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BlackRock Inc - 3 things to know about the company

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JP_mykayaplus wrote a column · Mar 14, 2023 05:56
Credit: Bloomberg via Getty Images
Credit: Bloomberg via Getty Images
Most of us would be aware of the name $Blackrock (BLK.US)$.
But most of us are quite unaware of the company.
Here are 3 things to know about Blackrock.
1. It is an asset management company
Blackrock Q4 2022 Earnings Release Supplement
Blackrock Q4 2022 Earnings Release Supplement
Not only Blackrock is an investment company, but it is also the world's largest asset manager.
To put things simply, the asset management part is similar to $Berkshire Hathaway-B (BRK.B.US)$.
Its main clients are institutional and also ETFs if dissected by asset under management (AUM).
In terms of region wise, 67% of its AUM is based in the Americas, 25% in EMEA, and 8% in the Asia Pacific.
2. Its main revenue is from base fees
Blackrock Q4 2022 Earnings Release Supplement
Blackrock Q4 2022 Earnings Release Supplement
Being an asset management company means that Blackrock will be deriving most of its revenue from fees.
Base fees are similar to the basic salary, the base it earns for providing its services.
It also derives its revenue from securities lending, distribution fees, technology services, and advisory.
3. Good operating margins but flattish earnings per share
Blackrock Q4 2022 Earnings Release Supplement
Blackrock Q4 2022 Earnings Release Supplement
Blackrock does boast a good operating margin. Its operating margin has been above 40% for the last few years.
However, sharp eye investors would have noticed that it has been sliding down.
On a net income as adjusted basis, Blackrock's net income does look flattish.
As an investment company, Blackrock's net income will be affected by losses in investments and also interest expenses.
Does Blackrock interests you as an investing candidate?
Visit mykayaplus.com for more investing-related content!
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The information available in this article/report/analysis is for sharing and education purposes only. This is neither a recommendation to purchase or sell any of the shares, securities, or other instruments mentioned; nor can it be treated as professional advice to buy, sell or take a position in any shares, securities, or other instruments. If you need specific investment advice, please consult the relevant professional investment advice and/or for study or research only.
No warranty is made with respect to the accuracy, adequacy, reliability, suitability, applicability, or completeness of the information contained. The author disclaims any reward or responsibility for any gains or losses arising from the direct and indirect use & application of any contents of the article/report/written material
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  • intuitive Jackal_354 : they're thieves. one day every one of these shit heads will have to meet God and thyre punishment will be worse than castration.  I have more respect for murders than I do for any banker or hedgefund.  making a living off raping common people of their money is lowest form of scum on earth.