BlackRock Enhanced Equity Dividend Trust
BlackRock Enhanced Equity Dividend Trust Fundamental Analysis
BlackRock Enhanced Equity Dividend Trust (BDJ) shows moderate financial fundamentals with a PE ratio of 5.60, profit margin of 1.97%, and ROE of 16.40%. The company generates $0.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 77.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze BDJ's fundamental strength across five key dimensions:
Efficiency Score
ExcellentBDJ demonstrates superior asset utilization.
Valuation Score
ExcellentBDJ trades at attractive valuation levels.
Growth Score
ModerateBDJ shows steady but slowing expansion.
Financial Health Score
ExcellentBDJ maintains a strong and stable balance sheet.
Profitability Score
ModerateBDJ maintains healthy but balanced margins.
Key Financial Metrics
Is BDJ Expensive or Cheap?
P/E Ratio
BDJ trades at 5.60 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BDJ's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values BlackRock Enhanced Equity Dividend Trust at 0.90 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.51 times EBITDA. This signals the market has high growth expectations.
How Well Does BDJ Make Money?
Net Profit Margin
For every $100 in sales, BlackRock Enhanced Equity Dividend Trust keeps $1.97 as profit after all expenses.
Operating Margin
Core operations generate 1.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.40 in profit for every $100 of shareholder equity.
ROA
BlackRock Enhanced Equity Dividend Trust generates $15.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
BlackRock Enhanced Equity Dividend Trust generates strong operating cash flow of $44.61M, reflecting robust business health.
Free Cash Flow
BlackRock Enhanced Equity Dividend Trust generates strong free cash flow of $44.61M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.25 in free cash annually.
FCF Yield
BDJ converts 2.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.001
vs 25 benchmark
Current Ratio
Current assets to current liabilities
20.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How BDJ Stacks Against Its Sector Peers
| Metric | BDJ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.60 | 18.56 | Better (Cheaper) |
| ROE | 16.40% | 828.00% | Weak |
| Net Margin | 197.24% | -175.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 20.60 | 663.54 | Strong Liquidity |
| ROA | 15.86% | -21308.00% (disorted) | Strong |
BDJ outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews BlackRock Enhanced Equity Dividend Trust's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical