Skip to Content

BlackRock Inc BLK

Morningstar Rating
$756.35 +5.12 (0.68%)
View Full Chart
Unlock Our Analysis with Morningstar Investor

Company Report

U.S.-Based Asset Managers: Market Rally Benefits AUM, but Revenue and Profits Won't Recover Quickly

While the runup in the equity markets the past several weeks is likely to have a positive impact on assets under management for the U.S.-based asset managers, we don't expect it to have too significant an impact on our fair value estimates, which are based on 10-year forecasts for AUM growth, fee rates, revenue, and profitability. As of the Nov. 29 market close, the traditional U.S.-based asset managers we cover were trading at an average price/fair value multiple of 0.97, making them only slightly undervalued, while the alternative-asset managers we cover were trading at an average price/fair value multiple of 1.09. This is far from the margin of safety we would need to recommend these more volatile names to long-term investors.

Price vs Fair Value

BLK is trading at a 6% premium.
Price
$751.25
Fair Value
$855.00
Uncertainty
High
1-Star Price
$3,445.70
5-Star Price
$513.00
Economic Moat
Glj
Capital Allocation
Vkbylhgdmj

Bulls Say, Bears Say

Bulls

BlackRock is the largest asset manager in the world, with $9.101 trillion in AUM at the end of September 2023 and clients in more than 100 countries.

Bears

The sheer size and scale of BlackRock's operations could end up being the biggest impediment to the firm's long-term growth.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if BLK is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$751.23
Day Range
$748.66761.38
52-Week Range
$596.18768.30
Bid/Ask
$755.05 / $765.79
Market Cap
$112.52 Bil
Volume/Avg
746,696 / 641,621

Key Statistics

Price/Earnings (Normalized)
20.28
Price/Sales
6.47
Dividend Yield
2.65%
Dividend Yield (Forward)
2.66%
Total Yield
4.44%

Company Profile

BlackRock is the largest asset manager in the world, with $9.101 trillion in AUM at the end of September 2023. Product mix is fairly diverse, with 52% of the firm's managed assets in equity strategies, 28% in fixed income, 9% in multi-asset class, 8% in money market funds, and 3% in alternatives. Passive strategies account for around two thirds of long-term AUM, with the company's ETF platform maintaining a leading market share domestically and on a global basis. Product distribution is weighted more toward institutional clients, which by our calculations account for around 80% of AUM. BlackRock is also geographically diverse, with clients in more than 100 countries and more than one third of managed assets coming from investors domiciled outside the U.S. and Canada.
Sector
Financial Services
Industry
Asset Management
Stock Style Box
Large Core
Total Number of Employees
19,900

Competitors

Valuation

Metric
BLK
TROW
IVZ
Price/Earnings (Normalized)
20.2813.149.98
Price/Book Value
2.902.380.57
Price/Sales
6.473.551.14
Price/Cash Flow
22.1020.997.89
Price/Earnings
BLK
TROW
IVZ

Financial Strength

Metric
BLK
TROW
IVZ
Quick Ratio
9.207.611.45
Current Ratio
13.107.611.45
Interest Coverage
25.6015.61
Quick Ratio
BLK
TROW
IVZ

Profitability

Metric
BLK
TROW
IVZ
Return on Assets (Normalized)
4.70%14.31%2.22%
Return on Equity (Normalized)
14.77%19.20%5.85%
Return on Invested Capital (Normalized)
11.40%16.19%2.80%
Return on Assets
BLK
TROW
IVZ

Asset Management Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
BX
Blackstone IncSytlzwr$84.3 Bil
KKR
KKR & Co Inc Ordinary SharesXjkfh$67.1 Bil
BK
Bank of New York Mellon CorpFrfp$37.2 Bil
AMP
Ameriprise Financial IncYcnyckw$35.8 Bil
STT
State Street CorporationGvl$22.5 Bil
TROW
T. Rowe Price Group IncVxwlr$22.4 Bil
NTRS
Northern Trust CorpFnkf$16.4 Bil
CG
The Carlyle Group IncDztjgl$12.4 Bil
BEN
Franklin Resources IncRtnrdfv$12.3 Bil