We've been asking ourselves recently if the market has placed a fair valuation on Blackstone. Let's dive into some of the fundamental values of this Large-Cap Finance company to determine if there might be an opportunity here for value-minded investors.
Blackstone's Valuation Is in Line With Its Sector Averages:
Blackstone Inc. is an alternative asset management firm specializing in private equity, real estate, 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 15.92 and an average price to book (P/B) ratio of 1.78. In contrast, Blackstone has a trailing 12 month P/E ratio of 41.5 and a P/B ratio of 13.46.
Blackstone has moved -20.1% over the last year compared to 14.2% for the S&P 500 -- a difference of -34.3%. Blackstone has a 52 week high of $200.96 and a 52 week low of $115.66.
Generally Positive Cash Flows and a Positive EPS Growth Rate:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $7,338 | $6,102 | $22,577 | $8,518 | $8,023 | $13,230 |
| Interest Income (M) | $200 | $166 | $198 | $317 | $432 | $444 |
| Operating Margins | 52% | 43% | 60% | 41% | 37% | 49% |
| Net Margins | 28% | 17% | 26% | 21% | 17% | 21% |
| Net Income (M) | $2,050 | $1,045 | $5,857 | $1,748 | $1,391 | $2,777 |
| Depreciation & Amort. (M) | $71 | $71 | $75 | $67 | $40 | $99 |
| Diluted Shares (M) | 676 | 697 | 720 | 741 | 755 | 767 |
| Earnings Per Share | $3.03 | $1.5 | $8.13 | $2.36 | $1.84 | $3.62 |
| EPS Growth | n/a | -50.5% | 442.0% | -70.97% | -22.03% | 96.74% |
| Avg. Price | $37.52 | $48.9 | $94.78 | $108.52 | $130.92 | $144.3 |
| P/E Ratio | 12.38 | 32.6 | 11.64 | 45.98 | 71.15 | 39.86 |
| Free Cash Flow (M) | $1,903 | $1,824 | $3,922 | $6,101 | $3,833 | $3,420 |
| CAPEX (M) | $60 | $112 | $64 | $235 | $224 | $61 |
| EV / EBITDA | 8.76 | 13.64 | 5.17 | 23.87 | 33.73 | 17.17 |
| Total Debt (M) | $11,542 | $5,732 | $7,856 | $12,491 | $11,606 | $11,460 |
| Net Debt / EBITDA | 2.41 | 1.39 | 0.42 | 2.33 | 2.89 | 1.45 |
Blackstone benefits from strong operating margins with a stable trend, generally positive cash flows, and low leverage levels. The company's financial statements show rapidly growing revenues and decreasing reinvestment in the business and positive EPS growth.
