BLACKROCK INC (BLK) Stock Fundamental Analysis
NYSE:BLK - New York Stock Exchange, Inc. - US09290D1019 - Common Stock - Currency: USD
BLK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 233 industry peers in the Capital Markets industry. Both the profitability and the financial health of BLK get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, BLK is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year BLK was profitable.
In the past year BLK had a positive cash flow from operations.
BLK had positive earnings in each of the past 5 years.
BLK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.44%, BLK is doing good in the industry, outperforming 65.67% of the companies in the same industry.
With a decent Return On Equity value of 13.13%, BLK is doing good in the industry, outperforming 72.53% of the companies in the same industry.
BLK's Return On Invested Capital of 4.45% is in line compared to the rest of the industry. BLK outperforms 57.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BLK is below the industry average of 7.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.44% | ||
| ROE | 13.13% | ||
| ROIC | 4.45% |
ROA(3y)4.49%
ROA(5y)4.02%
ROE(3y)13.7%
ROE(5y)14.15%
ROIC(3y)4.47%
ROIC(5y)4.1%
1.3 Margins
BLK has a Profit Margin of 30.09%. This is in the better half of the industry: BLK outperforms 75.54% of its industry peers.
In the last couple of years the Profit Margin of BLK has remained more or less at the same level.
BLK has a Operating Margin of 36.92%. This is in the better half of the industry: BLK outperforms 66.09% of its industry peers.
BLK's Operating Margin has been stable in the last couple of years.
The Gross Margin of BLK (81.41%) is better than 84.98% of its industry peers.
BLK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.92% | ||
| PM (TTM) | 30.09% | ||
| GM | 81.41% |
OM growth 3Y-1.76%
OM growth 5Y-0.2%
PM growth 3Y0.82%
PM growth 5Y0.27%
GM growth 3Y-0.15%
GM growth 5Y-0.04%
2. Health
2.1 Basic Checks
Compared to 1 year ago, BLK has more shares outstanding
Compared to 5 years ago, BLK has more shares outstanding
The debt/assets ratio for BLK is higher compared to a year ago.
2.2 Solvency
BLK has an Altman-Z score of 1.82. This is not the best score and indicates that BLK is in the grey zone with still only limited risk for bankruptcy at the moment.
BLK has a Altman-Z score of 1.82. This is in the better half of the industry: BLK outperforms 69.53% of its industry peers.
The Debt to FCF ratio of BLK is 3.11, which is a good value as it means it would take BLK, 3.11 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BLK (3.11) is better than 76.39% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that BLK is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.26, BLK is doing good in the industry, outperforming 75.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 1.82 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BLK has a Current Ratio of 2.57. This indicates that BLK is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.57, BLK is doing good in the industry, outperforming 76.39% of the companies in the same industry.
A Quick Ratio of 2.57 indicates that BLK has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.57, BLK is in the better half of the industry, outperforming 76.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.57 |
3. Growth
3.1 Past
BLK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.59%, which is quite good.
Measured over the past years, BLK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.07% on average per year.
BLK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.23%.
Measured over the past years, BLK shows a small growth in Revenue. The Revenue has been growing by 7.02% on average per year.
EPS 1Y (TTM)13.59%
EPS 3Y3.12%
EPS 5Y8.07%
EPS Q2Q%15.19%
Revenue 1Y (TTM)14.23%
Revenue growth 3Y1.75%
Revenue growth 5Y7.02%
Sales Q2Q%11.59%
3.2 Future
Based on estimates for the next years, BLK will show a small growth in Earnings Per Share. The EPS will grow by 7.13% on average per year.
BLK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.96% yearly.
EPS Next Y4.57%
EPS Next 2Y7.92%
EPS Next 3Y10.17%
EPS Next 5Y7.13%
Revenue Next Year16.12%
Revenue Next 2Y10.71%
Revenue Next 3Y3.79%
Revenue Next 5Y4.96%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BLK is valuated rather expensively with a Price/Earnings ratio of 24.02.
62.23% of the companies in the same industry are cheaper than BLK, based on the Price/Earnings ratio.
BLK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 21.25, BLK is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as BLK.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, BLK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 21.25 |
4.2 Price Multiples
71.67% of the companies in the same industry are more expensive than BLK, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BLK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.26 | ||
| EV/EBITDA | 20.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BLK does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of BLK may justify a higher PE ratio.
PEG (NY)5.26
PEG (5Y)2.98
EPS Next 2Y7.92%
EPS Next 3Y10.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.02%, BLK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.00, BLK is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.42, BLK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
5.2 History
The dividend of BLK is nicely growing with an annual growth rate of 8.75%!
BLK has been paying a dividend for at least 10 years, so it has a reliable track record.
BLK has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.75%
Div Incr Years15
Div Non Decr Years21
5.3 Sustainability
49.86% of the earnings are spent on dividend by BLK. This is a bit on the high side, but may be sustainable.
