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Artisan Partners (APAM)
NYSE:APAM
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Artisan Partners
(NYSE:APAM)
71Outperform
Artisan Partners (APAM) vs. S&P 500 (SPY)
Market Cap
$2.99B
Dividend Yield8.04%
Average Volume (3M)621.88K
Price to Earnings (P/E)10.1
Beta (1Y)1.33
Revenue Growth12.37%
EPS Growth14.69%
CountryUS
Employees584
SectorFinancial
Sector Strength84
IndustryAsset Management
Share Statistics
EPS (TTM)3.56
Shares Outstanding70,427,670
10 Day Avg. Volume543,366
30 Day Avg. Volume621,879
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)N/A
Price to Sales (P/S)2.91
Price to Cash Flow (P/CF)21.80
P/FCF Ratio20.90
Enterprise Value/Market Cap1.15
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit7.04
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$38.52Price Target Upside3.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Artisan Partners Business Overview & Revenue Model
Company DescriptionArtisan Partners (APAM) is a global investment management firm that provides a broad range of high-value-added investment strategies to clients worldwide. The company operates within the financial services sector and focuses on offering specialized investment solutions across various asset classes, including equity, fixed income, and alternative investments. Artisan Partners is known for its distinctive investment approach that combines rigorous research and disciplined investment processes to achieve attractive risk-adjusted returns for its clients.
How the Company Makes MoneyArtisan Partners generates revenue primarily through investment management fees, which are calculated as a percentage of the assets under management (AUM). The company manages funds for individual and institutional investors, and fees are typically based on the performance and size of the investment portfolios. Artisan Partners' revenue streams are influenced by the market value of the assets it manages and the performance of its investment strategies. Additionally, the firm may earn performance-based fees if certain funds exceed predefined performance benchmarks. Artisan Partners' earnings are also affected by its ability to attract and retain clients, which is bolstered by its reputation, long-term investment performance, and client service capabilities.
Artisan Partners Financial Statement Overview
Summary
Artisan Partners demonstrates strong revenue growth and profitability, with a robust balance sheet featuring no debt. However, challenges with cash flow management and converting income into cash slightly detract from its financial performance score.Income Statement
Artisan Partners has shown strong revenue growth, with a 14% increase from 2023 to 2024. The gross profit margin is healthy at 43.8%, and the net profit margin is solid at 23.4%. However, the decline from 2021's revenue peak indicates some volatility. The EBIT and EBITDA margins are robust at 32.9%, indicating efficient operations.75
Positive
Balance Sheet
The company has a strong equity position with a debt-to-equity ratio of 0, highlighting no leverage risk in 2024. Return on equity (ROE) is impressive at 66.8%, indicating high profitability for shareholders. However, the equity ratio is moderate at 24%, suggesting moderate financial leverage.70
Positive
Cash Flow
The free cash flow has decreased significantly from 2023 to 2024, impacting the free cash flow growth rate negatively. Operating cash flow to net income ratio is low at 0.008, indicating a potential issue in converting income to cash, but the free cash flow to net income ratio remains stable at 0.008.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.11B | 975.13M | 993.30M | 1.23B | 899.60M | Gross Profit |
| 487.42M | 445.74M | 482.90M | 664.20M | 463.80M | EBIT |
| 366.63M | 303.59M | 344.10M | 540.50M | 358.30M | EBITDA |
| 459.02M | 395.31M | 353.31M | 547.42M | 365.82M | Net Income Common Stockholders |
| 259.75M | 222.29M | 206.75M | 336.52M | 308.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 409.96M | 178.47M | 114.80M | 189.20M | 155.00M | Total Assets |
| 1.62B | 1.41B | 1.31B | 1.21B | 1.15B | Total Debt |
| 300.71M | 312.66M | 319.90M | 299.70M | 292.00M | Net Debt |
| 32.49M | 134.19M | 205.10M | 110.50M | 137.00M | Total Liabilities |
| 868.84M | 802.10M | 899.00M | 912.00M | 961.00M | Stockholders Equity |
| 388.92M | 324.15M | 279.40M | 296.00M | 191.00M |
| Cash Flow | Free Cash Flow | |||
| 368.09M | 244.40M | 293.05M | 392.58M | 315.58M | Operating Cash Flow |
| 372.84M | 253.03M | 312.61M | 398.55M | 318.68M | Investing Cash Flow |
| -24.87M | -38.17M | -63.73M | -26.97M | 18.75M | Financing Cash Flow |
| -254.22M | -174.96M | -306.40M | -335.43M | -282.23M |
Artisan Partners Technical Analysis
Neutral
37.05
Price Trends
39.49
Negative
41.41
Negative
41.17
Negative
Market Momentum
-1.00
Negative
49.05
Neutral
76.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APAM, the sentiment is Neutral. The current price of 37.05 is above the 20-day moving average (MA) of 36.39, below the 50-day MA of 39.49, and below the 200-day MA of 41.17, indicating a neutral trend. The MACD of -1.00 indicates Negative momentum. The RSI at 49.05 is Neutral, neither overbought nor oversold. The STOCH value of 76.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for APAM.
