Acadian Asset Management (AAMI) AI Stock Analysis

• Market Cap: $1.64B
• Dividend Yield: 0.09%
• Average Volume (3M): 279.61K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 1.17
• Revenue Growth: 20.99%
• EPS Growth: 42.84%
• Country: US
• Employees: 383
• Sector: Financial
• Sector Strength: 67
• Industry: Asset Management
• EPS (TTM): 0.64
• Shares Outstanding: 35,795,277
• 10 Day Avg. Volume: 288,761
• 30 Day Avg. Volume: 279,611
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 3.09
• Enterprise Value/Gross Profit: 6.43
• Enterprise Value/Ebitda: 9.28
• 1Y Price Target: $41.67
• Price Target Upside: -5.94% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 65 Neutral
• Price Target: $43.00 ▼(-2.93% Downside)

The overall stock score of 65 reflects a balanced view. The strong technical indicators and positive earnings call outlook are offset by financial challenges highlighted in the financial performance metrics, such as declining profitability and high leverage. The valuation is reasonable, and the dividend yield is attractive, adding to the stock's appeal.

Positive Factors

Earnings Growth

A significant increase in EPS is expected due to higher average assets under management resulting from a large mandate win.

Future Performance

The price target for AAMI has been raised by 33%, reflecting confidence in the company's future performance.

Negative Factors

Market Volatility Risk

There is a risk if market volatility persists that could impact the performance of Acadian Asset Management Inc.

Price Target Downside

The new price target suggests a potential downside of 5%.

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 earns revenue primarily through management fees charged on the assets under management (AUM). These fees are typically calculated as a percentage of the total AUM and vary based on the type of investment strategy and the complexity of the investment mandate. Additionally, the company may earn performance-based fees, which are contingent on achieving specific investment returns or outperforming certain benchmarks. Acadian also engages in significant partnerships with institutional investors, allowing it to expand its client base and investment offerings. Factors such as market performance, client retention, and the ability to attract new investments significantly contribute to the firm's earnings.

Acadian Asset Management Financial Statement Overview

Summary

Acadian Asset Management faces financial challenges with declining profitability and revenue growth. High leverage and negative equity raise solvency concerns, while cash flow performance is weakening. The company must address these issues to improve financial stability and growth prospects.

Income Statement

The gross profit margin is moderate at around 48.3% for TTM, indicating decent cost control. However, net profit margin declined from 39.9% in 2020 to 17.5% in TTM, suggesting increased expenses or reduced revenue efficiency. Revenue growth is slowing, with a 2.4% increase in TTM compared to 18.5% in 2023, reflecting market challenges or competitive pressures.

Balance Sheet

The company shows high leverage with a debt-to-equity ratio of 19.35 in TTM, indicating significant reliance on debt financing. The negative equity ratio of 3.2% in TTM is concerning, suggesting potential solvency issues. Return on equity is not meaningful due to negative equity, further highlighting financial instability.

Cash Flow

Operating cash flow in TTM is positive but has decreased from the previous year, indicating weakened cash generation capacity. Free cash flow to net income ratio is 0.41, showing limited conversion of earnings into cash. Free cash flow growth is negative, suggesting potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	519.80M	505.60M	426.60M	417.20M	523.80M	499.50M
Gross Profit	250.10M	239.20M	213.20M	257.60M	239.20M	256.20M
EBITDA	173.30M	163.60M	133.40M	183.90M	225.10M	393.40M
Net Income	90.50M	85.00M	65.80M	100.60M	828.40M	286.70M
Balance Sheet
Total Assets	677.30M	703.20M	611.40M	518.70M	714.80M	1.38B
Cash, Cash Equivalents and Short-Term Investments	119.60M	94.80M	146.80M	108.40M	252.10M	371.30M
Total Debt	419.90M	341.60M	346.30M	349.30M	472.50M	489.10M
Total Liabilities	584.80M	616.10M	561.90M	540.30M	732.40M	994.80M
Stockholders Equity	21.70M	20.00M	40.20M	-21.60M	-17.60M	302.40M
Cash Flow
Free Cash Flow	37.40M	45.90M	54.50M	100.70M	-26.60M	64.60M
Operating Cash Flow	47.40M	55.80M	68.30M	116.80M	-11.50M	90.50M
Investing Cash Flow	-36.90M	-50.10M	-43.90M	-13.00M	1.04B	270.00M
Financing Cash Flow	9.80M	-54.40M	1.80M	-233.70M	-1.18B	-77.40M

Acadian Asset Management Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.30
• 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 AAMI, the sentiment is Positive. The current price of 44.3 is above the 20-day moving average (MA) of 40.60, above the 50-day MA of 36.03, and above the 200-day MA of 29.27, indicating a bullish trend. The MACD of 2.10 indicates Negative momentum. The RSI at 69.09 is Neutral, neither overbought nor oversold. The STOCH value of 90.54 is Negative, 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
CSWC	75 Outperform	$1.24B	15.41	9.78%	12.19%	13.86%	-29.53%
TRIN	74 Outperform	$977.52M	6.90	17.31%	13.18%	31.43%	30.85%
VRTS	68 Neutral	$1.32B	9.30	16.46%	4.81%	0.66%	36.96%
AMTD	68 Neutral	$1.12B	1.37	11.11%	―	―	―
Sector *	67 Neutral	$17.02B	11.60	9.79%	3.95%	10.61%	2.06%
AAMI	65 Neutral	$1.64B	19.11	282.39%	0.09%	20.99%	42.84%
NMFC	65 Neutral	$1.08B	13.45	6.18%	12.84%	-3.55%	-20.43%

Acadian Asset Management Corporate Events

Acadian Asset Management Appoints New CFO Scott Hynes

On May 13, 2025, Acadian Asset Management‘s Board of Directors appointed Scott Hynes as Senior Vice President and Chief Financial Officer, effective May 19, 2025. Hynes, with a background in finance leadership roles at KeyCorp and State Street Corporation, will also serve as the principal financial officer. His compensation package includes a base salary of $450,000, a target bonus of $1.05 million, and participation in company benefit programs. Additionally, the Board approved the Amended and Restated Bylaws to reflect the company’s name change and held its 2025 Annual Meeting of Stockholders, where directors were elected, KPMG was ratified as the accounting firm, and executive compensation was approved.

The most recent analyst rating on (AAMI) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Acadian Asset Management stock, see the AAMI Stock Forecast page.