NYSE:BLK

Stock Analysis Report

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Executive Summary

BlackRock, Inc. is a publicly owned investment manager.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has BlackRock's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BLK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.2%

BLK

3.2%

US Capital Markets

4.0%

US Market


1 Year Return

15.3%

BLK

0.6%

US Capital Markets

5.0%

US Market

Return vs Industry: BLK exceeded the US Capital Markets industry which returned 0.6% over the past year.

Return vs Market: BLK exceeded the US Market which returned 4.9% over the past year.


Shareholder returns

BLKIndustryMarket
7 Day3.2%3.2%4.0%
30 Day-0.9%-6.0%-1.1%
90 Day22.7%15.7%21.1%
1 Year18.7%15.3%2.7%0.6%7.2%5.0%
3 Year38.3%27.6%20.2%13.1%36.0%27.1%
5 Year85.3%62.5%51.4%37.0%65.3%46.9%

Price Volatility Vs. Market

How volatile is BlackRock's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BlackRock undervalued compared to its fair value and its price relative to the market?

7.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BLK ($551.77) is trading below our estimate of fair value ($596.23)

Significantly Below Fair Value: BLK is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BLK is good value based on its PE Ratio (20.3x) compared to the Capital Markets industry average (34x).

PE vs Market: BLK is poor value based on its PE Ratio (20.3x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: BLK is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: BLK is good value based on its PB Ratio (2.6x) compared to the US Capital Markets industry average (9.3x).

Future Growth

How is BlackRock forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLK's forecast earnings growth (11.3% per year) is above the savings rate (2.2%).

Earnings vs Market: BLK's earnings (11.3% per year) are forecast to grow slower than the US market (22.8% per year).

High Growth Earnings: BLK's earnings are forecast to grow, but not significantly.

Revenue vs Market: BLK's revenue (7.1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: BLK's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BLK's Return on Equity is forecast to be low in 3 years time (16.4%).

Past Performance

How has BlackRock performed over the past 5 years?

8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BLK has high quality earnings.

Growing Profit Margin: BLK's current net profit margins (28.4%) are lower than last year (30.6%).


Past Earnings Growth Analysis

Earnings Trend: BLK's earnings have grown by 8.5% per year over the past 5 years.

Accelerating Growth: BLK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BLK had negative earnings growth (-0.9%) over the past year, making it difficult to compare to the Capital Markets industry average (16%).


Return on Equity

High ROE: BLK's Return on Equity (11.9%) is considered low.

Financial Health

How is BlackRock's financial position?


Financial Position Analysis

Short Term Liabilities: BLK's short term assets ($25.5B) exceed its short term liabilities ($16.6B).

Long Term Liabilities: BLK's short term assets ($25.5B) do not cover its long term liabilities ($97.9B).


Debt to Equity History and Analysis

Debt Level: BLK's debt to equity ratio (17.4%) is considered satisfactory.

Reducing Debt: BLK's debt to equity ratio has reduced from 31.9% to 17.4% over the past 5 years.

Debt Coverage: BLK's debt is well covered by operating cash flow (36.2%).

Interest Coverage: BLK's interest payments on its debt are well covered by EBIT (42.3x coverage).


Balance Sheet

Dividend

What is BlackRock current dividend yield, its reliability and sustainability?

2.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BLK's dividend (2.63%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: BLK's dividend (2.63%) is low compared to the top 25% of dividend payers in the US market (4.5%).


Stability and Growth of Payments

Stable Dividend: BLK's dividends per share have been stable in the past 10 years.

Growing Dividend: BLK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.7%), BLK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BLK's dividends in 3 years are forecast to be well covered by earnings (48.4% payout ratio).

Management

How experienced are the management team and are they aligned to shareholders interests?

7.2yrs

Average management tenure


CEO

Larry Fink (68yo)

21.5yrs

Tenure

US$24,308,254

Compensation

Mr. Laurence Douglas Fink, also known as Larry, is the Chief Executive Officer and Chairman of BlackRock, Inc 1999. Mr. Fink co-founded the firm in 1988 and focuses on client centric solutions and innovati ...


CEO Compensation Analysis

Compensation vs Market: Larry's total compensation ($USD24.31M) is above average for companies of similar size in the US market ($USD11.50M).

