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Blackstone Inc.

Data period: Annual Quarterly Graham uses annual
NYSE · Financial Services
Blackstone Inc.
BX · Asset Management
$123.79
▼ -1.22 (-0.98%)
Cached · 10 min
Overall Grade
D
Defensive
B
Enterprising
Profitability
A
Net Income Margin 21.6%
Fin. Health
F
Years to Pay Off Debt 21.8 yrs
Valuation
F
Margin of Safety 0.0%
Price-to-Book 10.98x
Cash Flow
A
Free Cash Flow $958M
CapEx % of Net Income 5.1%
Owner Earnings $692M
About Blackstone Inc.
Blackstone Inc. is an alternative asset management firm specializing in private equity, venture capital, real estate, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies. The firm typically invests in early-stage, seed, middle market, mature, late venture, growth capital, emerging growth, turnaround, and later 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. Within fund of fund investments, it seeks to invest in private equity funds, venture capital funds, mezzanine funds, distressed debt/turnaround funds, secondary investment funds & real estate funds. The firm's corporate private equity business pursues transactions throughout the world across a variety of transaction types, including large buyouts, recapitalization, 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, cargo, data processing, oil & gas production, oil & gas refining, oil & gas storage, building products, home entertainment, B2B, consumer electronics, home supply store, lodging, commercial services & supplies, metal & mineral mining machinery, coal, hazardous waste collection, solid waste collection, waste water treatment, renewable electricity, equity REITs, power generation by nuclear & fossil fuels, personal loan services, chemicals, other specialty retail, biotech, pharmaceuticals, metal, aerospace, healthcare, cable, entertainment services, infrastructure services, transportation infrastructure, exhaust, life sciences, alternative carriers, infrastructure, system software, manufacturing services, enterprise tech and consumer, enterprise software & application, as well as consumer technologies. The firm considers investment in Asia, Latin America, Japan, Australia, South Korea, Singapore, Hong Kong, Africa, Middle East, Beijing, Shanghai, India, Belgium, France, Ireland, Luxembourg, Monaco, Netherlands, United Kingdom, North America and South America. It seeks to invest between $0.25 million and $900 million per transaction. It invests in companies with enterprise value between $500 million and $5000 million. It makes equity investments up to $300 million through fund of fund investments. It has a three year investment period. The firm prefers to take majority and minority stakes. 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. through its subsidiary South City Projects (Kolkata) Limited offers residential and commercial real estate development services that include development of township, residential towers, malls, IT parks, stadiums, resorts, hospitals, and schools. Blackstone Inc. was founded in 1985 and is based in New York, New York with additional offices across Asia, Europe, North America and Central America.
Metric Explanations
What each dimension measures and where the thresholds come from.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Cap $151.3B
Enterprise Value $126.3B
P/E (TTM) 31.74
Dividend Yield 3.98%
Exchange NYSE
Gross Profit N/A
Operating Margin N/A
Net Margin 21.6%
Sector Financial Services
Industry Asset Management
Employees 5285
Country United States
📖
Full Graham Analysis

Mr. Market is currently offering Blackstone Inc. at $123.79.

The business passes only 2 of 5 of Graham's defensive criteria — well below his required standard.

At $123.79, the stock trades at a 753% premium to its Graham Number of $14.51. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics
Income Highlights
Metric Q1 2026 Q4 2025
Gross Profit % N/A N/A
Operating Margin % N/A N/A
Net Income % 21.6% 27.2%
Diluted EPS 0.83 1.30
Balance Sheet Highlights
Metric Q1 2026 Q4 2025
Total Assets $48.3B $47.7B
Total Debt $14.2B $13.3B
Working Capital N/A N/A
Years to Pay Debt 21.80 13.11
Cash Flow Highlights
Metric Q1 2026 Q4 2025 Q4 2024
Free Cash Flow $958M $1.0B N/A
Owner Earnings $692M $1.0B N/A
CapEx % of Net Income 5.1% 2.2% N/A
📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $2.8B ▲ $3.0B +6.2%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Net Margin
Prior year: 21.8% ▲ 21.6% -0.1pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$3.0B/qtr (≈$12.0B ann.)
vs > $1.5B annualised revenue
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$958M
vs Positive
Operating Cash Flow
$991M
Latest quarter · Buffett's cash reality check
ROIC
N/A
Based on latest annual operating income
Market Cap / Net Assets
4.3x
Net Assets: $21.4B
Asset Context — Asset Management
For banks and financial companies, book value is the most meaningful valuation anchor because assets are primarily financial instruments with known market values. Price-to-Book below 1.0x historically signals stress or deep value in this sector.
Peers & Industry Comparison
Asset Management — Auto-detected peers
Company Price Market Cap P/E Gross Margin Net Margin Revenue
BX $123.79 $151.3B 31.74 N/A 21.6% $3.0B
BLK
BlackRock, Inc.
$1,050.09 $171.0B 26.4 46.9% 24.4% $25.6B
MS
Morgan Stanley
$223.17 $352.0B 20.2 87.4% 24.8% $73.2B
GS
Goldman Sachs Group, Inc. (The)
$1,096.56 $323.5B 20.0 82.3% 29.4% $61.5B
SCHW
Charles Schwab Corporation (The
$91.70 $159.5B 18.2 97.5% 38.0% $24.8B
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
1.08%
Low — management has little skin in the game
Return on Equity (ROE)
7.8%
Weak — poor returns on equity
Return on Assets (ROA)
1.3%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$312M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+6.4% YoY
Debt is roughly stable
Leadership Team
Stephen Allen Schwarzman ,
Co-Founder, Chairman & CEO
Age 78
Pay: $125,641,824
19.338% of net income
Jonathan Gray CIMA
President, COO & Director
Age 56
Pay: $59,274,602
9.123% of net income
Michael Chae
CFO & Vice Chairman
Age 57
Pay: $8,436,779
1.299% of net income
Robert Christopher Heady
Senior MD - Hong Kong, Head of Asia Real Estate & Chairman of Asia Pacific
Pay: $4,932,575
0.759% of net income
Top Institutional Holders
Institution % Owned Shares
Blackrock Inc. 7.09% 52,702,690
Vanguard Capital Management LLC 6.50% 48,309,794
Morgan Stanley 4.37% 32,494,438
State Street Corporation 4.31% 32,027,701
Charles Schwab Investment Management, Inc. 2.88% 21,359,609
Geode Capital Management, LLC 2.47% 18,317,778
Vanguard Portfolio Management LLC 2.16% 16,037,998
JPMORGAN CHASE & CO 2.14% 15,928,310
⚠️ Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
1.58
High volatility — moves more than the market
Short Interest
2.7% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
0.72x
Conservative balance sheet — low financial risk
Current Ratio
0.90x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $101.73 Current: $123.79 High: $190.09
Currently at 25% of 52-week range

Blackstone Inc. (BX) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's Fair Value: $14.51. Margin of safety: 0%. Gross profit margin: N/A. Operating margin: N/A. Net margin: 21.6%. Market cap: $151.3B. Sector: Financial Services. Industry: Asset Management. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett principles.

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