NYSE:BX

Stock Analysis Report

Executive Summary

The Blackstone Group Inc. is an alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, and multi-asset class strategies.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

27.9%

BX

19.7%

US Capital Markets

12.5%

US Market


1 Year Return

30.2%

BX

-13.2%

US Capital Markets

-12.7%

US Market

Return vs Industry: BX exceeded the US Capital Markets industry which returned -13.2% over the past year.

Return vs Market: BX exceeded the US Market which returned -12.7% over the past year.


Shareholder returns

BXIndustryMarket
7 Day27.9%19.7%12.5%
30 Day-14.4%-16.9%-14.7%
90 Day-17.6%-23.7%-21.5%
1 Year35.2%30.2%-11.5%-13.2%-10.9%-12.7%
3 Year87.6%56.0%6.8%0.7%12.6%5.4%
5 Year67.3%19.6%32.7%20.3%31.9%17.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

15.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BX ($46.09) is trading above our estimate of fair value ($39.92)

Significantly Below Fair Value: BX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BX is good value based on its PE Ratio (15.2x) compared to the Capital Markets industry average (32.5x).

PE vs Market: BX is poor value based on its PE Ratio (15.2x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: BX is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: BX is good value based on its PB Ratio (4.5x) compared to the US Capital Markets industry average (7.2x).

Future Growth

How is Blackstone Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

34.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BX's forecast earnings growth (34% per year) is above the savings rate (1.7%).

Earnings vs Market: BX's earnings (34% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BX's revenue (6.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BX's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BX's Return on Equity is forecast to be high in 3 years time (33%)

Past Performance

How has Blackstone Group performed over the past 5 years?

9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BX has high quality earnings.

Growing Profit Margin: BX's current net profit margins (28.7%) are higher than last year (23.1%).


Past Earnings Growth Analysis

Earnings Trend: BX's earnings have grown by 9.3% per year over the past 5 years.

Accelerating Growth: BX's earnings growth over the past year (32.9%) exceeds its 5-year average (9.3% per year).

Earnings vs Industry: BX earnings growth over the past year (32.9%) exceeded the Capital Markets industry 9.7%.


Return on Equity

High ROE: BX's Return on Equity (25.6%) is considered high.

Financial Health

How is Blackstone Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BX has a low level of unsold assets or inventory.

Debt Coverage by Assets: BX's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: BX's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BX has a sufficient allowance for bad loans.

Low Risk Liabilities: BX reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BX has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BX has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BX has an appropriate level of bad loans.

Dividend

What is Blackstone Group's current dividend yield, its reliability and sustainability?

5.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BX's dividend (5.29%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: BX's dividend (5.29%) is low compared to the top 25% of dividend payers in the US market (5.49%).


Stability and Growth of Payments

Stable Dividend: BX's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.3%), BX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BX's dividends in 3 years are not forecast to be well covered by earnings (92.9% payout ratio).

Management

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

7.0yrs

Average management tenure


CEO

Steve Schwarzman (72yo)

13s

Tenure

US$57,073,953

Compensation

Mr. Stephen Allen Schwarzman also Known as Steve, serves as Chairman, Chief Executive Officer of The Blackstone Group Inc. He is Co-Founder of The Blackstone Group Inc. Mr. Schwarzman has been involved in  ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD57.07M) is above average for companies of similar size in the US market ($USD11.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Schwarzman
Chairman13yrsUS$57.07mno data
Hamilton James
Executive Vice Chairman & General Partnerno dataUS$55.96m0.0030% $1.7m
Jonathan Gray
General Partner8yrsUS$98.99mno data
Michael Chae
Chief Financial Officer4.58yrsUS$15.58m0.0021% $1.1m
John Finley
Chief Legal Officer & Senior MD of Blackstone Group Management L.L.C9.5yrsUS$9.99m0.035% $19.5m
Jay Light
General Partner & Independent Director11.5yrsUS$409.02k0.0086% $4.7m
Frank Cohen
Senior MD & and Global Head of Core+ Real Estate24.17yrsno datano data
William Stein
Senior Managing Director of Real Estateno datano datano data
Peter Wallace
Senior Managing Director of Private Equityno datano datano data
Anthony Myers
Senior MD of Real Estate & Chairman of Real Estate Europeno datano datano data

7.0yrs

Average Tenure

58.5yo

Average Age

Experienced Management: BX's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Schwarzman
Chairman13yrsUS$57.07mno data
Hamilton James
Executive Vice Chairman & General Partnerno dataUS$55.96m0.0030% $1.7m
Jonathan Gray
General Partner8yrsUS$98.99mno data
Jay Light
General Partner & Independent Director11.5yrsUS$409.02k0.0086% $4.7m
Anthony Myers
Senior MD of Real Estate & Chairman of Real Estate Europeno datano datano data
Michael Nash
Senior MD of Real Estate & Co-Founder and Chairman of Blackstone Real Estate Debt Strategiesno datano datano data
Gautam Banerjee
Senior MD of SG-Regional Management & Member of International Advisory Board7.17yrsno datano data
Joseph Baratta
Global Head of Private Equity & Directorno datano data0.036% $20.1m
Stephen Can
Founderno datano datano data
Roger Deromedi
Chairman of Pinnacle Foods Group Incno datano datano data

9.8yrs

Average Tenure

65yo

Average Age

Experienced Board: BX's board of directors are considered experienced (9.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BX 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

The Blackstone Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Blackstone Group Inc.
  • Ticker: BX
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Implied Market Cap: US$55.257b
  • Market Cap: US$31.475b
  • Shares outstanding: 1.20b
  • Website: https://www.blackstone.com

Number of Employees


Location

  • The Blackstone Group Inc.
  • 345 Park Avenue
  • New York
  • New York
  • 10154
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BXNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJun 2007
BX *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNJun 2007
0HO8LSE (London Stock Exchange)YesClass A Common StockGBEURJun 2007
BBN1DB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 2007

Biography

The Blackstone Group Inc. is an alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, and multi-asset class strategies. The firm typically invests in early-stage companies. It also provide capital markets services. The real estate segment specializes in opportunistic, core+ investments as well as debt investment opportunities collateralized by commercial real estate, and stabilized income-oriented commercial real estate across North America, Europe and Asia. The firm’s corporate private equity business pursues transactions throughout the world across a variety of transaction types, including large buyouts, mid-cap buyouts, buy and build platforms, which involves multiple acquisitions behind a single management team and platform, and growth equity/development projects involving significant minority investments in operating companies and greenfield development projects in energy and power, financial services, healthcare, enterprise tech and consumer, as well as consumer technologies. Its hedge fund business manages a broad range of commingled and customized fund solutions and its credit business focuses on loans, and securities of non-investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity. The Blackstone Group Inc. was founded in 1985 and is headquartered in New York, New York with additional offices across Asia, Europe and North America. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 03:20
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.