FOR PROFESSIONAL RESEARCH WRITER ONLY

800 600 500 400 300 250 200 150

100 75

Percent shares traded

21 14 7

Target Price Range 2023 2024 2025

BLACKROCK, INC. NYSE-BLK 575.33 19.4 19.217.0 0.88 2.5% TIMELINESS 2 Raised 8/7/20 SAFETY 2 Raised 5/13/16 TECHNICAL 2 Raised 4/3/20 BETA 1.30 (1.00 = Market)

18-Month Target Price Range Low-High Midpoint (% to Mid)

$377-$872 $625 (10%)

2023-25 PROJECTIONS Ann’l Total

Price Gain Return High 860 (+50%) 13% Low 635 (+10%) 5% Institutional Decisions

3Q2019 4Q2019 1Q2020 to Buy 572 662 638 to Sell 555 564 636 Hld’s(000) 129902 127787 128282

High: 241.7 243.8 209.8 209.9 323.0 368.6 382.8 399.5 520.7 594.5 506.8 592.5 Low: 88.9 138.4 137.0 160.3 208.8 284.8 275.0 280.5 365.8 360.8 377.3 324.0

% TOT. RETURN 6/20 THIS VL ARITH.*

STOCK INDEX 1 yr. 19.3 -5.1 3 yr. 39.5 6.8 5 yr. 79.2 24.4

CAPITAL STRUCTURE as of 3/31/20 Total Debt $5933 mill. Due in 5 Yrs $3000 mill. LT Debt $5933 mill. LT Interest $180 mill.

(15% of Cap’l) Leases, Uncapitalized Annual Rentals $158 mill. Pfd Stock Preferred B and C, cv. into 1 com. shs.; 2.1 mill. shs.

Capital Stock 154,262,618 shares E (includes preferred shares)

MARKET CAP: $89 billion (Large Cap) FINANCIAL POSITION 2018 2019 3/31/20 ($MILL.) Cash Assets 6302 4829 4406 Accounts Receiv. 2657 3179 3095 Separate Accts. 90285 102844 83262 Other 60329 57770 58257 Total Assets 159573 168622 149020

Accounts Payable 1292 1167 982 Borrowings - - - - - - Other 124741 132526 113528 Total Liab. 126033 133693 114510

ANNUAL RATES Past Past Est’d ’17-’19 of change (per sh) 10 Yrs. 5 Yrs. to ’23-’25 Revenues 10.0% 7.5% 8.5% ‘‘Cash Flow’’ 13.5% 8.0% 8.0% Earnings 14.5% 9.5% 8.0% Dividends 14.5% 11.5% 9.0% Book Value 7.0% 6.0% 3.5%

Cal- Full endar Year

QUARTERLY REVENUES ($ mill.) Mar.31 Jun.30 Sep.30 Dec.31

2017 2824 2965 3233 3469 12491 2018 3583 3605 3576 3434 14198 2019 3346 3524 3692 3977 14539 2020 3710 3648 3800 3842 15000 2021 3900 3950 4050 4100 16000 Cal- Full

endar Year EARNINGS PER SHARE A

Mar.31 Jun.30 Sep.30 Dec.31 2017 5.23 5.22 5.78 6.24 22.47 2018 6.70 6.66 7.52 6.08 26.93 2019 6.61 6.41 7.15 8.34 28.48 2020 6.60 7.85 7.50 7.75 29.70 2021 7.90 8.00 8.15 8.20 32.25 Cal- Full

endar Year QUARTERLY DIVIDENDS PAID B

Mar.31 Jun.30 Sep.30 Dec.31 2016 2.29 2.29 2.29 2.29 9.16 2017 2.50 2.50 2.50 2.50 10.00 2018 2.88 2.88 3.13 3.13 12.02 2019 3.30 3.30 3.30 3.30 13.20 2020 3.63 3.63

