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The BlackRock stock (ISIN: US09290D1019) is emblematic of many of the key developments shaping the global financial world in the 21st century. As the world's largest asset manager with more than USD 11 trillion in assets under management, BlackRock plays a key role in the capital markets - both as an investor and as a driver of long-term megatrends and structural changes in the financial system. Several profound megatrends are currently driving the industry - and BlackRock is benefiting from them in particular: These include the increasing access to capital markets worldwide, the strong demand for passive investment instruments such as ETFs, the growth of private and institutional pension provision and the growing interest in sustainable and ESG-compliant investments. Yes, we can speak of a democratization of the financial markets. Added to this is the ongoing digitalization and technologization of the financial sector, in which data-based investment solutions, risk analysis and portfolio optimization are becoming increasingly important.
What sets BlackRock apart from other companies is its unique combination of global presence, technological innovation and broad product range. With the iShares brand, the asset manager is not only the market leader in the ETF sector, but also a provider of highly specialized active and alternative investments, for example in the areas of private equity, infrastructure and real estate. In addition, the company's proprietary platform Aladdin plays a central role in digitalization. It is one of the world's leading system solutions for risk and portfolio management and is used not only internally but also by hundreds of external financial institutions.
All of this has led to a sharp rise in turnover and profits at the House of BlackRock in recent decades. The stock price has also benefited from this, as shown by the 1,155 percent increase in the stock price over the last two decades.
Source: BlackRock stock price
BlackRock sees itself not only as an asset manager, but also increasingly as a technology provider and strategic partner for institutional investors. Software and AI were already a major topic here years ago. But there is more that speaks for the stock. Above all, the ability to offer stability in turbulent market phases and manage long-term capital flows makes the company a particularly exciting investment. The BlackRock stock therefore offers something for growth-oriented investors as well as for those who focus on reliable dividends. The valuation is not cheap, but quality has its price, as the following BlackRock stock analysis will show.
BlackRock is the world's largest private investment company. Its assets under management amount to over 11 trillion US dollars (in US dollars).
The New York City-based asset manager is primarily known among private clients for its exchange-traded index funds under the name iShares. However, it does its big business with large institutions such as banks, foundations and sovereign wealth funds.
The company was founded in 1988 with the aim of offering institutional investors risk-focused asset management. In 1999, the company went public at an issue price of 14 US dollars. The most recent price was 864 US dollars.
There are good reasons for the phenomenal development of the stock price over the last 20 years: The stock market boomed and with it passive investments such as ETFs - an area in which BlackRock is a leading provider. The company's success is no coincidence, as many of BlackRock's investment products offer attractive, long-term returns with low fees. In addition, the company has understood how to network systematically in the financial sector. The company's CEO Larry Fink is considered one of the most influential financial managers in the world.
BlackRock's inflows of funds regularly exceed the 100 billion US dollar mark per quarter. Inflows into ETFs account for a large proportion of this. In an industry that tends to focus on consolidation, BlackRock's inflows are therefore exceptional. Despite its market leadership and better growth rates than many of its competitors, BlackRock has a global market share of just three percent in asset management. The next four largest competitors have a combined market share of 8 percent.
The steady increase in assets under management naturally also has a positive impact on the company's operating figures, as BlackRock earns a small but significant percentage of its assets through asset management. The majority of revenue is attributable to base fees. They account for around 75 percent of total revenue. Performance fees accounted for only 6 percent, while distribution fees and technology service fees contributed around 7 and 8 percent respectively to total revenue. The core business can therefore be clearly broken down into asset management. BlackRock is therefore phenomenally strong in asset management and its business model is highly scalable, because the more investment money the Americans receive and the stronger the stock markets rise, the more revenue they should generate.
BlackRock had a strong start to the year in the first quarter of 2025. For example, revenue increased by 12 percent to 5.3 billion US dollars, while EBITDA rose by 6 percent to 1.9 billion US dollars. On the other hand, net profit declined by four percent. Here, the acquisition-related costs of the 2.6 billion pound takeover of the British data provider Prequin had a negative impact on earnings. Adjusted EPS, on the other hand, increased by 15 percent.
Source: Financial data from BlackRock
The record inflows into iShares ETFs and the solid inflows in the private markets and active strategies areas deserve special mention. Also worth mentioning: the platform's organic growth was broadly supported, particularly by high demand for ETFs, systematic strategies and private markets solutions.
There was also positive news from the technology division. The Aladdin platform continued to record strong growth. The integration of the Preqin acquisition also began to bear fruit. Revenue from technology and subscription services increased noticeably.
Despite a difficult economic environment with uncertainty and structural market changes, BlackRock believes it is well positioned to support clients in both the short and long term. CEO Larry Fink also emphasized that the company has historically often emerged stronger from changes in times of crisis.
