Skip to Content

Blackstone Inc BX

Morningstar Rating
$111.37 +3.73 (3.47%)
View Full Chart
Unlock Our Analysis with Morningstar Investor

Company Report

U.S.-Based Asset Managers: Group Lacks Adequate Margin of Safety to Recommend in Volatile Markets

With all the U.S.-based asset managers we cover having reported quarterly earnings, and in some cases revealing assets under management data for October, we have a better sense of how the ongoing equity and credit market volatility is affecting results. Due to their lack of organic AUM growth—a product of having large exposure to higher-cost, poorer-performing active equity products in a market where low-cost passive products are preferred—most of the traditional U.S.-based asset managers have become dependent on equity market gains to expand their AUM. In an environment where fees are under pressure and profit margins are being affected by a need to spend more to maintain (if not improve) performance and enhance distribution, a precipitous decline in managed assets, like we saw during 2022, has a large negative impact on revenue and profitability, given the amount of operating leverage inherent in the asset manager business model.

Price vs Fair Value

BX is trading at a 2% discount.
Price
$107.64
Fair Value
$669.00
Uncertainty
High
1-Star Price
$633.40
5-Star Price
$36.00
Economic Moat
Jcmjkh
Capital Allocation
Nnwqxpvg

Bulls Say, Bears Say

Bulls

Blackstone, with $731.1 billion in fee-earning AUM at the end of June 2023, is a "go-to firm" for institutional and high-net-worth investors looking for exposure to alternative assets.

Bears

Downturns in the equity and credit markets could leave potential investors in Blackstone's funds with limited liquidity and large commitments to other funds, making it more difficult for the firm to raise new capital.

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 BX is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$107.64
Day Range
$108.60112.67
52-Week Range
$71.72116.78
Bid/Ask
$111.01 / $112.02
Market Cap
$83.51 Bil
Volume/Avg
4.4 Mil / 6.1 Mil

Key Statistics

Price/Earnings (Normalized)
44.75
Price/Sales
9.53
Dividend Yield
3.08%
Dividend Yield (Forward)
3.08%
Total Yield
3.55%

Company Profile

Blackstone is the world's largest alternative asset managers with $1.001 trillion in total asset under management, including $731.1 billion in fee-earning asset under management, at the end of June 2023. The company has four core business segments: private equity (23% of fee-earning AUM and 27% of base management fees); real estate (39% and 44%); credit & insurance (28% and 21%); and hedge fund solutions (10% and 8%). While the firm primarily serves institutional investors (87% of AUM), it also caters to clients in the high-net-worth channel (13%). Blackstone operates through 25 offices located in the Americas (8), Europe and the Middle East (9), and the Asia-Pacific region (8).
Sector
Financial Services
Industry
Asset Management
Stock Style Box
Large Value
Total Number of Employees
4,695

Competitors

Valuation

Metric
BX
CG
KKR
Price/Earnings (Normalized)
44.7528.0420.78
Price/Book Value
11.442.103.01
Price/Sales
9.534.525.00
Price/Cash Flow
16.2539.92
Price/Earnings
BX
CG
KKR

Financial Strength

Metric
BX
CG
KKR
Quick Ratio
4.06
Current Ratio
4.09
Interest Coverage
1.34
Quick Ratio
BX
CG
KKR

Profitability

Metric
BX
CG
KKR
Return on Assets (Normalized)
7.43%1.57%0.93%
Return on Equity (Normalized)
41.96%5.46%14.34%
Return on Invested Capital (Normalized)
1.63%
Return on Assets
BX
CG
KKR

Asset Management Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
BLK
BlackRock IncPfsyd$109.6 Bil
KKR
KKR & Co Inc Ordinary SharesClfmsg$61.4 Bil
BK
Bank of New York Mellon CorpQhzr$36.2 Bil
AMP
Ameriprise Financial IncWxzqj$35.0 Bil
TROW
T. Rowe Price Group IncNbkpn$22.0 Bil
STT
State Street CorporationNync$21.6 Bil
NTRS
Northern Trust CorpGfbdg$15.9 Bil
CG
The Carlyle Group IncGtzyz$12.4 Bil
BEN
Franklin Resources IncRzxkpss$11.9 Bil