Artisan Partners (APAM) AI Stock Analysis

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Artisan Partners

(NYSE:APAM)

Rating:76Outperform

Price Target:―

Artisan Partners receives a strong overall score, driven by robust financial performance and attractive valuation. While technical analysis indicates potential overbought conditions, the company's strategic initiatives and corporate developments, including a positive CEO transition, support a favorable long-term outlook. However, challenges such as revenue declines and client outflows temper the near-term perspective.

Artisan Partners (APAM) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$3.26B

Dividend Yield7.22%

Average Volume (3M)605.45K

Price to Earnings (P/E)11.4

Beta (1Y)1.36

Revenue Growth7.18%

EPS Growth10.17%

CountryUS

Employees584

SectorFinancial

Sector Strength82

IndustryAsset Management

Share Statistics

EPS (TTM)0.83

Shares Outstanding70,427,670

10 Day Avg. Volume556,172

30 Day Avg. Volume605,454

Financial Highlights & Ratios

PEG Ratio4.05

Price to Book (P/B)6.61

Price to Sales (P/S)0.00

P/FCF Ratio6.71

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$40.21

Price Target Upside-0.54% Downside

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 exhibits strong financial health with consistent revenue growth and profitability. The income statement shows a solid revenue increase and robust profit margins, though there is modest pressure on profitability. The balance sheet is stable with manageable leverage but indicates some reliance on financial leverage. Cash flow management is a key strength, highlighting strong liquidity and financial flexibility.

Income Statement

Positive

Artisan Partners has demonstrated solid income statement performance with a consistent revenue growth trajectory, marked by a 16.5% increase from 2023 to TTM. The gross profit margin remains robust at 45.8%, reflecting efficient cost management. Net profit margin stands at 23.0%, showcasing strong profitability. EBIT and EBITDA margins are healthy at 34.0% and 39.0% respectively, indicating efficient operations and good leverage of operational expenses. While revenue has grown, margins have slightly decreased from historical peaks, suggesting modest pressure on profitability.

Balance Sheet

Positive

The balance sheet of Artisan Partners is moderately strong with a debt-to-equity ratio of 0.76, demonstrating manageable leverage. The return on equity is high at 66.2%, driven by strong net income relative to equity, but this also indicates reliance on financial leverage. The equity ratio stands at 28.8%, reflecting a relatively lower proportion of equity financing in the asset structure. Overall, the company maintains stability but faces potential risks from its leverage.

Cash Flow

Very Positive

Artisan Partners shows robust cash flow management with a significant operating cash flow to net income ratio of 1.6, indicating efficient cash conversion from operations. The free cash flow growth rate is impressive at 13.8% from 2023 to TTM, highlighting strong cash generation capabilities. The free cash flow to net income ratio is high at 1.6, underscoring solid liquidity and financial flexibility. Cash flow performance is a key strength for the company, supporting its operational and strategic initiatives.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.14B	1.11B	975.13M	993.30M	1.23B	899.60M
	Gross Profit
520.46M	517.68M	445.74M	482.90M	664.20M	463.80M
	EBIT
386.39M	366.63M	303.59M	344.10M	540.50M	358.30M
	EBITDA
443.04M	449.41M	395.31M	353.31M	547.42M	365.82M
	Net Income Common Stockholders
261.37M	259.75M	222.29M	206.75M	336.52M	308.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
212.90M	268.22M	178.47M	114.80M	189.20M	155.00M
	Total Assets
1.37B	1.62B	1.41B	1.31B	1.21B	1.15B
	Total Debt
298.90M	300.71M	312.66M	319.90M	299.70M	292.00M
	Net Debt
86.00M	32.49M	134.19M	205.10M	110.50M	137.00M
	Total Liabilities
868.10M	868.84M	802.10M	899.00M	912.00M	961.00M
	Stockholders Equity
394.60M	388.92M	324.15M	279.40M	296.00M	191.00M
Cash Flow		Free Cash Flow
418.81M	368.09M	244.40M	293.05M	392.58M	315.58M
	Operating Cash Flow
421.70M	372.84M	253.03M	312.61M	398.55M	318.68M
	Investing Cash Flow
-27.98M	-24.87M	-38.17M	-63.73M	-26.97M	18.75M
	Financing Cash Flow
-293.21M	-254.22M	-174.96M	-306.40M	-335.43M	-282.23M

Artisan Partners Technical Analysis

Technical Analysis Sentiment

Positive

Last Price40.43

Price Trends

50DMA

38.47

Positive

100DMA

39.98

Positive

200DMA

40.69

Positive

Market Momentum

MACD

1.37

Negative

RSI

56.88

Neutral

STOCH

28.18

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APAM, the sentiment is Positive. The current price of 40.43 is above the 20-day moving average (MA) of 40.28, above the 50-day MA of 38.47, and below the 200-day MA of 40.69, indicating a bullish trend. The MACD of 1.37 indicates Negative momentum. The RSI at 56.88 is Neutral, neither overbought nor oversold. The STOCH value of 28.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 2 New Risks

