Affiliated Managers (AMG) AI Stock Analysis

• Market Cap: $4.97B
• Dividend Yield: 0.02%
• Average Volume (3M): 218.13K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.85
• Revenue Growth: -6.37%
• EPS Growth: -28.43%
• Country: US
• Employees: 4,100
• Sector: Financial
• Sector Strength: 86
• Industry: Asset Management
• EPS (TTM): 5.20
• Shares Outstanding: 28,783,937
• 10 Day Avg. Volume: 194,639
• 30 Day Avg. Volume: 218,128
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.94
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 8.55
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $187.75
• Price Target Upside: 3.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

AMG's overall stock score reflects a balanced outlook. Strengths include strategic growth in alternatives, attractive valuation, and technical resilience. However, declining revenues, negative free cash flow, and potential short-term volatility pose risks. The company's ability to stabilize cash flows and sustain earnings growth will be crucial for improving its financial health and stock performance.

Positive Factors

Assets Under Management

AMG’s aggregate assets under management were $728.4 billion as of September 30, up 14.6% YOY, above the FactSet consensus.

Company Evolution

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

Client Cash Outflows

Net client cash outflows were $8.3 billion in the fourth quarter, reflecting challenges in the equities sector.

Earnings Guidance

Q4/24 earnings guidance is below consensus, with adjusted EBITDA and economic net income expected to be below estimates.

Stock Performance

The stock was down $16.75 (or 9%) after the earnings call.

Affiliated Managers Business Overview & Revenue Model

Company Description

Affiliated Managers Group, Inc., through its affiliates, operates as an asset management company providing investment management services to mutual funds, institutional clients, and high net worth individuals in the United States. It provides advisory or subadvisory services to mutual funds. These funds are distributed to retail and institutional clients directly and through intermediaries, including independent investment advisors, retirement plan sponsors, broker-dealers, major fund marketplaces, and bank trust departments. The company also offers investment products in various investment styles in the institutional distribution channel, including small, small/mid, mid, and large capitalization value and growth equity, and emerging markets. In addition, it offers quantitative, alternative, and fixed income products, and manages assets for foundations and endowments, defined benefit, and defined contribution plans for corporations and municipalities. Affiliated Managers Group provides investment management or customized investment counseling and fiduciary services. Affiliated Managers Group, Inc. was formed in 1993 and is based in West Palm Beach, Florida with additional offices in Prides Crossing, Massachusetts; Stamford, Connecticut; London, United Kingdom; Dubai, United Arab Emirates; Sydney, Australia; Hong Kong; Tokyo, Japan, Zurich, Switzerland and Delaware.

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: Positive
• Last Price: 181.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMG, the sentiment is Positive. The current price of 181.16 is above the 20-day moving average (MA) of 163.65, above the 50-day MA of 163.71, and above the 200-day MA of 175.97, indicating a bullish trend. The MACD of 3.74 indicates Negative momentum. The RSI at 69.73 is Neutral, neither overbought nor oversold. The STOCH value of 81.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMG.

Affiliated Managers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCTR	80 Outperform	$3.90B	13.48	26.57%	2.90%	8.48%	38.77%
AB	76 Outperform	$4.62B	11.27	20.69%	7.94%	―	53.17%
JHG	71 Outperform	$5.52B	13.99	8.55%	4.38%	17.41%	-4.75%
AMG	70 Outperform	$4.97B	11.42	14.75%	0.02%	-6.37%	-28.43%
CNS	67 Neutral	$3.92B	25.33	35.42%	3.08%	10.26%	19.56%
Sector *	64 Neutral	$12.54B	9.79	7.92%	16985.69%	12.58%	-6.07%
STEP	63 Neutral	$6.15B	103.13	-26.81%	1.75%	118.79%	-285.61%

Affiliated Managers Corporate Events

AMG Announces New Partnerships and Strong Q1 Results

In the first quarter of 2025, AMG reported financial results with an Economic Earnings per share of $5.20, reflecting its strategic growth and capital allocation. The company announced new partnerships with Verition Fund Management and Qualitas Energy, enhancing its business profile in alternatives and private markets. AMG also declared a quarterly dividend and repurchased $173 million in common stock, demonstrating its strong capital position and commitment to shareholder value.

Spark’s Take on AMG Stock

According to Spark, TipRanks’ AI Analyst, AMG is a Neutral.

AMG’s overall stock score reflects a mixed outlook. The company’s strong earnings and strategic growth initiatives are positive, but they are offset by declining revenues, liquidity issues, and net outflows. While the valuation suggests potential upside, technical indicators warn of possible volatility. The company’s ability to stabilize cash flows and sustain earnings growth will be crucial for improving its financial health and stock performance.

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