BlackRock Inc Valuation – January 2019 $BLK

Company Profile (excerpt from Reuters): BlackRock, Inc. (BlackRock), incorporated on February 13, 2006, is an investment management company. BlackRock provides a range of investment and risk management services to institutional and retail clients worldwide. Its diverse platform of active (alpha) and index (beta) investment strategies across asset classes enables the Company to tailor investment outcomes and asset allocation solutions for clients. Its product offerings include single- and multi-asset portfolios investing in equities, fixed income, alternatives and money market instruments. The Company’s products are offered directly and through intermediaries in a range of vehicles, including open-end and closed-end mutual funds, iShares exchange-traded funds (ETFs), separate accounts, collective investment funds and other pooled investment vehicles. BlackRock offers its Aladdin investment system, as well as risk management, outsourcing, advisory and technology services, to institutional investors and wealth management intermediaries under the BlackRock Solutions (BRS) name. BRS’ Financial Markets Advisory (FMA) group advises global financial institutions, regulators, and government entities across a range of risk, regulatory, capital markets and strategic services. It also offers Aladdin Portfolio Builder, which provides financial advisors with portfolio construction tools, and Aladdin Risk for Wealth Management, which provides intermediary partners with institutional-quality portfolio construction, modeling and risk analytics capabilities.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of BLK – January 2019

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $62,755,262,079 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 1.45 Fail
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 160.83% Pass
6. Moderate PEmg Ratio PEmg < 20 16.17 Pass
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 1.98 Pass
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 1.45 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.02 Pass
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $24.61
MG Growth Estimate 8.03%
MG Value $604.50
Opinion Undervalued
MG Grade B+
MG Value based on 3% Growth $356.82
MG Value based on 0% Growth $209.17
Market Implied Growth Rate 3.83%
Current Price $397.91
% of Intrinsic Value 65.82%

BlackRock, Inc. qualifies for both the Defensive Investor and the Enterprising Investor. The Defensive Investor is only initially concerned with the low current ratio. The Enterprising Investor is only concerned with the low current ratio. As a result, all value investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $16.03 in 2014 to an estimated $24.61 for 2018. This level of demonstrated earnings growth outpaces the market’s implied estimate of 3.83% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into BlackRock, Inc. revealed the company was trading above its Graham Number of $342.93. The company pays a dividend of $10 per share, for a yield of 2.5%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 16.17, which was below the industry average of 18, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-824.96.

BlackRock, Inc. performs fairly well in the ModernGraham grading system, scoring a B+.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$824.96
Graham Number $342.93
PEmg 16.17
Current Ratio 1.45
PB Ratio 1.98
Current Dividend $10.00
Dividend Yield 2.51%
Number of Consecutive Years of Dividend Growth 8

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 9/1/2018
Total Current Assets $9,262,000,000
Total Current Liabilities $6,394,000,000
Long-Term Debt $44,000,000
Total Assets $174,862,000,000
Intangible Assets $31,380,000,000
Total Liabilities $142,392,000,000
Shares Outstanding (Diluted Average) 161,378,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $26.45
Dec2017 $30.23
Dec2016 $19.04
Dec2015 $19.79
Dec2014 $19.25
Dec2013 $16.87
Dec2012 $13.79
Dec2011 $12.37
Dec2010 $10.55
Dec2009 $6.11
Dec2008 $5.78
Dec2007 $7.37
Dec2006 $3.87
Dec2005 $3.50
Dec2004 $2.17
Dec2003 $2.36
Dec2002 $2.04
Dec2001 $1.65
Dec2000 $1.35
Dec1999 $1.04
Dec1998 $0.66

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $24.61
Dec2017 $22.80
Dec2016 $18.64
Dec2015 $17.77
Dec2014 $16.03
Dec2013 $13.59
Dec2012 $11.21
Dec2011 $9.42
Dec2010 $7.54
Dec2009 $5.80
Dec2008 $5.28
Dec2007 $4.64
Dec2006 $3.11
Dec2005 $2.60
Dec2004 $2.07
Dec2003 $1.91
Dec2002 $1.57

Recommended Reading:

Other ModernGraham posts about the company

BlackRock Inc Valuation – March 2018 $BLK
10 Undervalued Companies for the Defensive Dividend Stock Investor – January 2017
10 Undervalued Companies for the Defensive Dividend Stock Investor – December 2016
9 Best Stocks For Value Investors This Week – 6/24/16
BlackRock Inc Valuation – June 2016 $BLK

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CorVel Corp Valuation – August 2018 $CRVL
Jones Lang LaSalle Inc Valuation – August 2018 $JLL
Investment Technology Group Inc Valuation – July 2018 $ITG
Stifel Financial Corp Valuation – July 2018 $SF
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Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

BlackRock Inc Valuation – March 2018 $BLK

Company Profile (obtained from Marketwatch): BlackRock, Inc. engages in the provision of investment management, risk management, and advisory services for institutional and retail clients worldwide. Its products include single and multi-asset class portfolios investing in equities, fixed income, alternatives, and money market instruments. The company was founded by Ralph L. Schlosstein, Susan L. Wagner, Robert Steven Kapito and Laurence Douglas Fink in 1998 and is headquartered in New York, NY.

