AFFILIATED MANAGERS GROUP (AMG) Stock Fundamental Analysis
NYSE:AMG - New York Stock Exchange, Inc. - US0082521081 - Common Stock - Currency: USD
AMG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 225 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 has a bad growth rate and is valued cheaply. These ratings would make AMG suitable for value investing!
1. Profitability
1.1 Basic Checks
AMG had positive earnings in the past year.
AMG had a positive operating cash flow in the past year.
Each year in the past 5 years AMG has been profitable.
In the past 5 years AMG always reported a positive cash flow from operatings.
1.2 Ratios
AMG has a better Return On Assets (5.79%) than 74.89% of its industry peers.
The Return On Equity of AMG (15.29%) is better than 78.08% 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 74.43% of its industry peers.
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 6.76%.
| 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
AMG has a better Profit Margin (25.06%) than 62.10% of its industry peers.
In the last couple of years the Profit Margin of AMG has grown nicely.
With a Operating Margin value of 32.65%, AMG perfoms like the industry average, outperforming 55.25% of the companies in the same industry.
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.
The debt/assets ratio for AMG is higher compared to a year ago.
2.2 Solvency
AMG has an Altman-Z score of 2.22. 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's Altman-Z score of 2.22 is fine compared to the rest of the industry. AMG outperforms 72.15% 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 has a better Debt to FCF ratio (2.81) than 78.54% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that AMG is somewhat dependend on debt financing.
AMG's Debt to Equity ratio of 0.78 is fine compared to the rest of the industry. AMG outperforms 60.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 2.81 | ||
| Altman-Z | 2.22 |
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.
AMG's Current ratio of 2.13 is fine compared to the rest of the industry. AMG outperforms 69.41% of its industry peers.
AMG has a Quick Ratio of 2.13. This indicates that AMG is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of AMG (2.13) is better than 69.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 2.13 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.15% over the past year.
The Earnings Per Share has been growing slightly by 7.59% on average over the past years.
AMG shows a decrease in Revenue. In the last year, the revenue decreased by -0.82%.
The Revenue has been decreasing by -1.84% on average over the past years.
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
The Earnings Per Share is expected to grow by 8.98% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.94% on average over the next years.
EPS Next Y12.1%
EPS Next 2Y12.07%
EPS Next 3Y13.44%
EPS Next 5Y8.98%
Revenue Next Year2.85%
Revenue Next 2Y3.56%
Revenue Next 3Y0.8%
Revenue Next 5Y1.94%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
With a Price/Earnings ratio of 8.07, the valuation of AMG can be described as very reasonable.
Based on the Price/Earnings ratio, AMG is valued cheaper than 82.19% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. AMG is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.20, the valuation of AMG can be described as very cheap.
91.78% of the companies in the same industry are more expensive than AMG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AMG to the average of the S&P500 Index (22.68), we can say AMG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 7.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMG is valued cheaply inside the industry as 88.58% of the companies are valued more expensively.
81.28% 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 | 5.38 | ||
| EV/EBITDA | 9.44 |
4.3 Compensation for Growth
The 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.
AMG's earnings are expected to grow with 13.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.67
PEG (5Y)1.06
EPS Next 2Y12.07%
EPS Next 3Y13.44%
5. Dividend
5.1 Amount
AMG has a yearly dividend return of 0.02%, which is pretty low.
With a Dividend Yield of 0.02, AMG pays less dividend than the industry average, which is at 9.98. 81.28% of the companies listed in the same industry pay a better dividend than AMG!
With a Dividend Yield of 0.02, AMG pays less dividend than the S&P500 average, which is at 2.27.
| 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
AMG pays out 0.27% of its income as dividend. This is a sustainable payout ratio.
DP0.27%
EPS Next 2Y12.07%
EPS Next 3Y13.44%
166.16
-2.11 (-1.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners98.77%
Inst Owner Change-82.64%
Ins Owners2.3%
Ins Owner Change-5.43%
Market Cap5.02B
Analysts78
Price Target208.93 (25.74%)
Short Float %2.13%
Short Ratio3.05
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)2.67%
PT rev (3m)4.6%
EPS NQ rev (1m)-5.64%
EPS NQ rev (3m)-11.51%
EPS NY rev (1m)-2.15%
EPS NY rev (3m)-4.91%
Revenue NQ rev (1m)-2.27%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)-1.89%
Revenue NY rev (3m)-2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 7.2 | ||
| P/S | 2.46 | ||
| P/FCF | 5.38 | ||
| P/OCF | 5.36 | ||
| P/B | 1.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.44 |
EPS(TTM)20.58
EY12.39%
EPS(NY)23.07
Fwd EY13.88%
FCF(TTM)30.9
FCFY18.59%
OCF(TTM)31.01
OCFY18.66%
SpS67.51
BVpS110.66
TBVpS-31.01
PEG (NY)0.67
PEG (5Y)1.06
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 | 2.22 |
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 Y12.1%
EPS Next 2Y12.07%
EPS Next 3Y13.44%
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 Year2.85%
Revenue Next 2Y3.56%
Revenue Next 3Y0.8%
Revenue Next 5Y1.94%
EBIT growth 1Y-2.72%
EBIT growth 3Y-9.28%
EBIT growth 5Y-0.89%
EBIT Next Year41.07%
EBIT Next 3Y9.36%
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%