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 solid stock price performance, growth in earnings per share, revenue growth, expanding profit margins and increase in net income. 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:
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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.
- BLACKROCK INC has improved earnings per share by 13.0% 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 ($13.39 versus $12.38).
- BLK's revenue growth trails the industry average of 26.8%. Since the same quarter one year prior, revenues slightly increased by 4.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 40.60% is the gross profit margin for BLACKROCK INC which we consider to be strong. Regardless of BLK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BLK's net profit margin of 27.70% significantly outperformed against the industry.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Capital Markets industry average, but is greater than that of the S&P 500. The net income increased by 7.9% when compared to the same quarter one year prior, going from $595.00 million to $642.00 million.
BlackRock, Inc. is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors. BlackRock has a market cap of $33.8 billion and is part of the financial sector and financial services industry. The company has a P/E ratio of 15, below the S&P 500 P/E ratio of 17.7. Shares are up 9.7% 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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