AFFILIATED MANAGERS GROUP (AMG) Stock Fundamental Analysis
NYSE:AMG - New York Stock Exchange, Inc. - US0082521081 - Common Stock - Currency: USD
Taking everything into account, AMG scores 6 out of 10 in our fundamental rating. AMG was compared to 237 industry peers in the Capital Markets industry. Both the profitability and the financial health of AMG get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on AMG. These ratings could make AMG a good candidate for value investing.
1. Profitability
1.1 Basic Checks
AMG had positive earnings in the past year.
In the past year AMG had a positive cash flow from operations.
In the past 5 years AMG has always been profitable.
In the past 5 years AMG always reported a positive cash flow from operatings.
1.2 Ratios
AMG has a Return On Assets of 4.98%. This is in the better half of the industry: AMG outperforms 68.78% of its industry peers.
With a decent Return On Equity value of 13.62%, AMG is doing good in the industry, outperforming 74.26% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.00%, AMG is doing good in the industry, outperforming 69.62% of the companies in the same industry.
AMG had an Average Return On Invested Capital over the past 3 years of 7.38%. This is in line with the industry average of 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.98% | ||
| ROE | 13.62% | ||
| ROIC | 6% |
ROA(3y)8.71%
ROA(5y)7.01%
ROE(3y)23.17%
ROE(5y)19.42%
ROIC(3y)7.38%
ROIC(5y)7.61%
1.3 Margins
AMG has a better Profit Margin (21.30%) than 61.18% of its industry peers.
AMG's Profit Margin has improved in the last couple of years.
AMG has a Operating Margin (29.04%) which is comparable to the rest of the industry.
AMG's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.04% | ||
| PM (TTM) | 21.3% | ||
| GM | N/A |
OM growth 3Y-4.07%
OM growth 5Y0.96%
PM growth 3Y2.25%
PM growth 5Y104.49%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for AMG has been reduced compared to 1 year ago.
The number of shares outstanding for AMG has been reduced compared to 5 years ago.
AMG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.34 indicates that AMG is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.34, AMG is doing good in the industry, outperforming 73.42% of the companies in the same industry.
AMG has a debt to FCF ratio of 2.79. This is a good value and a sign of high solvency as AMG would need 2.79 years to pay back of all of its debts.
The Debt to FCF ratio of AMG (2.79) is better than 79.32% of its industry peers.
A Debt/Equity ratio of 0.82 indicates that AMG is somewhat dependend on debt financing.
AMG has a Debt to Equity ratio (0.82) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 2.79 | ||
| Altman-Z | 2.34 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
AMG has a Current Ratio of 2.10. This indicates that AMG is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of AMG (2.10) is better than 70.46% of its industry peers.
A Quick Ratio of 2.10 indicates that AMG has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.10, AMG is doing good in the industry, outperforming 70.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
AMG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.70%.
AMG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.59% yearly.
Looking at the last year, AMG shows a small growth in Revenue. The Revenue has grown by 0.12% in the last year.
Measured over the past years, AMG shows a decrease in Revenue. The Revenue has been decreasing by -1.84% on average per year.
EPS 1Y (TTM)0.7%
EPS 3Y3.78%
EPS 5Y7.59%
EPS Q2Q%15.42%
Revenue 1Y (TTM)0.12%
Revenue growth 3Y-5.42%
Revenue growth 5Y-1.84%
Sales Q2Q%-1.42%
3.2 Future
Based on estimates for the next years, AMG will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.96% on average per year.
AMG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.93% yearly.
EPS Next Y14.9%
EPS Next 2Y14.39%
EPS Next 3Y14.44%
EPS Next 5Y11.96%
Revenue Next Year1.5%
Revenue Next 2Y3.19%
Revenue Next 3Y1.82%
Revenue Next 5Y1.93%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.15, the valuation of AMG can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of AMG indicates a somewhat cheap valuation: AMG is cheaper than 73.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AMG to the average of the S&P500 Index (27.24), we can say AMG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.97, the valuation of AMG can be described as very cheap.
Based on the Price/Forward Earnings ratio, AMG is valued cheaply inside the industry as 86.50% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AMG to the average of the S&P500 Index (36.42), we can say AMG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 7.97 |
4.2 Price Multiples
AMG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AMG is cheaper than 87.76% of the companies in the same industry.
81.43% of the companies in the same industry are more expensive than AMG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.49 | ||
| EV/EBITDA | 11.13 |
4.3 Compensation for Growth
AMG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of AMG may justify a higher PE ratio.
A more expensive valuation may be justified as AMG's earnings are expected to grow with 14.44% in the coming years.
PEG (NY)0.68
PEG (5Y)1.34
EPS Next 2Y14.39%
EPS Next 3Y14.44%
5. Dividend
5.1 Amount
AMG has a Yearly Dividend Yield of 6.94%, which is a nice return.
AMG's Dividend Yield is a higher than the industry average which is at 8.25.
