moving from a CAD 1.5 million loss in the previous year.
Decreased Net Loss
Q4 net loss significantly decreased to CAD 68,000 from CAD 4.5 million in Q4 2023.
Record Annual Recurring Revenue
Achieved a record annual recurring revenue of CAD 66.4 million, a 30% increase from the previous year.
Highest Product Gross Margin
Achieved the highest product gross margin ever at 41%, surpassing the previous record of 38%.
Strong Cash Flow Generation
Generated CAD 2.3 million in cash during Q4, with total cash and short-term investments at CAD 43.1 million.
Successful Launch of New Product
Introduced the EXO 8 area monitor, which detects up to 8 gases simultaneously, with strong early interest and preorders.
Negative Updates
Deal Delays
Experienced delays in deals moving from Q4 into fiscal 2025 due to geopolitical uncertainty and customer M&A activities.
Potential Tariff Impact
Anticipation of potential tariffs, with the company evaluating manufacturing expansion options in the U.S. as a contingency plan.
Weakness in Canadian Market
Reported a contraction in the Canadian market, attributed to timing elements and a relatively saturated market.
Company Guidance
During Blackline Safety's Q4 2024 earnings call, significant guidance was provided across various financial metrics. The company achieved record revenue of CAD 35.7 million in Q4, contributing to an annual total of CAD 127.3 million, marking a 27% increase from the previous year. Service revenue saw a notable 31% increase to CAD 69.5 million, while product revenue rose by 23% to CAD 57.8 million. Blackline reported record EBITDA of CAD 2.5 million for Q4, a substantial improvement from a loss of CAD 1.5 million the previous year, and a significantly reduced net loss of CAD 68,000 compared to CAD 4.5 million in Q4 2023. The company also reported a record annual recurring revenue (ARR) of CAD 66.4 million, a 30% increase from the prior year, with a net dollar retention (NDR) of 127%, sustained for six consecutive quarters. Gross margins reached record highs, with product gross margins at 41% and service gross margins at 77%. Blackline generated CAD 3 million in free cash flow and increased its cash and short-term investments to CAD 43.1 million, emphasizing its strong financial position and strategic focus on innovation and market expansion.

Blackline Safety Financial Statement Overview

Summary
Blackline Safety shows strong revenue growth and improving gross profit margins, but faces challenges with net losses and negative cash flows. The balance sheet is solid, with low leverage and increased equity.
Income Statement
70
Positive
Blackline Safety has shown consistent revenue growth, with TTM revenue at $142.996M, a 12.3% increase from the previous annual period. Gross profit margin for TTM is 60.68%, indicating strong cost management. However, net profit margin is negative at -5.16%, reflecting ongoing challenges in achieving profitability. The EBIT margin is also negative at -2.90%, though improved from prior periods, suggesting potential for future operational efficiency gains.
Balance Sheet
75
Positive
The company maintains a solid equity position with a debt-to-equity ratio of 0.16, indicating low leverage. Stockholders' equity increased to $80.485M, enhancing stability. The equity ratio stands at 49.11%, demonstrating a balanced capital structure. The return on equity is negative due to net losses, but improving equity suggests long-term potential for shareholder return.
Cash Flow
65
Positive
Operating cash flow has turned negative at -$1.445M in TTM, down from positive cash flow in previous periods, raising concerns about cash generation. Free cash flow remains negative at -$10.071M, but the free cash flow to net income ratio is slightly improving. The company relies on financing activities for liquidity, which could pose a risk if external funding sources become constrained.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue127.29M100.01M72.93M54.31M38.38M
Gross Profit74.25M52.78M32.24M26.39M20.19M
EBITDA-1.40M-15.92M-46.49M-27.96M-3.68M
Net Income-12.60M-25.55M-53.65M-33.30M-8.09M
Balance Sheet
Total Assets146.88M109.12M108.05M109.30M88.61M
Cash, Cash Equivalents and Short-Term Investments43.11M15.99M30.94M54.52M51.52M
Total Debt13.59M11.10M11.25M2.37M1.56M
Total Liabilities89.27M75.92M55.69M35.96M22.28M
Stockholders Equity57.61M33.20M52.36M73.34M66.33M
Cash Flow
Free Cash Flow-6.46M-29.42M-59.22M-34.43M-12.67M
Operating Cash Flow1.91M-22.07M-50.56M-28.97M-9.16M
Investing Cash Flow-30.46M-3.46M249.00K-3.05M-9.15M
Financing Cash Flow32.59M9.23M32.23M38.72M34.29M

