Affiliated Managers (AMG) AI Stock Analysis

• Market Cap: $5.65B
• Dividend Yield: 0.02%
• Average Volume (3M): 218.03K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.86
• Revenue Growth: -6.37%
• EPS Growth: -28.43%
• Country: US
• Employees: 4,100
• Sector: Financial
• Sector Strength: 81
• Industry: Asset Management
• EPS (TTM): 5.20
• Shares Outstanding: 28,428,888
• 10 Day Avg. Volume: 256,754
• 30 Day Avg. Volume: 218,035
• PEG Ratio: -1.00
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.30
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 6.22
• Enterprise Value/Ebitda: 1.60
• 1Y Price Target: $200.50
• Price Target Upside: 0.00%
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: $208.00 ▲(3.74%Upside)

Affiliated Managers Group showcases strong operational efficiency and strategic growth initiatives, particularly in alternative strategies. The stock is currently exhibiting bullish technical indicators, supported by positive corporate developments. However, declining revenue and free cash flow pose challenges, requiring close monitoring. Overall, AMG presents a solid investment opportunity with a well-balanced risk-reward profile.

Positive Factors

Earnings Guidance

Q1/25 earnings guidance expects adjusted EBITDA to be above consensus.

Investment Strategy

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 Outflows

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

Equity Challenges

Despite challenges in equities, AMG's long-term organic growth profile has improved meaningfully over the last five years.

Revenues

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. (AMG) is a global asset management company that partners with investment management firms to help them enhance their growth and development. The company operates in the financial services sector, focusing on a diverse range of investment strategies across equity, fixed income, and alternative assets. AMG provides strategic, operational, and distribution support to its affiliates, enabling them to maintain their investment independence while benefiting from the company's resources and expertise.

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 demonstrates strong profitability and operational efficiency with robust margins and a healthy balance sheet. However, recent trends of declining revenue and free cash flow suggest potential challenges in maintaining growth. Financial stability is supported by prudent leverage and strong equity returns, positioning the company well within the asset management industry despite cash flow concerns.

Income Statement

The income statement showcases a solid financial performance with a Gross Profit Margin of 55.7% and a Net Profit Margin of 21.3% in the TTM period. However, there's a slight decline in Total Revenue from $2.05 billion to $2.03 billion, indicating a revenue contraction of -0.3% year-over-year. The EBIT Margin is healthy at 31.7%, while the EBITDA Margin stands at 51%. Despite the revenue contraction, margins remain strong, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a Debt-to-Equity Ratio of 0.82, indicating a balanced leverage level. The Return on Equity (ROE) is strong at 13.6%, suggesting effective use of equity for generating profits. The Equity Ratio is at 36.6%, highlighting a solid equity base relative to total assets. Overall, the balance sheet reflects financial stability and prudent debt management.

Cash Flow

The cash flow statement shows a decline in Free Cash Flow from $928.7 million to $718.9 million, reflecting a negative Free Cash Flow Growth Rate of -22.6%. However, the Operating Cash Flow to Net Income Ratio is 2.15, indicating strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio is 1.66, further reinforcing cash efficiency despite the recent decline.

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	1.13B	1.15B	1.26B	1.37B	1.14B
EBITDA	1.04B	1.07B	1.23B	1.88B	1.27B	769.60M
Net Income	434.10M	511.60M	672.90M	1.15B	565.70M	202.20M
Balance Sheet
Total Assets	8.71B	8.83B	9.06B	8.88B	8.88B	7.89B
Cash, Cash Equivalents and Short-Term Investments	816.50M	1.01B	1.27B	1.15B	987.00M	1.11B
Total Debt	2.62B	2.62B	2.54B	2.54B	2.49B	2.31B
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	931.80M	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: 200.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 200.5 is above the 20-day moving average (MA) of 186.95, above the 50-day MA of 179.28, and above the 200-day MA of 178.35, indicating a bullish trend. The MACD of 5.43 indicates Negative momentum. The RSI at 76.89 is Negative, neither overbought nor oversold. The STOCH value of 91.60 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	$4.35B	14.40	26.57%	3.03%	6.53%	36.51%
AMG	76 Outperform	$5.65B	15.59	12.81%	0.02%	-6.37%	-28.43%
AB	76 Outperform	$4.57B	11.13	20.69%	7.76%	―	53.17%
JHG	75 Outperform	$6.32B	15.94	8.55%	3.99%	17.41%	-4.75%
CNS	69 Neutral	$3.97B	25.47	35.42%	3.18%	10.26%	19.56%
Sector *	67 Neutral	$16.84B	11.72	9.71%	3.76%	11.61%	-9.60%
STEP	63 Neutral	$6.59B	103.13	-71.28%	4.52%	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.