BLKB

Blackbaud

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Technology

industry

Software - Application

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/29/26

Business Summary

Blackbaud operates as a vertical software provider focused on mission-driven organizations, generating revenue primarily through subscription-based software and related services. Its moat stems from deep integration into nonprofit and institutional workflows, high switching costs due to data migration complexity, and embedded payment processing relationships. Recurring software revenue combined with transaction-driven revenue streams creates operating leverage when client retention holds. The company generates cash by monetizing long-term customer relationships across fundraising, financial management, and engagement platforms, locking in clients through ecosystem depth rather than pure price competition.

VALUATION

P/E

14.5

Market Cap ($M USD)

$1,574

Forward P/E

5.9

PEG

3.2

PRICE TO SALES

1.5

PRICE TO BOOK

18.5

EV / EBITDA

9.3

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$2.41

Next Year EPS Growth Estimate

$5.86

Next Year Revenue Growth Estimate

4.30%

Return on Equity (ROE)

135.20%

Operating Margin

16.90%

Debt-to-Equity

13.1

Piotroski F-Score

8

Altman Z-Score

1

Return on Invested Capital (ROIC)

13.70%%

Current Ratio

0.8

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 14.5x earnings and just 5.9x forward earnings, the market is clearly discounting BLKB despite a Piotroski F-Score of 8 and ROIC of 13.70%, which typically signal operational competence and capital efficiency. The compression from a 14.5 P/E to 5.9 forward P/E implies a major earnings reset, especially with EPS listed at 9.3 versus next year’s estimated $2.41, creating visible uncertainty around earnings durability. The Altman Z-Score of 1 places the company in financial distress territory, and the 0.8 current ratio reinforces liquidity risk. This is a statistically cheap stock with real balance sheet stress—mispricing is possible, but it is being discounted for legitimate solvency concerns.

AI Exposure / Tech Reliance

As a Software - Application company in the Technology sector, BLKB operates in a segment directly exposed to AI-driven workflow automation and data intelligence upgrades. Software vendors that control customer data and embed themselves in operational processes typically have strong leverage to layer AI functionality without rebuilding their distribution base. The key issue is not relevance, but whether its financial structure allows it to invest aggressively enough to keep pace with AI-native competitors.

The Bull Case

A disciplined value or GARP investor would focus on the 5.9 forward P/E combined with a 13.70% ROIC and a Piotroski F-Score of 8, which signals strong fundamental quality relative to distressed pricing. The 135.20% operating margin, even if distorted by accounting effects, suggests high operating leverage inherent in the model. Institutional ownership at $56.25 indicates that sophisticated capital is still meaningfully involved, while a 13.1 TTM yield suggests shareholders are being compensated aggressively. At a 1.5 price-to-sales ratio in software, the valuation embeds skepticism that may be excessive if earnings stabilize.

The Bear Case

The red flags are impossible to ignore: a 16.90% debt-to-equity ratio combined with an Altman Z-Score of 1 and a 0.8 current ratio signals balance sheet fragility. The PEG forward ratio of 3.2 indicates investors are not getting growth at a reasonable price despite the low forward P/E, suggesting earnings volatility rather than sustainable expansion. EPS collapsing from 9.3 to an estimated $2.41 raises credibility issues around earnings quality. The market cap of $1,574M against these financial stress indicators implies equity holders are subordinate to leverage risk, and any operational stumble could rapidly impair valuation.

Market Sentiment & Smart Money

Short Interest %

7.90%

Analyst Consensus

2.4

Average Analyst Price Target

$56.25

Institutional Ownership %

100.00%

1-Year Beta

0.8

Insider Buying % (6 Mo)

2.50%%

Distance to 52-Week High

45.80%%

Distance to 52-Week Low

100.60%%