BLK Chart

BLK data by YCharts

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of BLK – March 2018

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $89,835,338,145 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 2.94 Pass
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 164.45% Pass
6. Moderate PEmg Ratio PEmg < 20 22.40 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 2.89 Fail
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 2.94 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.78 Pass
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $24.96
MG Growth Estimate 8.36%
MG Value $629.45
Opinion Fairly Valued
MG Grade C+
MG Value based on 3% Growth $361.89
MG Value based on 0% Growth $212.14
Market Implied Growth Rate 6.95%
Current Price $558.96
% of Intrinsic Value 88.80%

BlackRock, Inc. is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the high PEmg and PB ratios. The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Fairly Valued after growing its EPSmg (normalized earnings) from $16.03 in 2014 to an estimated $24.96 for 2018. This level of demonstrated earnings growth supports the market’s implied estimate of 6.95% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value within a margin of safety relative to the price.

At the time of valuation, further research into BlackRock, Inc. revealed the company was trading above its Graham Number of $349.67. The company pays a dividend of $10 per share, for a yield of 1.8% Its PEmg (price over earnings per share – ModernGraham) was 22.4, which was below the industry average of 25.5, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-1084.12.

BlackRock, Inc. receives an average overall rating in the ModernGraham grading system, scoring a C+.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$1,084.12
Graham Number $349.67
PEmg 22.40
Current Ratio 2.94
PB Ratio 2.89
Current Dividend $10.00
Dividend Yield 1.79%
Number of Consecutive Years of Dividend Growth 8

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2017
Total Current Assets $9,737,000,000
Total Current Liabilities $3,314,000,000
Long-Term Debt $5,014,000,000
Total Assets $220,217,000,000
Intangible Assets $30,609,000,000
Total Liabilities $188,392,000,000
Shares Outstanding (Diluted Average) 164,793,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $27.50
Dec2017 $30.23
Dec2016 $19.04
Dec2015 $19.79
Dec2014 $19.25
Dec2013 $16.87
Dec2012 $13.79
Dec2011 $12.37
Dec2010 $10.55
Dec2009 $6.11
Dec2008 $5.78
Dec2007 $7.37
Dec2006 $3.87
Dec2005 $3.50
Dec2004 $2.17
Dec2003 $2.36
Dec2002 $2.04
Dec2001 $1.65
Dec2000 $1.35
Dec1999 $1.04
Dec1998 $0.66

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $24.96
Dec2017 $22.80
Dec2016 $18.64
Dec2015 $17.77
Dec2014 $16.03
Dec2013 $13.59
Dec2012 $11.21
Dec2011 $9.42
Dec2010 $7.54
Dec2009 $5.80
Dec2008 $5.28
Dec2007 $4.64
Dec2006 $3.11
Dec2005 $2.60
Dec2004 $2.07
Dec2003 $1.91
Dec2002 $1.57

Recommended Reading:

Other ModernGraham posts about the company

12 Best Stocks For Value Investors This Week – 11/14/15
BlackRock Inc. Valuation – November 2015 Update $BLK
The Best Stocks of the Financial Services Industry – September 2015
10 Undervalued Companies for the Defensive Dividend Stock Investor – August 2015
The 16 Best Stocks For Value Investors This Week – 8/1/15

Other ModernGraham posts about related companies

Ameriprise Financial Inc Valuation – March 2018 $AMP
Navient Corp Valuation – March 2018 $NAVI
Invesco Ltd Valuation – March 2018 $IVZ
Capital One Financial Corp Valuation – March 2018 $COF
Total System Services Inc Valuation – February 2018 $TSS
Visa Inc Valuation – February 2018 $V
Goldman Sachs Group Inc Valuation – February 2018 $GS
American Express Co. Valuation – February 2018 $AXP
Encore Capital Group Inc Valuation – Initial Coverage $ECPG
T.Rowe Price Group Inc Valuation – July 2017 $TROW

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

BlackRock Inc Valuation – June 2016 $BLK

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Companies Benjamin Graham Would Invest In Today – March 2016.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how BlackRock Inc (BLK) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): BlackRock, Inc. is an investment management company. The Company provides a range of investment and risk management services to institutional and retail clients across the world. Its offerings include single and multi-asset class portfolios investing in equities, fixed income, alternatives and money market instruments. Its products are offered directly and through intermediaries in a range of vehicles, including open-end and closed-end mutual funds, iShares exchange-traded funds (ETFs), separate accounts, collective investment funds and other pooled investment vehicles. The Company offers its BlackRock Solutions (BRS) investment and risk management technology platform, Aladdin; risk analytics, and advisory services and solutions to institutional investors. BRS also offers risk reporting capabilities via the Green Package and risk management advisory services; interactive fixed income analytics through its Web-based calculator, AnSer; outsourcing services, and investment accounting.

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To read the details of this valuation, you must be logged in as a premium member. If you are not a premium member, please consider becoming one.

