Acadian Asset Management (AAMI) AI Stock Analysis

• Market Cap: $1.78B
• Dividend Yield: 0.08%
• Average Volume (3M): 241.14K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 1.26
• Revenue Growth: 21.14%
• EPS Growth: 42.83%
• Country: US
• Employees: 383
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.76
• Shares Outstanding: 35,811,913
• 10 Day Avg. Volume: 184,083
• 30 Day Avg. Volume: 241,137
• PEG Ratio: 0.28
• Price to Book (P/B): 49.74
• Price to Sales (P/S): 1.97
• P/FCF Ratio: 21.67
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $49.00
• Price Target Upside: -1.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: $51.00 ▲(2.62% Upside)

Acadian Asset Management's overall stock score is driven by its strong earnings call performance and reasonable valuation. Financial risks due to high leverage and mixed technical indicators slightly temper the score.

Positive Factors

Record AUM and Net Client Cash Flow

Record AUM and strong net client cash flow indicate robust client trust and effective asset management strategies, bolstering long-term revenue potential.

Strong Performance Across Investment Strategies

Outperforming benchmarks consistently showcases Acadian's competitive edge in systematic investing, enhancing its market reputation and client retention.

Transition to Pure-Play Public Systematic Manager

This strategic transition positions Acadian uniquely in the market, potentially attracting more clients and enhancing long-term growth prospects.

Negative Factors

High Debt Levels

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Decline in GAAP Net Income

The decline in GAAP net income may indicate underlying cost pressures or inefficiencies, which could affect future profitability if not addressed.

Outstanding Debt and Capital Allocation

Outstanding debt for seasonal expenses suggests potential cash flow management challenges, which could strain resources if not managed carefully.

Acadian Asset Management Business Overview & Revenue Model

Company Description

Acadian Asset Management, Inc. is a holding company, which engages in the provision of asset management services. It operates through the Quant and Solutions segment. The Quant and Solutions segment involves leveraging data and technology in a computational, factor-based investment process across a range of asset classes and geographies, including Global, non-U.S., emerging markets, and managed volatility equities, as well as multi-asset products. The company was founded in 1980 and is headquartered in Boston, MA.

How the Company Makes Money

Acadian Asset Management generates revenue primarily through management fees charged to its clients based on the assets under management (AUM). The firm typically earns a percentage of AUM for managing investment portfolios, which can vary by client type and agreement. Additionally, AAMI may earn performance fees when it surpasses certain investment benchmarks or targets, thus incentivizing superior performance. The company also benefits from strategic partnerships with financial institutions, allowing for enhanced distribution of its products and services, which can contribute to overall revenue growth. Key factors influencing its earnings include market conditions, client retention rates, and the firm's ability to innovate its investment strategies to meet evolving client needs.

Acadian Asset Management Financial Statement Overview

Summary

Acadian Asset Management shows solid revenue growth and profitability with strong cash flow generation. However, high debt levels and a low equity ratio present financial risks, necessitating careful leverage management.

Income Statement

Acadian Asset Management shows a steady revenue growth rate of 5.87% in the TTM, with a solid net profit margin of 16.28%. However, the gross profit margin has decreased compared to previous years, indicating potential cost pressures. The EBIT and EBITDA margins remain strong, reflecting efficient operations.

Balance Sheet

The company has a high debt-to-equity ratio of 38.95, indicating significant leverage, which poses a risk. Return on equity is moderate at 10.86%, but the equity ratio is low, suggesting a reliance on debt financing. The balance sheet shows potential financial instability due to high leverage.

Cash Flow

Free cash flow has grown by 41.71% in the TTM, indicating strong cash generation. The operating cash flow to net income ratio is healthy, but the free cash flow to net income ratio suggests that cash flow is slightly less than net income, which is typical for asset management firms.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	538.20M	505.60M	426.60M	417.20M	523.80M	499.50M
Gross Profit	245.60M	239.20M	213.20M	257.60M	239.20M	256.20M
EBITDA	178.40M	163.60M	133.40M	183.90M	225.10M	393.40M
Net Income	89.60M	85.00M	65.80M	100.60M	828.40M	286.70M
Balance Sheet
Total Assets	672.30M	703.20M	611.40M	518.70M	714.80M	1.38B
Cash, Cash Equivalents and Short-Term Investments	90.20M	94.80M	146.80M	108.40M	252.10M	371.30M
Total Debt	358.30M	341.60M	346.30M	349.30M	472.50M	489.10M
Total Liabilities	585.40M	616.10M	561.90M	540.30M	732.40M	994.80M
Stockholders Equity	9.20M	20.00M	40.20M	-21.60M	-17.60M	302.40M
Cash Flow
Free Cash Flow	53.00M	45.90M	54.50M	100.70M	-26.60M	64.60M
Operating Cash Flow	63.30M	55.80M	68.30M	116.80M	-11.50M	90.50M
Investing Cash Flow	-22.20M	-50.10M	-43.90M	-13.00M	1.04B	366.70M
Financing Cash Flow	-20.70M	-54.40M	1.80M	-233.70M	-1.18B	-229.10M

Acadian Asset Management Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 49.70
• 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 AAMI, the sentiment is Positive. The current price of 49.7 is above the 20-day moving average (MA) of 46.87, above the 50-day MA of 47.72, and above the 200-day MA of 34.95, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 62.18 is Neutral, neither overbought nor oversold. The STOCH value of 70.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AAMI.

Acadian Asset Management Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSLX	―	$2.13B	11.37	11.66%	9.17%	-6.29%	-15.46%
BBT	―	$2.03B	9.04	1.12%	0.78%	15.55%	401.99%
WT	―	$1.70B	30.48	11.22%	1.04%	15.43%	-19.63%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
VRTS	―	$1.10B	8.47	15.07%	5.45%	-3.07%	18.00%
AAMI	―	$1.78B	20.56	―	0.08%	21.14%	42.83%
PX	―	$1.12B	84.81	4.20%	1.37%	15.60%	445.23%

Acadian Asset Management Corporate Events

Brightsphere’s Acadian Shines in Record Earnings Call

The recent earnings call for Brightsphere Investment Group highlighted a robust financial performance by its subsidiary, Acadian Asset Management. The call reflected a positive sentiment, underscored by record-breaking assets under management (AUM) and substantial net client cash flows. Despite a slight dip in GAAP net income and earnings per share (EPS), the overall strategic initiatives and financial health of the company indicate a strong market position.

Acadian Asset Management Reports Record Q2 Growth

Acadian Asset Management Inc., a publicly traded company on the NYSE, specializes in providing institutional investors with quantitative and solutions-based investment strategies, managing approximately $151 billion in assets.