AFFILIATED MANAGERS GROUP (AMG) Stock Fundamental Analysis
NYSE:AMG - New York Stock Exchange, Inc. - US0082521081 - Common Stock - Currency: USD
Overall AMG gets a fundamental rating of 6 out of 10. We evaluated AMG against 230 industry peers in the Capital Markets industry. AMG is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. AMG is cheap, but on the other hand it scores bad on growth. This makes AMG very considerable 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.
AMG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AMG has a Return On Assets of 5.79%. This is in the better half of the industry: AMG outperforms 72.17% of its industry peers.
AMG has a better Return On Equity (15.29%) than 76.09% of its industry peers.
AMG has a Return On Invested Capital of 6.64%. This is in the better half of the industry: AMG outperforms 76.09% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AMG is in line with the industry average of 7.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | 15.29% | ||
| ROIC | 6.64% |
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
The Profit Margin of AMG (25.06%) is better than 63.48% of its industry peers.
In the last couple of years the Profit Margin of AMG has grown nicely.
AMG's Operating Margin of 32.65% is in line compared to the rest of the industry. AMG outperforms 57.83% of its industry peers.
AMG's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.65% | ||
| PM (TTM) | 25.06% | ||
| 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
AMG has less shares outstanding than it did 1 year ago.
AMG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AMG has a worse debt to assets ratio.
2.2 Solvency
AMG has an Altman-Z score of 2.19. This is not the best score and indicates that AMG is in the grey zone with still only limited risk for bankruptcy at the moment.
AMG has a Altman-Z score of 2.19. This is in the better half of the industry: AMG outperforms 72.61% of its industry peers.
AMG has a debt to FCF ratio of 2.81. This is a good value and a sign of high solvency as AMG would need 2.81 years to pay back of all of its debts.
AMG's Debt to FCF ratio of 2.81 is fine compared to the rest of the industry. AMG outperforms 77.83% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that AMG is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.78, AMG is doing good in the industry, outperforming 60.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 2.81 | ||
| Altman-Z | 2.19 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.13 indicates that AMG has no problem at all paying its short term obligations.
The Current ratio of AMG (2.13) is better than 70.00% of its industry peers.
A Quick Ratio of 2.13 indicates that AMG has no problem at all paying its short term obligations.
AMG has a Quick ratio of 2.13. This is in the better half of the industry: AMG outperforms 70.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 2.13 |
3. Growth
3.1 Past
AMG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.15%.
Measured over the past 5 years, AMG shows a small growth in Earnings Per Share. The EPS has been growing by 7.59% on average per year.
The Revenue has decreased by -0.82% in the past year.
AMG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.84% yearly.
EPS 1Y (TTM)5.15%
EPS 3Y3.78%
EPS 5Y7.59%
EPS Q2Q%-16.66%
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y-5.42%
Revenue growth 5Y-1.84%
Sales Q2Q%4.28%
3.2 Future
AMG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.98% yearly.
The Revenue is expected to grow by 1.94% on average over the next years.
EPS Next Y8.71%
EPS Next 2Y10.87%
EPS Next 3Y12.79%
EPS Next 5Y8.98%
Revenue Next Year1.79%
Revenue Next 2Y3.14%
Revenue Next 3Y0.7%
Revenue Next 5Y1.94%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AMG is valuated reasonably with a Price/Earnings ratio of 8.11.
AMG's Price/Earnings ratio is a bit cheaper when compared to the industry. AMG is cheaper than 79.57% of the companies in the same industry.
When comparing the Price/Earnings ratio of AMG to the average of the S&P500 Index (27.85), we can say AMG is valued rather cheaply.
The Price/Forward Earnings ratio is 7.46, which indicates a rather cheap valuation of AMG.
AMG's Price/Forward Earnings ratio is rather cheap when compared to the industry. AMG is cheaper than 86.09% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AMG to the average of the S&P500 Index (20.77), we can say AMG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.11 | ||
| Fwd PE | 7.46 |
4.2 Price Multiples
AMG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AMG is cheaper than 87.39% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AMG is valued cheaply inside the industry as 83.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.14 | ||
| EV/EBITDA | 9.08 |
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 12.79% in the coming years.
