BlackLine, Inc. Achieves 23% Return on Equity Amid High Debt Levels
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 25 2025
0mins
Source: Yahoo Finance
- Return on Equity Overview: BlackLine, Inc. reports a 23% return on equity (ROE), translating to $85 million in net profit against $367 million in shareholders' equity over the past twelve months, indicating effective conversion of shareholder investments into profits.
- Industry Comparison: With an ROE surpassing the software industry average of 14%, BlackLine not only showcases its profitability advantage but also potentially attracts more investor interest, thereby enhancing market confidence in its stock.
- Debt Impact Analysis: Despite its strong ROE, BlackLine's debt-to-equity ratio stands at 2.44, indicating a reliance on significant debt to boost returns, which may elevate financial risks and necessitate cautious evaluation of its long-term sustainability by investors.
- Investment Recommendation: While ROE serves as a crucial indicator of business quality, investors should also consider factors such as future profit growth and required investments to ensure informed investment decisions.
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Analyst Views on BL
Wall Street analysts forecast BL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BL is 59.00 USD with a low forecast of 48.00 USD and a high forecast of 73.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
4 Buy
6 Hold
1 Sell
Moderate Buy
Current: 46.910
Low
48.00
Averages
59.00
High
73.00
Current: 46.910
Low
48.00
Averages
59.00
High
73.00
About BL
BlackLine, Inc. provides a unified, scalable, and flexible platform tailored to the needs of the Office of the Chief Financial Officer (CFO) and delivers purpose-built applications. The Company's comprehensive platform addresses mission-critical processes, including record-to-report and invoice-to-cash, enabling unified data, streamlined and optimized processes, and real-time insight through visibility, automation, and artificial intelligence (AI). Its cloud-based applications, powered by its BlackLine Studio360 Platform, include account reconciliations, transaction matching, task management, financial reporting analytics, journal entry, variance analysis, compliance, credit & risk management, collections management, electronic invoicing & payments, intercompany create, intercompany balance & resolve, and intercompany net & settle. Its BlackLine Studio360 Platform includes Studio360 Integrate, Studio360 Orchestrate, Studio360 Visualize, Studio360 Blueprint and Studio360 Control.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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