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BlackRock Inc
BLK : NYSE : Financial
$360.15 1.31 | 0.37%
Today's Range: 358.71 - 366.02
Avg. Daily Volume: 593,500
12/19/14 - 4:02 PM ET

Financial Analysis


BLACKROCK INC's gross profit margin for the third quarter of its fiscal year 2014 has increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.25% from the same quarter last year.

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Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)2849.02472.0
EBITDA ($mil)1277.01038.0
EBIT ($mil)1207.0967.0
Net Income ($mil)917.0730.0


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)6324.04080.0
Total Assets ($mil)222812.0212717.0
Total Debt ($mil)8826.07006.0
Equity ($mil)27106.025999.0


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin44.8241.99
EBITDA Margin44.8241.99
Operating Margin42.3739.12
Sales Turnover0.050.05
Return on Assets1.491.3
Return on Equity12.2510.69
Debt Q3 FY14 Q3 FY13
Current Ratio0.00.0
Debt/Capital0.250.21
Interest Expense61.052.0
Interest Coverage19.7918.6


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)167.61169.41
Div / share1.931.68
EPS5.374.21
Book value / share161.72153.47
Institutional Own % n/a n/a
Avg Daily Volume582589.0556395.0

Valuation


BUY. BLACKROCK INC's P/E ratio indicates a discount compared to an average of 22.66 for the Capital Markets industry and a value on par with the S&P 500 average of 19.74. Conducting a second comparison, its price-to-book ratio of 2.19 indicates a discount versus the S&P 500 average of 2.73 and a premium versus the industry average of 2.10. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BLK 18.29 Peers 22.66   BLK 19.91 Peers 11.86

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

BLK is trading at a discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

BLK is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BLK 17.16 Peers 17.27   BLK 1.28 Peers 1.66

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

BLK is trading at a valuation on par with its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

BLK trades at a discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BLK 2.19 Peers 2.10   BLK 21.31 Peers 151.71

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

BLK is trading at a valuation on par with its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, BLK is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BLK 5.36 Peers 3.52   BLK 11.38 Peers 5.43

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

BLK is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

BLK has a sales growth rate that significantly exceeds its peers.

 

 

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