Blackline Safety Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.25
Price Trends
50DMA
7.11
Negative
100DMA
6.91
Negative
200DMA
6.76
Negative
Market Momentum
MACD
-0.23
Positive
RSI
20.81
Positive
STOCH
22.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BLN, the sentiment is Negative. The current price of 6.25 is below the 20-day moving average (MA) of 6.63, below the 50-day MA of 7.11, and below the 200-day MA of 6.76, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 20.81 is Positive, neither overbought nor oversold. The STOCH value of 22.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BLN.

Blackline Safety Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
C$654.92M28.2229.19%2.61%19.11%-15.97%
74
Outperform
C$5.75B413.392.32%15.14%-31.45%
71
Outperform
C$563.56M125.846.39%0.88%1.75%139.02%
62
Neutral
$34.76B5.42-10.48%2.07%6.42%-8.84%
56
Neutral
C$529.12M-13.97%26.80%69.67%
$909.81M16.1413.26%4.64%
$912.14M40.3841.12%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BLN
Blackline Safety
6.26
1.70
37.28%
TSE:CMG
Computer Modelling
7.93
-4.34
-35.37%
TSE:KXS
Kinaxis Inc
206.76
55.01
36.25%
TSE:TCS
TECSYS Inc. J
39.20
-3.04
-7.20%
EGHSF
Enghouse Systems
16.38
-4.64
-22.07%
DCBO
Docebo
30.76
-10.98
-26.31%

Blackline Safety Corporate Events

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Blackline Safety Achieves Record Revenue and Expands Product Offerings
Positive
Jun 11, 2025

Blackline Safety reported a record fiscal second quarter 2025 revenue of $35.9 million, marking its 33rd consecutive quarter of year-over-year revenue growth. The company achieved a 33% increase in annual recurring revenue and maintained a Net Dollar Retention rate above 125% for the eighth consecutive quarter, highlighting strong customer retention and market adoption. The launch of the EXO 8 Gamma area monitor, capable of detecting multiple gases and gamma radiation, further strengthens Blackline’s market position and opens new growth opportunities. Despite geopolitical uncertainties affecting product revenue, the overall financial performance demonstrates the resilience and strength of Blackline’s business model.

The most recent analyst rating on (TSE:BLN) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Blackline Safety stock, see the TSE:BLN Stock Forecast page.

Financial Disclosures
Blackline Safety to Announce Q2 2025 Financial Results
Neutral
May 28, 2025

Blackline Safety Corp. announced it will release its fiscal second quarter 2025 financial results on June 11, 2025, followed by a conference call and webcast. This announcement underscores Blackline’s commitment to transparency and may impact its market positioning by providing stakeholders with insights into its financial health and operational performance.

The most recent analyst rating on (TSE:BLN) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Blackline Safety stock, see the TSE:BLN Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Blackline Safety’s EXO 8 Wins Multiple Awards for Safety Innovation
Positive
May 13, 2025

Blackline Safety has announced that its new EXO 8 area monitor, capable of detecting up to eight gases plus gamma radiation, has received four prestigious awards, including the Red Dot Design Award and three Occupational Health & Safety Industrial Hygiene Awards. These accolades underscore EXO 8’s innovative design and its significant impact on industrial safety, particularly in emergency preparedness and response. The device’s new gamma detection capability is especially beneficial for fire and hazmat teams, contributing to a 175% growth in customer adoption in these sectors. The EXO 8’s success reflects Blackline’s commitment to advancing proactive safety management and its strong market position in connected safety technology.

The most recent analyst rating on (TSE:BLN) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Blackline Safety stock, see the TSE:BLN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 15, 2025