BX Blackstone Inc. - Fundamental Analysis
NEUTRAL
BX Stock | Fundamental Analysis & Investment Insights
NYSE
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Financial Services
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Asset Management
Current Price
$141.44
Analyst Target
$179.56
+26.9% Upside
52W High
$200.96
52W Low
$115.66
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
Blackstone (BX) trades at a significant premium to peers on valuation metrics despite recent earnings and revenue declines, with a P/E of 40.64 versus sector average of 23.27 and forward P/E of 24.26 suggesting only moderate de-rating. Strong historical profitability (ROE 26.46%, Operating Margin 44.63%) and asset-light business model are offset by negative YoY growth (Revenue -19.6%, Earnings -21.4%) and deteriorating price momentum (-19.5% 1Y return). Analysts maintain a 'buy' recommendation with a $179.56 target implying 26.9% upside, yet insider selling of $50.7M over the past six months signals caution at current levels. BX remains a high-quality asset manager but appears overvalued relative to near-term fundamentals and peer group dynamics.
Key Strengths
Exceptional profitability with operating margin of 44.63% and ROE of 26.46%, well above sector average ROE of 42.28% and peer BLK's 12.07%
Asset-light model reflected in gross margin of 100.00%, indicating minimal cost of goods sold and high scalability
Strong return on invested capital implied by high ROE and lean balance sheet with Debt/Equity of 0.66, below sector average of 0.78
Attractive dividend yield of 3.32%, above peer group (SCHW: 1.1%, BLK: 2.2%, WFC: 3.0%)
Long-term price appreciation of +194.4% over 5 years demonstrates compounding power of alternative asset management franchise
Key Risks
Elevated valuation with P/E of 40.64, significantly above sector average (23.27) and peer BLK (27.25), creating vulnerability to multiple contraction
Negative revenue and earnings growth: Revenue down 19.6% YoY and earnings down 21.4%, contrasting sharply with sector average revenue growth of +56.54%
Deteriorating price momentum: -19.5% 1Y return and -12.9% 1M return, underperforming peers like SCHW (+18.8%) and WFC (+19.4%)
Unsustainable dividend payout ratio of 122.41%, indicating dividends exceed earnings, raising concerns about distribution coverage
Insider selling of $50.7M over last 6 months, with 5 sell transactions and no buys, suggesting lack of confidence at current valuation
AI Fair Value Estimate
Based on comprehensive analysis
$140.0
-1.0% below current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare BX against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations