Blackstone shares fell by -2.9% during the day's morning session, and are now trading at a price of $127.86. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.
Trades Below Its Graham Number but Has an Elevated P/B Ratio:
Blackstone Inc. is an alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 12.38 and an average price to book (P/B) ratio of 1.58. In contrast, Blackstone has a trailing 12 month P/E ratio of 69.5 and a P/B ratio of 13.49.
Blackstone's PEG ratio is 1.21, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.
The Firm Has a Declining EPS Growth Trend:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $6,833 | $7,338 | $6,102 | $22,577 | $8,518 | $8,442 |
| Interest Income (M) | $164 | $200 | $166 | $198 | $317 | $423 |
| Operating Margins | 51% | 52% | 43% | 60% | 41% | 40% |
| Net Margins | 23% | 28% | 17% | 26% | 21% | 21% |
| Net Income (M) | $1,542 | $2,050 | $1,045 | $5,857 | $1,748 | $1,797 |
| Depreciation & Amort. (M) | $59 | $71 | $71 | $75 | $67 | $46 |
| Diluted Shares (M) | 121 | 676 | 697 | 720 | 741 | 758 |
| Earnings Per Share | $12.77 | $3.03 | $1.5 | $8.13 | $2.36 | $2.37 |
| EPS Growth | n/a | -76.27% | -50.5% | 442.0% | -70.97% | 0.42% |
| Avg. Price | $27.32 | $37.52 | $48.9 | $94.78 | $108.52 | $127.86 |
| P/E Ratio | 12.04 | 12.38 | 32.6 | 11.64 | 45.98 | 53.72 |
| CAPEX (M) | $18 | $60 | $112 | $64 | $235 | $242 |
| EV / EBITDA | 7.33 | 8.76 | 13.64 | 5.17 | 23.87 | 28.89 |
| Total Debt (M) | $10,395 | $11,542 | $5,732 | $7,856 | $12,491 | $12,340 |
| Net Debt / EBITDA | 2.29 | 2.41 | 1.39 | 0.42 | 2.33 | 2.71 |
