NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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Highlights from the ratings report include:
- BLACKROCK INC has improved earnings per share by 8.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BLACKROCK INC increased its bottom line by earning $12.38 versus $10.56 in the prior year. This year, the market expects an improvement in earnings ($13.23 versus $12.38).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Capital Markets industry average. The net income increased by 0.7% when compared to the same quarter one year prior, going from $568.00 million to $572.00 million.
- BLK's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- 39.50% is the gross profit margin for BLACKROCK INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.40% is above that of the industry average.
BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors. The company has a P/E ratio of 13.9, equal to the average financial services industry P/E ratioand below the S&P 500 P/E ratio of 17.7. BlackRock has a market cap of $31.54 billion and is part of the
industry. Shares are down 4.1% year to date as of the close of trading on Thursday.
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--Written by a member of TheStreet Ratings Staff.
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.