Affiliated Managers (AMG) AI Stock Analysis

• Market Cap: $4.72B
• Dividend Yield: 0.02%
• Average Volume (3M): 207.82K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.77
• Revenue Growth: -6.77%
• EPS Growth: -14.55%
• Country: US
• Employees: 4,000
• Sector: Financial
• Sector Strength: 93
• Industry: Asset Management Services
• EPS (TTM): 14.68
• Shares Outstanding: 29,257,013
• 10 Day Avg. Volume: 230,471
• 30 Day Avg. Volume: 207,822
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.40
• Price to Cash Flow (P/CF): 5.80
• P/FCF Ratio: 5.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $205.33
• Price Target Upside: 27.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

AMG's stock score reflects a balanced view of its financial health and strategic direction. The company demonstrates robust earnings growth and strategic investments, offset by challenges in revenue and cash flow. Technical indicators suggest caution due to bearish momentum, while the valuation remains attractive. The positive sentiment from the earnings call supports a favorable outlook, but careful attention to liquidity and market trends is advised.

Positive Factors

Company Strategy

AMG has accelerated the evolution of the company towards private markets and liquid alternatives, expected to enhance long-term revenue and earnings growth.

Valuation

AMG is trading at a discount to its peer group, which supports the OUTPERFORM investment rating.

Negative Factors

Earnings Guidance

Q4/24 earnings guidance below consensus, with expected adjusted EBITDA and economic earnings per share lower than estimates.

Affiliated Managers Business Overview & Revenue Model

Company Description

Affiliated Managers Group, Inc. (AMG) is a global asset management company that partners with boutique investment management firms. Through its affiliates, AMG provides a diverse range of investment products and services, including mutual funds, institutional funds, and high-net-worth investment solutions. The company operates across various sectors, including equities, fixed income, and alternative investments, catering to a broad spectrum of clients worldwide.

How the Company Makes Money

AMG makes money by acquiring equity stakes in boutique investment management firms, referred to as affiliates. These affiliates manage assets and generate revenue through management fees and performance-based fees from their clients' assets under management (AUM). AMG benefits from these revenue streams by taking a share of the fees earned by its affiliates, while also supporting their growth through strategic guidance and operational resources. Additionally, AMG may receive income from its own investments in certain financial products or through capital appreciation of its equity interests in affiliates. Significant factors contributing to AMG's earnings include the performance of global financial markets, the success and growth of its affiliates, and the company's ability to attract and retain high-quality investment firms.

Affiliated Managers Financial Statement Overview

Summary

Affiliated Managers presents a mixed financial picture. While the company maintains strong gross profitability and a healthy equity base, declining revenues and recent negative free cash flow highlight underlying challenges. The absence of debt in TTM is a positive development, but the overall financial trajectory indicates potential concerns over cash flow sustainability and net income pressure.

Income Statement

The company shows a mixed performance in the income statement. The Gross Profit Margin for TTM is strong at 84.07%. However, the Net Profit Margin has decreased to 37.62% compared to the previous year, indicating some pressure on net income. Revenue has declined over the past two years, with a significant drop of 26.33% from 2022 to TTM. The EBIT Margin is solid at 41.55%, but lower than in previous years, suggesting potential efficiency challenges.

Balance Sheet

The balance sheet is fairly robust with no total debt reported in TTM, significantly improving the Debt-to-Equity ratio. The Equity Ratio is healthy at 37.87%, indicating a solid equity base. Moreover, the Return on Equity for TTM is strong at 17.05%, demonstrating good profitability against shareholder investments. However, the overall equity has decreased slightly over the past years, which should be monitored.

Cash Flow

Cash flow metrics indicate some concerns. The Free Cash Flow has turned negative in TTM, from a positive $861.9 million the previous year, highlighting issues in cash generation. The lack of Operating Cash Flow data for TTM prevents a full analysis, but the previous year's Operating Cash Flow to Net Income Ratio was sound. The cash flow statement suggests potential liquidity issues that need addressing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.04B	2.06B	2.33B	2.41B	2.03B
	Gross Profit
1.13B	1.15B	1.26B	1.37B	1.14B
	EBIT
1.06B	792.10M	1.75B	1.13B	566.60M
	EBITDA
1.07B	1.28B	1.82B	1.19B	726.20M
	Net Income Common Stockholders
511.60M	672.90M	1.15B	890.10M	427.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.01B	1.27B	1.15B	987.00M	1.11B
	Total Assets
8.83B	9.06B	8.88B	8.88B	7.89B
	Total Debt
2.62B	2.54B	2.54B	2.49B	2.31B
	Net Debt
1.67B	1.72B	2.11B	1.58B	1.27B
	Total Liabilities
4.18B	4.10B	4.24B	4.49B	3.90B
	Stockholders Equity
3.35B	3.59B	3.23B	2.79B	2.78B
Cash Flow		Free Cash Flow
928.70M	861.90M	1.04B	1.25B	1.00B
	Operating Cash Flow
932.10M	874.30M	1.05B	1.26B	1.01B
	Investing Cash Flow
379.10M	264.50M	-109.90M	-583.70M	-53.70M
	Financing Cash Flow
-1.18B	-758.30M	-1.40B	-798.30M	-455.40M

Affiliated Managers Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 161.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMG, the sentiment is Negative. The current price of 161.23 is below the 20-day moving average (MA) of 171.04, below the 50-day MA of 179.42, and below the 200-day MA of 174.98, indicating a bearish trend. The MACD of -4.50 indicates Positive momentum. The RSI at 30.18 is Neutral, neither overbought nor oversold. The STOCH value of 47.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMG.

Affiliated Managers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APO	73 Outperform	$78.68B	19.24	26.53%	1.28%	-20.40%	-13.30%
CG	68 Neutral	$16.28B	16.25	16.08%	2.90%	62.87%	―
KKR	67 Neutral	$107.28B	36.86	13.01%	0.53%	42.19%	-18.20%
BX	65 Neutral	$193.19B	43.77	33.81%	2.49%	21.25%	97.42%
Sector *	64 Neutral	$14.34B	10.61	9.28%	4.07%	18.04%	-9.54%
AMG	63 Neutral	$4.72B	10.67	15.29%	0.02%	-6.77%	-14.55%
BAM	54 Neutral	C$133.84B	54.62	21.63%	2.73%	―	―