BlackRock Inc (BLK, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth prospects. With its shares currently priced at $1,004.18, BlackRock Inc has experienced a daily gain of 1.26% and an impressive three-month change of 23.08%. A detailed analysis, supported by the GF Score, indicates that BlackRock Inc is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have been proven to correlate closely with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance. BlackRock Inc boasts a GF Score of 94, indicating a strong potential for market-leading performance.
- Financial strength rank: 6/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 10/10
Understanding BlackRock Inc's Business
BlackRock Inc, with a market cap of $148.75 billion and sales of $18.69 billion, is the world's largest asset manager, managing $10.646 trillion in assets as of June 2024. The company offers a diverse product mix, with 55% in equity strategies, 26% in fixed income, and smaller proportions in multi-asset classes, money market funds, and alternatives. Approximately two-thirds of its long-term AUM are in passive strategies. BlackRock serves institutional clients predominantly, accounting for about 80% of AUM, and operates globally with clients in over 100 countries.
Financial Strength and Profitability
BlackRock Inc's financial robustness is highlighted by an Interest Coverage ratio of 17.72, significantly above the benchmark of 5 set by investing legend Benjamin Graham. This indicates a strong ability to meet interest obligations. Additionally, a Debt-to-Revenue ratio of 0.63 further solidifies its financial health. The company's profitability is also notable, with a high Profitability Rank and a Predictability Rank of 5 stars, reflecting consistent operational performance.
Growth Trajectory
BlackRock Inc is distinguished by its commitment to growth, as evidenced by a Growth Rank of 10/10. The company's 3-Year Revenue Growth Rate of 4.2% outperforms 53.64% of peers in the Asset Management industry. Its EBITDA has also seen significant increases, with growth rates of 4.5 over three years and 7.5 over five years, highlighting its ability to expand effectively.
Conclusion
Considering BlackRock Inc's strong financial strength, high profitability, and consistent growth metrics, the GF Score underscores the company's exceptional position for potential market outperformance. For investors looking for similar opportunities, the GF Score Screen offers a valuable tool for identifying companies with strong GF Scores.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
