BlackRock Inc.
In the ever-changing landscape of the Asset Management sector, attention turns to BlackRock Inc. (NYSE: BLK). The firm warrants a closer look based on recent analyst coverage and its compelling performance statistics. JP Morgan just Downgraded the stock to a Neutral from a Buy rating.
I. BlackRock Inc: A Brief Overview
New York Stock Exchange-listed BlackRock Inc., trading under the ticker symbol BLK, operates in the Asset Management sector. The company, which expands globally, is a well-respected firm boasting impressive performance and growth metrics.
II. BlackRock Inc‘s Trailing 12 Months Performance: Are They Promising?
In examining BLK‘s trailing 12-month (TTM) returns, the picture is undoubtedly compelling. Its capital gain alone for the past year stands at 8.7%, with a sector percentile ranking of an impressive 87.05%. The company’s 1-year total return, combining capital gains and dividends, is 11.51%, placing it comfortably within the top quartile of its sector with a rank of 77.78%.
When we include the dividend return of 2.81%, although its sector percentile rank is lower at 9.09%, this still contributes positively to the overall yield for investors.
III. What About BLK‘s 5-Year Growth?
BlackRock’s five-year growth analysis presents some interesting data. With a considerable 5-year revenue growth of 31.42% (significantly surpassing many of its peers with a sector percentile ranking of 81.76%), the firm demonstrates solid growth. Additionally, the company boasts a 5-year earnings growth rate of 4.56% outperforming a majority sector peers with a score of 75%.
One of BLK‘s standout elements is its 5-year dividend growth. The company’s five-year dividend growth reached a staggering 294.85%, significantly outpacing its sector peers with a percentile rank of 93.52%; an aspect destined to thrill income-seeking shareholders.
IV. A Profitability Ratios Analysis: Is BLK Profitable?
Let’s drill down into BLK‘s profitability ratios. Its Return on Assets (RoA) stands at 3.32%, with a respectable sector percentile ranking of 73.58%. Equally impressive is the company’s Return on Equity (RoE), at 13.95%, ranking it at 76.77% in the sector.
In terms of BlackRock Inc.’s Return on Invested Capital (RoIC), it currently sits at 11.37%, positioning it within the top 75% of Asset Management firms. With a Debt Equity Ratio of 17.63%, BLK ranks above 70% of its sector peers, indicating commendable financial health.
V. BLK‘s Valuation Ratios: Is the Stock Undervalued?
Fallen into BlackRock Inc.’s valuation ratios, its Price to Earnings Ratio (32.57), Price to Book Ratio (2.9), and Price to Cash Flow Ratio (22.79) are all at lower sector percentiles, ranking at 15.65%, 8.11%, and 8.4% respectively. These figures indicate that BLK may be undervalued compared to some of its sector peers.
VI. What About BLK‘s Stock Volatility?
On the volatility front, BlackRock Inc.’s beta stands at 1.34, indicating a volatility level slightly higher than the broader market. However, the sector percentile ranking for the Beta coefficient is at a low 12.1%, signaling that BLK is comparatively less volatile against its sector counterparts.
VII: What Are Market Analysts Saying About BLK?
Market analysts maintain strong confidence in BlackRock Inc.’s prospects. Of the ten covering analysts, the average rating tilts towards a ‘Strong Buy’. While the average analyst target price comes at $809.83, values vary widely, with the highest price target at $921 and the lowest average target price delicately poised at $708. This average target price suggests a potential upside from the current price ($708).
VIII: What’s Happening in the Asset Management Sector?
With an average analyst rating of ‘Buy’, the sentiment across the broader Asset Management sector leans more towards optimism. However, Stock Target Advisor rates the sector as ‘Neutral’, indicating balanced risk and returns.
IX & X: BlackRock’s Financial Results Analysis
For more precise interpretation, interested investors should consider BLK‘s quarterly and annual financial results – from revenue, net income, profit margin, to EBIT margin – all critical indicators of financial performance and company health.
XI. Summary of Recent News
Despite having its rating downgraded to ‘Neutral’ by J.P. Morgan Chase & Co., BlackRock Inc.’s latest price is holding at USD 708. TD Securities continues to maintain its target forecast at $34, reinforcing its ‘Action List Buy’ rating.
Conclusion: Is BLK a Good Investment?
The admiration for BlackRock Inc.’s (BLK) performance is well-placed. From impressive capital gains and dividend growth to strong profitability ratios, the figures don’t lie. While the sector outlook is necessary to consider, BLK‘s fundamentals remain impressive.
Investors who are keen on strong capital gains coupled with robust dividend growth should consider BLK for their portfolio. With more investigating, this may offer an attractive investment opportunity. As ever, potential investors should lay this information alongside their risk tolerance and investment strategy. However, remember that the investment world always carries a level of risk, notwithstanding the numbers. It’s important for investors to keep abreast of changes in market trends and company performance.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
