Investment Thesis
Blackstone demonstrates exceptional operational efficiency with 40.2% operating margins and strong free cash flow generation ($957.6M), but the severe 50.1% decline in net income despite 9.2% revenue growth raises significant concerns about earnings quality and sustainability. The large gap between operating profit and net income suggests material headwinds from leverage, taxes, or non-operating items that require clarification.
Strengths
- Exceptional operating margin of 40.2% demonstrates highly efficient core business model
- Robust free cash flow generation of $957.6M (26.5% FCF margin) provides operational flexibility
- Revenue growth of 9.2% YoY shows business expansion in key markets
Risks
- Severe 50.1% decline in net income despite revenue growth indicates troubling earnings deterioration
- Debt-to-equity ratio of 1.60x combined with earnings decline elevates financial stress
- Modest ROE of 7.8% and ROA of 1.3% reveal capital efficiency challenges and limited profitability conversion
Key Metrics to Watch
- Net income trajectory and drivers behind operating-to-net income margin compression
- Assets Under Management (AUM) growth and fee income stability
- Effective tax rate and interest expense levels to assess sustainability of earnings
Financial Metrics
Revenue
3.6B
Net Income
649.7M
EPS (Diluted)
$0.83
Free Cash Flow
957.6M
Total Assets
48.3B
Cash
2.4B
Profitability Ratios
Gross Margin
N/A
Operating Margin
40.2%
Net Margin
18.0%
ROE
7.8%
ROA
1.3%
FCF Margin
26.5%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
1.60x
Debt/Assets
55.7%
Interest Coverage
10.62x
Long-term Debt
13.4B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-09T06:42:45.691090 |
Data as of: 2026-03-31 |
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