BlackRock Inc ($BLK) is Both Good Price & Good Company no ?
My 6th post to Tiger_chat 's question of whether an investor profits from a good company or a good price ?
To that I have asked, "why not both" ?
Wouldn't that have more upside comparatively speaking ?
Let's take a look at Non-Bank stock (a fund house) - $BlackRock(BLK)$ - for a change. Its Q4 2022 earnings and whether it fits the bill.
I confessed this is a "real" challenge as the criteria to look out for is unlike the usual stock that all of us has gotten so used to zoom in for the "kill".
Sidetrack: So far, I have covered 1 Healthcare stock and 4 banks to test out my theory.
- $UnitedHealth(UNH)$ - interested? click here to read. Pls give a "Like". Tks.
- $Citigroup(C)$ - interested ? click here to read. Pls "Like" the post ok. Tks.
- JP Morgan - interested ? click here to read. Give a "Like" ok. Tks.
- $Bank of America(BAC)$ interested ? click here to read. Pls give a "Like". Tks.
- Wells Fargo Inc - interested ? click here to read. Give a "Like" ok. Tks.
- Jefferies Financial Group - interested ? click here to read. Pls give a "Like". Tks.
- An American multi-national investment company
- Founded in 1988 (a "young" 34 years old establishment)
- As of Jan 2022, it is the world's largest asset manager
- With US$10 Trillion in Asset Under Mgmt (AUM).
- It is also one of the Big 3 index fund managers that dominates America. The other 2 being Vanguard & State Street of course !
- As of 2021, BlackRock ranked #192 on the Fortune 500 - List of the largest United States corporations by revenue
- Nice dividend of $19.52 per share. Gotta love this no ?
- Only thing that is not so nice is the stock price. At $794.73 per stock, will need to have a deep pocket.
- Grew to its current size via strategic merger and acquisitions.
In 2022, a year where US market has been hammered by extremely volatility - how did BlackRock Inc fare ?
Current stock price < 19 Jan 2022 stock price by a mere -9.18% Only ! Resilient
BlackRock Inc - summary
- Total revenue came in at $4.33 Billion vs $5.11 Billion (Q4 2021); that is -15% decline.
- Net Income was $1.25 Billion vs $1.64 billion (Q4 2021). Also a -23.78%.
- Earnings per share was at $8.29 per share vs $10.63 (Q4 2021). Again a -22.01% fall.
- Diluted earnings attributable to BlackRock common stockholders per share was $8.93 vs $10.68 in Q4 2021.
- It would be a fallacy to assume that BlackRock Inc remains unscathed by the very stock market (it invests in) that has seen a dip of at least $19.4% for S&P 500 and a whooping 33% for Nasdaq in 2022.
BlackRock - Long Term Net Flows Trend
- For a Fund house, the measurement criteria is "different" from a normal listed company.
- Net inflow occurs when more cash flows into, say, the mutual fund than out of it. A net inflow creates excess cash for managers to invest.
- $146 billion of quarterly long-term net inflows - including $61 billion of active net inflows, with total net inflows of $114 billion reflecting net outflows from cash management
- With US investors still leading the feed to BlackRock, followed by Europe, Middle East & Africa and finally Asia Pac.
- Its Total Long Term Asset Under Management remains a credible $7.9 Trillion factoring FX fluctuations.
- With the bulk of support from Institutional investors (48.5%); followed by Funds (33.9%).
- It is also interesting to note that BlackRock's investment into Fixed Income product type came in at 29.5% of their AUM.
- Is this an indication to retail investors that we should structure our personal portfolio as such ? Is BlackRock asset distribution worth a deeper probe ?
- Operating income can be defined as income after operating expenses have been deducted and before interest payments and taxes have been deducted..
- 14% decrease in full year operating income (13% as adjusted)
- Is this an indication that BlackRock may also resort to retrenchment in a bid to cut expenses ? To be seen, no ?
BlackRock Inc's CEO on Q4 2022 Results (Extract Only) :.
“We ended the year with strong momentum, generating $114 billion of fourth quarter net inflows, representing 3% annualized organic base fee growth, reflecting continued strength in ETFs and significant outsourcing mandates.... Laurence D. Fink, Chairman & CEO, BlackRock Inc
.
Why BlackRock Inc is Both A Good Price and Good Company ?
- Investment in US market and Fixed income are non-cyclical - in nature unlike semi-conductors, construction, retail etc..
- With the forecast that the Fed may slow down interest hike from H2 2023 onwards, it may become a bright spark for BlackRock again
- With a generous annual dividend of $19.52 per share (2.6% to current stock price), what is there not to like. Meta Platforms (META); No dividends. Tesla Motors (TSLA) -No dividends.
- Senior equity research analyst at Edward Jones believes that the strength in fixed income is just the beginning of a multi-year trend of money flowing back into bond products and BlackRock is at the right place and the right time.
BlackRock Inc 2022 / 2023 Performance In Comparison.
- Do you think BlackRock put up a credible performance in Q4 2022 ?
- Do you think BlackRock is both a Good price and Good company ?
Please "LIKe" this post. Thanks. The rating is very important to me.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Tks for reading my post.
Pls "LIKe" my post ok.
The rating is very important to me. Tks tks!!