Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Blackstone Inc. is an investment firm. Its asset management business includes investment vehicles focused on private equity, real estate, public debt, and equity, life sciences, growth equity, opportunistic, non-investment grade credit, real assets, and secondary funds. It operates through four segments, namely real estate, private equity, hedge fund solutions, and credit and insurance.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics:

The graph below demonstrates that BX's Total AUM increased to USD 950.9 billion, up 30% YoY, with USD 44.8 billion inflows in the quarter. Fee-Earning AUM of USD 705.9 billion was up 34% YoY, with USD 51.5 billion of inflows in the quarter and Perpetual Capital AUM reached USD 359.6 billion, up 83% YoY basis. Additionally, Fee Related Earnings of USD 4.29 per share in Q3FY22, an increase of 74% YoY due to better realizations and Inflows.

1.4 Top 10 shareholders:

The top 10 shareholders together form ~26.70% of the total shareholding, signifying diverse shareholding. The Vanguard Group, Inc. BlackRock Institutional Trust Company, N.A. are the biggest shareholders, holding the maximum stake in the company at ~6.60% and ~3.91%, respectively.  

1.5 Consistent dividend History

BX has been paying dividends since 2007 and has a track record of consistent dividend payments with a current dividend yield of 5.63% higher than the US treasury yield.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates and Corporate Updates:

The below picture gives an overview of the recent updates:

 2.2 Insights of Q3FY22:

Section 3: Key Risks

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales per share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 22, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.