MMarketMath

BLK

StalwartQuality: Medium (56/100)1 red flag

BlackRock · Financials · Asset Management & Custody Banks

$1,172.61

52w 917.39 – 1,219.94

20y monthly, adjusted

Mkt cap

$181.7B

P/E

32.7

P/FCF

51.1

FCF yield

2.0%

ROE

9.9%

Shldr yield

0.0%

div 0.0% + bb 0.0%

What today's price assumes

At $181.7B, the market is pricing in 20.5% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew -7.0% per year — the price asks for acceleration beyond the historical record.

Simple DCF per-share range: $160 · $160 · $197 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

+10.7%

Rev 5y

+10.7%

Rev 10y

+10.7%

EPS 5y

+1.3%

EPS 10y

+1.3%

FCF 5y

−7.0%

FCF 10y

−7.0%

Fundamentals

Fiscal 2022–2025, from SEC filings

Revenue

2022: $17.9B
2023: $17.9B
2024: $20.4B
2025: $24.2B
$0$10.0B$20.0B
22
23
24
25

Net income

2022: $5.2B
2023: $5.5B
2024: $6.4B
2025: $5.6B
$0$2.0B$4.0B$6.0B
22
23
24
25

Free cash flow

2022: $4.4B
2023: $3.8B
2024: $4.7B
2025: $3.6B
$0$2.0B$4.0B
22
23
24
25

Diluted shares (lower is better)

2022: 152.4M
2023: 150.7M
2024: 151.6M
2025: 160.9M
050.0M100.0M150.0M
22
23
24
25

Margins

15%20%25%30%22232425
Net marginFCF marginGross margin

Capital returned (dividends + buybacks)

2022: $5.3B
2023: $4.9B
2024: $5.0B
$0$2.0B$4.0B
22
23
24
25

Cash vs long-term debt

$8.0B$10.0B$12.0B22232425
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q3'23: $4.5B
Q1'24: $4.7B
Q2'24: $4.8B
Q3'24: $5.2B
Q4'24: $5.7B
Q1'25: $5.3B
Q2'25: $5.4B
Q3'25: $6.5B
Q4'25: $7.0B
Q1'26: $6.7B
Q2'26: $7.1B
$0$2.0B$4.0B$6.0B
23
24
24
25
25
26

Net income by quarter

Q3'23: $1.6B
Q1'24: $1.6B
Q2'24: $1.5B
Q3'24: $1.6B
Q4'24: $1.7B
Q1'25: $1.5B
Q2'25: $1.6B
Q3'25: $1.3B
Q4'25: $1.1B
Q1'26: $2.2B
Q2'26: $1.9B
$0$1.0B$2.0B
23
24
24
25
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q2'26$7.1B+30.6%$1.9B+20.2%12.19$1.2B
Q1'26$6.7B+27.0%$2.2B+46.5%14.06−$980.0M
Q4'25 *$7.0B+23.4%$1.1B−32.5%7.05$2.3B
Q3'25$6.5B+25.2%$1.3B−18.9%8.43$1.4B
Q2'25$5.4B+12.9%$1.6B+6.6%10.19$1.4B
Q1'25$5.3B+11.6%$1.5B−4.0%9.64−$1.1B
Q4'24 *$5.7B+25.5%$1.7B+4.1%10.64$2.6B
Q3'24$5.2B$1.6B10.90$1.4B
Q2'24$4.8B$1.5B9.99$1.4B
Q1'24$4.7B$1.6B10.48−$408.0M
Q3'23$4.5B$1.6B10.66

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue+10.7%
Operating cash flow−7.5%
Free cash flow−7.0%
EPS (diluted)+1.3%
Equity+13.8%
LT debt
Diluted shares+1.8%
Stock price+21.5%+7.0%+14.9%+16.9%

$100, 3 years ago

$179vs $176 in SPY

21.5% vs 20.7%/yr

$100, 5 years ago

$140vs $181 in SPY

7.0% vs 12.6%/yr

$100, 10 years ago

$400vs $412 in SPY

14.9% vs 15.2%/yr

$100, 15 years ago

$1,036vs $813 in SPY

16.9% vs 15.0%/yr

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

5.7%

OCF ÷ (equity + debt)

OCF / EV yield

2.1%

MC vs 10× OCF

4.63

≤1 = priced under 10× OCF

Debt / FCF

3.6y

SBC / FCF

36.8%

Owner earnings

$2.2B

OCF − capex − SBC

OE yield

1.2%

Share count 5y

+1.8%

per year; negative = buybacks

Capital intensity

5.2%

net PP&E ÷ revenue

Sales efficiency

$0.02

new PP&E per $1 new revenue, 5y

Checklist

9 of 22 checks pass · 41%. Checks with structurally missing inputs are excluded.

Growth & Consistency

1/4

  • Revenue growth

    10.7% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    1.3% · 5y CAGR ≥ 5%

    fail
  • FCF growth

    -7.0% · 5y CAGR ≥ 5%

    fail
  • Revenue rises consistently

    · up in ≥ 7 of last 10 years

    na
  • FCF consistently positive

    · positive in ≥ 8 of last 10 years

    na
  • Profitable every year

    · net income > 0 in ≥ 8 of last 10

    na
  • Cash flow keeps up with sales

    -7.5% vs 10.7% · OCF CAGR ≥ 0.9× revenue CAGR

    fail

Profitability

3/6

  • Net margin

    22.9% · ≥ 8%

    pass
  • Operating margin

    29.1% · ≥ 10%

    pass
  • Gross margin stable or rising

    · no drop > 2 pts over 3y

    na
  • Return on equity

    9.9% · ≥ 12%

    fail
  • Cash ROIC

    5.7% · ≥ 12%

    fail
  • FCF margin

    14.7% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $3.9B vs NI $5.6B · OCF ≥ net income (latest FY)

    fail

Balance Sheet

4/5

  • Debt payable from cash flow

    3.6y · LT debt ≤ 3× FCF

    fail
  • Cash cushion

    90% · cash ≥ 50% of LT debt

    pass
  • Leverage

    0.23 · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    $55.9B · equity > 0 and grew over ~5y

    pass
  • Interest burden

    9% · interest ≤ 15% of operating income

    pass

Capital Allocation

1/3

  • Share count flat or shrinking

    1.8% · ≤ +0.5%/yr over ~5y

    fail
  • Stock comp restrained

    37% · SBC ≤ 15% of FCF

    fail
  • Distributions funded by FCF

    0% · dividends + buybacks ≤ 100% of FCF

    pass
  • Repurchases are a habit

    · buybacks in ≥ 5 of last 10 years

    na

Valuation Discipline

0/4

  • FCF yield

    2.0% · ≥ 3%

    fail
  • Earnings multiple

    32.7 · P/E ≤ 25

    fail
  • Price asks less than history delivered

    20.5% vs -7.0% · implied FCF growth ≤ historical FCF CAGR

    fail
  • Shareholder yield

    0.0% · dividends + buybacks ≥ 2% of market cap

    fail

Red flags

Mechanical checks — a flag is a question to investigate, not a verdict

Heavy stock compensation

Stock-based compensation consumes more than 30% of free cash flow.

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
202524,2167,0455,55335.313,9273753,5521,30711,46812,76855,888161
202420,4077,5746,36942.014,9562554,7013,1011,93075312,76212,31447,495152
202317,8596,2755,50236.514,1653443,8213,0351,8846308,7367,91839,347151
202217,8736,3855,17833.974,9565334,4232,9902,3327087,43337,876152

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.