AllianceBernstein (AB) AI Stock Analysis

• Market Cap: $4.44B
• Dividend Yield: 8.2%
• Average Volume (3M): 174.98K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.66
• Revenue Growth: N/A
• EPS Growth: 16.78%
• Country: US
• Employees: 4,341
• Sector: Financial
• Sector Strength: 71
• Industry: Asset Management
• EPS (TTM): 0.76
• Shares Outstanding: 110,537,290
• 10 Day Avg. Volume: 186,176
• 30 Day Avg. Volume: 174,978
• PEG Ratio: 0.17
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 3.29
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 1.69
• Enterprise Value/Ebitda: 5.47
• 1Y Price Target: $41.13
• Price Target Upside: -0.22% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• 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

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.

Valuation

The 10% FTM yield should provide valuation support.

Negative Factors

Investor Alignment

AB unit holders are just proxy investors ultimately, resulting in mismatch in alignment with no recourse given AB unit holders have no voting rights.

Market Interest

Given AB's MLP structure and likely even lower float, investor interest is expected to further decline.

AllianceBernstein Business Overview & Revenue Model

Company Description

AllianceBernstein 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 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	4.51B	4.56B	299.78M	305.50M	4.45B	308.40M
Gross Profit	2.66B	2.71B	299.78M	-1.39B	-1.31B	-1.21B
EBITDA	824.92M	1.12B	1.04B	1.01B	1.26B	1.06B
Net Income	376.91M	423.37M	264.18M	274.17M	385.84M	279.38M
Balance Sheet
Total Assets	1.98B	9.07B	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	2.79B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	449.00K	2.77M	1.29M	1.62M	2.14M	1.88M
Stockholders Equity	1.98B	4.92B	2.08B	2.07B	1.62B	1.60B
Cash Flow
Free Cash Flow	372.44M	1.28B	260.35M	300.31M	293.18M	228.51M
Operating Cash Flow	372.44M	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	-372.44M	-1.60B	-293.98M	-360.85M	-351.71M	-269.87M

AllianceBernstein Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.22
• 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 41.22 is above the 20-day moving average (MA) of 40.70, above the 50-day MA of 40.14, and above the 200-day MA of 36.88, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 57.27 is Neutral, neither overbought nor oversold. The STOCH value of 63.76 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
JHG	80 Outperform	$6.89B	16.64	8.87%	3.56%	17.59%	-8.81%
AMG	79 Outperform	$6.24B	16.53	13.47%	0.02%	-5.87%	-21.51%
AB	76 Outperform	$4.44B	11.95	18.55%	8.20%	―	16.78%
MAIN	74 Outperform	$6.01B	11.06	19.65%	6.24%	28.32%	13.63%
CNS	71 Outperform	$3.84B	23.94	32.70%	3.20%	12.95%	23.72%
Sector *	68 Neutral	$17.51B	11.65	10.43%	3.82%	9.93%	1.68%
STEP	60 Neutral	$7.35B	103.13	-88.82%	2.19%	88.68%	-494.20%

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.