Blackrock Inc.

BLK

Security Brokers, Dealers & Flotation Companies

Mkt Cap

$114.7B

PE

19.38

Debt

$9.86B

Cash

$9.391B

EV

$115.2B

FCF

$3.824B

Market Cap

$114.7B

P/E Ratio

19.38

Debt

$9.86B

Cash

$9.391B

EV

$115.2B

FCF

$3.824B

Charts data: {"Earnings":[{"time":"2014-12-30","value":3264000000},{"time":"2015-12-30","value":3345000000},{"time":"2016-12-30","value":3170000000},{"time":"2017-12-30","value":4970000000},{"time":"2018-12-30","value":4302000000},{"time":"2019-12-30","value":4476000000},{"time":"2020-12-30","value":4932000000},{"time":"2021-12-30","value":5901000000},{"time":"2022-12-30","value":4994000000},{"time":"2023-12-30","value":5502000000}],"Sales":[{"time":"2014-12-30","value":11081000000},{"time":"2015-12-30","value":11401000000},{"time":"2016-12-30","value":12261000000},{"time":"2017-12-30","value":13600000000},{"time":"2018-12-30","value":14198000000},{"time":"2019-12-30","value":14539000000},{"time":"2020-12-30","value":16205000000},{"time":"2021-12-30","value":12013000000},{"time":"2022-12-30","value":11061000000},{"time":"2023-12-30","value":11012000000}],"Net Margins":[{"time":"2014-12-30","value":0.2945582528652649},{"time":"2015-12-30","value":0.2933953162003333},{"time":"2016-12-30","value":0.2585433488296224},{"time":"2017-12-30","value":0.3654411764705882},{"time":"2018-12-30","value":0.30300042259473164},{"time":"2019-12-30","value":0.30786161359103104},{"time":"2020-12-30","value":0.30435050910212896},{"time":"2021-12-30","value":0.4912178473320569},{"time":"2022-12-30","value":0.45149624807883554},{"time":"2023-12-30","value":0.49963675989829276}],"Assets":[{"time":"2014-12-30","value":239808000000},{"time":"2015-12-30","value":225261000000},{"time":"2016-12-30","value":220177000000},{"time":"2017-12-30","value":220217000000},{"time":"2018-12-30","value":159573000000},{"time":"2019-12-30","value":168622000000},{"time":"2020-12-30","value":176982000000},{"time":"2021-12-30","value":152648000000},{"time":"2022-12-30","value":117628000000},{"time":"2023-12-30","value":123211000000}],"Stockholders Equity":[{"time":"2014-12-30","value":27485000000},{"time":"2015-12-30","value":28580000000},{"time":"2016-12-30","value":29150000000},{"time":"2017-12-30","value":31875000000},{"time":"2018-12-30","value":32433000000},{"time":"2019-12-30","value":33613000000},{"time":"2020-12-30","value":35334000000},{"time":"2021-12-30","value":37806000000},{"time":"2022-12-30","value":37876000000},{"time":"2023-12-30","value":39500000000}],"ROE":[{"time":"2014-12-30","value":0.11875568491904676},{"time":"2015-12-30","value":0.11703988803358992},{"time":"2016-12-30","value":0.10874785591766724},{"time":"2017-12-30","value":0.155921568627451},{"time":"2018-12-30","value":0.13264267875312183},{"time":"2019-12-30","value":0.1331627644066284},{"time":"2020-12-30","value":0.13958227203260315},{"time":"2021-12-30","value":0.15608633550230122},{"time":"2022-12-30","value":0.13185130425599323},{"time":"2023-12-30","value":0.13929113924050632}],"ROA":[{"time":"2014-12-30","value":0.01865659194021884},{"time":"2015-12-30","value":0.020704871238252515},{"time":"2016-12-30","value":0.02075602810466125},{"time":"2017-12-30","value":0.023962727673158747},{"time":"2018-12-30","value":0.03419751461713448},{"time":"2019-12-30","value":0.03431936520738694},{"time":"2020-12-30","value":0.03686250579154942},{"time":"2021-12-30","value":0.05354148105445207},{"time":"2022-12-30","value":0.05428129356955827},{"time":"2023-12-30","value":0.05807111378042545}]}

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.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22

DCF

Discounted Cash Flow Valuation of Blackrock Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$3.824B	$4.062B	$4.31B	$4.567B	$4.832B	$5.107B	$5.39B	$5.682B	$5.982B	$6.289B	$6.603B	$66.03B
DCF		$3.532B	$3.259B	$3.003B	$2.763B	$2.539B	$2.33B	$2.136B	$1.955B	$1.788B	$1.632B	$16.32B
Value	$41.26B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 7.1%

Earnings Stability 67%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	29%	26%	37%	30%	31%	30%	49%	45%	50%	51%
ROA	2.1%	2.1%	2.4%	3.4%	3.4%	3.7%	5.4%	5.4%	5.8%	6.1%
ROE	12%	11%	16%	13%	13%	14%	16%	13%	14%	15%

What is the average Net Margin?

The average Net Margin over the past 5 years is +39.29%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +4.57%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +4.52%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.56%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +13.88%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.13%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	1.77	2.28	1.32	1.73	1.88	2.05	1.62	1.50	2.07	2.58
Debt Equity	0.17	0.17	0.16	0.15	0.15	0.21	0.20	0.18	0.20	0.25
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	98%	100%	98%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 2.58.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.00.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.98.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	-1.5%	-5%	-12%	-0.44%	-2.1%
Net Income	8.2%	5%	3.7%	10%	-0.84%
Stockholders Equity	4.4%	4%	3.8%	4.3%	-0.092%
FCF	8.5%	5.9%	2.5%	-14%	-0.021%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -4.96%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -2.1%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +5.04%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -0.84%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +4.02%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.09%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +5.88%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -0.02%.