Blackrock Beneish M Score

BLK
 Stock
  

USD 725.21  28.70  4.12%   

This module uses fundamental data of Blackrock to approximate the value of its Beneish M Score. Blackrock M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Continue to Blackrock Piotroski F Score and Blackrock Altman Z Score analysis.
  
Blackrock Issuance Repayment of Debt Securities is as compared to previous years. The last year's value of Issuance Repayment of Debt Securities was reported at 273 Million. The current Debt to Equity Ratio is estimated to increase to 3.97, while Total Debt is projected to decrease to under 8.7 B. Blackrock Revenue to Assets are increasing as compared to previous years. The last year's value of Revenue to Assets was reported at 0.13. The current Total Assets Per Share is estimated to increase to 1,254, while PPandE Turnover is projected to decrease to 23.05.
At this time, it appears that Blackrock is an unlikely manipulator. The earnings manipulation may begin if Blackrock's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Blackrock executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Blackrock's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.5
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.02Focus
Asset Quality1.0Focus
Expense Coverage1.03Focus
Gross Margin Strengs0.96Focus
Accruals Factor1.03Focus
Depreciation Resistance1.17Focus
Net Sales Growth0.91Focus
Financial Leverage Condition1.05Focus

Blackrock Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Blackrock's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues17.6 B19.4 B
Significantly Down
Increasing
Slightly volatile
Selling General and Administrative Expense7.7 B8.3 B
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations4.5 B4.9 B
Moderately Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion497.6 M559 M
Fairly Down
Increasing
Slightly volatile
Total Assets163.2 B152.6 B
Notably Up
Decreasing
Slightly volatile
Investments18.7 B14.3 B
Significantly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net2.6 B2.4 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables3.5 B3.8 B
Significantly Down
Increasing
Slightly volatile
Total Liabilities129.6 B113.8 B
Fairly Up
Decreasing
Slightly volatile
Current Assets10.4 B13.1 B
Significantly Down
Increasing
Slightly volatile
Current Liabilities3.6 B4.3 B
Significantly Down
Increasing
Slightly volatile
Total Debt8.7 B9.3 B
Notably Down
Increasing
Stable
Operating Income6.7 B7.5 B
Moderately Down
Increasing
Slightly volatile
Gross Margin0.790.819
Sufficiently Down
Decreasing
Slightly volatile

Blackrock Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Blackrock's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Blackrock in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Blackrock's degree of accounting gimmicks and manipulations.

About Blackrock Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

7.87 Billion

Blackrock Operating Expenses is increasing as compared to previous years. The last year's value of Operating Expenses was reported at 8.41 Billion

Blackrock Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Blackrock. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Trade and Non Trade Receivables2.7 B2.66 B3.18 B3.54 B3.79 B3.52 B
Revenues13.6 B14.2 B14.54 B16.2 B19.37 B17.63 B
Total Assets220.24 B159.57 B168.62 B176.98 B152.65 B163.16 B
Current Assets9.59 B8.96 B8.01 B12.2 B13.11 B10.44 B
Property Plant and Equipment Net592 M643 M715 M1.33 B2.38 B2.57 B
Depreciation Amortization and Accretion240 M220 M405 M476 M559 M497.63 M
Selling General and Administrative Expense5.7 B5.96 B6.23 B7.51 B8.26 B7.71 B
Total Liabilities187.98 B126.03 B133.69 B139.33 B113.75 B129.64 B
Current Liabilities3.31 B3.28 B3.22 B3.53 B4.35 B3.6 B
Total Debt5.01 B4.98 B4.96 B8.02 B9.32 B8.71 B
Operating Income5.25 B5.46 B5.55 B5.7 B7.45 B6.75 B
Net Cash Flow from Operations3.95 B3.08 B2.88 B3.74 B4.94 B4.48 B
Investments27.66 B25.13 B20.95 B23.43 B14.34 B18.74 B

Blackrock ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Blackrock's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Blackrock's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Blackrock Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Blackrock's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Blackrock using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Blackrock based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
The firm primarily provides its services to institutional, intermediary, and individual investors including corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks. BlackRock, Inc. was founded in 1988 and is based in New York City with additional offices in Boston, Massachusetts London, United Kingdom Gurgaon, India Hong Kong Greenwich, Connecticut Princeton, New Jersey Edinburgh, United Kingdom Sydney, Australia Taipei, Taiwan Singapore Sao Paulo, Brazil Philadelphia, Pennsylvania Washington, District of Columbia Toronto, Canada Wilmington, Delaware and San Francisco, California. Blackrock operates under Asset Management classification in the United States and is traded on New York Stock Exchange. It employs 18400 people.

Blackrock Investors Sentiment

The influence of Blackrock's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Blackrock. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Blackrock's public news can be used to forecast risks associated with investment in Blackrock. The trend in average sentiment can be used to explain how an investor holding Blackrock can time the market purely based on public headlines and social activities around Blackrock. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Blackrock's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Blackrock's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Blackrock's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Blackrock.

Blackrock Implied Volatility

    
  34.07  
Blackrock's implied volatility exposes the market's sentiment of Blackrock stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Blackrock's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Blackrock stock will not fluctuate a lot when Blackrock's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Blackrock in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Blackrock's short interest history, or implied volatility extrapolated from Blackrock options trading.

Pair Trading with Blackrock

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Blackrock position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Blackrock will appreciate offsetting losses from the drop in the long position's value.

Moving together with Blackrock

0.71AAMCAltisource Asset Man Earnings Call  TodayPairCorr
0.85BAMBrookfield Asset Man Earnings Call  TodayPairCorr
0.86BENFranklin Resources Fiscal Year End 7th of November 2022 PairCorr
The ability to find closely correlated positions to Blackrock could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Blackrock when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Blackrock - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Blackrock to buy it.
The correlation of Blackrock is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Blackrock moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Blackrock moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Blackrock can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to Blackrock Piotroski F Score and Blackrock Altman Z Score analysis. Note that the Blackrock information on this page should be used as a complementary analysis to other Blackrock's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

Complementary Tools for Blackrock Stock analysis

When running Blackrock price analysis, check to measure Blackrock's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Blackrock is operating at the current time. Most of Blackrock's value examination focuses on studying past and present price action to predict the probability of Blackrock's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Blackrock's price. Additionally, you may evaluate how the addition of Blackrock to your portfolios can decrease your overall portfolio volatility.
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Is Blackrock's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Blackrock. If investors know Blackrock will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Blackrock listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.21
Market Capitalization
105 B
Quarterly Revenue Growth YOY
-0.061
Return On Assets
0.0307
Return On Equity
0.15
The market value of Blackrock is measured differently than its book value, which is the value of Blackrock that is recorded on the company's balance sheet. Investors also form their own opinion of Blackrock's value that differs from its market value or its book value, called intrinsic value, which is Blackrock's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Blackrock's market value can be influenced by many factors that don't directly affect Blackrock's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Blackrock's value and its price as these two are different measures arrived at by different means. Investors typically determine Blackrock value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Blackrock's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.