AllianceBernstein (AB) AI Stock Analysis

• Market Cap: $3.57B
• Dividend Yield: 8.76%
• Average Volume (3M): 159.24K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.65
• Revenue Growth: N/A
• EPS Growth: -12.92%
• Country: US
• Employees: 4,341
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.86
• Shares Outstanding: 90,893,250
• 10 Day Avg. Volume: 180,737
• 30 Day Avg. Volume: 159,238
• PEG Ratio: 0.17
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 3.29
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 1.40
• Enterprise Value/Ebitda: 6.60
• 1Y Price Target: $41.75
• Price Target Upside: 6.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 3.33
• Revenue Forecast (FY): $3.56B

• Rating: 76 Outperform
• Price Target: ―

AllianceBernstein's strong financial foundation, characterized by high profitability, zero debt, and robust cash flow, is its key strength. The valuation is attractive due to its low P/E ratio and high dividend yield. Despite strong growth signals from recent earnings, challenges such as revenue decline and market volatility affecting fixed income remain concerns. Technical indicators suggest a stable trend with caution due to potential overbought conditions.

Positive Factors

Strong Financial Position

AllianceBernstein's zero debt and high equity position provide financial stability and flexibility, supporting long-term growth and resilience against market fluctuations.

Organic Growth and Market Expansion

Significant net inflows across distribution channels indicate strong client demand and effective market strategies, enhancing revenue potential and competitive positioning.

Expansion in Private Markets

Growth in private markets diversifies revenue streams and reduces reliance on traditional asset classes, positioning the company for sustained profitability.

Negative Factors

Revenue Decline

A significant decline in revenue growth raises concerns about the company's ability to maintain its market position and financial performance in the long term.

Equity Performance Deterioration

Underperformance in equity investments could impact client retention and future inflows, challenging the firm's competitive edge in asset management.

Volatility Impact on Fee Rates

Market volatility affecting fee rates can reduce revenue from management fees, impacting profitability and financial stability over time.

AllianceBernstein Business Overview & Revenue Model

Company Description

AllianceBernstein (AB) is a global asset management firm headquartered in New York City. The company operates in the financial services sector, offering a range of investment management services to institutional, high-net-worth, and retail clients. AllianceBernstein provides diversified investment solutions, including equity, fixed income, multi-asset, and alternative investment products, tailored to meet the unique needs of its clients worldwide.

How the Company Makes Money

AllianceBernstein generates revenue primarily through management fees, which are charged based on a percentage of assets under management (AUM). The firm earns these fees from managing portfolios for institutional clients, such as pension funds, insurance companies, and endowments, as well as for high-net-worth individuals and retail investors. In addition to management fees, the company may also earn performance fees, which are contingent on meeting or exceeding certain investment benchmarks. AllianceBernstein collaborates with various financial institutions and distribution networks to enhance its market reach and client base, further contributing to its revenue streams. Additionally, the company invests in research and technology to provide innovative investment solutions and maintain competitive advantages in the asset management industry.

AllianceBernstein Financial Statement Overview

Summary

AllianceBernstein showcases a strong financial position with exceptional profitability and a robust balance sheet characterized by zero debt and high equity. However, the significant decline in revenue in recent periods raises concerns about growth sustainability. Cash flow remains healthy and indicates efficient operations, but the negative free cash flow growth needs attention. Overall, the company is financially solid with areas to watch for future performance improvements.

Income Statement

AllianceBernstein has shown strong profitability in the TTM period with a gross profit margin of 100%, indicating that all revenue is being retained as gross profit. The net profit margin for the TTM period is 114.18%, which is exceptionally high, reflecting strong bottom-line performance. However, the revenue growth rate from 2024 to TTM shows a decline of approximately 91.76%, which is a significant concern. EBITDA and EBIT margins were 116.26% and 32.65%, respectively, indicating efficient operational management in the TTM period.