Premium members can view a full ModernGraham valuation of the company and have access to download a PDF version of the valuation for easy reference. Here is a free sample valuation pdf, and here is a post detailing what can be found within each individual company’s valuation.

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Downloadable PDF version of this valuation:

ModernGraham Valuation of BLK – June 2016

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $57,940,839,420 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 3.70 Pass
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 194.22% Pass
6. Moderate PEmg Ratio PEmg < 20 18.86 Pass
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 2.05 Pass
Score
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 3.70 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.89 Pass
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

BLK value chart June 2016

EPSmg $18.46
MG Growth Estimate 9.69%
MG Value $514.44
Opinion Undervalued
MG Grade B+
MG Value based on 3% Growth $267.61
MG Value based on 0% Growth $156.88
Market Implied Growth Rate 5.18%
Current Price $348.00
% of Intrinsic Value 67.65%

BlackRock, Inc. qualifies for both the Defensive Investor and the Enterprising Investor. In fact, the company meets all of the requirements of both investor types, a rare accomplishment indicative of the company’s strong financial position. . The Enterprising Investor has no initial concerns. As a result, all value investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $11.21 in 2012 to an estimated $18.46 for 2016. This level of demonstrated earnings growth outpaces the market’s implied estimate of 5.18% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.

BlackRock, Inc. performs fairly well in the ModernGraham grading system, scoring a B+.

Stage 3: Information for Further Research

BLK charts June 2016

Net Current Asset Value (NCAV) -$1,116.82
Graham Number $268.64
PEmg 18.86
Current Ratio 3.70
PB Ratio 2.05
Current Dividend $8.83
Dividend Yield 2.54%
Number of Consecutive Years of Dividend Growth 7

[/not-level-free]

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 3/1/2016
Total Current Assets $7,610,000,000
Total Current Liabilities $2,057,000,000
Long-Term Debt $4,968,000,000
Total Assets $222,958,000,000
Intangible Assets $30,466,000,000
Total Liabilities $194,564,000,000
Shares Outstanding (Diluted Average) 167,399,000

Earnings Per Share History

Next Fiscal Year Estimate $18.48
Dec2015 $19.79
Dec2014 $19.25
Dec2013 $16.87
Dec2012 $13.79
Dec2011 $12.37
Dec2010 $10.55
Dec2009 $6.11
Dec2008 $5.91
Dec2007 $7.53
Dec2006 $3.87
Dec2005 $3.50
Dec2004 $2.17
Dec2003 $2.36
Dec2002 $2.04
Dec2001 $1.65
Dec2000 $1.35
Dec1999 $1.04
Dec1998 $0.67

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $18.46
Dec2015 $17.77
Dec2014 $16.03
Dec2013 $13.59
Dec2012 $11.21
Dec2011 $9.45
Dec2010 $7.59
Dec2009 $5.87
Dec2008 $5.36
Dec2007 $4.69
Dec2006 $3.11
Dec2005 $2.60
Dec2004 $2.07
Dec2003 $1.91
Dec2002 $1.57
Dec2001 $1.21
Dec2000 $0.86

Recommended Reading:

Other ModernGraham posts about the company

12 Best Stocks For Value Investors This Week – 11/14/15
BlackRock Inc. Valuation – November 2015 Update $BLK
12 Best Stocks For Value Investors This Week – 11/14/15
The Best Stocks of the Financial Services Industry – September 2015
10 Undervalued Companies for the Defensive Dividend Stock Investor – August 2015

Other ModernGraham posts about related companies

Goldman Sachs Group Inc Valuation – June 2016 $GS
Ameriprise Financial Inc Valuation – June 2016 $AMP
American Express Company Valuation – May 2016 $AXP
T.Rowe Price Group Inc Stock Valuation – February 2016 $TROW
Moody’s Corporation Stock Valuation – February 2016 $MCO
KKR & Co LP Stock Valuation – February 2016 $KKR
Capital One Financial Corp Valuation – January 2016 Update $COF
Franklin Resources Inc Valuation – January 2016 Update $BEN
T.Rowe Price Group Inc Stock Valuation – February 2016 $TROW
Moody’s Corporation Stock Valuation – February 2016 $MCO

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

BlackRock Inc. Valuation – November 2015 Update $BLK

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Most Undervalued Companies for the Defensive Investor – October 2015.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how BlackRock Inc. (BLK) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): BlackRock, Inc. is an investment management firm. The Company provides investment and risk management services to institutional and retail clients across the world. Its product offerings include single- and multi-asset class portfolios investing in equities, fixed income, alternatives and money market instruments. Products are offered directly and through intermediaries in a variety of vehicles, including open-end and closed-end mutual funds, iShares exchange-traded funds (ETFs), separate accounts, collective investment funds and other pooled investment vehicles. The Company also offers its BlackRock Solutions investment and risk management technology platform, Aladdin, risk analytics and advisory services and solutions. It has $4.65 trillion of assets under management at December 31, 2014.

[level-free]

To read the details of this valuation, you must be logged in as a premium member. If you are not a premium member, please consider becoming one.