Artisan Partners Risk Analysis
Artisan Partners disclosed 39 risk factors in its most recent earnings report. Artisan Partners 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
Artisan Partners Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $3.26B | 11.28 | 24.98% | 3.09% | 2.32% | 1.08% | |
80 Outperform | $3.69B | 12.57 | 26.57% | 2.92% | 8.48% | 38.77% | |
78 Outperform | $933.67M | 7.07 | 16.12% | 13.73% | 48.54% | 6.64% | |
76 Outperform | $4.16B | 10.15 | 20.69% | 8.66% | ― | 53.17% | |
71 Outperform | $2.99B | 10.13 | 66.31% | 8.04% | 12.37% | 14.69% | |
65 Neutral | $4.68B | 10.76 | 14.75% | 0.02% | -6.77% | -14.55% | |
63 Neutral | $12.31B | 9.55 | 7.88% | 79.24% | 12.71% | -4.71% |
* Financial Sector Average
Performance Comparison
APAM
Artisan Partners
37.05
-1.53
-3.97%
AMG
Affiliated Managers
162.53
3.65
2.30%
AB
AllianceBernstein
37.64
6.56
21.11%
FHI
Federated Hermes
40.10
9.49
31.00%
VCTR
Victory Capital Holdings
57.77
7.87
15.77%
TRIN
Trinity Capital
14.86
1.60
12.07%
Artisan Partners Earnings Call Summary
Earnings Call Date:Feb 04, 2025
(Q4-2024)
| % Change Since: -14.28%|
Next Earnings Date:Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance in terms of investment growth and returns, particularly in the credit-oriented franchises and the Developing World strategy. However, there are challenges with net client cash outflows and a decline in assets under management. Despite these challenges, the overall financial and strategic performance is solid, with a focus on long-term growth.Q4-2024 Updates
Positive Updates
Credit-Oriented Investment Franchises Growth
In 2024, the Denver-based credit team raised $1.7 billion in net inflows, and the Boston-based EMsights Capital Group raised $1.9 billion in net inflows. Collectively, they raised $3.6 billion and now manage nearly $15 billion across six strategies.
Strong Performance and Returns
The high income, emerging markets debt opportunities, and emerging market local opportunities strategies have consistently outperformed their benchmarks by 174, 720, and 241 basis points annually, respectively.
Developing World Strategy Success
Celebrating its 10th anniversary, the Developing World strategy has generated a cumulative return of 157% since inception, which is more than four times greater than the MSCI Emerging Markets Index.
Financial Growth
Fourth quarter revenues rose by 6%, adjusted operating income increased by 12%, and the adjusted operating margin improved by 180 basis points compared to the previous quarter. Full-year revenues grew by 14% compared to 2023.
Negative Updates
Net Client Cash Outflows
Net client cash outflows for the December quarter were approximately $800 million, and full-year 2024 net client cash outflows were $3.7 billion.
Decline in Assets Under Management
Assets under management ended the December quarter at $161 billion, down 4% from last quarter.
Company Guidance
During the Artisan Partners' Fourth Quarter 2024 Earnings Conference Call, significant metrics and strategic insights were discussed. Artisan reported $160 billion in assets under management, noting that 13 out of 25 investment strategies achieved net inflows for the year, with 10 strategies exceeding $100 million in net inflows. The firm's fixed income business, led by Bryan Krug and the EMsights Capital Group, collectively raised $3.6 billion in net inflows in 2024, managing nearly $15 billion across six strategies. Additionally, Artisan's weighted average effective fee rate for 2024 was 67 basis points, including $12 million in performance fees earned in the fourth quarter. Financially, the fourth quarter saw a 6% revenue increase compared to the previous quarter, with adjusted operating income rising by 12% and a 180 basis point improvement in the adjusted operating margin. The firm declared a quarterly dividend of $0.84 per share and a special dividend of $0.50, reflecting an 8% dividend yield on 2024 earnings. Looking ahead, Artisan plans to continue expanding its investment platform and exploring opportunities in alternative investments.Artisan Partners Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Artisan Partners Announces New CEO Appointment
Positive
Mar 4, 2025
On March 4, 2025, Artisan Partners Asset Management Inc. announced that Jason A. Gottlieb will succeed Eric R. Colson as Chief Executive Officer, effective June 4, 2025, following the company’s annual meeting of stockholders. Mr. Colson will transition to the role of Executive Chair and Chair of the Board, while Stephanie DiMarco will become Lead Independent Director. This leadership transition is part of a long-term succession plan, with Mr. Gottlieb’s appointment reflecting his proven track record and strategic contributions to the company. The changes are expected to support the firm’s growth and continued success in delivering outcomes for clients, employees, and shareholders.
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.