BLACKROCK INC (BLK) Stock Fundamental Analysis
NYSE:BLK - New York Stock Exchange, Inc. - US09290D1019 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to BLK. BLK was compared to 230 industry peers in the Capital Markets industry. While BLK has a great profitability rating, there are some minor concerns on its financial health. 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.
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
The Return On Assets of BLK (4.59%) is better than 64.35% of its industry peers.
The Return On Equity of BLK (13.41%) is better than 68.70% of its industry peers.
BLK has a better Return On Invested Capital (4.60%) than 62.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BLK is below the industry average of 7.27%.
The last Return On Invested Capital (4.60%) for BLK is above the 3 year average (4.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 13.41% | ||
| ROIC | 4.6% |
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
Looking at the Profit Margin, with a value of 31.21%, BLK is in the better half of the industry, outperforming 73.04% of the companies in the same industry.
BLK's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 37.80%, BLK is doing good in the industry, outperforming 66.09% of the companies in the same industry.
BLK's Operating Margin has been stable in the last couple of years.
The Gross Margin of BLK (81.50%) is better than 84.78% 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 | 37.8% | ||
| PM (TTM) | 31.21% | ||
| GM | 81.5% |
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
BLK has more shares outstanding than it did 1 year ago.
The number of shares outstanding for BLK has been increased compared to 5 years ago.
Compared to 1 year ago, BLK has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.80, we must say that BLK is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.80, BLK is in the better half of the industry, outperforming 69.13% of the companies in the same industry.
The Debt to FCF ratio of BLK is 2.62, which is a good value as it means it would take BLK, 2.62 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.62, BLK is doing good in the industry, outperforming 80.00% of the companies in the same industry.
BLK has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.26, BLK is in the better half of the industry, outperforming 76.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 1.8 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.66 indicates that BLK has no problem at all paying its short term obligations.
The Current ratio of BLK (2.66) is better than 80.00% of its industry peers.
BLK has a Quick Ratio of 2.66. This indicates that BLK is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.66, BLK belongs to the best of the industry, outperforming 80.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.66 | ||
| Quick Ratio | 2.66 |
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.
BLK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.98% yearly.
BLK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.23%.
The Revenue has been growing slightly by 4.70% on average over the past years.
EPS 1Y (TTM)13.59%
EPS 3Y3.73%
EPS 5Y6.98%
EPS Q2Q%15.19%
Revenue 1Y (TTM)14.23%
Revenue growth 3Y3.29%
Revenue growth 5Y4.7%
Sales Q2Q%11.59%
3.2 Future
The Earnings Per Share is expected to grow by 8.54% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.01% on average over the next years.
EPS Next Y15.72%
EPS Next 2Y9.73%
EPS Next 3Y10.24%
EPS Next 5Y8.54%
Revenue Next Year13.07%
Revenue Next 2Y14.59%
Revenue Next 3Y11.28%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BLK is valuated rather expensively with a Price/Earnings ratio of 22.15.
The rest of the industry has a similar Price/Earnings ratio as BLK.
BLK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.93 indicates a rather expensive valuation of BLK.
BLK's Price/Forward Earnings is on the same level as the industry average.
BLK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.15 | ||
| Fwd PE | 21.93 |
4.2 Price Multiples
BLK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BLK is cheaper than 75.65% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as BLK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.9 | ||
| EV/EBITDA | 18.63 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BLK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.41
PEG (5Y)3.17
EPS Next 2Y9.73%
EPS Next 3Y10.24%
5. Dividend
5.1 Amount
BLK has a Yearly Dividend Yield of 2.12%.
Compared to an average industry Dividend Yield of 8.21, BLK has a dividend in line with its industry peers.
BLK's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.75%
Div Incr Years14
Div Non Decr Years20
5.3 Sustainability
48.69% of the earnings are spent on dividend by BLK. 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.
DP48.69%
EPS Next 2Y9.73%
EPS Next 3Y10.24%
997.71
+4.05 (+0.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners83.79%
Inst Owner Change-67.67%
Ins Owners0.82%
Ins Owner Change-2%
Market Cap154.67B
Analysts80.91
Price Target1054.57 (5.7%)
Short Float %1.12%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Yearly Dividend20.44
Dividend Growth(5Y)8.75%
DP48.69%
Div Incr Years14
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.69%
Min EPS beat(2)5.57%
Max EPS beat(2)9.82%
EPS beat(4)4
Avg EPS beat(4)5.65%
Min EPS beat(4)3.28%
Max EPS beat(4)9.82%
EPS beat(8)8
Avg EPS beat(8)8.93%
EPS beat(12)11
Avg EPS beat(12)9.51%
EPS beat(16)15
Avg EPS beat(16)8.59%
Revenue beat(2)2
Avg Revenue beat(2)1.96%
Min Revenue beat(2)1.16%
Max Revenue beat(2)2.77%
Revenue beat(4)3
Avg Revenue beat(4)0.54%
Min Revenue beat(4)-1.88%
Max Revenue beat(4)2.77%
Revenue beat(8)3
Avg Revenue beat(8)-0.28%
Revenue beat(12)5
Avg Revenue beat(12)-0.48%
Revenue beat(16)8
Avg Revenue beat(16)-0.06%
PT rev (1m)-11.66%
PT rev (3m)-12.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.7%
EPS NY rev (1m)0.31%
EPS NY rev (3m)-5.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.15 | ||
| Fwd PE | 21.93 | ||
| P/S | 7.58 | ||
| P/FCF | 32.9 | ||
| P/OCF | 31.21 | ||
| P/B | 3.26 | ||
| P/tB | 192.61 | ||
| EV/EBITDA | 18.63 |
EPS(TTM)45.05
EY4.52%
EPS(NY)45.49
Fwd EY4.56%
FCF(TTM)30.33
FCFY3.04%
OCF(TTM)31.97
OCFY3.2%
SpS131.64
BVpS306.38
TBVpS5.18
PEG (NY)1.41
PEG (5Y)3.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 13.41% | ||
| ROCE | 5.83% | ||
| ROIC | 4.6% | ||
| ROICexc | 5.1% | ||
| ROICexgc | 59.08% | ||
| OM | 37.8% | ||
| PM (TTM) | 31.21% | ||
| GM | 81.5% | ||
| FCFM | 23.04% |
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-Score7
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 2.62 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 48.2% | ||
| Cap/Sales | 1.25% | ||
| Interest Coverage | 26.69 | ||
| Cash Conversion | 60.12% | ||
| Profit Quality | 73.81% | ||
| Current Ratio | 2.66 | ||
| Quick Ratio | 2.66 | ||
| Altman-Z | 1.8 |
F-Score7
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 3Y3.73%
EPS 5Y6.98%
EPS Q2Q%15.19%
EPS Next Y15.72%
EPS Next 2Y9.73%
EPS Next 3Y10.24%
EPS Next 5Y8.54%
Revenue 1Y (TTM)14.23%
Revenue growth 3Y3.29%
Revenue growth 5Y4.7%
Sales Q2Q%11.59%
Revenue Next Year13.07%
Revenue Next 2Y14.59%
Revenue Next 3Y11.28%
Revenue Next 5Y6.01%
EBIT growth 1Y21.61%
EBIT growth 3Y-0.04%
EBIT growth 5Y6.8%
EBIT Next Year29.54%
EBIT Next 3Y4.25%
EBIT Next 5Y5.91%
FCF growth 1Y23.03%
FCF growth 3Y0.7%
FCF growth 5Y12.32%
OCF growth 1Y18.99%
OCF growth 3Y0.08%
OCF growth 5Y11.44%