Bridgeline Digital, Inc. (NASDAQ: BLIN)

Sector: Technology Industry: Software - Infrastructure CIK: 0001378590
Market Cap 8.51 Mn
P/B 0.89
P/E -3.70
P/S 0.55
ROIC (Qtr) -21.83
Div Yield % 0.00
Rev 1y % (Qtr) 3.22
Total Debt (Qtr) 723,000.00
Debt/Equity (Qtr) 0.08
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About

Bridgeline Digital, Inc., known by its ticker symbol BLIN, is a prominent player in the marketing technology industry. The company's primary focus is on providing businesses with the tools they need to increase their online revenue. This is achieved by driving more traffic to their websites, converting more visitors into customers, and boosting the average order value. Bridgeline Digital's offerings are accessible through a cloud-based Software as a Service (SaaS) model, which includes hosting and support services. The company's product portfolio...

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Investment thesis

Bull case

  • Healthy cash reserves of 1.48M provide 7.02x coverage of short-term debt 211000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 4.28M provides 5.91x coverage of total debt 723000, indicating robust asset backing and low credit risk.
  • R&D investment of 3.74M represents healthy 1.61x of deferred revenue 2.32M, indicating strong future innovation pipeline.
  • Robust R&D investment of 3.74M at 0.49x of SG&A 7.61M demonstrates strong commitment to innovation and future growth.
  • Strong R&D investment of 3.74M at 124.77x of capex 30000 shows balanced investment in innovation and infrastructure.

Bear case

  • Investment activities of (30000) provide weak support for R&D spending of 3.74M, which is -0.01x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (1.32M) provides insufficient coverage of deferred revenue obligations of 2.32M, which is -0.57x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (1.32M) shows concerning coverage of stock compensation expenses of 553000, with a -2.39 ratio indicating potential earnings quality issues.
  • Free cash flow of (1.35M) provides weak coverage of capital expenditures of 30000, with a -45.03 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (1.89M) show weak coverage of depreciation charges of 783000, with a -2.41 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 2,948.93 Bn 24.73 9.65 57.61 Bn
2 ORCL Oracle Corp 734.55 Bn 67.24 19.76 124.39 Bn
3 PLTR Palantir Technologies Inc. 313.28 Bn 192.78 70.00 0.23 Bn
4 PANW Palo Alto Networks Inc 109.38 Bn 97.90 11.45 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 102.48 Bn -326.20 22.45 0.82 Bn
6 SNPS Synopsys Inc 69.14 Bn 51.90 9.80 14.29 Bn
7 NET Cloudflare, Inc. 66.52 Bn -645.60 33.04 3.50 Bn
8 FTNT Fortinet, Inc. 62.73 Bn 33.48 9.57 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.47 2.10
EV to Cash from Ops. EV/CFO -5.56 3.92
EV to Debt EV to Debt 10.16 -2.43
EV to EBIT EV/EBIT -3.89 11.57
EV to EBITDA EV/EBITDA -5.63 18.19
EV to Free Cash Flow [EV/FCF] EV/FCF -5.44 19.98
EV to Market Cap EV to Market Cap 0.86 1.27
EV to Revenue EV/Rev 0.47 29.29
Price to Book Value [P/B] P/B 0.89 4.97
Price to Earnings [P/E] P/E -3.70 -12.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -6.95 0.21
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.73
Dividend per Basic Share Div per Share (Qtr) 0.00 0.11
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.67
Interest Coverage Int. cover (Qtr) -15.47 -16.04
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 11.76 -403.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -0.13 223.80
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 3.09 585.97
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -34.02 5.89
EBIT Growth (1y) % EBIT 1y % (Qtr) 3.28 27.96
EBT Growth (1y) % EBT 1y % (Qtr) 0.35 20.61
EPS Growth (1y) % EPS 1y % (Qtr) -5.26 144.77
FCF Growth (1y) % FCF 1y % (Qtr) -591.27 50.30
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -1.18 45.98
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.99 0.65
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.28 1.23
Current Ratio Curr Ratio (Qtr) 0.71 2.63
Debt to Equity Ratio Debt/Equity (Qtr) 0.08 0.73
Interest Cover Ratio Int Coverage (Qtr) -15.47 -16.04
Times Interest Earned Times Interest Earned (Qtr) -15.47 -16.04
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -7.10 -549.97
EBIT Margin % EBIT Margin % (Qtr) -12.17 -240.33
EBT Margin % EBT Margin % (Qtr) -12.96 -608.68
Gross Margin % Gross Margin % (Qtr) 66.40 51.14
Net Profit Margin % Net Margin % (Qtr) -14.80 -611.28