Buffett Brain · Research note
Score updated 28 Oct 2026 · analysis from 21 Sept 2026
BLK· Financial Services
BlackRock
BlackRock's 11.2% 5-year average ROIC is top-quintile in Financial Services, but a P/E of 31.4 limits margin of safety.
Buffett fit
Partial fit
Owner
52
Durability
70
Management
64
Price
15
Score updated 28 Oct 2026 · analysis from 21 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Financial Services stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning 100% of BlackRock would mean benefiting from its top-quintile 11.2% 5-year average , indicating efficient use of capital.
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BlackRock has been profitable every year for the past five years, demonstrating durability.
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BlackRock's share count CAGR of 1.82% suggests modest dilution, while its yield of 1.18% shows some commitment to returning capital to shareholders.
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With an earnings yield of 3.19% and an yield of 2.04%, BlackRock's valuation appears stretched.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
8- 15-year average of 11.2% is top-quintile in the Financial Services sector.
- 2 of 32.66% indicates efficient operations.
- 3Debt/Equity ratio of 0.27 shows conservative .
- 4Interest coverage ratio of 13.4 suggests strong ability to meet obligations.
Concerns
8- 1 ratio of 31.4 indicates high market expectations.
- 2 yield of 2.04% is below the target range.
- 3EPS CAGR of 0.53% suggests limited earnings growth.
- 4 of 46.7% is below sector top-quintile.
Price history
$1,158+22.7%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
BlackRock, Inc. primarily provides investment management services to a wide range of institutional and individual investors. The firm manages separate client-focused equity, fixed income, and balanced portfolios. With a net income of $5.55B and an of 32.66%, BlackRock generates substantial cash flow. However, a of 46.7% suggests room for improvement relative to sector leaders.
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 28, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Financial Services
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