NYSE:AMG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$6.6b

Last Updated

2021/07/31 05:24 UTC

Data Sources

Company Financials +

Executive Summary

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. More Details


Snowflake Analysis

Proven track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Affiliated Managers Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AMG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AMG's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-5.3%

AMG

0.9%

US Capital Markets

-0.5%

US Market


1 Year Return

130.3%

AMG

57.6%

US Capital Markets

35.9%

US Market

Return vs Industry: AMG exceeded the US Capital Markets industry which returned 57.6% over the past year.

Return vs Market: AMG exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

AMGIndustryMarket
7 Day-5.3%0.9%-0.5%
30 Day1.3%0.7%0.3%
90 Day-1.7%5.3%3.1%
1 Year130.4%130.3%60.9%57.6%38.0%35.9%
3 Year6.6%4.2%77.4%64.6%62.9%52.7%
5 Year11.8%8.3%169.8%137.5%121.7%97.3%

Long-Term Price Volatility Vs. Market

How volatile is Affiliated Managers Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Affiliated Managers Group undervalued compared to its fair value and its price relative to the market?

15.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AMG ($158.44) is trading above our estimate of fair value ($97.28)

Significantly Below Fair Value: AMG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AMG is poor value based on its PE Ratio (15.6x) compared to the US Capital Markets industry average (13.2x).

PE vs Market: AMG is good value based on its PE Ratio (15.6x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: AMG is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: AMG is good value based on its PB Ratio (2.5x) compared to the US Capital Markets industry average (61.5x).


Future Growth

How is Affiliated Managers Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMG's forecast earnings growth (13% per year) is above the savings rate (2%).

Earnings vs Market: AMG's earnings (13% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: AMG's earnings are forecast to grow, but not significantly.

Revenue vs Market: AMG's revenue (6.1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: AMG's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMG's Return on Equity is forecast to be high in 3 years time (28.4%)


Past Performance

How has Affiliated Managers Group performed over the past 5 years?

-24.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMG has high quality earnings.

Growing Profit Margin: AMG's current net profit margins (20.3%) are higher than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: AMG's earnings have declined by 24.6% per year over the past 5 years.

Accelerating Growth: AMG's earnings growth over the past year (260%) exceeds its 5-year average (-24.6% per year).

Earnings vs Industry: AMG earnings growth over the past year (260%) exceeded the Capital Markets industry 55.6%.


Return on Equity

High ROE: AMG's Return on Equity (18.4%) is considered low.


Financial Health

How is Affiliated Managers Group's financial position?


Financial Position Analysis

Short Term Liabilities: AMG's short term assets ($1.6B) exceed its short term liabilities ($31.4M).

Long Term Liabilities: AMG's short term assets ($1.6B) do not cover its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: AMG's debt to equity ratio (53.4%) is considered high.

Reducing Debt: AMG's debt to equity ratio has increased from 47.1% to 53.4% over the past 5 years.

Debt Coverage: AMG's debt is well covered by operating cash flow (53.2%).

Interest Coverage: AMG's interest payments on its debt are well covered by EBIT (46x coverage).


Balance Sheet


Dividend

What is Affiliated Managers Group current dividend yield, its reliability and sustainability?

0.025%

Current Dividend Yield


Upcoming Dividend Payment

TodayJul 31 2021Ex Dividend DateAug 05 2021Dividend Pay DateAug 20 202115 days from Ex DividendBuy in the next 5 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: AMG's dividend (0.025%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: AMG's dividend (0.025%) is low compared to the top 25% of dividend payers in the US market (3.54%).


Stability and Growth of Payments

Stable Dividend: AMG is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: AMG is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: AMG is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AMG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Jay Horgen (50 yo)

2.17yrs

Tenure

US$7,632,026

Compensation

Mr. Jay C. Horgen has been the President at Affiliated Managers Group Inc. since February 04, 2019 and has been its Chief Executive Officer since May 29, 2019. Mr. Horgen served as Chief Financial Officer ...


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD7.63M) is about average for companies of similar size in the US market ($USD6.47M).

Compensation vs Earnings: Jay's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: AMG's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: AMG's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AMG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Affiliated Managers Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Affiliated Managers Group, Inc.
  • Ticker: AMG
  • Exchange: NYSE
  • Founded: 1993
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$6.597b
  • Shares outstanding: 41.64m
  • Website: https://www.amg.com

Number of Employees


Location

  • Affiliated Managers Group, Inc.
  • 777 South Flagler Drive
  • West Palm Beach
  • Florida
  • 33401
  • United States

Listings


Biography

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 individu...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 05:24
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.