Affiliated Managers (AMG) AI Stock Analysis

• Market Cap: $5.21B
• Dividend Yield: 0.02%
• Average Volume (3M): 243.58K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.84
• Revenue Growth: -6.37%
• EPS Growth: -28.43%
• Country: US
• Employees: 4,100
• Sector: Financial
• Sector Strength: 79
• Industry: Asset Management
• EPS (TTM): 5.20
• Shares Outstanding: 28,428,888
• 10 Day Avg. Volume: 222,801
• 30 Day Avg. Volume: 243,578
• PEG Ratio: 0.14
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.85
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 7.25
• Enterprise Value/Ebitda: 1.86
• 1Y Price Target: $194.67
• Price Target Upside: 6.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: $204.00 ▲(11.38%Upside)

AMG's stock score reflects a strong technical position, supported by positive earnings call sentiment and strategic corporate events. While financial performance presents some challenges, particularly in revenue and cash flow, the company's proactive strategic initiatives and positive market momentum suggest potential for future growth and value creation.

Positive Factors

Growth Strategy

AMG's long-term organic growth profile has improved meaningfully over the last five years due to ongoing strategy to evolve the business mix more toward Alternatives.

Investment

AMG has invested more than $2 billion in areas of secular growth and accelerated the evolution of the company towards private markets and liquid alternatives, expected to enhance long-term organic revenue and earnings growth.

Valuation

AMG is trading at a discount to its peer group, which supports the OUTPERFORM investment rating.

Negative Factors

Cash Flow

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

Revenue Performance

Revenues decreased 0.7% to $496.6 million, below the estimate of $510.0 million and the FactSet consensus of $501.9 million.

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 primarily makes money through its ownership interests in a diverse array of independent investment management firms. The company's revenue model is largely based on the fees earned by these affiliates, which include management fees, performance fees, and other related investment advisory fees. Management fees are typically calculated as a percentage of assets under management (AUM), whereas performance fees are earned based on the investment performance of client portfolios relative to benchmarks or specific targets. AMG's revenue is further enhanced by its strategic partnerships, which often involve acquiring equity stakes in high-quality asset managers. These partnerships allow AMG to benefit from the growth and success of its affiliates, contributing to its overall earnings.

Affiliated Managers Financial Statement Overview

Summary

Affiliated Managers presents a mixed financial picture. Strong gross profitability and a healthy equity base are positive, but 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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.03B	2.04B	2.06B	2.33B	2.41B	2.03B
	Gross Profit
1.13B	2.00B	1.15B	1.26B	1.37B	1.14B
	EBIT
645.00M	706.70M	792.10M	805.20M	1.02B	566.60M
	EBITDA
1.04B	1.07B	1.23B	1.88B	1.27B	769.60M
	Net Income Common Stockholders
434.10M	511.60M	672.90M	1.15B	565.70M	202.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
816.50M	1.01B	1.27B	1.15B	987.00M	1.11B
	Total Assets
8.71B	8.83B	9.06B	8.88B	8.88B	7.89B
	Total Debt
0.00	2.62B	2.54B	2.54B	2.49B	2.31B
	Net Debt
-816.50M	1.67B	1.72B	2.11B	1.58B	1.27B
	Total Liabilities
4.25B	4.18B	4.10B	4.24B	4.49B	3.90B
	Stockholders Equity
3.19B	3.35B	3.59B	3.23B	2.79B	2.78B
Cash Flow		Free Cash Flow
718.90M	928.70M	861.90M	1.04B	1.25B	1.00B
	Operating Cash Flow
722.90M	932.10M	874.30M	1.05B	1.26B	1.01B
	Investing Cash Flow
269.00M	379.10M	264.50M	-109.90M	-583.70M	-53.70M
	Financing Cash Flow
-1.19B	-1.18B	-758.30M	-1.40B	-798.30M	-455.40M

Affiliated Managers Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 183.15
• 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 183.15 is above the 20-day moving average (MA) of 179.59, above the 50-day MA of 170.15, and above the 200-day MA of 176.98, indicating a bullish trend. The MACD of 2.85 indicates Negative momentum. The RSI at 62.11 is Neutral, neither overbought nor oversold. The STOCH value of 90.15 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	81 Outperform	$4.18B	13.84	26.57%	3.15%	6.53%	36.51%
AB	76 Outperform	$4.47B	10.90	20.69%	7.92%	―	53.17%
JHG	76 Outperform	$5.81B	14.66	8.55%	4.34%	17.41%	-4.75%
AMG	74 Outperform	$5.21B	14.38	12.81%	0.02%	-6.37%	-28.43%
CNS	69 Neutral	$3.95B	25.33	35.42%	3.20%	10.26%	19.56%
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%
STEP	63 Neutral	$6.69B	103.13	-71.28%	1.67%	118.79%	-285.61%

Affiliated Managers Corporate Events

Affiliated Managers Appoints Thomas Wojcik as President

On June 3, 2025, Affiliated Managers Group, Inc. appointed Thomas M. Wojcik as President while he continues as Chief Operating Officer. This move is part of AMG’s strategy to enhance its growth and value creation, with Wojcik playing a key role in expanding the company’s participation in secular growth areas, including private markets and liquid alternative strategies, which now contribute significantly to earnings.

The most recent analyst rating on (AMG) stock is a Buy with a $191.00 price target. To see the full list of analyst forecasts on Affiliated Managers stock, see the AMG Stock Forecast page.

Affiliated Managers Holds Annual Stockholders Meeting

On May 22, 2025, Affiliated Managers Group, Inc. held its Annual Meeting of Stockholders, where key proposals were considered. The stockholders elected directors with over 96% approval, approved executive compensation by 97%, and ratified PricewaterhouseCoopers LLP as the independent public accounting firm with 93% support.

The most recent analyst rating on (AMG) stock is a Buy with a $202.00 price target. To see the full list of analyst forecasts on Affiliated Managers stock, see the AMG Stock Forecast page.

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.