BlackRock Inc

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BLK : NYSE : Financial
$357.20 -4.50 | -1.20%
Today's Range: 354.02 - 363.64
Avg. Daily Volume: 526,100
09/29/16 - 3:59 PM ET

Financial Analysis


BLACKROCK INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.85% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)2804.02905.0
EBITDA ($mil)1231.01303.0
EBIT ($mil)1173.01238.0
Net Income ($mil)789.0819.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)5237.04971.0
Total Assets ($mil)222055.0237008.0
Total Debt ($mil)4950.04947.0
Equity ($mil)28568.027776.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin43.944.85
EBITDA Margin43.944.85
Operating Margin41.8342.62
Sales Turnover0.050.05
Return on Assets1.411.42
Return on Equity11.0212.13
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.150.15
Interest Expense51.052.0
Interest Coverage23.023.81


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)164.46166.38
Div / share2.292.18
EPS4.734.84
Book value / share173.7166.94
Institutional Own % n/a n/a
Avg Daily Volume562938.0564256.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.00 for the Capital Markets industry and a discount compared to the S&P 500 average of 25.19. To use another comparison, its price-to-book ratio of 2.15 indicates a discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 5.51. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, BLACKROCK INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BLK 19.93 Peers 22.00   BLK 25.67 Peers 15.22

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

BLK is trading at a valuation on par with 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 16.74 Peers 19.21   BLK NM Peers 1.46

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BLK 2.15 Peers 5.51   BLK -5.35 Peers 6.96

Discount. 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 significant discount to 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 5.49 Peers 4.60   BLK -0.54 Peers -0.86

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 premium to its industry on this measurement.

 

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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