BlackRock, Inc. Fundamental Analysis (NYSE: BLK)
BlackRock, Inc. (NYSE: BLK) shows strong financial fundamentals with a PE ratio of 27.03, profit margin of 24.09%, and ROE of 11.65%. The company generates $27.3B in annual revenue with strong year-over-year growth of 18.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 84.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze BLK's fundamental strength across five key dimensions:
Efficiency Score
WeakBLK struggles to generate sufficient returns from assets.
Valuation Score
WeakBLK trades at a premium to fair value.
Growth Score
ModerateBLK shows steady but slowing expansion.
Financial Health Score
ExcellentBLK maintains a strong and stable balance sheet.
Profitability Score
ModerateBLK maintains healthy but balanced margins.
Key Financial Metrics
Is BLK Expensive or Cheap?
P/E Ratio
BLK trades at 27.03 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BLK's PEG of 20.19 indicates potential overvaluation.
Price to Book
The market values BlackRock, Inc. at 3.09 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.20 times EBITDA. This signals the market has high growth expectations.
How Well Does BLK Make Money?
Net Profit Margin
For every $100 in sales, BlackRock, Inc. keeps $24.09 as profit after all expenses.
Operating Margin
Core operations generate 31.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.65 in profit for every $100 of shareholder equity.
ROA
BlackRock, Inc. generates $3.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
BlackRock, Inc. produces operating cash flow of $2.85B, showing steady but balanced cash generation.
Free Cash Flow
BlackRock, Inc. produces free cash flow of $2.32B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $14.95 in free cash annually.
FCF Yield
BLK converts 1.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
20.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How BLK Stacks Against Its Sector Peers
| Metric | BLK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.03 | 21.11 | Worse (Expensive) |
| ROE | 11.65% | 655.00% | Weak |
| Net Margin | 24.09% | -1594.00% (disorted) | Strong |
| Debt/Equity | 0.26 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 1.35 | 910.44 | Neutral |
| ROA | 3.74% | 4469138.00% | Weak |
BLK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews BlackRock, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
47.88%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
11.42%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
3.83%
Industry Style: Value, Dividend, Cyclical
Growing