BlackRock, Inc. (BLK) stock analysis

P/E above its 5-year median

BlackRock's P/E of 27.9 is above its own 5-year median of 22.2.

P/E above the industry

BlackRock's P/E of 27.9 is above the Security Brokers, Dealers, and Flotation median of 15.7.

EV/EBITDA above its 5-year median

BlackRock's EV/EBITDA of 35.8 is above its 5-year median of 16.2.

P/B above the industry

BlackRock's price-to-book of 6.86 is above the Security Brokers, Dealers, and Flotation median of 3.12.

Trading above fair value

The share price of $1226.31 is above our fair value estimate of $673.83.

Margin of safety under 20%

The price is 82.0% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 29.8% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew 1.3% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 13.4% over the last twelve months, against a 5-year average of 2.4% a year.

Growing faster than the industry

Revenue grew 24.7% over the last twelve months; the Security Brokers, Dealers, and Flotation median is 16.2%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 12.2% over the last twelve months and averaged 13.9% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 15.6%, above the 10% that usually covers the cost of capital.

Return on equity below the industry

BlackRock's return on equity of 12.2% is below the Security Brokers, Dealers, and Flotation median of 17.9%.

Earnings grew over 5 years

Net income grew 2.4% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 24.2% over the last twelve months, against a 5-year average of 36.2%.

Net margin above the industry

BlackRock's net margin of 24.2% is above the Security Brokers, Dealers, and Flotation median of 14.4%.

No debt

BlackRock has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

Operating income covers interest expense 17.1 times.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.50; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

BlackRock paid dividends worth 1.8% of the share price over the last twelve months.

Yield below Treasuries

The 1.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; BlackRock yields 1.8%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 7 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.