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Blackstone Group L.P. (BX)
:BX
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Blackstone Group
(NYSE:BX)65Neutral
Positive Factors
Dividend Performance
BX's dividend exceeded general expectations, reflecting positively on shareholder returns.
Fundraising
Blackstone reported stronger than expected fundraising and investing results.
Negative Factors
Real Estate Performance
There were weak returns in real estate drawdowns and perpetual vehicles due to higher yields and negative FX translation.
Blackstone Group (BX) vs. S&P 500 (SPY)
Market Cap
$193.19B
Dividend Yield2.49%
Average Volume (3M)3.66M
Price to Earnings (P/E)43.8
Beta (1Y)1.74
Revenue Growth21.25%
EPS Growth97.42%
CountryUS
Employees4,735
SectorFinancial
Sector Strength93
IndustryAsset Management Services
Share Statistics
EPS (TTM)3.62
Shares Outstanding729,415,950
10 Day Avg. Volume3,954,374
30 Day Avg. Volume3,660,585
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)N/A
Price to Sales (P/S)11.73
Price to Cash Flow (P/CF)179.10
P/FCF Ratio135.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$190.20Price Target Upside26.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
Blackstone Group Business Overview & Revenue Model
Company DescriptionFounded in 1985 and headquartered in New York, The Blackstone Group is one of the world's leading investment companies. It operates through the following segments: Private Equity, Real Estate, Hedge Fund Solutions, and Credit & Insurance.
How the Company Makes MoneyBlackstone Group makes money primarily through management fees, performance fees, and investment income. The company earns management fees by charging a percentage of the assets under management (AUM) from its clients. Performance fees, also known as carried interest, are earned when Blackstone exceeds specific return thresholds on its investments. Additionally, Blackstone generates income from its own investments in funds and assets. Significant partnerships with institutional investors, such as pension funds and sovereign wealth funds, provide the firm with substantial capital to manage and invest, further boosting its revenue streams. The firm's diversified approach across multiple asset classes and strategies helps in mitigating risk and seizing opportunities for profit generation.
Blackstone Group Financial Statement Overview
Summary
Blackstone Group demonstrates strong revenue and profit growth, efficient operations, and robust cash flow generation. The absence of debt enhances financial stability, while strong cash reserves support liquidity and potential growth initiatives. The minor decline in net profit margin warrants some attention.Income Statement
Blackstone Group has demonstrated strong revenue growth with a notable increase of 72.2% from 2023 to 2024. The gross profit margin is robust at 100%, indicating efficient cost management. The EBIT margin has improved significantly to 66.7%, showcasing better operational efficiency. However, the net profit margin has slightly decreased to 21% due to increased expenses or other factors impacting net income.85
Very Positive
Balance Sheet
The company's balance sheet reflects a solid equity position with an equity ratio of 18.9%. There is zero total debt, which eliminates financial leverage risk. The ROE stands at 33.8%, indicating effective use of equity to generate profits. The company's liquidity appears stable, supported by ample cash reserves.78
Positive
Cash Flow
Operating cash flow to net income ratio is healthy at 1.25, suggesting strong cash generation from core operations. Free cash flow remains positive, although it has decreased slightly from the previous year. This indicates a stable cash flow position, supporting future investments and shareholder returns.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 13.23B | 7.68B | 7.13B | 16.65B | 5.23B | Gross Profit |
| 13.23B | 7.43B | 3.60B | 8.30B | 2.64B | EBIT |
| 8.82B | 3.66B | 2.54B | 7.04B | 1.40B | EBITDA |
| 0.00 | 3.48B | 1.32B | 0.00 | 945.77M | Net Income Common Stockholders |
| 2.78B | 1.39B | 2.99B | 12.37B | 2.26B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.97B | 3.27B | 4.25B | 2.12B | 2.00B | Total Assets |
| 43.47B | 40.29B | 42.52B | 41.20B | 26.27B | Total Debt |
| 0.00 | 12.29B | 13.46B | 8.71B | 6.34B | Net Debt |
| -1.97B | 9.02B | 9.21B | 6.59B | 4.34B | Total Liabilities |
| 23.97B | 22.21B | 22.84B | 19.49B | 11.68B | Stockholders Equity |
| 8.21B | 6.82B | 7.66B | 9.42B | 6.65B |
| Cash Flow | Free Cash Flow | |||
| 3.42B | 3.83B | 6.10B | 3.92B | 1.82B | Operating Cash Flow |
| 3.48B | 4.06B | 6.34B | 3.99B | 1.94B | Investing Cash Flow |
| -61.41M | -229.65M | -235.50M | -64.32M | -166.82M | Financing Cash Flow |
| -4.50B | -5.05B | -3.79B | -3.78B | -2.24B |
Blackstone Group Technical Analysis
Negative
150.73
Price Trends
169.83
Negative
172.45
Negative
152.35
Negative
Market Momentum
-4.73
Positive
31.51
Neutral
34.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BX, the sentiment is Negative. The current price of 150.73 is below the 20-day moving average (MA) of 163.08, below the 50-day MA of 169.83, and below the 200-day MA of 152.35, indicating a bearish trend. The MACD of -4.73 indicates Positive momentum. The RSI at 31.51 is Neutral, neither overbought nor oversold. The STOCH value of 34.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BX.
