BLACKROCK INC (BLK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BLK - US09290D1019 - Common Stock
1129.91 USD
-9.81 (-0.86%)
1123.95 USD
-5.96 (-0.53%)
We assign a fundamental rating of 5 out of 10 to BLK. BLK was compared to 238 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.
- BLK had a positive operating cash flow in the past year.
- Each year in the past 5 years BLK has been profitable.
- Of the past 5 years BLK 4 years had a positive operating cash flow.
1.2 Ratios
- BLK has a Return On Assets (3.75%) which is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 10.98%, BLK is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
- BLK has a Return On Invested Capital (3.83%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 10.98% | ||
| ROIC | 3.83% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- BLK has a better Profit Margin (26.64%) than 68.91% of its industry peers.
- In the last couple of years the Profit Margin of BLK has declined.
- Looking at the Operating Margin, with a value of 33.34%, BLK is in the better half of the industry, outperforming 63.87% of the companies in the same industry.
- In the last couple of years the Operating Margin of BLK has declined.
- BLK has a Gross Margin of 81.52%. This is amongst the best in the industry. BLK outperforms 86.13% of its industry peers.
- BLK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.34% | ||
| PM (TTM) | 26.64% | ||
| GM | 81.52% |
OM growth 3Y-6.38%
OM growth 5Y-5.65%
PM growth 3Y-7.5%
PM growth 5Y-5.5%
GM growth 3Y0.26%
GM growth 5Y-0.13%
2. Health
2.1 Basic Checks
- BLK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- Based on the Altman-Z score of 1.67, 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 1.67, BLK is in the better half of the industry, outperforming 67.23% of the companies in the same industry.
- The Debt to FCF ratio of BLK is 3.25, which is a good value as it means it would take BLK, 3.25 years of fcf income to pay off all of its debts.
- BLK has a Debt to FCF ratio of 3.25. This is in the better half of the industry: BLK outperforms 77.31% of its industry peers.
- BLK has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.23, BLK is in the better half of the industry, outperforming 74.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 1.67 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 2.20 indicates that BLK has no problem at all paying its short term obligations.
- The Current ratio of BLK (2.20) is better than 74.37% of its industry peers.
- BLK has a Quick Ratio of 2.20. This indicates that BLK is financially healthy and has no problem in meeting its short term obligations.
- With a decent Quick ratio value of 2.20, BLK is doing good in the industry, outperforming 74.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 2.2 |
3. Growth
3.1 Past
- BLK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.33%, which is quite good.
- BLK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.26% yearly.
- Looking at the last year, BLK shows a quite strong growth in Revenue. The Revenue has grown by 18.67% in the last year.
- BLK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.37% yearly.
EPS 1Y (TTM)10.33%
EPS 3Y10.77%
EPS 5Y7.26%
EPS Q2Q%10.31%
Revenue 1Y (TTM)18.67%
Revenue growth 3Y10.65%
Revenue growth 5Y8.37%
Sales Q2Q%23.45%
3.2 Future
- The Earnings Per Share is expected to grow by 11.24% on average over the next years. This is quite good.
- BLK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.65% yearly.
EPS Next Y13.72%
EPS Next 2Y13.95%
EPS Next 3Y14.68%
EPS Next 5Y11.24%
Revenue Next Year16.76%
Revenue Next 2Y13.95%
Revenue Next 3Y9.4%
Revenue Next 5Y8.65%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- BLK is valuated rather expensively with a Price/Earnings ratio of 23.51.
- Based on the Price/Earnings ratio, BLK is valued a bit more expensive than the industry average as 65.13% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, BLK is valued at the same level.
- BLK is valuated rather expensively with a Price/Forward Earnings ratio of 20.67.
- 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 24.26, BLK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.51 | ||
| Fwd PE | 20.67 |
4.2 Price Multiples
- BLK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BLK is cheaper than 71.85% of the companies in the same industry.
- BLK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.57 | ||
| EV/EBITDA | 20.92 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- BLK's earnings are expected to grow with 14.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.71
PEG (5Y)3.24
EPS Next 2Y13.95%
EPS Next 3Y14.68%
5. Dividend
5.1 Amount
- BLK has a Yearly Dividend Yield of 2.03%.
- Compared to an average industry Dividend Yield of 6.10, BLK has a dividend in line with its industry peers.
- BLK's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
5.2 History
- On average, the dividend of BLK grows each year by 8.75%, which is quite nice.
- 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
- BLK pays out 53.94% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of BLK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP53.94%
EPS Next 2Y13.95%
EPS Next 3Y14.68%
BLACKROCK INC / BLK FAQ
Can you provide the ChartMill fundamental rating for BLACKROCK INC?
ChartMill assigns a fundamental rating of 5 / 10 to BLK.
What is the valuation status of BLACKROCK INC (BLK) stock?
ChartMill assigns a valuation rating of 2 / 10 to BLACKROCK INC (BLK). This can be considered as Overvalued.
Can you provide the profitability details for BLACKROCK INC?
BLACKROCK INC (BLK) has a profitability rating of 5 / 10.
What is the financial health of BLACKROCK INC (BLK) stock?
The financial health rating of BLACKROCK INC (BLK) is 6 / 10.
What is the expected EPS growth for BLACKROCK INC (BLK) stock?
The Earnings per Share (EPS) of BLACKROCK INC (BLK) is expected to grow by 13.72% in the next year.