Blend Labs, Inc. Fundamental Analysis (NYSE: BLND)
Blend Labs, Inc. (NYSE: BLND) shows weak financial fundamentals with a PE ratio of -18.33, profit margin of -0.35%, and ROE of -1.22%. The company generates $0.1B in annual revenue with weak year-over-year growth of -23.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 2.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BLND's fundamental strength across five key dimensions:
Efficiency Score
WeakBLND struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBLND trades at attractive valuation levels.
Growth Score
ModerateBLND shows steady but slowing expansion.
Financial Health Score
ExcellentBLND maintains a strong and stable balance sheet.
Profitability Score
WeakBLND struggles to sustain strong margins.
Key Financial Metrics
Is BLND Expensive or Cheap?
P/E Ratio
BLND trades at -18.33 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BLND's PEG of -0.29 indicates potential undervaluation.
Price to Book
The market values Blend Labs, Inc. at 3.81 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 65.42 times EBITDA. This signals the market has high growth expectations.
How Well Does BLND Make Money?
Net Profit Margin
For every $100 in sales, Blend Labs, Inc. keeps $-0.35 as profit after all expenses.
Operating Margin
Core operations generate -11.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.22 in profit for every $100 of shareholder equity.
ROA
Blend Labs, Inc. generates $-0.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Blend Labs, Inc. produces operating cash flow of $20.31M, showing steady but balanced cash generation.
Free Cash Flow
Blend Labs, Inc. generates strong free cash flow of $13.92M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.06 in free cash annually.
FCF Yield
BLND converts 3.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-18.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.01
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
-0.16
vs 25 benchmark
How BLND Stacks Against Its Sector Peers
| Metric | BLND Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -18.33 | 34.93 | Better (Cheaper) |
| ROE | -1.22% | 750.00% | Weak |
| Net Margin | -0.35% | -3058.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 0.65 | Strong (Low Leverage) |
| Current Ratio | 1.62 | 6.21 | Neutral |
| ROA | -0.32% | 308.00% | Weak |
BLND outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Blend Labs, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
9.14%
Industry Style: Growth, Innovation, High Beta
GrowingEPS CAGR
90.85%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
115.02%
Industry Style: Growth, Innovation, High Beta
High Growth