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 9.95 15.91 16.26 37.65 38.99 24.89 45.04 50.93 54.53 60.34 66.38 69.75 69.06 78.08 2.57 4.14 3.06 9.93 7.84 5.90 12.41 15.82 17.70 19.10 21.40 21.97 21.05 24.59 2.17 3.50 3.87 8.16 5.91 6.11 10.55 12.37 13.79 16.87 19.29 19.79 19.04 22.47 1.00 1.20 1.68 2.68 3.12 3.12 4.00 5.50 6.00 6.72 7.72 8.72 9.16 10.00 .40 .86 .65 .87 .59 .34 .69 1.39 .88 .56 .40 1.35 .74 .97

12.07 14.41 83.57 90.13 92.89 128.86 137.74 140.48 148.37 156.82 163.95 174.37 180.14 198.93 63.67 64.00 129.01 128.66 129.90 188.81 191.19 178.31 171.22 168.72 166.92 163.46 161.53 159.98 30.4 24.2 35.8 20.8 31.6 28.2 17.2 14.5 13.5 16.0 16.6 17.5 18.3 18.8 1.61 1.29 1.93 1.10 1.90 1.88 1.09 .91 .86 .90 .87 .88 .96 .95

1.5% 1.4% 1.2% 1.6% 1.7% 1.8% 2.2% 3.1% 3.2% 2.5% 2.4% 2.5% 2.6% 2.4%

8612.0 9081.0 9337.0 10180 11081 11401 11155 12491 38.4% 41.7% 43.9% 49.4% 43.4% 43.1% 43.0% 44.1% 310.0 483.0 572.0 291.0 278.0 247.0 229.0 240.0

2063.0 2337.0 2458.0 2932.0 3294.0 3345.0 3172.0 3694.0 32.1% 25.4% 29.7% 25.7% 25.7% 27.2% 28.9% 30.0% 24.0% 25.7% 26.3% 28.8% 29.7% 29.3% 28.4% 29.6% 4407.0 4229.0 6278.0 6118.0 7142.0 5281.0 5467.0 6279.0 4544.0 4790.0 5687.0 4939.0 4938.0 4930.0 4915.0 5014.0 26334 25048 25403 26460 27366 28503 29098 31825 6.9% 8.1% 8.3% 9.7% 10.6% 10.3% 9.6% 10.3% 7.8% 9.3% 9.7% 11.1% 12.0% 11.7% 10.9% 11.6% 4.9% 5.3% 5.5% 6.7% 7.1% 6.6% 5.6% 6.4% 38% 43% 43% 40% 41% 44% 49% 45%

2018 2019 2020 2021 © VALUE LINE PUB. LLC 23-25 90.12 94.18 98.70 107.40 Revenues per sh 140.85 29.08 31.67 33.00 35.90 ‘‘Cash Flow’’ per sh 45.75 26.93 28.48 29.70 32.25 Earnings per sh A 41.50 12.02 13.20 14.52 15.68 Div’ds Decl’d per sh B 19.70 1.29 1.65 1.60 1.80 Cap’l Spending per sh 2.35

205.48 217.31 224.65 233.35 Book Value per sh CE 255.05 157.55 154.38 152.00 149.00 Common Shs Outst’g DE 142.00

18.2 15.8 Bold figures are Value Line estimates

Avg Ann’l P/E Ratio 18.0 .98 .86 Relative P/E Ratio 1.00

2.4% 2.9% Avg Ann’l Div’d Yield 2.6%

14198 14539 15000 16000 Revenues ($mill) 20000 40.5% 40.9% 40.5% 41.0% Operating Margin 40.0% 220.0 405.0 435 450 Depreciation ($mill) 515

4361.0 4484.0 4580 4900 Net Profit ($mill) 5980 20.0% 21.7% 21.5% 22.0% Income Tax Rate 22.0% 30.7% 30.8% 30.5% 30.6% Net Profit Margin 29.9% 5679.0 4784.0 5200 5500 Working Cap’l ($mill) 6350 4979.0 4955.0 6000 6500 Long-Term Debt ($mill) 7500 32374 33547 34150 34770 Shr. Equity ($mill) F 36220 11.9% 11.9% 11.5% 12.0% Return on Total Cap’l 13.5% 13.5% 13.4% 13.5% 14.0% Return on Shr. Equity 16.5% 7.4% 7.1% 7.0% 7.0% Retained to Com Eq 8.5% 45% 47% 49% 49% All Div’ds to Net Prof 47%

