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. BLK is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years BLK always reported a positive cash flow from operatings.
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.
BLK has a Return On Equity of 13.13%. This is in the better half of the industry: BLK outperforms 72.53% of its industry peers.
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.
BLK had an Average Return On Invested Capital over the past 3 years of 4.47%. This 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
Looking at the Profit Margin, with a value of 30.09%, BLK is in the better half of the industry, outperforming 75.54% of the companies in the same industry.
BLK's Profit Margin has been stable in the last couple of years.
BLK's Operating Margin of 36.92% is fine compared to the rest of the industry. BLK outperforms 66.09% of its industry peers.
In the last couple of years the Operating Margin of BLK has remained more or less at the same level.
BLK's Gross Margin of 81.41% is amongst the best of the industry. BLK outperforms 84.98% 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 | 36.92% | ||
| 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
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
BLK has an Altman-Z score of 1.84. 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.
With a decent Altman-Z score value of 1.84, BLK is doing good in the industry, outperforming 69.53% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 3.11, BLK is in the better half of the industry, outperforming 76.39% 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 75.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 1.84 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.57 indicates that BLK has no problem at all paying 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.
BLK has a Quick Ratio of 2.57. This indicates that BLK is financially healthy and has no problem in meeting its short term obligations.
BLK has a better Quick ratio (2.57) than 76.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.59% over the past year.
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.
Looking at the last year, BLK shows a quite strong growth in Revenue. The Revenue has grown by 14.23% in the last year.
BLK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.02% yearly.
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
BLK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.13% yearly.
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
With a Price/Earnings ratio of 24.45, BLK is valued on the expensive side.
Based on the Price/Earnings ratio, BLK is valued a bit more expensive than the industry average as 60.94% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.30. BLK is around the same levels.
The Price/Forward Earnings ratio is 21.63, which indicates a rather expensive current valuation of BLK.
BLK's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of BLK to the average of the S&P500 Index (21.76), we can say BLK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.45 | ||
| Fwd PE | 21.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BLK indicates a somewhat cheap valuation: BLK is cheaper than 71.67% of the companies listed in the same industry.
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 | 43.02 | ||
| EV/EBITDA | 21.04 |
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.
PEG (NY)5.35
PEG (5Y)3.03
EPS Next 2Y7.92%
EPS Next 3Y10.17%
5. Dividend
5.1 Amount
BLK has a Yearly Dividend Yield of 1.93%.
BLK's Dividend Yield is slightly below the industry average, which is at 8.10.
Compared to an average S&P500 Dividend Yield of 2.37, BLK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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 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 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%
1101.64
-2.41 (-0.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners82.74%
Inst Owner Change0%
Ins Owners1.97%
Ins Owner Change-0.19%
Market Cap170.68B
Analysts81.82
Price Target1070.34 (-2.84%)
Short Float %1.24%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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)0.29%
EPS NQ rev (3m)-6.85%
EPS NY rev (1m)0.5%
EPS NY rev (3m)-4.52%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)-3.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.45 | ||
| Fwd PE | 21.63 | ||
| P/S | 8.14 | ||
| P/FCF | 43.02 | ||
| P/OCF | 40.29 | ||
| P/B | 3.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.04 |
EPS(TTM)45.05
EY4.09%
EPS(NY)50.92
Fwd EY4.62%
FCF(TTM)25.61
FCFY2.32%
OCF(TTM)27.34
OCFY2.48%
SpS135.25
BVpS310.05
TBVpS-13.63
PEG (NY)5.35
PEG (5Y)3.03
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 | 1.84 |
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%