Blackstone Group (BX) AI Stock Analysis

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Blackstone Group

(NYSE:BX)

Rating:68Neutral

Price Target:

$153.00

▲(8.21%Upside)

The overall stock score reflects Blackstone's strong financial performance and positive earnings call sentiment. However, the high P/E ratio indicates potential overvaluation, and technical indicators suggest mixed momentum. Strategic initiatives and strong asset management growth are significant positives, supporting long-term growth despite market uncertainties.

Positive Factors

Competitive Position

Blackstone is best placed to navigate uncertain macroeconomic conditions with strength and breadth across its franchise.

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.

Negative Factors

Earnings Estimate

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.

Future Earnings

There is an expectation that Blackstone (BX) will not beat consensus EPS estimates in 1Q25.

Real Estate Recovery

A slowed real estate recovery could prevent a near-term return for BX to past peak FRE multiples above 30x.

Blackstone Group (BX) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$173.44B

Dividend Yield2.6%

Average Volume (3M)3.53M

Price to Earnings (P/E)43.2

Beta (1Y)1.42

Revenue Growth22.06%

EPS Growth16.57%

CountryUS

Employees4,895

SectorFinancial

Sector Strength79

IndustryAsset Management

Share Statistics

EPS (TTM)1.09

Shares Outstanding729,647,950

10 Day Avg. Volume3,286,666

30 Day Avg. Volume3,531,084

Financial Highlights & Ratios

PEG Ratio-0.24

Price to Book (P/B)7.18

Price to Sales (P/S)0.00

P/FCF Ratio9.01

Enterprise Value/Market Cap0.37

Enterprise Value/Revenue1.55

Enterprise Value/Gross Profit5.99

Enterprise Value/Ebitda2.91

Forecast

1Y Price Target

$151.20

Price Target Upside6.94% 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. Management fees are charged to investors based on a percentage of assets under management (AUM) and provide a steady stream of revenue. Performance fees, also known as carried interest, are earned when the firm's investment funds achieve returns above a certain threshold, aligning Blackstone's interests with those of its investors. Additionally, Blackstone generates income from its own investments in the funds it manages. The firm has significant partnerships with institutional investors and leverages its extensive expertise across its investment platforms to enhance value creation. Diversification across asset classes and geographies also contributes to Blackstone's financial performance.

Blackstone Group Key Performance Indicators (KPIs)

Any

Assets Under Management

Assets Under Management
Indicates the total value of assets that Blackstone Group manages on behalf of clients, reflecting the scale of its operations and potential for fee-based revenue growth.

Chart InsightsBlackstone's AUM has shown consistent growth, reaching a record $1.2 trillion, driven by strong inflows and strategic initiatives. The latest earnings call highlights robust performance in private credit and significant fundraising successes, despite market uncertainties. The firm's strategic alliances and new product launches, such as BMACX, are poised to enhance long-term growth. However, potential challenges from tariffs and market volatility could impact future realization activities. Overall, Blackstone's strategic positioning and innovation efforts underscore its resilience and growth potential in a challenging market environment.

Data provided by:

Main Street Data

Blackstone Group Earnings Call Summary

Earnings Call Date:Apr 17, 2025

(Q1-2025)

% Change Since: 10.06%|

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 Financial Statement Overview

Summary

Blackstone Group maintains a strong financial position with robust profitability and healthy cash flow metrics. While revenue growth showed some fluctuation, margins remain solid. The balance sheet reflects a strong equity base with decreasing leverage, enhancing financial stability.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
11.16B	11.37B	7.44B	7.45B	16.85B	5.40B
	Gross Profit
10.71B	10.93B	7.01B	7.13B	16.65B	5.23B
	EBIT
6.03B	6.46B	2.96B	3.46B	13.56B	2.62B
	EBITDA
6.07B	6.50B	3.00B	3.53B	13.63B	2.69B
	Net Income Common Stockholders
2.54B	2.78B	1.39B	1.75B	5.86B	1.05B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.39B	1.97B	2.96B	4.25B	2.12B	2.00B
	Total Assets
45.26B	43.47B	40.29B	42.52B	41.20B	26.27B
	Total Debt
13.39B	12.29B	0.00	0.00	0.00	0.00
	Net Debt
11.00B	10.31B	-2.96B	-4.25B	-2.12B	-2.00B
	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

Technical Analysis Sentiment

Positive

Last Price141.39

Price Trends

50DMA

136.03

Positive

100DMA

147.40

Negative

200DMA

155.76

Negative

Market Momentum

MACD

0.61

Negative

RSI

53.92

Neutral

STOCH

75.82

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BX, the sentiment is Positive. The current price of 141.39 is above the 20-day moving average (MA) of 140.83, above the 50-day MA of 136.03, and below the 200-day MA of 155.76, indicating a neutral trend. The MACD of 0.61 indicates Negative momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 75.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
BLK	78 Outperform	$153.67B	24.09	14.37%	2.10%	11.73%	4.76%
OWL	74 Outperform	$29.39B	191.94	4.62%	4.72%	32.99%	8.06%
CG	73 Outperform	$16.91B	15.82	20.38%	3.00%	81.86%	―
ARES	71 Outperform	$55.05B	97.43	12.97%	2.66%	19.02%	-22.75%
KKR	70 Neutral	$110.46B	53.77	9.03%	0.60%	-27.45%	-46.67%
BX	68 Neutral	$173.44B	43.25	34.07%	2.60%	22.06%	16.57%
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%

* Financial Sector Average

Performance Comparison

Blackstone Group

141.39

21.18

17.62%

BLK

Blackrock

993.30

239.62

31.79%

KKR

KKR & Co

126.00

15.14

13.66%

Carlyle Group

47.43

8.23

20.99%

ARES

Ares Management

168.78

34.84

26.01%

OWL

Blue Owl Capital

19.17

2.17

12.76%

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

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.