The dividend of BLK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.86%
EPS Next 2Y7.92%
EPS Next 3Y10.17%
1082.15
+11.58 (+1.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners82.74%
Inst Owner Change-67.98%
Ins Owners1.97%
Ins Owner Change-0.19%
Market Cap167.66B
Analysts81.82
Price Target1070.34 (-1.09%)
Short Float %1.24%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
Yearly Dividend20.44
Dividend Growth(5Y)8.75%
DP49.86%
Div Incr Years15
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.95%
Min EPS beat(2)5.57%
Max EPS beat(2)10.33%
EPS beat(4)4
Avg EPS beat(4)7.25%
Min EPS beat(4)3.28%
Max EPS beat(4)10.33%
EPS beat(8)8
Avg EPS beat(8)10.07%
EPS beat(12)11
Avg EPS beat(12)9.73%
EPS beat(16)15
Avg EPS beat(16)9.19%
Revenue beat(2)1
Avg Revenue beat(2)-0.53%
Min Revenue beat(2)-2.22%
Max Revenue beat(2)1.16%
Revenue beat(4)2
Avg Revenue beat(4)-0.04%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)2.77%
Revenue beat(8)3
Avg Revenue beat(8)-0.44%
Revenue beat(12)5
Avg Revenue beat(12)-0.53%
Revenue beat(16)7
Avg Revenue beat(16)-0.27%
PT rev (1m)1.5%
PT rev (3m)-10.33%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)-7.12%
EPS NY rev (1m)0.5%
EPS NY rev (3m)-4.52%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)-4.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 21.25 | ||
| P/S | 8 | ||
| P/FCF | 42.26 | ||
| P/OCF | 39.58 | ||
| P/B | 3.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.63 |
EPS(TTM)45.05
EY4.16%
EPS(NY)50.92
Fwd EY4.71%
FCF(TTM)25.61
FCFY2.37%
OCF(TTM)27.34
OCFY2.53%
SpS135.25
BVpS310.05
TBVpS-13.63
PEG (NY)5.26
PEG (5Y)2.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.44% | ||
| ROE | 13.13% | ||
| ROCE | 5.64% | ||
| ROIC | 4.45% | ||
| ROICexc | 4.71% | ||
| ROICexgc | 47.77% | ||
| OM | 36.92% | ||
| PM (TTM) | 30.09% | ||
| GM | 81.41% | ||
| FCFM | 18.93% |
ROA(3y)4.49%
ROA(5y)4.02%
ROE(3y)13.7%
ROE(5y)14.15%
ROIC(3y)4.47%
ROIC(5y)4.1%
ROICexc(3y)4.85%
ROICexc(5y)4.42%
ROICexgc(3y)56.75%
ROICexgc(5y)64.45%
ROCE(3y)5.66%
ROCE(5y)5.2%
ROICexcg growth 3Y-11.17%
ROICexcg growth 5Y-3.93%
ROICexc growth 3Y4.66%
ROICexc growth 5Y13.2%
OM growth 3Y-1.76%
OM growth 5Y-0.2%
PM growth 3Y0.82%
PM growth 5Y0.27%
GM growth 3Y-0.15%
GM growth 5Y-0.04%
F-Score4
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.11 | ||
| Debt/EBITDA | 1.48 | ||
| Cap/Depr | 43.95% | ||
| Cap/Sales | 1.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.74% | ||
| Profit Quality | 62.91% | ||
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.57 | ||
| Altman-Z | 1.82 |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)85.43%
Cap/Depr(5y)78.53%
Cap/Sales(3y)2.05%
Cap/Sales(5y)1.82%
Profit Quality(3y)76.23%
Profit Quality(5y)75.73%
High Growth Momentum
Growth
EPS 1Y (TTM)13.59%
EPS 3Y3.12%
EPS 5Y8.07%
EPS Q2Q%15.19%
EPS Next Y4.57%
EPS Next 2Y7.92%
EPS Next 3Y10.17%
EPS Next 5Y7.13%
Revenue 1Y (TTM)14.23%
Revenue growth 3Y1.75%
Revenue growth 5Y7.02%
Sales Q2Q%11.59%
Revenue Next Year16.12%
Revenue Next 2Y10.71%
Revenue Next 3Y3.79%
Revenue Next 5Y4.96%
EBIT growth 1Y16.86%
EBIT growth 3Y-0.04%
EBIT growth 5Y6.8%
EBIT Next Year29.54%
EBIT Next 3Y4.25%
EBIT Next 5Y5.91%
FCF growth 1Y-12.18%
FCF growth 3Y0.7%
FCF growth 5Y12.32%
OCF growth 1Y-15.01%
OCF growth 3Y0.08%
OCF growth 5Y11.44%