Blackstone Group Risk Analysis
Blackstone Group disclosed 75 risk factors in its most recent earnings report. Blackstone Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Blackstone Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $85.16B | 20.83 | 26.53% | 1.28% | -20.40% | -13.30% | |
68 Neutral | $18.00B | 17.98 | 16.08% | 2.90% | 62.87% | ― | |
67 Neutral | $107.28B | 36.86 | 13.23% | 0.53% | 42.19% | -18.20% | |
66 Neutral | $54.26B | 82.54 | 13.09% | 2.19% | 6.12% | -15.84% | |
65 Neutral | $193.19B | 43.77 | 33.81% | 2.49% | 21.25% | 97.42% | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% | |
60 Neutral | $3.45B | ― | -5.01% | 10.79% | -12.86% | -182.05% |
* Financial Sector Average
Performance Comparison
BX
Blackstone Group
150.73
29.14
23.97%
APO
Apollo Global Management
137.92
30.02
27.82%
KKR
KKR & Co
120.78
24.73
25.75%
CG
Carlyle Group
45.06
0.36
0.81%
BXMT
Blackstone Mortgage
20.09
2.39
13.50%
ARES
Ares Management
160.99
28.86
21.84%
Blackstone Group Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -18.00% | Next Earnings Date: Apr 17, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance by Blackstone with record distributable earnings and significant growth in fundraising and AUM across various segments. The infrastructure and credit businesses showed exceptional momentum. However, there were some concerns regarding real estate performance and a moderate pace of disinflation.Highlights
Record-Breaking Distributable Earnings
Distributable earnings increased 56% year-over-year to $2.2 billion, marking one of the best quarters in Blackstone's history.
Strong Inflows and Fundraising
Blackstone raised $57 billion in inflows in the fourth quarter and $171 billion for the year 2024, with significant contributions from private wealth and institutional channels.
Infrastructure Business Growth
Blackstone's Infrastructure Business (BIP) generated $1.2 billion of fee revenues, with assets under management (AUM) up 34% year-over-year.
Credit and Insurance Momentum
Credit and insurance business AUM reached $450 billion, with $100 billion in inflows for 2024, driven by strong performance and increased demand for private credit offerings.
Private Wealth Channel Success
Private wealth channel sales exceeded $28 billion in 2024, with notable contributions from BCRED and BXPE.
Lowlights
Real Estate Challenges
Real estate equity-oriented funds declined in the fourth quarter due to an 80 basis point increase in treasury yields and a stronger U.S. dollar.
Disinflation Concerns
Although Blackstone sees a path of disinflation, the process is occurring at a more moderate pace, causing some market volatility.
Company Guidance
During the Blackstone Fourth Quarter and Full Year 2024 Investor Call, the guidance provided highlighted several key financial metrics and achievements. Blackstone reported GAAP net income for the quarter of $1.3 billion, with distributable earnings reaching $2.2 billion or $1.69 per common share. The firm declared a dividend of $1.44 per share, payable to holders of record as of February 10. Notably, distributable earnings saw a year-over-year increase of 56%, supported by record fee-related earnings (FRE). Blackstone experienced significant inflows, with $57 billion in the fourth quarter and $171 billion for the year, marking substantial growth. The infrastructure strategy, BIP, was a major contributor, generating $1.2 billion in fee revenues with an AUM increase of 34% over the past year. Total AUM surpassed $1.1 trillion, establishing Blackstone as the largest alternative asset manager globally. The call underscored Blackstone's strategic focus on innovation, growth in private wealth, and expansion in infrastructure, credit, and insurance channels, with expectations for further acceleration in 2025.Blackstone Group Corporate Events
Financial Disclosures
Blackstone Projects $775M Revenue from Realization Activities
Neutral
Dec 23, 2024
Blackstone announced a preliminary estimate of over $775 million in revenue from realization activities for October 1 to December 23, 2024, mainly from Realized Performance Revenues. The estimate highlights significant realization activity but does not predict total revenues for the entire fourth quarter, indicating potential variability in financial results and implications for stakeholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.