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AllianceBernstein Holding (AB)
:AB
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AllianceBernstein
(NYSE:AB)
80Outperform
Positive Factors
Analyst Recommendation
Analyst's recommendation is to buy the stock with a price objective of 45.00 USD while the current price is 35.97 USD.
Earnings Per Share
A decrease in diluted average share count is expected, enhancing earnings per share.
Long-Term Growth
The building blocks remain in place for AllianceBernstein to deliver among best in class long-term net new asset annual organic growth rate through 2025.
Negative Factors
Investor Interest
Given AB's MLP structure and likely even lower float, investor interest is expected to further decline.
Market Structure
Recent weakness is attributed to its structure and investors seeking higher beta opportunities.
Stock Ownership
AB unit holders are just proxy investors ultimately, resulting in mismatch in alignment with no recourse given AB unit holders have no voting rights.
AllianceBernstein (AB) vs. S&P 500 (SPY)
Market Cap
$4.24B
Dividend Yield8.5%
Average Volume (3M)938.98K
Price to Earnings (P/E)10.3
Beta (1Y)0.77
Revenue GrowthN/A
EPS Growth58.52%
CountryUS
Employees4,341
SectorFinancial
Sector Strength81
IndustryAsset Management
Share Statistics
EPS (TTM)3.71
Shares Outstanding110,530,330
10 Day Avg. Volume1,231,966
30 Day Avg. Volume938,977
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)N/A
Price to Sales (P/S)29.28
Price to Cash Flow (P/CF)12.00
P/FCF Ratio12.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$37.50Price Target Upside-2.27% Downside
Rating ConsensusHold
Number of Analyst Covering4
AllianceBernstein Business Overview & Revenue Model
Company DescriptionAllianceBernstein Holding L.P. is publicly owned investment manager. The firm also provides research services to its clients. It provides its services to investment companies, pension and profit sharing plans, banks and thrift institutions, trusts, estates, government agencies, charitable organizations, individuals, corporations, and other business entities. The firm invests in public equity, fixed income, and alternative investment markets across the globe. It employs long/short strategy to make its investments. The firm conducts in-house research to make its investments. AllianceBernstein Holding L.P. was founded in 1987 and is based in New York, New York.
How the Company Makes MoneyAllianceBernstein 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 presents a robust financial profile with strong profitability, excellent cash flow management, and a stable balance sheet. The company's revenue bounced back significantly in 2024, and it maintains high margins and a solid equity position with no leverage risk.Income Statement
AllianceBernstein demonstrates strong income statement metrics with a high gross profit margin of 59.48% and net profit margin of 25.74% for 2024. The company shows impressive revenue growth, bouncing back from zero revenue in 2023 to a total revenue of $4.56 billion in 2024. The EBIT and EBITDA margins are equally robust at 24.66%, indicating efficient operations. However, the negative gross profit in previous years highlights some past challenges.82
Very Positive
Balance Sheet
The balance sheet is very healthy, with a debt-to-equity ratio of zero, indicating no leverage risk. The equity ratio stands at 54.25%, showing strong financial stability and reliance on equity financing. The return on equity for 2024 is 23.83%, which is a strong indicator of profitability. The consistently high stockholders' equity suggests a solid financial position.88
Very Positive
Cash Flow
Cash flow metrics are excellent, with a significant free cash flow growth rate of 392.90% from 2023 to 2024. The operating cash flow to net income ratio is 1.20, indicating efficient cash generation from operations. The free cash flow to net income ratio is exceptionally high at 1.09, reflecting robust cash flow management and potential for reinvestment or return to shareholders.90
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 399.72M | 4.56B | 0.00 | 305.50M | 416.33M | 308.40M | Gross Profit |
| -1.04B | 2.71B | -1.52B | -1.39B | -1.31B | -1.21B | EBIT |
| 399.72M | 1.12B | -1.82B | 937.89M | 416.33M | 308.40M | EBITDA |
| 1.12B | 1.12B | 1.04B | 1.01B | 1.26B | 1.06B | Net Income Common Stockholders |
| 367.91M | 423.37M | 264.18M | 274.17M | 385.84M | 279.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 0.00 | 832.04M | 153.05M | 41.72M | 0.00 | 2.79B | Total Assets |
| 2.03B | 2.03B | 2.08B | 2.07B | 1.62B | 1.61B | Total Debt |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Debt |
| 0.00 | -832.04M | -153.05M | -40.78M | 0.00 | -1.04B | Total Liabilities |
| 2.77M | 2.77M | 1.29M | 1.62M | 2.14M | 1.88M | Stockholders Equity |
| 2.03B | 4.92B | 2.08B | 2.07B | 1.62B | 1.60B |
| Cash Flow | Free Cash Flow | ||||
| 332.30M | 1.28B | 260.35M | 300.31M | 293.18M | 228.51M | Operating Cash Flow |
| 394.23M | 1.41B | 293.98M | 362.61M | 355.11M | 270.01M | Investing Cash Flow |
| -62.50M | -115.73M | -33.63M | -1.77M | -3.40M | -147.00K | Financing Cash Flow |
| -394.05M | -1.60B | -293.98M | -360.85M | -351.71M | -269.87M |
AllianceBernstein Technical Analysis
Positive
38.37
Price Trends
37.34
Positive
36.34
Positive
34.49
Positive
Market Momentum
0.37
Negative
60.19
Neutral
91.14
Negative
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 38.37 is above the 20-day moving average (MA) of 37.73, above the 50-day MA of 37.34, and above the 200-day MA of 34.49, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 60.19 is Neutral, neither overbought nor oversold. The STOCH value of 91.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AB.