We depend on information technology, and any failures of, damage to or unauthorized access to our information technology systems or infrastructure, or those of third parties with which we do business, may disrupt our business, result in losses, damage our reputation or limit our growth. Q4, 2024

The investment management industry is intensely competitive and experiencing transformative pressures. Failure to address these transformative pressures and remain competitive could negatively impact our business. Q4, 2024

Artisan Partners Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FHI	80 Outperform	$3.33B	11.85	24.98%	2.91%	2.32%	1.08%
VCTR	78 Outperform	$4.13B	13.65	26.57%	2.75%	6.53%	36.51%
APAM	76 Outperform	$3.26B	11.39	69.81%	7.22%	7.18%	10.17%
AB	76 Outperform	$4.33B	10.56	20.69%	8.39%	―	53.17%
TRIN	74 Outperform	$935.50M	6.60	17.56%	14.18%	46.14%	34.91%
AMG	70 Outperform	$4.95B	13.65	12.81%	0.02%	-6.37%	-28.43%
Sector *	64 Neutral	$12.64B	9.78	7.67%	17015.08%	12.23%	-6.02%

* Financial Sector Average

Performance Comparison

APAM

Artisan Partners

40.43

-1.11

-2.67%

AMG

Affiliated Managers

173.97

13.54

8.44%

AllianceBernstein

39.14

8.30

26.91%

FHI

Federated Hermes

42.08

10.60

33.67%

VCTR

Victory Capital Holdings

61.09

8.47

16.10%

TRIN

Trinity Capital

14.47

1.63

12.69%

Artisan Partners Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q1-2025)

% Change Since: 9.33%|

Next Earnings Date:Aug 05, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted positive developments such as AUM growth, strong performance of new strategies, and significant growth in the intermediated wealth channel. However, these were counterbalanced by revenue declines, net client outflows, and a decrease in operating margin. Despite new strategy launches showing promise, the financial challenges faced in the quarter weigh on the overall sentiment.

Q1-2025 Updates

Positive Updates

Positive AUM Growth

Assets under management ended the March quarter at $162 billion, up slightly from last quarter and from a year ago, reflecting $4.1 billion of market returns and $1.8 billion in returns above benchmarks.

Strong Performance of New Strategies

The Global Unconstrained strategy generated average annual returns of 9.87% net of fees with a Sharpe ratio of 2.1. The Emerging Market Debt Opportunities strategy ranks in the first percentile of its eVestment peer universe.

Significant Growth in Intermediated Wealth Channel

The intermediated wealth channel now accounts for 60% of total AUM, with an annualized organic growth rate of 5% over five years.

New Strategy Launches

Introduction of the Artisan Global Special Situation strategy and the Artisan Franchise strategy, which are expected to attract significant interest, especially in the private wealth space.

Negative Updates

Decline in Revenues

First quarter results reflect lower revenues due to the absence of $17 million of performance fees realized in the fourth quarter of 2024, leading to a 7% decline in revenues.

Net Client Cash Outflows

Net client cash outflows during the March quarter were approximately $2.8 billion, including a $1.2 billion outflow from a separate account rebalancing within the mid-cap growth strategy.

Operating Margin Decrease

There was a 470 basis points decrease in the adjusted operating margin from the fourth quarter of 2024.

Company Guidance

During the Artisan Partners Asset Management call, guidance emphasized the firm's strategic expansion and success in navigating market volatility. Key metrics included a 60% AUM concentration in intermediated wealth clients and a 5% annualized organic growth rate over five years in this channel. Artisan's assets under management (AUM) stood at $162 billion at the end of the quarter, with net client cash outflows of approximately $2.8 billion, offset by $4.1 billion in market returns. The Global Value strategy demonstrated significant success, with a $1 million investment 18 years ago growing to $4.1 million, outperforming the index. The firm noted a 7% decline in revenues and a 470 basis point decrease in adjusted operating margin from the previous quarter, attributed to the absence of $17 million in performance fees. Despite these challenges, Artisan highlighted its strategy of leveraging market disruptions, emphasizing talent-driven growth and expansion into fixed income and alternative strategies, such as the newly launched Global Special Situations and Franchise strategies. The call concluded with a focus on expanding the firm's presence in the private wealth market, supported by a robust distribution network and strong investment performance across its strategies.

Artisan Partners Corporate Events

Business Operations and StrategyFinancial Disclosures

Artisan Partners Reports $164.4 Billion in Assets

Positive

May 9, 2025

On May 9, 2025, Artisan Partners Asset Management Inc. announced that its preliminary assets under management as of April 30, 2025, totaled $164.4 billion. This figure includes $80.2 billion from Artisan Funds and Artisan Global Funds, and $84.2 billion from separate accounts and other assets under management. The announcement reflects the company’s strong position in the investment management industry, showcasing its ability to manage a diverse range of assets and strategies, which may impact its market standing and stakeholder interests.

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.