Balance Sheet

The balance sheet reflects a strong equity position with no debt, resulting in a debt-to-equity ratio of 0. The equity ratio is extremely high at 99.99%, showcasing a stable financial structure with minimal liabilities. However, the return on equity (ROE) for the TTM period is 21.48%, which is decent but indicates room for improvement in generating income from shareholders' equity.

Cash Flow

The cash flow statement is robust, with a high operating cash flow to net income ratio of 0.86, indicating efficient cash conversion from income. The free cash flow to net income ratio is 0.86 as well, showing strong free cash flow generation relative to income. Free cash flow growth, however, is negative when comparing the latest annual report to the TTM period, suggesting a need to monitor cash flow sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.38B	4.56B	299.78M	305.50M	4.45B	308.40M
Gross Profit	2.53B	2.71B	299.78M	-1.39B	-1.31B	-1.21B
EBITDA	537.41M	1.12B	1.04B	1.01B	1.26B	1.06B
Net Income	331.13M	423.37M	264.18M	274.17M	385.84M	279.38M
Balance Sheet
Total Assets	1.18B	2.03B	2.08B	2.07B	1.62B	1.61B
Cash, Cash Equivalents and Short-Term Investments	0.00	832.04M	153.05M	41.72M	0.00	0.00
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.87M	2.77M	1.29M	1.62M	2.14M	1.88M
Stockholders Equity	1.18B	2.03B	2.08B	2.07B	1.62B	1.60B
Cash Flow
Free Cash Flow	362.59M	1.28B	260.35M	300.31M	293.18M	228.51M
Operating Cash Flow	362.59M	1.41B	293.98M	362.61M	355.11M	270.01M
Investing Cash Flow	-115.73M	-115.73M	-33.63M	-1.77M	-3.40M	-147.00K
Financing Cash Flow	-362.59M	-1.60B	-293.98M	-360.85M	-351.71M	-269.87M

AllianceBernstein Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AB, the sentiment is Positive. The current price of 39.22 is above the 20-day moving average (MA) of 38.78, above the 50-day MA of 38.11, and above the 200-day MA of 37.50, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 60.24 is Neutral, neither overbought nor oversold. The STOCH value of 25.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AB.

AllianceBernstein Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AB	76 Outperform	$3.57B	12.92	19.77%	8.76%	―	-12.92%
VCTR	76 Outperform	$4.11B	15.19	15.59%	3.07%	19.81%	12.83%
AMG	73 Outperform	$7.14B	15.35	15.95%	0.02%	1.03%	8.24%
CNS	71 Outperform	$3.43B	21.09	31.53%	3.52%	12.73%	19.01%
APAM	69 Neutral	$3.52B	12.15	62.04%	8.08%	5.46%	2.10%
FHI	68 Neutral	$3.84B	10.37	32.06%	2.75%	9.32%	53.51%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

AllianceBernstein Corporate Events

AllianceBernstein Announces Preliminary Assets Under Management

On April 9, 2025, AllianceBernstein announced its preliminary assets under management as of March 31, 2025. This announcement provides stakeholders with an update on the company’s financial standing and may influence its market positioning and operational strategies.

Spark’s Take on AB Stock

According to Spark, TipRanks’ AI Analyst, AB is a Outperform.

AllianceBernstein’s overall stock score reflects a strong financial foundation with robust profitability and cash flow management. The company’s technical indicators suggest a neutral market position, while its attractive valuation, emphasized by a low P/E ratio and high dividend yield, enhances its investment appeal. Despite challenges in equity outflows and fee rate pressures noted in the earnings call, the firm’s strategic growth in fixed income and private markets, along with significant cost savings, provide a positive outlook.

To see Spark’s full report on AB stock, click here.

AllianceBernstein Appoints Thomas Simeone as CFO

On March 12, 2025, AllianceBernstein appointed Thomas Simeone as Chief Financial Officer, succeeding Jackie Marks, who departs the company with a standard severance package. Simeone, who has been with the company since 2004, previously served as Controller and Chief Accounting Officer. Additionally, Alexis Luckey was appointed as Chief Accounting Officer while retaining her role as Director of Financial Reporting.