NEW YORK ( TheStreet) -- BlackRock (NYSE: BLK) 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, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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- 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 ($13.18 versus $12.38).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Capital Markets industry average, but is less than that of the S&P 500. 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.
- Net operating cash flow has increased to -$102.00 million or 34.61% when compared to the same quarter last year. Despite an increase in cash flow of 34.61%, BLACKROCK INC is still growing at a significantly lower rate than the industry average of 286.26%.
--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.