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Blackstone Group (BX)
NYSE:BX
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Blackstone Group
(NYSE:BX)
67Neutral
Positive Factors
Earnings
The BX share price rose on positive earnings results and reassurances, reflecting solid 1Q results with management fee, fundraising, and margin as bright spots.
Fundraising
BX finished with strong inflows, topping previous levels with broad-based capital raising including final closings for European real estate, global private equity, and PE energy transition funds.
Market Position
BX's strong competitive position and proactive management have kept its dominant market position unchanged, suggesting further potential for fundraising growth.
Negative Factors
Earnings Expectations
There is an expectation that Blackstone (BX) will not beat consensus EPS estimates in 1Q25.
Financial Performance
Despite a fairly high quality, management fee-driven EPS beat, the 2025 EPS estimate is falling by 3.8% due to lower near-term forecasts for exit-related realizations.
Real Estate
A slowed real estate recovery could prevent a near-term return for BX to past peak FRE multiples above 30x.
Blackstone Group (BX) vs. S&P 500 (SPY)
Market Cap
$162.57B
Dividend Yield2.9%
Average Volume (3M)6.08M
Price to Earnings (P/E)41.2
Beta (1Y)1.44
Revenue Growth24.92%
EPS Growth16.65%
CountryUS
Employees4,895
SectorFinancial
Sector Strength87
IndustryAsset Management
Share Statistics
EPS (TTM)1.09
Shares Outstanding729,647,950
10 Day Avg. Volume4,519,469
30 Day Avg. Volume6,083,621
Financial Highlights & Ratios
PEG Ratio-4.80
Price to Book (P/B)13.44
Price to Sales (P/S)0.00
P/FCF Ratio53.18
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue3.99
Enterprise Value/Gross Profit15.21
Enterprise Value/Ebitda8.90
Forecast
1Y Price Target
$147.47Price Target Upside5.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
Blackstone Group Business Overview & Revenue Model
Company DescriptionBlackstone Inc. is an alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies. The firm typically invests in early-stage companies. It also provide capital markets services. The real estate segment specializes in opportunistic, core+ investments as well as debt investment opportunities collateralized by commercial real estate, and stabilized income-oriented commercial real estate across North America, Europe and Asia. The firm's corporate private equity business pursues transactions throughout the world across a variety of transaction types, including large buyouts,special situations, distressed mortgage loans, mid-cap buyouts, buy and build platforms, which involves multiple acquisitions behind a single management team and platform, and growth equity/development projects involving significant majority stakes in portfolio companies and minority investments in operating companies, shipping, real estate, corporate or consumer loans, and alternative energy greenfield development projects in energy and power, property, dislocated markets, shipping opportunities, financial institution breakups, re-insurance, and improving freight mobility, financial services, healthcare, life sciences, enterprise tech and consumer, as well as consumer technologies. The firm considers investment in Asia and Latin America. It has a three year investment period. Its hedge fund business manages a broad range of commingled and customized fund solutions and its credit business focuses on loans, and securities of non-investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity. Blackstone Inc. was founded in 1985 and is headquartered in New York, New York with additional offices across Asia, Europe and North America.
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 Key Performance Indicators (KPIs)
Any
Assets Under Management
Measures the total value of assets managed, reflecting the scale of the firm's operations and its influence in the financial markets.
Measures the total value of assets managed, reflecting the scale of the firm's operations and its influence in the financial markets.
Data provided by:
Main Street Data
Main Street DataBlackstone Group Financial Statement Overview
Summary
Blackstone Group presents a strong financial position with healthy profitability and cash flow metrics. While revenue growth experienced some fluctuation, margins remain robust. The balance sheet reflects a solid equity base with decreasing leverage, enhancing financial stability.Income Statement
The income statement for Blackstone Group demonstrates strong profitability metrics with a consistent gross profit margin and net profit margin in the recent TTM period. Revenue growth rate fluctuated due to a significant drop from 2021 to 2022, followed by a recovery. EBIT and EBITDA margins are robust, indicating effective cost management and operational efficiency.75
Positive
Balance Sheet
Blackstone Group's balance sheet shows a solid equity base with an improving debt-to-equity ratio, thanks to reduced total debt levels over time. The return on equity is strong, reflecting efficient use of shareholder funds, but the equity ratio declined slightly, indicating a higher portion of assets financed by liabilities.65
Positive
Cash Flow
The cash flow statement highlights steady operating cash flow and a stable free cash flow position. The free cash flow to net income ratio is favorable, suggesting good cash generation relative to earnings. Although there is a slight volatility in free cash flow growth, overall cash flow metrics are healthy.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 11.95B | 12.66B | 7.68B | 7.13B | 16.65B | 5.23B | Gross Profit |
| 11.95B | 12.66B | 7.43B | 3.60B | 8.30B | 2.64B | EBIT |
