This is our first report on one of the largest asset managers, BlackRock. While the market situation in 2022 was among the most difficult years, BlackRock delivered decent organic growth and ended the year with an all-around beat. Revenue of $17.9 billion was down 8% year on year. Operational income was $6.7 billion and earnings per share of $35.36 were down 13% from 2021. The company generated $300 billion in total net inflows in 2022, which led the industry, and experienced positive organic base fee growth. They also produced around $114 billion in net inflows in the fourth quarter, including sustained strength in iShares, sizeable outsourced mandates, and representing 3% annualized organic base fee growth. Base fee and securities lending income were $3.4 billion, a 14% year-over-year fall. Besides that, their Aladdin business generated significant net new sales. Quarterly revenue from technology services climbed 4% year over year, while total sales of $1.4 billion increased 7%. Among new launches, the company introduced a new ETF that focuses on the metaverse, joining the likes of Roundhill Investments, ProShares, and other ETF issuers in the increasingly competitive market. We initiate coverage on the stock of BlackRock, Inc. with a ‘Hold’ rating.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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