BLACKROCK INC (BLK)
US09247X1019 - Common Stock
We assign a fundamental rating of 6 out of 10 to BLK. BLK was compared to 219 industry peers in the Capital Markets industry. BLK has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, BLK is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
BLK had positive earnings in the past year.
In the past year BLK had a positive cash flow from operations.
In the past 5 years BLK has always been profitable.
Each year in the past 5 years BLK had a positive operating cash flow.
1.2 Ratios
BLK's Return On Assets of 4.83% is fine compared to the rest of the industry. BLK outperforms 64.19% of its industry peers.
BLK's Return On Equity of 15.08% is fine compared to the rest of the industry. BLK outperforms 78.14% of its industry peers.
BLK has a Return On Invested Capital of 4.48%. This is comparable to the rest of the industry: BLK outperforms 55.81% of its industry peers.
BLK had an Average Return On Invested Capital over the past 3 years of 4.35%. This is significantly below the industry average of 17.66%.
The 3 year average ROIC (4.35%) for BLK is below the current ROIC(4.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 15.08% | ||
| ROIC | 4.48% |
ROA(3y)4.24%
ROA(5y)3.63%
ROE(3y)14.45%
ROE(5y)14.14%
ROIC(3y)4.35%
ROIC(5y)3.74%
1.3 Margins
The Profit Margin of BLK (32.36%) is better than 74.88% 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 36.47%. This is in the better half of the industry: BLK outperforms 61.86% of its industry peers.
In the last couple of years the Operating Margin of BLK has declined.
BLK has a Gross Margin of 81.18%. This is amongst the best in the industry. BLK outperforms 82.33% of its industry peers.
In the last couple of years the Gross Margin of BLK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.47% | ||
| PM (TTM) | 32.36% | ||
| GM | 81.18% |
OM growth 3Y-3.76%
OM growth 5Y-1.8%
PM growth 3Y0.41%
PM growth 5Y0.32%
GM growth 3Y-0.43%
GM growth 5Y-0.03%
2. Health
2.1 Basic Checks
BLK has less shares outstanding than it did 1 year ago.
BLK has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BLK is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that BLK is in the distress zone and has some risk of bankruptcy.
BLK has a Altman-Z score of 1.72. This is in the better half of the industry: BLK outperforms 69.77% of its industry peers.
BLK has a debt to FCF ratio of 2.31. This is a good value and a sign of high solvency as BLK would need 2.31 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.31, BLK is in the better half of the industry, outperforming 79.07% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that BLK is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.25, BLK is in the better half of the industry, outperforming 78.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 1.72 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
BLK has a Current Ratio of 3.07. This indicates that BLK is financially healthy and has no problem in meeting its short term obligations.
BLK has a Current ratio of 3.07. This is amongst the best in the industry. BLK outperforms 81.40% of its industry peers.
A Quick Ratio of 3.07 indicates that BLK has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.07, BLK belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.07 | ||
| Quick Ratio | 3.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.15% over the past year.
The Earnings Per Share has been growing slightly by 6.98% on average over the past years.
Looking at the last year, BLK shows a small growth in Revenue. The Revenue has grown by 7.68% in the last year.
Measured over the past years, BLK shows a small growth in Revenue. The Revenue has been growing by 4.70% on average per year.
EPS 1Y (TTM)14.15%
EPS 3Y3.73%
EPS 5Y6.98%
EPS Q2Q%11.64%
Revenue 1Y (TTM)7.68%
Revenue growth 3Y3.29%
Revenue growth 5Y4.7%
Sales Q2Q%7.66%
3.2 Future
Based on estimates for the next years, BLK will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.54% on average per year.
Based on estimates for the next years, BLK will show a small growth in Revenue. The Revenue will grow by 6.01% on average per year.
EPS Next Y11.07%
EPS Next 2Y11.46%
EPS Next 3Y12.09%
EPS Next 5Y8.54%
Revenue Next Year12.04%
Revenue Next 2Y11.68%
Revenue Next 3Y10.84%
Revenue Next 5Y6.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.81 indicates a rather expensive valuation of BLK.
Based on the Price/Earnings ratio, BLK is valued a bit more expensive than the industry average as 63.26% of the companies are valued more cheaply.
BLK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 30.52.
A Price/Forward Earnings ratio of 18.93 indicates a rather expensive valuation of BLK.
Based on the Price/Forward Earnings ratio, BLK is valued a bit more expensive than 61.40% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BLK to the average of the S&P500 Index (21.99), we can say BLK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 18.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BLK is valued a bit cheaper than the industry average as 70.23% of the companies are valued more expensively.
BLK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.9 | ||
| EV/EBITDA | 18.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of BLK may justify a higher PE ratio.
A more expensive valuation may be justified as BLK's earnings are expected to grow with 12.09% in the coming years.
PEG (NY)1.97
PEG (5Y)3.12
EPS Next 2Y11.46%
EPS Next 3Y12.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.30%, BLK has a reasonable but not impressive dividend return.
BLK's Dividend Yield is slightly below the industry average, which is at 8.61.
BLK's Dividend Yield is comparable with the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
5.2 History
The dividend of BLK is nicely growing with an annual growth rate of 10.44%!
BLK has paid a dividend for at least 10 years, which is a reliable track record.
BLK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.44%
Div Incr Years14
Div Non Decr Years20
5.3 Sustainability
BLK pays out 50.34% of its income as dividend. This is a bit on the high side, but may be sustainable.
BLK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.34%
EPS Next 2Y11.46%
EPS Next 3Y12.09%
BLACKROCK INC
NYSE:BLK (9/16/2024, 9:35:01 AM)
888.34
+2.61 (+0.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap131.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 18.93 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.97
PEG (5Y)3.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.83% | ||
| ROE | 15.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 36.47% | ||
| PM (TTM) | 32.36% | ||
| GM | 81.18% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.07 | ||
| Quick Ratio | 3.07 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.15%
EPS 3Y3.73%
EPS 5Y
EPS Q2Q%
EPS Next Y11.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.68%
Revenue growth 3Y3.29%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y