Premium members can view a full ModernGraham valuation of the company and have access to download a PDF version of the valuation for easy reference. Here is a free sample valuation pdf, and here is a post detailing what can be found within each individual company’s valuation.

[/level-free]
[level-mg-stocks-screens-subscriber]

Downloadable PDF version of this valuation:

ModernGraham Valuation of BLK – November 2015

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $57,126,712,124 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 2.86 Pass
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Pass
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 222.06% Pass
6. Moderate PEmg Ratio PEmg < 20 19.92 Pass
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 2.10 Pass
Score
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 2.86 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.92 Pass
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

BLK value Chart November 2015

EPSmg $17.57
MG Growth Estimate 12.95%
MG Value $604.56
Opinion Undervalued
MG Value based on 3% Growth $254.82
MG Value based on 0% Growth $149.38
Market Implied Growth Rate 5.71%
Current Price $350.06
% of Intrinsic Value 57.90%

BlackRock Inc. qualifies for either the Enterprising Investor or the more conservative Defensive Investor.  In fact, the company passes all of the requirements of both investor types, a rare accomplishment indicative of the company’s strong financial condition.  As a result, all value investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research.

As for a valuation, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $9.43 in 2011 to an estimated $17.57 for 2015.  This level of demonstrated earnings growth outpaces the market’s implied estimate of 5.71% annual earnings growth over the next 7-10 years.  As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.

The next part of the analysis is up to individual investors, and requires discussion of the company’s prospects.  What do you think?  What value would you put on BlackRock Inc. (BLK)?  Where do you see the company going in the future?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

Stage 3: Information for Further Research

BLK Charts November 2015

Net Current Asset Value (NCAV) -$1,101.53
Graham Number $270.85
PEmg 19.92
Current Ratio 2.86
PB Ratio 2.10
Dividend Yield 2.42%
Number of Consecutive Years of Dividend Growth 6

 

[/level-mg-stocks-screens-subscriber]

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Total Current Assets $8,291,000,000
Total Current Liabilities $2,904,000,000
Long-Term Debt $4,950,000,000
Total Assets $222,216,000,000
Intangible Assets $30,325,000,000
Total Liabilities $194,080,000,000
Shares Outstanding (Diluted Average) 168,665,000

Earnings Per Share History

Next Fiscal Year Estimate $19.21
Dec14 $19.25
Dec13 $16.87
Dec12 $13.79
Dec11 $12.37
Dec10 $10.55
Dec09 $6.11
Dec08 $5.78
Dec07 $7.53
Dec06 $3.87
Dec05 $3.50
Dec04 $2.17
Dec03 $2.36
Dec02 $2.04
Dec01 $1.65
Dec00 $1.35
Dec99 $1.04
Dec98 $0.66

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $17.57
Dec14 $16.03
Dec13 $13.59
Dec12 $11.21
Dec11 $9.43
Dec10 $7.56
Dec09 $5.83
Dec08 $5.32
Dec07 $4.69
Dec06 $3.11
Dec05 $2.60
Dec04 $2.07
Dec03 $1.91
Dec02 $1.57
Dec01 $1.21
Dec00 $0.86
Dec99 $0.52

Recommended Reading:

Other ModernGraham posts about the company

The Best Stocks of the Financial Services Industry – September 2015
10 Undervalued Companies for the Defensive Dividend Stock Investor – August 2015
The 16 Best Stocks For Value Investors This Week – 8/1/15
BlackRock Inc. Analysis – July 2015 Update $BLK
The Best Companies of the Financial Services Industry – May 2015

Other ModernGraham posts about related companies

Goldman Sachs Group Inc. Valuation – November 2015 Update $GS
American Express Company Valuation – October 2015 Update $AXP
KKR & Co. LP Valuation – October 2015 Update $KKR
Invesco Limited Analysis – October 2015 Update $IVZ
CME Group Inc. Analysis – October 2015 Update $CME
T.Rowe Price Group Inc. Analysis – September 2015 Update $TROW
Moody’s Corporation Analysis – September 2015 Update $MCO
The Best Stocks of the Financial Services Industry – September 2015
Franklin Resources Inc. Analysis – September 2015 $BEN
Northern Trust Corporation Analysis – September 2015 Update $NTRS

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

BlackRock Inc. Analysis – July 2015 Update $BLK

220px-BlackRock_wordmark.svgBlackRock Inc. (BLK) has grown its earnings well over the last few years, and pays a strong dividend, traits which may attract some investors. In addition, multiple analysts have focused on qualitative factors when reviewing the company. For example, Seeking Alpha contributor Cory Renauer wrote in June regarding the company’s executive compensation. This is a great factor to consider in the final stages of an investment decision, but first one must use quantitative metrics to determine the company’s intrinsic value.

Benjamin Graham, the father of value investing, taught that the most important aspect to consider is whether the company is trading at a discount relative to its intrinsic value. It is through a thorough fundamental analysis that the investor is able to make a determination about a potential investment’s merits.

