Editor's Note: 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.
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 expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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Highlights from the ratings report include:
- 40.40% 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 24.90% significantly outperformed against the industry average.
- BLACKROCK INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. 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 ($13.08 versus $12.38).
- Net operating cash flow has increased to $967.00 million or 10.76% when compared to the same quarter last year. Despite an increase in cash flow of 10.76%, BLACKROCK INC is still growing at a significantly lower rate than the industry average of 80.34%.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Despite the weak revenue results, BLK has outperformed against the industry average of 27.2%. Since the same quarter one year prior, revenues slightly dropped by 5.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
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 14.7, equal to the average financial services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. BlackRock has a market cap of $31.6 billion and is part of the
industry. Shares are up 2.7% year to date as of the close of trading on Friday.
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--Written by a member of TheStreet Ratings Staff.
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