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BlackRock Inc BLK

Morningstar Rating
$800.25 −2.27 (0.28%)
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Company Report

BlackRock Continues to Lose Ground on the ETF Flow Front Despite Improving Equity and Credit Markets

For much of the past decade, we've bemoaned the fortunes of the traditional US-based asset managers, noting that they would face significant secular headwinds (from aging baby boomers to the growth of passive investing) and cyclical headwinds (leading to more-volatile equity and credit markets) that would pressure their top and bottom lines. Our thesis for the group has expected regulatory changes around the globe aimed at increasing transparency around fees and performance, as well as pushing for a greater degree of fiduciary responsibility in retail-advised relationships, to raise the hurdles for the more traditional US-based asset managers we cover. With the gatekeepers for retail intermediary platforms also becoming much more focused on fees and performance when deciding what products to place on their platforms, the industry will face fee and margin compression as active asset managers are expected to not only narrow the spread between the management fees charged for their funds and the fees attached to index-based products but spend more heavily to improve investment performance and enhance product distribution.

Price vs Fair Value

BLK is trading at a 4% discount.
Price
$800.25
Fair Value
$217.00
Uncertainty
High
1-Star Price
$8,295.60
5-Star Price
$685.00
Economic Moat
Pdh
Capital Allocation
Smvfvfgyt

Bulls Say, Bears Say

Bulls

BlackRock is the largest asset manager in the world, with $10.008 trillion in AUM at the end of December 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.

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News

Trading Information

Previous Close Price
$802.52
Day Range
$793.83806.27
52-Week Range
$596.18845.00
Bid/Ask
$790.07 / $803.02
Market Cap
$119.19 Bil
Volume/Avg
22 / 576,725

Key Statistics

Price/Earnings (Normalized)
21.18
Price/Sales
6.75
Dividend Yield (Trailing)
2.51%
Dividend Yield (Forward)
2.55%
Total Yield
4.09%

Company Profile

BlackRock is the largest asset manager in the world, with $10.008 trillion in assets under management at the end of December 2023. Its product mix is fairly diverse, with 52% of managed assets in equity strategies, 28% in fixed income, 9% in multi-asset classes, 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 geographically diverse, with clients in more than 100 countries and more than one third of managed assets coming from investors domiciled outside the US and Canada.
Sector
Financial Services
Industry
Asset Management
Stock Style Box
Large Core
Total Number of Employees
19,800

Competitors

Valuation

Metric
BLK
IVZ
TROW
Price/Earnings (Normalized)
21.1810.1215.14
Price/Book Value
3.020.652.71
Price/Sales
6.751.224.00
Price/Cash Flow
26.734.7325.22
Price/Earnings
BLK
IVZ
TROW

Financial Strength

Metric
BLK
IVZ
TROW
Quick Ratio
11.712.306.04
Current Ratio
15.462.306.04
Interest Coverage
23.88−3.05
Quick Ratio
BLK
IVZ
TROW

Profitability

Metric
BLK
IVZ
TROW
Return on Assets (Normalized)
4.72%2.34%14.28%
Return on Equity (Normalized)
14.85%6.19%19.00%
Return on Invested Capital (Normalized)
11.29%2.82%15.96%
Return on Assets
BLK
IVZ
TROW
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Economic Moat
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