The model is inspired by the teachings of Benjamin Graham and considers numerous metrics intended to help the investor reduce risk levels. The first part of the analysis is to determine whether the company is suitable for the very conservative Defensive Investor or the less conservative Enterprising Investor who is willing to spend a greater amount of time conducting further research.

In addition, Graham strongly suggested that investors avoid speculation in order to remove the subjective elements of emotion. This is best achieved by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another. By using theModernGraham method, one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.

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Defensive Investor – Must pass at least 6 of the following 7 tests: Score = 7/7

  1. Adequate Size of Enterprise – Market capitalization of at least $2 billion – PASS
  2. Sufficiently Strong Financial Condition – Current ratio greater than 2 – PASS
  3. Earnings Stability – Positive earnings per share for at least 10 straight years – PASS
  4. Dividend Record – Has paid a dividend for at least 10 straight years – PASS
  5. Earnings Growth – Earnings per share has increased by at least 1/3rd over the last 10 years, using 3-year averages at the beginning and end of the period – PASS
  6. Moderate PEmg (price over normalized earnings) ratio – PEmg is less than 20 – PASS
  7. Moderate Price to Assets – PB ratio is less than 2.5 or PB x PEmg is less than 50 – PASS

Enterprising Investor – Must pass at least 4 of the following 5 tests or be suitable for a Defensive Investor: Score = 4/5

  1. Sufficiently Strong Financial Condition, Part 1 – Current ratio greater than 1.5 – PASS
  2. Sufficiently Strong Financial Condition, Part 2 – Debt-to-Net Current Assets ratio less than 1.1 – FAIL
  3. Earnings Stability – Positive earnings per share for at least 5 years – PASS
  4. Dividend Record – Currently pays a dividend – PASS
  5. Earnings growth – EPSmg greater than 5 years ago – PASS

Valuation Summary

Key Data

Recent Price $340.29
MG Value $613.32
MG Opinion Undervalued
Value Based on 3% Growth $256.22
Value Based on 0% Growth $150.20
Market Implied Growth Rate 5.38%
Net Current Asset Value (NCAV) -$1,225.29
PEmg 19.26
Current Ratio 3.09
PB Ratio 2.11

Balance Sheet

Current Assets $7,408,000,000
Current Liabilities $2,398,000,000
Total Debt $8,902,000,000
Total Assets $242,714,000,000
Intangible Assets $30,404,000,000
Total Liabilities $215,339,000,000
Outstanding Shares 169,700,000

Earnings Per Share

2015 (estimate) $19.50
2014 $19.25
2013 $16.87
2012 $13.79
2011 $12.37
2010 $10.55
2009 $6.11
2008 $5.78
2007 $7.53
2006 $3.87
2005 $3.50

Earnings Per Share – ModernGraham

2015 (estimate) $17.67
2014 $16.03
2013 $13.59
2012 $11.21
2011 $9.43
2010 $7.56

Dividend History

Free Cash Flow

Conclusion

BlackRock Inc. passes the initial requirements of both the Defensive Investor and the Enterprising Investor. The Defensive Investor has no initial concerns, while the Enterprising Investor is only concerned by the level of debt relative to the net current assets. As a result, all value investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.

When it comes to that valuation, it is critical to consider the company’s earnings history. In this case, it has grown its EPSmg (normalized earnings) from $9.43 in 2011 to an estimated $17.67 for 2015. This is a fairly strong level of demonstrated growth and outpaces the market’s implied estimate for annual earnings growth of 5.38% over the next 7-10 years.

In recent years, the company’s actual growth in EPSmg has averaged around 17.5% annually, and while the ModernGraham valuation model reduces the actual growth to a more conservative figure when making an estimate, the model still returns an estimate of intrinsic value well above the current price, indicating that BlackRock Inc. is significantly undervalued at the present time.

Disclaimer:  The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  Logo taken from Wikipedia for the sole purpose of identifying the company; this article is not affiliated with the company in any manner.

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BlackRock Inc. Quarterly Valuation – May 2015 $BLK

220px-BlackRock_wordmark.svgBlackRock Inc. (NYSE:BLK) presents an intriguing investment possibility for value investors, as the company has maintained very strong earnings growth over the last few years that may not be properly priced into the market price. Benjamin Graham, the father of value investing, taught that looking at the price cannot be the sole factor in investment decisions, as the most important aspect to consider is whether the company is trading at a discount relative to its intrinsic value. It is through a thorough fundamental analysis that the investor is able to make a determination about a potential investment’s merits. Here is a look at how the company fares in the ModernGraham valuation model.

The model is inspired by the teachings of Benjamin Graham, and considers numerous metrics intended to help the investor reduce risk levels. The first part of the analysis is to determine whether the company is suitable for the very conservative Defensive Investor or the less conservative Enterprising Investor, who is willing to spend a greater amount of time conducting further research.

In addition, Graham strongly suggested that investors avoid speculation in order to remove the subjective elements of emotion. This is best achieved by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another. By using theModernGraham method, one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.

