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Fundamental analysis: BlackRock, Inc. (BLK)

Awarener score: 7.8

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Very good) and growth (Average), and the company's inclination to return cash to the stockholders (Very good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.0

  • Business has been growing at a low pace. It's been almost average when measured against peer companies.
  • BlackRock, Inc. business trend stability is very good. The higher the stability, the lower the risk. It looks top-notch against rivals.

Margins score: 9.3

  • BLK profit margins -on goods and services sold- are usually very good. They stand well ranked against rival companies.
  • Business profit on sales tends to be huge. It's more than average in relation to competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain close to average when compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still slightly worse than similar companies.
  • Profits -before income taxes- are usually huge considering total sales, and remain almost average when measured against rivals.
  • Total net profit tends to be huge when confronted to sales. Company stands almost average when measured against comparable firms.

Growth score: 3.9

  • BlackRock, Inc. profit -on goods and services sold- has been growing at a low pace. It's been lacking compared to competitors.
  • In recent years, earnings -on operations- have been growing at a very low step, which has been somewhat worse than comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a very low pace, which compares below average when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a very low tempo. It turns to be lacking compared to similar stocks.
  • In past years, profits -before income taxes- grew at a very low speed. It was somewhat worse than rivals.
  • In the previous years, growth on total net profit has been almost null, and weak when measured against peer companies.
  • Earnings per share have been almost stagnant in past years. It's been in a weak position compared to industry peers.

Miscellaneous score: 7.0

  • BLK had hardly to pay income taxes in relation to profits made in the past years. It's been somewhat worse than peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.0

  • BlackRock, Inc. usually gets good returns on the resources it controls. It proves below average when measured against peer firms.
  • The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain in good shape compared to similar companies.
  • There's usually excellent profitability -in relation to owned resources-. It ranks more than average in relation to competitors.
  • In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's below average when measured against comparable enterprises.

Usage of Funds score: 6.2

  • BLK usually uses a modest portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments isn't too high. It stands below average when measured against rival firms.
  • The company is usually replacing most of the property, plant, and equipment that gets old, and saving a little funds for something else, which is more than average in relation to industry peers.
  • In the past twelve months it paid good dividends, considering the current stock price. It came somewhat worse than competitors.
  • Has increased dividend payments in the past years. Business prospects may have improved. The company has behaved rather normal in relation to similar firms.
  • The company usually uses a portion of genuine funds generated to pay dividends. Dividend payments should be safe, unless business prospects are challenged. Sustainability looks slightly better than comparable companies.
  • The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains in good shape compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands a slight improvement compared to rivals.
  • The company uses somewhat more funds to reward investors than it can genuinely generate, so some part of them is paid out of existing cash or by borrowing money, both of which will eventually reach a limit. Either business somewhat improves, or rewards will probably not be sustained at this pace. It still looks below average when measured against competitors.

Balance Sheet score: 6.2

  • BlackRock, Inc. intangible assets (like brands and goodwill) represent a significant portion of resources controlled, according to accounting books. There could be significant difficulties in liquidating them if the company ever gets in financial distress. It happens to be substantially worse when measured against peer companies.
  • The company has a lot more short-term resources than short-term obligations. There're no liquidity concerns. It turns to be excellent in relation to similar firms.
  • Very few resources controlled were provided for with financial debt. Financial strength is very solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains somewhat better than rival firms.
  • Controlled resources might be only very slowly turned into cash and equivalents, which is riskier. It looks similar to rivals.
  • For every dollar of short-term obligations, the company has a lot of dollars in cash and short-term receivables. It's excellent in relation to peer firms.
  • For every dollar of short-term obligations, the company has a lot of dollars in cash and equivalents, which is well ranked against similar enterprises.
  • Usually, sales are on slightly higher than two months credit. It still ranks below average when measured against peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes less than three months from the purchase to charging customers. It happens to be mediocre against peers.
  • Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
  • The company pays its suppliers roughly two months before charging its customers, so there's some money invested in working capital. It's a disappointment compared to similar companies.
  • Net interest expenses consume a non-significant portion of usual business earnings, and are therefore extremely easily to bear. It stands well ranked against rival firms.
  • Business earnings have usually been excellent when measured against loans taken. It could take less than two years to repay the obligations with current profitability. It ranks more than average in relation to comparable enterprises.
  • Revenues are quite good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks lacking compared to similar firms.
  • Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still slightly worse than peer companies.

Valuation score: 6.1

  • BlackRock, Inc. looks reasonable in relation to profits and financial position. It happens to be almost average when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a very weak position compared to peers.
  • In the past twelve months, the company consumed funds. Either it reinvested in the business or genuine fund generation might be challenging, which stands mediocre against similar companies.
  • The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still similar to industry firms.
  • In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up lacking compared to peer ventures.
  • The company has substantial more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks somewhat better than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation might be more or less reasonable, but hardly cheap. It ranks weak when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks lacking compared to rival firms.
  • The relation between the stock price and accounting book value is high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains somewhat worse than peer firms.
  • In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be weak when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still close to average when compared to peer companies.

Total score: 6.7


BLK logos

Company at a glance: BlackRock, Inc. (BLK)

Sector, industry: Financial Services, Asset Management

Market Cap: 87.92 billions

Revenues TTM: 19.38 billions

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.

Awarener score: 7.8

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Very good) and growth (Average), and the company's inclination to return cash to the stockholders (Very good).