Company’s Financial Strength A+ Stock’s Price Stability 75 Price Growth Persistence 90 Earnings Predictability 90

(A) Diluted earnings. Excludes nonrecurring gains/(losses): ’07, (63¢); ’17, $7.63. Next erngs. rpt. due mid-October. May not sum due to rounding or changes in shares outstanding.

(B) Dividends historically paid late Mar., June, Sept., and Dec. (C) Includes intangibles. In 2019, $32.9 billion, $213.12 per share. (D) In millions. (E) Includes common stock, Series B,

and Series C preferred., which the company considers to be common stock equivalents for per-share calculations. (F) Excludes non- redeemable non-controlling interest.

BUSINESS: BlackRock, Inc., one of the world’s largest publicly traded investment management firms, manages assets on behalf of institutions and individuals worldwide through a variety of equity and balanced, fixed income, cash management, alternative invest- ment and advisory products. Also offers investment system, risk management, and financial advisory services. Assets under man-

agement: $7.43 trillion as of 12/31/19. Acquired Barclays Global In- vestors in ’09. Has about 16,200 full-time employees. Of- ficers/directors own 1.3% of common outstanding; PNC Financial, 21.9%; Vanguard, 5.8% (4/20 Proxy). Chairman/CEO: Laurence Fink. Incorporated: DE. Address: 55 E. 52nd St., New York, NY 10025. Telephone: 212-810-5300. Internet: www.blackrock.com.

BlackRock seems to have weathered the coronavirus storm quite well. The world’s largest investment manager reported second-quarter results that easily topped our expectations on both lines. The surprisingly strong performance was driven by sharply higher equity markets and a flood of investor money into fixed- income products. This helped lift the firm’s assets under management to $7.3 trillion, up from $6.5 trillion at the end of March. The iShares ETF business is still the crown jewel here. iShares net inflows of $51 billion in the second quarter represented 11% annualized organic asset growth. Of that, bond funds generated in- flows of approximately $57 billion, driven by renewed investor appetite for fixed- income products. These gains were partial- ly offset by outflows from institutional clients in the index and multiasset arena. BlackRock is trying to capitalize on increased ESG enthusiasm. Environ- mental, Social, and Governance—known colloquially as ESG—has grown rapidly in recent years as individuals place more em- phasis on backing companies that share their values on societal issues. Already a

leader in this field, BLK recently unveiled 10 additional exchange-traded funds aimed at both institutional and retail clients. Leadership views millennials as a key force behind the surge in ESG inter- est, and sees this is as a multidecade op- portunity to cement its status as the un- equivocal leader in sustainable investing. We expect BlackRock to remain active on the M&A front. Management has struck a number of bolt-on deals lately, in- cluding last year’s $1.3 billion acquisition of technology platform eFront. Although the firm hasn’t done a major transaction since its 2009 purchase of Barclays Global Investors, we believe leadership would be open to one if the right opportunity arises. Elsewhere, PNC Financial Services completed the sale of its equity stake in BlackRock. This is significant because the bank owned approximately 22% of all outstanding common stock. BLK used the event to repurchase 2.65 million shares directly from PNC at a cost of $1.1 billion. At the recent quotation, this timely is- sue offers below-average total return potential out to 2023-2025. Daniel Henigson, CFA August 7, 2020

LEGENDS 17.0 x ″Cash Flow″ p sh

. . . . Relative Price Strength Options: Yes Shaded area indicates recession

© 2020 Value Line, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. THE PUBLISHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber’s own, non-commercial, internal use. No part of it may be reproduced, resold, stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, service or product.

To subscribe call 1-800-VALUELINE

RECENT PRICE

P/E RATIO

RELATIVE P/E RATIO

DIV’D YLD( )Trailing:Median: VALUELINE