There can be no question of a crisis with the current figures. However, the financial market is cyclical and this can of course also affect BlackRock. However, the management remains tight-lipped about the outlook. There are no concrete figures. Analysts are more confident. They see solid and steady sales growth at BlackRock in the coming years.
Source: Sales and margin forecast
For example, turnover is expected to rise to over 22 billion US dollars in 2025, which corresponds to growth of 8.5%. Growth is expected to accelerate again in 2026. Turnover is then expected to rise to almost 25 billion US dollars, which corresponds to an increase of 11.5%. According to the forecasts, this positive trend will continue in 2027: turnover is then expected to reach almost 28 billion US dollars, which corresponds to growth of 11.7%. The analysts' figures thus clearly show where the journey could take us.
Overall, the dividend analysis of BlackRock stock shows a solid, albeit not outstanding, picture with 11 out of 15 possible points. Although the stock is not currently one of the top scorers, it still offers dividend investors interesting characteristics. Especially when you look at the long-term dividend growth. Let's take a closer look at the individual categories.
Source: dividend analysis
Firstly, there is the current dividend yield of 2.1%, which is only awarded one out of three points. The next point would only be awarded at a value of 3.5 percent, and the full score at 5 percent. A historical comparison also shows that the average dividend yield over ten years was 2.5 percent, which is slightly higher than it currently is. For this, the company initially scores 2 out of 3 points. The current lower yield could indicate a higher valuation of the stock. But more on this later.
The dividend payout ratio, also known as the payout ratio, should also be emphasized positively. It was 53% for the last three years. In the dividend analysis, this value is awarded the full three points. BlackRock also performs particularly well in terms of the continuity of dividend payments. The company has paid uninterrupted dividends for ten years - a sign of reliability and stability, which is also rewarded with 3 out of 3 points. It gets even better: the dividend has been increased without interruption for 15 years and has not been reduced for 21 years. Dividend growth over the last five years has been an impressive 9.1% per annum, but is only awarded 2 out of 3 points due to the strategy criteria. Full points would only have been awarded if the dividend had grown by more than 10 percent.
Source: BlackRock dividend history
Overall, the analysis shows that BlackRock is a reliable dividend payer with stable growth potential. For investors who value a balanced mix of dividend yield, continuity and growth momentum, the stock could initially be attractive, even if the company is not currently one of the absolute top dividend stocks. This is particularly the case because it only just received a lower score in some categories.
With a P/E ratio of over 24, the valuation of the Blackrock stock is initially not favorable. The expected P/E ratio of 23 and the free cash flow multiple of almost 40 do little to change this. Even the extremely impressive sales growth of more than 14 percent in the last 12 months cannot hide this fact.
Source: key metrics
However, BlackRock stock must be viewed differently. Especially in the long term, as it is a quality stock. Such stocks are traded at a premium on the stock market.
Looking at future growth, analysts expect it to remain in the high single-digit to double-digit range. Due to its scalability, there is of course still potential on the earnings side, although much has already been achieved with the current net margins of over 30%.
Source: earnings per share
If we look at the forecasts for earnings development in connection with the corresponding P/E ratio development, a clear trend can be seen here. From 2027, the BlackRock stock could again trade well below a P/E ratio of 20.
BlackRock is much more than a traditional asset manager: the company is at the intersection of financial markets, technology and global capital flows. Thanks to its strong market position, its broad product range and the deep integration of technological solutions such as Aladdin, it benefits directly from key megatrends such as the increasing demand for ETFs, the expansion of private pension provision and the democratization and digitalization of the financial world.
Despite a challenging market environment, BlackRock has been financially stable, growth-oriented and strategically well-positioned for years. Higher sales and profits are expected in the medium to long term, which the market is already pricing in today. However, the high P/E ratio could fall well below 20 again by 2027. As a quality stock, the BlackRock stock could therefore still be just about fairly valued. The solid dividend policy once again underlines the reliability of the company, which is an advantage for long-term investors. BlackRock stock could be an attractive investment opportunity for anyone looking to invest in a globally diversified business model with high innovative strength and resilient growth potential.
Source: BlackRock target price
Analysts take a similar view, as a look at their ratings and recommendations for the stock shows. 95% of the 19 analysts recommend buying the stock, only 5% recommend holding it and not a single analyst recommends selling it. However, one fly in the ointment remains: with an average price target of USD 1,042 for the next twelve months, the stock has almost exhausted its current potential.
The author and/or persons or companies associated with the StocksGuide own or may own stocks in BlackRock.
This post represents an expression of opinion and not investment advice. Please note the legal information.