NYSE:AMG

Stock Analysis Report

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.

Rewards


Snowflake Analysis


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.9%

AMG

-8.6%

US Capital Markets

-10.6%

US Market


1 Year Return

-26.8%

AMG

4.9%

US Capital Markets

5.2%

US Market

Return vs Industry: AMG underperformed the US Capital Markets industry which returned 4.9% over the past year.

Return vs Market: AMG underperformed the US Market which returned 5.2% over the past year.


Shareholder returns

AMGIndustryMarket
7 Day-8.9%-8.6%-10.6%
30 Day1.4%-7.9%-8.5%
90 Day-6.0%-4.4%-4.6%
1 Year-25.7%-26.8%7.1%4.9%7.4%5.2%
3 Year-50.8%-52.3%25.5%18.4%31.7%23.2%
5 Year-61.6%-62.8%65.9%50.7%56.4%39.3%

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?

48.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMG ($80.28) is trading below our estimate of fair value ($156.22)

Significantly Below Fair Value: AMG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AMG is poor value based on its PE Ratio (258.2x) compared to the Capital Markets industry average (30.2x).

PE vs Market: AMG is poor value based on its PE Ratio (258.2x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: AMG is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: AMG is good value based on its PB Ratio (1.3x) compared to the US Capital Markets industry average (6.2x).

Future Growth

How is Affiliated Managers Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

70.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMG's forecast earnings growth (70.5% per year) is above the savings rate (1.7%).

Earnings vs Market: AMG's earnings (70.5% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AMG's revenue is expected to decline over the next 3 years (-1.5% per year).

High Growth Revenue: AMG's revenue is forecast to decline over the next 3 years (-1.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AMG's Return on Equity is forecast to be high in 3 years time

Past Performance

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

-21.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMG has high quality earnings.

Growing Profit Margin: AMG's current net profit margins (0.7%) are lower than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: AMG's earnings have declined by -21% per year over the past 5 years.

Accelerating Growth: AMG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AMG had negative earnings growth (-93.6%) over the past year, making it difficult to compare to the Capital Markets industry average (8.5%).


Return on Equity

High ROE: AMG's Return on Equity (6.9%) is considered low.


Return on Assets


Return on Capital Employed

Financial Health

How is Affiliated Managers Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AMG has a low level of unsold assets or inventory.

Debt Coverage by Assets: AMG's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: AMG's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if AMG has a sufficient allowance for bad loans.

Low Risk Liabilities: AMG reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AMG has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AMG has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AMG has an appropriate level of bad loans.

Dividend

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

1.59%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.6%markettop25%4.1%industryaverage2.1%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: AMG's dividend (1.59%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: AMG's dividend (1.59%) is low compared to the top 25% of dividend payers in the US market (4.09%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AMG has been paying a dividend for less than 10 years.

Growing Dividend: AMG's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (392.4%), AMG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AMG's dividends in 3 years are forecast to be thoroughly covered by earnings (9.9% payout ratio).

Management

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

1.1yrs

Average management tenure


CEO

Jay Horgen (48yo)

0.8yrs

Tenure

US$5,820,685

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 ($USD5.82M) is about average for companies of similar size in the US market ($USD5.04M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sean Healey
Executive Chairman9.1yrsUS$12.09m0.30% $12.2m
Jay Horgen
CEO, President & Director0.8yrsUS$5.82m0.24% $9.6m
David Billings
General Counsel & Secretary5.7yrsUS$2.13m0.018% $711.5k
Nathaniel Dalton
Senior Advisor & Director1.8yrsUS$7.54m0.40% $16.3m
Hugh Peter Cutler
Executive VP & Head of Global Distribution2.9yrsUS$2.58m0.0089% $360.2k
Thomas Wojcik
Chief Financial Officer1.1yrsno data0.014% $565.0k
Aaron Galis
Senior VP & Chief Accounting Officer0.3yrsno datano data
Stephen Pruell
Chief Information Officer & Senior VP1.1yrsno datano data
Alexandra Lynn
Chief Administrative Officer0yrsno datano data
Anjali Aggarwal
VP of Investor Relations0yrsno datano data

1.1yrs

Average Tenure

52yo

Average Age

Experienced Management: AMG's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Sean Healey
Executive Chairman9.1yrsUS$12.09m0.30% $12.2m
Jay Horgen
CEO, President & Director0.8yrsUS$5.82m0.24% $9.6m
Nathaniel Dalton
Senior Advisor & Director1.8yrsUS$7.54m0.40% $16.3m
Patrick Ryan
Independent Director14.6yrsUS$432.12k0.027% $1.1m
Jide Zeitlin
Independent Director14.1yrsUS$305.12k0.043% $1.7m
Tracy Palandjian
Independent Director7.9yrsUS$313.12k0.0053% $212.1k
Dwight Churchill
Independent Director10yrsUS$315.12k0.016% $659.2k
Samuel Byrne
Lead Independent Director0.6yrsUS$330.12k0.046% $1.8m
Glenn Peter Earle
Independent Director4.8yrsUS$300.12k0.0032% $130.0k
Niall Ferguson
Independent Director5.8yrsUS$293.12k0.0032% $130.8k

6.9yrs

Average Tenure

54.5yo

Average Age

Experienced Board: AMG's board of directors are considered experienced (6.9 years average tenure).


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$4.025b
  • Shares outstanding: 49.27m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMGNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1997
AFSDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1997
0HAQLSE (London Stock Exchange)YesCommon StockGBUSDNov 1997

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 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. The company was formed as a corporation under the laws of Delaware in 1993. Affiliated Managers Group is based in Prides Crossing, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 23:55
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.