BLK Chart

BLK data by YCharts

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Defensive Investor – Must pass at least 6 of the following 7 tests: Score = 6/7

  1. Adequate Size of Enterprise – Market capitalization of at least $2 billion – PASS
  2. Sufficiently Strong Financial Condition – Current ratio greater than 2 – PASS
  3. Earnings Stability – Positive earnings per share for at least 10 straight years – PASS
  4. Dividend Record – Has paid a dividend for at least 10 straight years – PASS
  5. Earnings Growth – Earnings per share has increased by at least 1/3rd over the last 10 years using 3-year averages at the beginning and end of the period – PASS
  6. Moderate PEmg (price over normalized earnings) Ratio – PEmg is less than 20 – FAIL
  7. Moderate Price-to-Assets – PB ratio is less than 2.5 or PB x PEmg is less than 50 – PASS

Enterprising Investor – Must pass at least 4 of the following 5 tests or be suitable for a Defensive Investor: Score = 4/5

  1. Sufficiently Strong Financial Condition, Part 1 – Current ratio greater than 1.5 – PASS
  2. Sufficiently Strong Financial Condition, Part 2 – Debt-to-Net Current Assets ratio less than 1.1 – FAIL
  3. Earnings Stability – Positive earnings per share for at least 5 years – PASS
  4. Dividend Record – Currently pays a dividend – PASS
  5. Earnings Growth – EPSmg greater than 5 years ago – PASS

Valuation Summary

Key Data:

Recent Price $371.89
MG Value $617.00
MG Opinion Undervalued
Value Based on 3% Growth $232.38
Value Based on 0% Growth $136.22
Market Implied Growth Rate 7.35%
Net Current Asset Value (NCAV) -$1,199.07
PEmg 23.21
Current Ratio 2.80
PB Ratio 2.32

Balance Sheet – December 2014

Current Assets $8,121,000,000
Current Liabilities $2,900,000,000
Total Debt $8,327,000,000
Total Assets $239,808,000,000
Intangible Assets $30,305,000,000
Total Liabilities $212,442,000,000
Outstanding Shares 170,400,000

Earnings Per Share

2014 $19.25
2013 $16.87
2012 $13.79
2011 $12.37
2010 $10.55
2009 $6.11
2008 $5.78
2007 $7.53
2006 $3.87
2005 $3.50
2004 $2.17

Earnings Per Share – ModernGraham

2014 $16.03
2013 $13.59
2012 $11.21
2011 $9.43
2010 $7.56
2009 $5.83

Dividend History

BLK Dividend Chart

BLK Dividend data by YCharts

Conclusion

BlackRock Inc. passes the initial requirements of both the Defensive Investor and the Enterprising Investor. The Defensive Investor’s only initial concern is the high PEmg ratio, and the Enterprising Investor is only concerned with the level of debt relative to the net current assets. As a result, all value investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.

When it comes to that valuation, it is critical to consider the company’s earnings history. In this case, the company has grown its EPSmg (normalized earnings) from $7.56 in 2010 to $16.03 for 2014. This is a strong level of demonstrated growth, which is well above the market’s implied estimate for earnings growth of only 7.35% annually over the next 7-10 years. In fact, the historical growth is around 22.37% per year, so the market is expecting a very significant drop in earnings growth. The ModernGraham valuation model reduces the historical growth to a more conservative figure, assuming that some slowdown will occur, but still returns an estimate of intrinsic value falling above the current price, indicating the company is undervalued at the present time.

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Blackrock Inc. Quarterly Valuation – February 2015 $BLK

220px-BlackRock_wordmark.svg

Blackrock Inc. passes the initial requirements of both the Defensive Investor and the Enterprising Investor. The only issue the Defensive Investor has with the company is the high PEmg ratio, while the Enterprising Investor is concerned with the net current assets. As a result, all value investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.

When it comes to that valuation, it is critical to consider the company’s earnings history. In this case, the company has grown its EPSmg (normalized earnings) from $5.83 in 2010 to $16.03 for 2014. This is a very strong level of demonstrated growth which is well above the market’s implied estimate for earnings growth of only 6.95% over the next 7-10 years. In fact, the historical growth is around 22.38% per year, so the market is expecting a very significant drop in earnings growth. The ModernGraham valuation model reduces the historical growth to a more conservative figure, assuming that some slowdown will occur, and therefore returns an estimate of intrinsic value falling above the current price, indicating the company is undervalued at the present time.

Be sure to check out previous ModernGraham valuations of Blackrock Inc. (BLK) for greater perspective!

Read the full valuation on Seeking Alpha!

BLK Chart

BLK data by YCharts

Disclaimer:  The author did not hold a position in Blackrock Inc. (BLK) at the time of publication and had no intention of changing that position within the next 72 hours.  Logo taken from Wikipedia for the sole purpose of identifying the company; this article is not affiliated with the company in any manner.

BlackRock Inc. Quarterly Valuation – October 2014 $BLK

220px-BlackRock_wordmark.svg

BlackRock definitely passes the initial requirements of both the Defensive Investor and the Enterprising Investor. The Defensive Investor’s only concern is the high PEmg ratio, while the Enterprising Investor has slight concerns regarding the level of debt relative to the net current assets. Neither investor type is sufficiently disturbed by the financials and all value investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.

