Affiliated Managers (AMG) AI Stock Analysis

• Market Cap: $7.68B
• Dividend Yield: 0.02%
• Average Volume (3M): 327.49K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.89
• Revenue Growth: 1.08%
• EPS Growth: 8.24%
• Country: US
• Employees: 4,100
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 6.10
• Shares Outstanding: 28,128,908
• 10 Day Avg. Volume: 394,616
• 30 Day Avg. Volume: 327,494
• PEG Ratio: -0.79
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 2.82
• P/FCF Ratio: 6.19
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 5.36
• Enterprise Value/Gross Profit: 10.36
• Enterprise Value/Ebitda: 9.22
• 1Y Price Target: $358.60
• Price Target Upside: 32.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $303.00 ▲(11.60% Upside)

Affiliated Managers Group demonstrates strong financial performance, particularly in alternative strategies and strategic collaborations, as highlighted in the earnings call. The technical indicators show positive momentum, supporting a favorable outlook. However, challenges in revenue growth and cash flow, along with a modest dividend yield, slightly temper the overall score.

Positive Factors

Strategic Collaborations

The collaboration with Brown Brothers Harriman enhances AMG's product offerings in the U.S. wealth channel, potentially driving long-term growth and market expansion.

Growth in Alternative Assets

A significant increase in alternative AUM positions AMG strongly in a growing segment, supporting sustained revenue growth and diversification.

Record Net Inflows

Record net inflows indicate strong demand for AMG's investment strategies, enhancing revenue potential and competitive positioning.

Negative Factors

Outflows in Active Equities

Significant outflows in active equities highlight ongoing challenges in this segment, potentially impacting revenue and market share.

Declining Cash Flow Growth

A decline in cash flow growth can limit AMG's ability to invest in new opportunities and maintain financial flexibility, affecting long-term growth.

Decreasing Return on Equity

Decreasing return on equity suggests declining profitability relative to shareholders' equity, which may affect investor confidence and capital efficiency.

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 generates revenue primarily through its equity ownership in affiliated investment management firms, which allows it to earn a portion of the management fees and performance fees generated by these affiliates. The company typically receives a percentage of the earnings based on the assets under management (AUM) by its affiliates. Additionally, AMG may earn revenues from strategic partnerships and by providing support services to its affiliates, such as distribution, marketing, and operational resources. The performance of the affiliated firms and the overall market conditions significantly influence AMG's earnings, making its revenue model closely tied to the success of its investment strategies and the growth of its AUM.

Affiliated Managers Financial Statement Overview

Summary

Affiliated Managers shows strong profitability and operational efficiency, but faces challenges in revenue growth and cash flow generation. The balance sheet is stable with moderate leverage, but declining return on equity is a concern. Overall, the company is financially sound but needs to address growth and cash flow issues to maintain its competitive edge.

Income Statement

Affiliated Managers has demonstrated strong profitability with a consistent gross profit margin above 55% and a net profit margin around 26% in the TTM period. However, revenue growth has been volatile, with a significant drop in 2023 followed by a recovery in the TTM period. The EBIT and EBITDA margins remain robust, indicating efficient operations, but the decline in EBIT margin from 2024 to TTM suggests some operational challenges.

Balance Sheet

The company's balance sheet reflects moderate leverage with a debt-to-equity ratio around 0.71 in the TTM period, which is a slight improvement from previous years. Return on equity has decreased over the years, indicating a decline in profitability relative to shareholders' equity. The equity ratio remains stable, suggesting a balanced capital structure.

Cash Flow

Cash flow analysis shows a concerning decline in free cash flow growth, with a significant drop in the TTM period. The operating cash flow to net income ratio has decreased, indicating less cash generation from operations relative to net income. However, the free cash flow to net income ratio remains strong, suggesting efficient cash management despite the decline in growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.04B	2.04B	2.06B	2.33B	2.41B	2.03B
Gross Profit	1.06B	1.13B	1.15B	1.26B	1.37B	1.14B
EBITDA	1.19B	1.10B	1.28B	1.93B	1.30B	760.30M
Net Income	531.20M	511.60M	672.90M	1.15B	565.70M	202.20M
Balance Sheet
Total Assets	8.93B	8.83B	9.06B	8.88B	8.88B	7.89B
Cash, Cash Equivalents and Short-Term Investments	476.10M	1.01B	1.27B	1.15B	987.00M	1.11B
Total Debt	2.37B	2.62B	2.54B	2.54B	2.49B	2.31B
Total Liabilities	4.39B	4.18B	4.10B	4.24B	4.49B	3.90B
Stockholders Equity	3.34B	3.35B	3.59B	3.23B	2.79B	2.78B
Cash Flow
Free Cash Flow	924.00M	928.70M	861.90M	1.04B	1.25B	1.00B
Operating Cash Flow	929.30M	932.10M	874.30M	1.05B	1.26B	1.01B
Investing Cash Flow	-250.10M	379.10M	264.50M	-109.90M	-583.70M	-53.70M
Financing Cash Flow	-1.22B	-1.18B	-758.30M	-1.40B	-798.30M	-455.40M

Affiliated Managers Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 271.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 271.51 is above the 20-day moving average (MA) of 267.85, above the 50-day MA of 254.44, and above the 200-day MA of 209.23, indicating a bullish trend. The MACD of 6.38 indicates Positive momentum. The RSI at 60.04 is Neutral, neither overbought nor oversold. The STOCH value of 53.35 is Neutral, 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
HLNE	77 Outperform	$7.36B	23.88	31.85%	1.56%	13.01%	21.96%
STT	75 Outperform	$35.51B	13.46	11.14%	2.45%	5.62%	49.49%
AMG	74 Outperform	$7.68B	16.68	15.95%	0.02%	1.08%	8.24%
JHG	73 Outperform	$6.95B	13.24	11.10%	3.53%	14.48%	34.97%
BX	72 Outperform	$185.52B	43.62	35.17%	3.08%	33.12%	19.86%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
STEP	45 Neutral	$7.51B	-7.82	-750.11%	2.27%	92.02%	-1386.34%

Affiliated Managers Corporate Events

Affiliated Managers Completes $425M Senior Notes Issuance

On December 11, 2025, Affiliated Managers Group, Inc. completed the issuance and sale of $425 million in 5.500% Senior Notes due 2036. These notes, which are unsecured and unsubordinated, will mature on February 15, 2036, and the company plans to use the proceeds to redeem its 5.15% Convertible Trust Preferred Securities due 2037 and for general corporate purposes. The issuance is expected to impact the company’s financial operations by refinancing existing obligations and potentially improving its capital structure.

Affiliated Managers Announces Redemption of Preferred Securities

On December 8, 2025, Affiliated Managers Group, Inc. announced its plan to redeem all outstanding 5.15% Convertible Trust Preferred Securities due 2037 of AMG Capital Trust II on December 29, 2025. This redemption aims to simplify the company’s capital structure by using proceeds from a previously announced senior notes offering, although the redemption is not contingent on the offering’s completion.

Affiliated Managers Reports Strong Q3 2025 Financial Results

On November 3, 2025, AMG announced its financial results for the third quarter and nine months ended September 30, 2025, highlighting a 27% growth in Economic Earnings per share and a 17% increase in Adjusted EBITDA compared to the previous year. The company reported net client cash inflows of approximately $9 billion in the third quarter, driven by strong demand for alternative strategies, and a strategic collaboration with BBH to enhance its position in the U.S. wealth market.