AMG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.94% |
5.2 History
The dividend of AMG decreases each year by -47.48%.
AMG has been paying a dividend for over 5 years, so it has already some track record.
AMG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-47.48%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
AMG pays out 0.32% of its income as dividend. This is a sustainable payout ratio.
DP0.32%
EPS Next 2Y14.39%
EPS Next 3Y14.44%
214.52
+7.46 (+3.6%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners95.29%
Inst Owner Change-0.27%
Ins Owners3.07%
Ins Owner Change6.01%
Market Cap6.10B
Analysts80
Price Target224.06 (4.45%)
Short Float %2.16%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.94% |
Yearly Dividend0.04
Dividend Growth(5Y)-47.48%
DP0.32%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.56%
Min EPS beat(2)-6.04%
Max EPS beat(2)0.92%
EPS beat(4)2
Avg EPS beat(4)-1.53%
Min EPS beat(4)-6.04%
Max EPS beat(4)0.92%
EPS beat(8)6
Avg EPS beat(8)2.51%
EPS beat(12)9
Avg EPS beat(12)2.4%
EPS beat(16)13
Avg EPS beat(16)2.73%
Revenue beat(2)0
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-2.43%
Max Revenue beat(2)-2.17%
Revenue beat(4)0
Avg Revenue beat(4)-2.75%
Min Revenue beat(4)-4.38%
Max Revenue beat(4)-2.03%
Revenue beat(8)1
Avg Revenue beat(8)-3.28%
Revenue beat(12)3
Avg Revenue beat(12)-2.81%
Revenue beat(16)5
Avg Revenue beat(16)-2.12%
PT rev (1m)9.38%
PT rev (3m)17.47%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)5.38%
EPS NY rev (1m)0.87%
EPS NY rev (3m)5.69%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)-2.15%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 7.97 | ||
| P/S | 2.99 | ||
| P/FCF | 6.49 | ||
| P/OCF | 6.47 | ||
| P/B | 1.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.13 |
EPS(TTM)21.13
EY9.85%
EPS(NY)26.93
Fwd EY12.55%
FCF(TTM)33.03
FCFY15.4%
OCF(TTM)33.17
OCFY15.46%
SpS71.67
BVpS112.14
TBVpS-36.17
PEG (NY)0.68
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.98% | ||
| ROE | 13.62% | ||
| ROCE | 7.35% | ||
| ROIC | 6% | ||
| ROICexc | 6.68% | ||
| ROICexgc | 17.72% | ||
| OM | 29.04% | ||
| PM (TTM) | 21.3% | ||
| GM | N/A | ||
| FCFM | 46.09% |
ROA(3y)8.71%
ROA(5y)7.01%
ROE(3y)23.17%
ROE(5y)19.42%
ROIC(3y)7.38%
ROIC(5y)7.61%
ROICexc(3y)8.14%
ROICexc(5y)8.54%
ROICexgc(3y)23.93%
ROICexgc(5y)25.25%
ROCE(3y)9.04%
ROCE(5y)9.33%
ROICexcg growth 3Y-5.55%
ROICexcg growth 5Y1.96%
ROICexc growth 3Y-6.71%
ROICexc growth 5Y-1.27%
OM growth 3Y-4.07%
OM growth 5Y0.96%
PM growth 3Y2.25%
PM growth 5Y104.49%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 2.79 | ||
| Debt/EBITDA | 3.69 | ||
| Cap/Depr | 3.38% | ||
| Cap/Sales | 0.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 132.85% | ||
| Profit Quality | 216.33% | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 2.1 | ||
| Altman-Z | 2.34 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)15.05%
Cap/Depr(5y)13.31%
Cap/Sales(3y)0.42%
Cap/Sales(5y)0.41%
Profit Quality(3y)133.79%
Profit Quality(5y)223%
High Growth Momentum
Growth
EPS 1Y (TTM)0.7%
EPS 3Y3.78%
EPS 5Y7.59%
EPS Q2Q%15.42%
EPS Next Y14.9%
EPS Next 2Y14.39%
EPS Next 3Y14.44%
EPS Next 5Y11.96%
Revenue 1Y (TTM)0.12%
Revenue growth 3Y-5.42%
Revenue growth 5Y-1.84%
Sales Q2Q%-1.42%
Revenue Next Year1.5%
Revenue Next 2Y3.19%
Revenue Next 3Y1.82%
Revenue Next 5Y1.93%
EBIT growth 1Y-11.17%
EBIT growth 3Y-9.28%
EBIT growth 5Y-0.89%
EBIT Next Year40.92%
EBIT Next 3Y16.76%
EBIT Next 5Y7.14%
FCF growth 1Y-17%
FCF growth 3Y-9.09%
FCF growth 5Y0.41%
OCF growth 1Y-17.34%
OCF growth 3Y-9.19%
OCF growth 5Y0.28%