When it comes to that valuation, it is critical to consider the company’s earnings history. In this case, the company has grown its EPSmg (normalized earnings) from $7.56 in 2010 to an estimated $15.97 for 2014. This is a fairly strong level of demonstrated growth which is well above the market’s implied estimate for earnings growth of 6.11% over the next 7-10 years. In fact, the historical growth is around 22% per year, so the market is expecting a very significant drop in earnings growth. The ModernGraham valuation model reduces the historical growth to a more conservative figure, assuming that some slowdown will occur, and therefore returns an estimate of intrinsic value falling above the current price, indicating the company is undervalued at the present time.

Be sure to check out previous ModernGraham valuations of BlackRock Inc. for more perspective!

Read the full valuation on Seeking Alpha!

BLK Chart

BLK data by YCharts

Blackrock Inc. Quarterly Valuation – July 2014 $BLK

220px-BlackRock_wordmark.svgBenjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 5 Undervalued Companies for the Defensive Investor.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a specific look at how Blackrock (BLK) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): BlackRock, Inc. (BlackRock) is an investment management firm. The Company provides a range of investment and risks management services. The Company’s clients include retail, high net worth (HNW) and institutional investors, consists of pension funds, official institutions, endowments, insurance companies, corporations, financial institutions, central banks and sovereign wealth funds. The Company’s platform enables the Company to offer active (alpha) investments with index (beta) products and risk management to develop tailored solutions for clients. Its product range includes single- and multi-asset class portfolios investing in equities, fixed income, alternatives and/or money market instruments. In October 2013, BlackRock Inc acquired Macquarie Global Property Advisors Ltd. In January 2014, Forge Group Limited announced that BlackRock Inc. and subsidiaries had ceased to be the substantial holder of Forge Group Limited.
BLK Chart

BLK data by YCharts

Defensive Investor – must pass at least 6 of the following 7 tests: Score = 6/7

  1. Adequate Size of Enterprise – market capitalization of at least $2 billion – PASS
  2. Sufficiently Strong Financial Condition – current ratio greater than 2 – PASS
  3. Earnings Stability – positive earnings per share for at least 10 straight years – PASS
  4. Dividend Record – has paid a dividend for at least 10 straight years – PASS
  5. Earnings Growth – earnings per share has increased by at least 1/3 over the last 10 years using 3 year averages at beginning and end of period – PASS
  6. Moderate PEmg ratio – PEmg is less than 20 – FAIL
  7. Moderate Price to Assets – PB ratio is less than 2.5 or PB x PEmg is less than 50 – PASS

Enterprising Investor – must pass at least 4 of the following 5 tests or be suitable for a defensive investor: Score = 4/5

  1. Sufficiently Strong Financial Condition, Part 1 – current ratio greater than 1.5 – PASS
  2. Sufficiently Strong Financial Condition, Part 2 – Debt to Net Current Assets ratio less than 1.1 – FAIL
  3. Earnings Stability – positive earnings per share for at least 5 years – PASS
  4. Dividend Record – currently pays a dividend – PASS
  5. Earnings growth – EPSmg greater than 5 years ago – PASS

Valuation Summary

Key Data:

Recent Price $319.06
MG Value $608.17
MG Opinion Undervalued
Value Based on 3% Growth $229.05
Value Based on 0% Growth $134.27
Market Implied Growth Rate 5.85%
Net Current Asset Value (NCAV) -$1,092.01
PEmg 20.20
Current Ratio 3.26
PB Ratio 2.01

Balance Sheet – 3/31/2014

Current Assets $7,453,000,000
Current Liabilities $2,283,000,000
Total Debt $8,180,000,000
Total Assets $216,297,000,000
Intangible Assets $30,434,000,000
Total Liabilities $189,819,000,000
Outstanding Shares 167,000,000

Earnings Per Share

2014 (estimate) $18.47
2013 $16.87
2012 $13.81
2011 $12.49
2010 $10.71
2009 $6.27
2008 $5.91
2007 $7.53
2006 $3.87
2005 $3.50
2004 $2.17

Earnings Per Share – ModernGraham

2014 (estimate) $15.80
2013 $13.65
2012 $11.31
2011 $9.56
2010 $7.69
2009 $5.92

Dividend History
BLK Dividend Chart

BLK Dividend data by YCharts

Conclusion:

Blackrock is an intriguing opportunity for both Defensive Investors and Enterprising Investors.  The Defensive Investor’s only initial concern is the high PEmg ratio, while the Enterprising Investor’s only concern is the level of debt relative to the net current assets.  As a result, value investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company and comparing it to other opportunities.  From a valuation side of things, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $7.69 in 2010 to an estimated $15.80 for 2014. This high level of demonstrated growth significantly outpaces the market’s implied estimate of 5.85% earnings growth and leads the ModernGraham valuation model, based on Benjamin Graham’s formula, to return an estimate of intrinsic value well above the price.