PEG (NY)0.93
PEG (5Y)1.07
EPS Next 2Y10.87%
EPS Next 3Y12.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.02%, AMG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.31, AMG is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.45, AMG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
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
0.27% of the earnings are spent on dividend by AMG. This is a low number and sustainable payout ratio.
DP0.27%
EPS Next 2Y10.87%
EPS Next 3Y12.79%
166.92
+1.29 (+0.78%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners98.77%
Inst Owner Change0.19%
Ins Owners2.3%
Ins Owner Change4.45%
Market Cap4.80B
Analysts78
Price Target190.74 (14.27%)
Short Float %3.27%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
Yearly Dividend0.04
Dividend Growth(5Y)-47.48%
DP0.27%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.72%
Min EPS beat(2)-6.04%
Max EPS beat(2)-1.4%
EPS beat(4)2
Avg EPS beat(4)-1.36%
Min EPS beat(4)-6.04%
Max EPS beat(4)1.6%
EPS beat(8)5
Avg EPS beat(8)2.33%
EPS beat(12)9
Avg EPS beat(12)2.82%
EPS beat(16)12
Avg EPS beat(16)2.67%
Revenue beat(2)0
Avg Revenue beat(2)-2.1%
Min Revenue beat(2)-2.17%
Max Revenue beat(2)-2.03%
Revenue beat(4)0
Avg Revenue beat(4)-3.64%
Min Revenue beat(4)-6%
Max Revenue beat(4)-2.03%
Revenue beat(8)1
Avg Revenue beat(8)-3.62%
Revenue beat(12)3
Avg Revenue beat(12)-3.36%
Revenue beat(16)5
Avg Revenue beat(16)-2%
PT rev (1m)-8.71%
PT rev (3m)-6.27%
EPS NQ rev (1m)-1.34%
EPS NQ rev (3m)-6.35%
EPS NY rev (1m)-3.04%
EPS NY rev (3m)-5.1%
Revenue NQ rev (1m)-1.29%
Revenue NQ rev (3m)-4.67%
Revenue NY rev (1m)-1.03%
Revenue NY rev (3m)-2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.11 | ||
| Fwd PE | 7.46 | ||
| P/S | 2.35 | ||
| P/FCF | 5.14 | ||
| P/OCF | 5.12 | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.08 |
EPS(TTM)20.58
EY12.33%
EPS(NY)22.37
Fwd EY13.4%
FCF(TTM)32.45
FCFY19.44%
OCF(TTM)32.57
OCFY19.51%
SpS70.91
BVpS116.24
TBVpS-32.57
PEG (NY)0.93
PEG (5Y)1.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | 15.29% | ||
| ROCE | 8.13% | ||
| ROIC | 6.64% | ||
| ROICexc | 7.51% | ||
| ROICexgc | 20.37% | ||
| OM | 32.65% | ||
| PM (TTM) | 25.06% | ||
| GM | N/A | ||
| FCFM | 45.76% |
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 | 0.78 | ||
| Debt/FCF | 2.81 | ||
| Debt/EBITDA | 3.7 | ||
| Cap/Depr | 8.02% | ||
| Cap/Sales | 0.17% | ||
| Interest Coverage | 4.82 | ||
| Cash Conversion | 132.25% | ||
| Profit Quality | 182.6% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 2.13 | ||
| Altman-Z | 2.19 |
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)5.15%
EPS 3Y3.78%
EPS 5Y7.59%
EPS Q2Q%-16.66%
EPS Next Y8.71%
EPS Next 2Y10.87%
EPS Next 3Y12.79%
EPS Next 5Y8.98%
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y-5.42%
Revenue growth 5Y-1.84%
Sales Q2Q%4.28%
Revenue Next Year1.79%
Revenue Next 2Y3.14%
Revenue Next 3Y0.7%
Revenue Next 5Y1.94%
EBIT growth 1Y-2.72%
EBIT growth 3Y-9.28%
EBIT growth 5Y-0.89%
EBIT Next Year39.45%
EBIT Next 3Y15.36%
EBIT Next 5Y7.25%
FCF growth 1Y8.74%
FCF growth 3Y-9.09%
FCF growth 5Y0.41%
OCF growth 1Y7.59%
OCF growth 3Y-9.19%
OCF growth 5Y0.28%