AllianceBernstein Risk Analysis
AllianceBernstein disclosed 35 risk factors in its most recent earnings report. AllianceBernstein reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AllianceBernstein Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.24B | 10.34 | 20.63% | 8.50% | ― | 58.52% | |
76 Outperform | $151.14B | 23.17 | 14.67% | 2.11% | 12.15% | 15.17% | |
74 Outperform | $5.98B | 14.81 | 8.74% | 4.16% | 18.85% | 7.96% | |
71 Outperform | $7.15B | 13.57 | 5.31% | 5.23% | 3.97% | ― | |
70 Outperform | $21.08B | 10.32 | 20.60% | 5.25% | 9.80% | 17.87% | |
66 Neutral | $10.43B | 30.72 | 2.76% | 6.29% | 9.48% | -65.57% | |
64 Neutral | $14.53B | 10.25 | 8.67% | 4.22% | 16.51% | -12.20% |
* Financial Sector Average
Performance Comparison
AB
AllianceBernstein
38.37
7.00
22.31%
BLK
BlackRock
967.94
159.85
19.78%
BEN
Franklin Resources
19.85
-6.57
-24.87%
IVZ
Invesco
15.55
-0.16
-1.02%
TROW
T Rowe Price
94.70
-20.10
-17.51%
JHG
Janus Henderson Group
37.07
5.99
19.27%
AllianceBernstein Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -1.01% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call depicted a company experiencing robust growth in fixed income and private markets, supported by significant cost savings and strong performance fees. However, the persistent challenges in active equity outflows and institutional redemptions, along with fee rate pressures, present notable headwinds. Despite these challenges, the positive developments in other areas lend a cautiously optimistic outlook.Highlights
Record Net Inflows and Fixed Income Growth
In 2024, AllianceBernstein achieved over $4 billion in net inflows, with the active fixed income platform growing at a 9% annual organic growth rate, exceeding $24 billion in inflows, marking the highest year on record.
Cost Savings and Margin Improvement
The relocation of the New York City office contributed approximately $50 million in annual occupancy-related savings. The fourth quarter adjusted operating margin stood at 36.4%, up 720 basis points year-over-year, demonstrating strong operating leverage.
Private Markets AUM Growth
Private markets AUM reached $70 billion by year-end 2024, up 14% from the previous year. This segment represented over 16% of total asset management revenue for the year.
Strong Performance Fees
Performance fees surged 80% year-over-year to $227 million in 2024, exceeding prior guidance due to strong alpha generation across public and private alternative strategies.
Lowlights
Active Equity Outflows
Active equity outflows persisted in 2024, totaling $7 billion in the fourth quarter and $24 billion throughout the year, with redemptions concentrated within institutions and driven by European and emerging market strategies.
Institutional Redemptions
Institutional redemptions accelerated in the final quarter, with active equities continuing to drive channel outflows and resulting in modest outflows during the fourth quarter.
Fee Rate Pressure
The firm-wide fee rate was marginally lower at 39.8 basis points in 4Q 2024, following two consecutive quarters of sequential increases, influenced by mix-dependent factors.
Company Guidance
During AllianceBernstein's fourth quarter 2024 earnings call, several key financial metrics and strategic highlights were presented. The firm achieved a record $25 billion in net inflows for the year, with significant contributions from its fixed income platform, which grew at a 9% annual organic growth rate. The private markets AUM rose by 14% to $70 billion, supported by strategic partnerships, including Equitable's $10 billion commitment. The firm's adjusted operating margin increased to 36.4% in the fourth quarter, reflecting a strong operating leverage and cost-saving initiatives such as the $50 million annual occupancy-related savings from the New York City office relocation. For 2025, AllianceBernstein targets a baseline adjusted operating margin of 33%, with potential upside from favorable markets. The company also maintained a stable firm-wide fee rate of 39.8 basis points and reported a 36% increase in fourth quarter adjusted earnings per unit, amounting to $1.05, driven by robust performance fees and improved operating leverage.AllianceBernstein Corporate Events
Executive/Board Changes
AllianceBernstein Appoints Thomas Simeone as CFO
Neutral
Mar 12, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.