The next part of the analysis is up to individual investors, and requires discussion of the company’s prospects.  What do you think?  What value would you put on Blackrock Inc. (BLK)?  Where do you see the company going in the future?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

Disclaimer:  The author did not hold a position in Blackrock Inc. (BLK) or in any other company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  Logo taken from wikipedia for the sole purpose of identifying the company; this article is not affiliated with the company in any manner.

Affiliated Managers Group Inc Valuation – February 2019 $AMG

Company Profile (excerpt from Reuters): Affiliated Managers Group, Inc., incorporated on December 29, 1993, is an asset management company with equity investments in boutique investment management firms (Affiliates). The Company is focused on investing around the globe in investment management firms that manage active return-oriented strategies, including traditional, alternative and wealth management firms. The Company operates through three business segments, which represent its principal distribution channels: Institutional, Mutual Fund and High Net Worth. The equity method investments in the Institutional distribution channel are made in relationships with public and private client entities, including foundations, endowments, sovereign wealth funds and retirement plans for corporations and municipalities. The equity method investments in the Mutual Fund distribution channel are made in advisory or sub-advisory relationships with active return-oriented mutual funds, Undertakings for Collective Investment in Transferable Securities (UCITS) and other retail products. The equity method investments in the High Net Worth distribution channel are made in relationships with high net worth and ultra-high net worth individuals, families, trusts, foundations, endowments and retirement plans.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of AMG – February 2019

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $5,732,676,828 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 1.45 Fail
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Fail
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 224.67% Pass
6. Moderate PEmg Ratio PEmg < 20 11.23 Pass
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 1.40 Pass
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 1.45 Fail
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 5.40 Fail
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Pass
5. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $9.81
MG Growth Estimate 5.82%
MG Value $197.46
Opinion Undervalued
MG Grade C+
MG Value based on 3% Growth $142.18
MG Value based on 0% Growth $83.35
Market Implied Growth Rate 1.37%
Current Price $110.14
% of Intrinsic Value 55.78%

Affiliated Managers Group, Inc. does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, poor dividend history. The Enterprising Investor has concerns regarding the level of debt relative to the current assets. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $7.06 in 2015 to an estimated $9.81 for 2019. This level of demonstrated earnings growth outpaces the market’s implied estimate of 1.37% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into Affiliated Managers Group, Inc. revealed the company was trading below its Graham Number of $140.26. The company pays a dividend of $1.2 per share, for a yield of 1.1% Its PEmg (price over earnings per share – ModernGraham) was 11.23, which was below the industry average of 20.29, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Finally, the company was trading above its Net Current Asset Value (NCAV) of $-56.9.

Affiliated Managers Group, Inc. receives an average overall rating in the ModernGraham grading system, scoring a C+.

Stage 3: Information for Further Research

Net Current Asset Value (NCAV) -$56.90
Graham Number $140.26
PEmg 11.23
Current Ratio 1.45
PB Ratio 1.40
Current Dividend $1.20
Dividend Yield 1.09%
Number of Consecutive Years of Dividend Growth 2

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2018
Total Current Assets $1,085,400,000
Total Current Liabilities $746,600,000
Long-Term Debt $1,829,600,000
Total Assets $8,219,100,000
Intangible Assets $3,943,300,000
Total Liabilities $4,084,200,000
Shares Outstanding (Diluted Average) 52,700,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $13.32
Dec2018 $4.52
Dec2017 $12.03
Dec2016 $8.57
Dec2015 $9.17
Dec2014 $7.70
Dec2013 $6.55
Dec2012 $3.28
Dec2011 $3.11
Dec2010 $2.81
Dec2009 $1.38
Dec2008 -$0.03
Dec2007 $4.55
Dec2006 $3.74
Dec2005 $2.81
Dec2004 $2.02
Dec2003 $1.05
Dec2002 $1.65
Dec2001 $1.47
Dec2000 $1.66
Dec1999 $2.12

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $9.81
Dec2018 $8.16
Dec2017 $9.59
Dec2016 $7.93
Dec2015 $7.06
Dec2014 $5.57
Dec2013 $4.15
Dec2012 $2.67
Dec2011 $2.36
Dec2010 $2.15
Dec2009 $2.05
Dec2008 $2.46
Dec2007 $3.42
Dec2006 $2.65
Dec2005 $2.00
Dec2004 $1.59
Dec2003 $1.45

Recommended Reading:

Other ModernGraham posts about the company

Affiliated Managers Group Inc Valuation – May 2018 $AMG
Affiliated Managers Group Inc Valuation – January 2017 $AMG
Affiliated Managers Group Analysis – Initial Coverage $AMG

Other ModernGraham posts about related companies

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Intercontinental Exchange Inc Valuation – January 2019 $ICE
H&R Block Inc Valuation – January 2019 $HRB
State Street Corp Valuation – January 2019 $STT
Morgan Stanley Valuation – January 2019 $MS
MSCI Inc Valuation – January 2019 $MSCI
BlackRock Inc Valuation – January 2019 $BLK

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

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