| 5.89B | 6.29B | 3.66B | 2.54B | 7.04B | 1.40B | EBITDA |
| 4.43B | 6.29B | 3.48B | 1.32B | 0.00 | 945.77M | Net Income Common Stockholders |
| 2.54B | 2.78B | 1.39B | 2.99B | 12.37B | 2.26B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 0.00 | 1.97B | 3.27B | 4.25B | 2.12B | 2.00B | Total Assets |
| 0.00 | 43.47B | 40.29B | 42.52B | 41.20B | 26.27B | Total Debt |
| 0.00 | 0.00 | 12.29B | 13.46B | 8.71B | 6.34B | Net Debt |
| 0.00 | -1.97B | 9.02B | 9.21B | 6.59B | 4.34B | Total Liabilities |
| 25.39B | 23.97B | 22.21B | 22.84B | 19.49B | 11.68B | Stockholders Equity |
| 7.98B | 8.21B | 6.82B | 7.66B | 9.42B | 6.65B |
| Cash Flow | Free Cash Flow | ||||
| 3.42B | 3.42B | 3.83B | 6.10B | 3.92B | 1.82B | Operating Cash Flow |
| 4.57B | 3.48B | 4.06B | 6.34B | 3.99B | 1.94B | Investing Cash Flow |
| -1.24B | -61.41M | -229.65M | -235.50M | -64.32M | -166.82M | Financing Cash Flow |
| -3.34B | -4.50B | -5.05B | -3.79B | -3.78B | -2.24B |
Blackstone Group Technical Analysis
Neutral
139.39
Price Trends
137.73
Positive
154.03
Negative
154.72
Negative
Market Momentum
0.23
Negative
55.19
Neutral
80.05
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BX, the sentiment is Neutral. The current price of 139.39 is above the 20-day moving average (MA) of 131.83, above the 50-day MA of 137.73, and below the 200-day MA of 154.72, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 55.19 is Neutral, neither overbought nor oversold. The STOCH value of 80.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $52.13B | 90.23 | 15.93% | 2.37% | 19.02% | -20.50% | |
75 Outperform | $141.84B | 22.36 | 14.37% | 2.22% | 11.73% | 4.76% | |
73 Outperform | $100.95B | 49.44 | 9.03% | 0.59% | -27.45% | -46.67% | |
70 Outperform | $14.42B | 14.61 | 20.38% | 3.33% | 62.87% | ― | |
69 Neutral | $27.52B | 185.90 | 4.62% | 3.90% | 32.99% | 8.06% | |
67 Neutral | $162.57B | 41.18 | 34.07% | 2.90% | 24.92% | 16.65% | |
64 Neutral | $12.60B | 9.73 | 7.92% | 16985.68% | 12.21% | -5.61% |
* Financial Sector Average
Performance Comparison
BX
Blackstone Group
139.39
20.45
17.19%
BLK
BlackRock
923.44
150.97
19.54%
KKR
KKR & Co
118.08
18.25
18.28%
CG
Carlyle Group
42.04
1.23
3.01%
ARES
Ares Management
164.95
28.42
20.82%
OWL
Blue Owl Capital
18.48
0.73
4.11%
Blackstone Group Earnings Call Summary
Earnings Call Date:Apr 17, 2025
(Q1-2025)
| % Change Since: 8.50%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Positive
The earnings call highlights Blackstone's record asset management growth, strong performance in private credit, and significant fundraising successes, signaling robust business performance. However, concerns about market uncertainty and the impact of tariffs are noted as potential challenges. Overall, the positives significantly outweigh the negatives.Q1-2025 Updates
Positive Updates
Record High Asset Under Management
Blackstone reported a new record of nearly $1.2 trillion in assets under management, up 10% year-over-year.
Strong Performance in Private Credit
Blackstone's private credit business grew to $465 billion, up more than 2.5-fold in the past 4 years, with $113 billion in inflows over the last 12 months.
Significant Fundraising Success
Blackstone raised $62 billion of inflows in Q1, the highest level in 3 years, and approximately $200 billion over the last 12 months.
New Strategic Alliance
Blackstone announced a strategic alliance with Wellington and Vanguard to develop integrated public-private investment solutions.
Strong Fee-Related Earnings
Fee-related earnings grew 9% and management fees increased 11% to a record $1.9 billion in Q1.
Innovative Growth in Private Wealth
Blackstone raised $11 billion in the private wealth channel in Q1, up nearly 40% year-over-year to the highest level in nearly 3 years.
Negative Updates
Market Uncertainty Due to Tariffs
Uncertainty around tariffs and their potential impact on economic growth and inflation has dramatically impacted investor sentiment.
Challenges in Realization Activity
Realization activity is expected to be affected by policy-driven uncertainty and market volatility in the near term.
Potential Impact of Tariffs on Specific Holdings
The direct first order exposure across Blackstone's portfolio is limited, but there is potentially material impact to a relatively small group of companies.
Company Guidance
During the Blackstone First Quarter 2025 Investor Call, significant metrics were highlighted, reflecting robust financial performance despite a challenging market environment. GAAP net income for the quarter was reported at $1.2 billion, with distributable earnings reaching $1.4 billion or $1.09 per common share. The firm declared a dividend of $0.93 per common share, payable to holders of record as of April 28. Fee-related earnings increased by 9%, while assets under management grew by 10% year-over-year to a record $1.2 trillion, supported by $62 billion of inflows in Q1. The firm's private credit business also expanded, with $465 billion under management and $113 billion of inflows over the last 12 months. Blackstone's insurance AUM grew 18% year-over-year to $237 billion. The firm's infrastructure platform saw a 36% increase in AUM, reaching $60 billion, while multi-asset investing business AUM rose by 12% to $88 billion. The call emphasized Blackstone's strategic initiatives, including a new alliance with Wellington and Vanguard to develop public-private investment solutions, and the upcoming launch of a new perpetual flagship, BMACX, on May 1. Despite market volatility, Blackstone remains well-positioned with $177 billion of dry powder and a strong focus on long-term growth and innovation.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.