Blackrock Profitability Analysis

BLK
 Stock
  

USD 696.51  0.24  0.0345%   

For Blackrock profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Blackrock to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Blackrock utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Blackrock's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Blackrock over time as well as its relative position and ranking within its peers. Continue to Trending Equities.
  
The current Return on Sales is estimated to increase to 0.45, while Price to Sales Ratio is projected to decrease to 6.85. The current Net Income to Non Controlling Interests is estimated to increase to about 328 M, while Accumulated Other Comprehensive Income is projected to decrease to (593.4 M).

Blackrock Revenues

17.63 Billion

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
105.1 B
Quarterly Revenue Growth YOY
-0.061
Return On Assets
0.0304
Return On Equity
0.16
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.

Blackrock Debt to Equity vs. Retained Earnings Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Blackrock's current stock value. Our valuation model uses many indicators to compare Blackrock value to that of its competitors to determine the firm's financial worth.
Blackrock is number one stock in retained earnings category among related companies. It is number one stock in debt to equity category among related companies . The ratio of Retained Earnings to Debt to Equity for Blackrock is about  74,079,718,126 . The current Debt to Equity Ratio is estimated to increase to 3.97, while Long Term Debt to Equity is projected to decrease to 0.18.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Blackrock by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Blackrock's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Blackrock's earnings, one of the primary drivers of an investment's value.

Blackrock Debt to Equity vs. Retained Earnings

Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.
Blackrock 
Retained Earnings 
 = 
Beginning RE + Income 
Dividends 
17.71 B
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.
Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
Blackrock 
D/E 
 = 
Total Debt 
Total Equity 
0.24 %
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.

Blackrock Debt to Equity Comparison

Blackrock is currently under evaluation in debt to equity category among related companies.

Blackrock Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Blackrock, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Blackrock will eventually generate negative long term returns. The profitability progress is the general direction of Blackrock's change in net profit over the period of time. It can combine multiple indicators of Blackrock, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-550 M-593.4 M
Consolidated Income6.2 B5.5 B
Net Income5.9 B5.3 B
Net Income Common Stock5.9 B5.3 B
Net Income to Non Controlling Interests304 M328 M
Operating Income7.5 B6.7 B
Income Tax ExpenseB1.7 B
Net Income Per Employee320.7 K283.2 K
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 Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Blackrock. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Blackrock position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Blackrock's important profitability drivers and their relationship over time.

Blackrock Profitability Trends

Blackrock profitability trend refers to the progression of profit or loss within a business. An upward trend means that Blackrock's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Blackrock's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Blackrock Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Blackrock different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Blackrock in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Blackrock's future profitability.

Use Blackrock in pair-trading

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.

Blackrock Pair Trading

Blackrock Pair Trading Analysis

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

Use Investing Themes to Complement your Blackrock position

In addition to having Blackrock in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Stores Thematic Idea Now

Stores
Stores Theme
Companies providing different types of retail and wholesale services. The Stores theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Stores Theme or any other thematic opportunities.
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Continue to Trending Equities. 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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To fully project Blackrock's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Blackrock at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Blackrock's income statement, its balance sheet, and the statement of cash flows.
Potential Blackrock investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Blackrock investors may work on each financial statement separately, they are all related. The changes in Blackrock's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Blackrock's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.