Blackstone Inc. (NYSE: BX)

Sector: Financial Services Industry: Asset Management CIK: 0001393818
Market Cap 88.51 Bn
P/B 12.56
P/E 49.39
P/S 10.93
ROIC (Qtr) 23.19
Div Yield % 2.82
Rev 1y % (Qtr) -15.68
Total Debt (Qtr) 12.89 Bn
Debt/Equity (Qtr) 1.54
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About

Blackstone Inc., often recognized by its stock symbol BX, is a dominant player in the alternative asset management industry. The company is dedicated to delivering compelling returns for institutional and individual investors by enhancing the companies and assets in which it invests. As of December 31, 2023, Blackstone boasts an impressive $1 trillion in Total Assets Under Management. The company adopts a solutions-oriented approach to drive better performance across its diverse business activities. Blackstone's primary business activities span...

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Investment thesis

Bull case

  • Strong tangible asset base of 44.52B provides 3.45x coverage of total debt 12.89B, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 3.65B exceeds capital expenditure of 105.24M by 34.70x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 3.76B provides 2.65x coverage of SG&A expenses 1.42B, showing efficient operational cost management.
  • Operating cash flow of 3.76B provides strong 87.58x coverage of operating expenses 42.89M, showing operational efficiency.
  • Operating cash flow of 3.76B provides strong 35.70x coverage of capital expenditure 105.24M, enabling organic growth.

Bear case

  • Operating cash flow of 3.76B barely covers its investment activities of (105.24M), with a coverage ratio of -35.70, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 3.76B provides thin coverage of dividend payments of (5.50B) with a -0.68 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • The company's operating cash flow of 3.76B shows concerning coverage of stock compensation expenses of 1.37B, with a 2.74 ratio indicating potential earnings quality issues.
  • Retained earnings of 184.04M provide limited buffer against comprehensive income items of (5.60M), which is -32.85x, indicating elevated exposure to market risks.
  • Operating cash flow of 3.76B is outpaced by equity issuance of (321.24M) (-11.69 ratio), indicating concerning reliance on equity markets for funding operations.

Peer comparison

Companies in the Asset Management
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BLK BlackRock, Inc. 199.59 Bn 85.40 21.98 15.04 Bn
2 BN BROOKFIELD Corp /ON/ 103.94 Bn 31.52 5.64 262.97 Bn
3 AMP Ameriprise Financial Inc 88.69 Bn 55.02 7.20 5.89 Bn
4 BX Blackstone Inc. 88.51 Bn 49.39 10.93 12.89 Bn
5 KKR KKR & Co. Inc. 55.86 Bn 28.33 13.23 53.12 Bn
6 STT State Street Corp 46.52 Bn 21.77 3.91 34.72 Bn
7 NTRS Northern Trust Corp 34.14 Bn 33.31 6.71 15.64 Bn
8 RJF Raymond James Financial Inc 32.89 Bn 37.63 4.14 5.10 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.06 0.94
EV to Cash from Ops. EV/CFO -24.76 41.10
EV to Debt EV to Debt 7.42 15.28
EV to EBIT EV/EBIT 33.74 23.47
EV to EBITDA EV/EBITDA 21.77 47.80
EV to Free Cash Flow [EV/FCF] EV/FCF -24.63 38.62
EV to Market Cap EV to Market Cap 1.08 7.81
EV to Revenue EV/Rev 11.82 27.38
Price to Book Value [P/B] P/B 12.56 2.34
Price to Earnings [P/E] P/E 49.39 11.81
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.49 4.66
Dividend Payout Ratio % Div Payout % (Qtr) 122.10 -5.56
Dividend per Basic Share Div per Share (Qtr) 3.40 1.73
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 72.87 49.83
Interest Coverage Int. cover (Qtr) 8.43 25.16
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -30.17 -35.10
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 11.78 15.43
Dividend Growth (1y) % Div 1y % (Qtr) -1.45 1.65
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 20.86 -90.82
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 17.40 35.24
EBIT Growth (1y) % EBIT 1y % (Qtr) 19.52 -22.13
EBT Growth (1y) % EBT 1y % (Qtr) 20.39 -163.05
EPS Growth (1y) % EPS 1y % (Qtr) 19.52 -20.61
FCF Growth (1y) % FCF 1y % (Qtr) -11.69 220.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 16.08 -53.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.28 0.22
Cash Payout Ratio Cash Payout (Qtr) 1.43 0.36
Cash Ratio Cash Ratio 0.00 0.38
Current Ratio Current Ratio 0.00 0.86
Debt to Equity Ratio Debt/Equity (Qtr) 1.54 0.70
Interest Cover Ratio Int Coverage (Qtr) 8.43 25.16
Times Interest Earned Times Interest Earned (Qtr) 8.43 25.16
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 32.00 -114.76
EBIT Margin % EBIT Margin % (Qtr) 31.73 -127.24
EBT Margin % EBT Margin % (Qtr) 27.96 -150.97
Gross Margin % Gross Margin % (Qtr) 61.10 67.88
Net Profit Margin % Net Margin % (Qtr) 20.60 -148.68