Compensation vs Earnings: Larry's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Laurence Fink
Chairman & CEO21.5yrsUS$24.31m0.53% $446.6m
Robert Kapito
President & Director13.75yrsUS$19.26m0.19% $163.3m
Gary Shedlin
Senior MD & CFO7.17yrsUS$6.46m0.0052% $4.4m
Robert Goldstein
Senior MD6.08yrsUS$7.90m0.021% $17.6m
J. Kushel
Senior MD and Head of Multi-Asset Strategies & Global Fixed Income Groups10.5yrsUS$6.62m0.10% $86.0m
Mark McKenna
Founderno datano datano data
Sandra Boss
Senior MD & Global Head of Investment Stewardship0.25yrno datano data
Marc Comerchero
MD & Chief Accounting Officer4.33yrsno data0.0010% $849.5k
Derek Stein
Senior MD and Global Head of Technology & Operationsno datano datano data
Samantha Tortora
Investor Relations Contactno datano datano data

7.2yrs

Average Tenure

55yo

Average Age

Experienced Management: BLK's management team is seasoned and experienced (7.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Laurence Fink
Chairman & CEO21.5yrsUS$24.31m0.53% $446.6m
Robert Kapito
President & Director13.75yrsUS$19.26m0.19% $163.3m
Gordon Nixon
Independent Director4.75yrsUS$368.88k0.00078% $656.1k
Murry Gerber
Lead Independent Director3.17yrsUS$464.76k0.026% $22.1m
Mathis Cabiallavetta
Independent Director12.83yrsUS$363.98k0.0044% $3.7m
Jessica Einhorn
Independent Director8yrsUS$355.12k0.0019% $1.6m
Marco Antonio Slim Domit
Independent Director8.83yrsUS$363.69k0.0026% $2.2m
Fabrizio Freda
Independent Director7.75yrsUS$339.00k0.0038% $3.2m
Pamela Daley
Independent Director6.5yrsUS$378.55k0.0034% $2.9m
Susan Wagner
Independent Director7.75yrsUS$376.65k0.31% $261.7m

7.9yrs

Average Tenure

65yo

Average Age

Experienced Board: BLK's board of directors are considered experienced (7.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BLK insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

BlackRock, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BlackRock, Inc.
  • Ticker: BLK
  • Exchange: NYSE
  • Founded: 1988
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$84.109b
  • Shares outstanding: 152.43m
  • Website: https://www.blackrock.com

Number of Employees


Location

  • BlackRock, Inc.
  • 55 East 52nd Street
  • New York
  • New York
  • 10055
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BLKNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1999
BLQADB (Deutsche Boerse AG)YesCommon StockDEEUROct 1999
BLQAXTRA (XETRA Trading Platform)YesCommon StockDEEUROct 1999
BLK *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 1999
0QZZLSE (London Stock Exchange)YesCommon StockGBUSDOct 1999
BLKSWX (SIX Swiss Exchange)YesCommon StockCHCHFOct 1999
BLKWBAG (Wiener Boerse AG)YesCommon StockATEUROct 1999
BLQAETLX (Eurotlx)YesCommon StockITEUROct 1999
BLAK34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1/6 COM USD0.01BRBRLApr 2016

Biography

BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks. It also provides global risk management and advisory services. The firm manages separate client-focused equity, fixed income, and balanced portfolios. It also launches and manages open-end and closed-end mutual funds, offshore funds, unit trusts, and alternative investment vehicles including structured funds. The firm launches equity, fixed income, balanced, and real estate mutual funds. It also launches equity, fixed income, balanced, currency, commodity, and multi-asset exchange traded funds. The firm also launches and manages hedge funds. It invests in the public equity, fixed income, real estate, currency, commodity, and alternative markets across the globe. The firm primarily invests in growth and value stocks of small-cap, mid-cap, SMID-cap, large-cap, and multi-cap companies. It also invests in dividend-paying equity securities. The firm invests in investment grade municipal securities, government securities including securities issued or guaranteed by a government or a government agency or instrumentality, corporate bonds, and asset-backed and mortgage-backed securities. It employs fundamental and quantitative analysis with a focus on bottom-up and top-down approach to make its investments. The firm employs liquidity, asset allocation, balanced, real estate, and alternative strategies to make its investments. In real estate sector, it seeks to invest in Poland and Germany. The firm benchmarks the performance of its portfolios against various S&P, Russell, Barclays, MSCI, Citigroup, and Merrill Lynch indices. BlackRock, Inc. was founded in 1988 and is based in New York City with additional offices in Boston, Massachusetts; London, United Kingdom; Gurgaon, India; Hong Kong; Greenwich, Connecticut; Princeton, New Jersey; Edinburgh, United Kingdom; Sydney, Australia; Taipei, Taiwan; Singapore; Sao Paulo, Brazil; Philadelphia, Pennsylvania; Washington, District of Columbia; Toronto, Canada; Wilmington, Delaware; and San Francisco, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 23:47
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.