ARTISAN PARTNERS ASSET MA -A (APAM) Stock Fundamental Analysis
NYSE:APAM - New York Stock Exchange, Inc. - US04316A1088 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to APAM. APAM was compared to 233 industry peers in the Capital Markets industry. APAM has an excellent profitability rating, but there are some minor concerns on its financial health. APAM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
APAM had positive earnings in the past year.
APAM had a positive operating cash flow in the past year.
APAM had positive earnings in each of the past 5 years.
Each year in the past 5 years APAM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 21.26%, APAM belongs to the top of the industry, outperforming 99.14% of the companies in the same industry.
APAM has a Return On Equity of 81.70%. This is amongst the best in the industry. APAM outperforms 98.71% of its industry peers.
APAM has a better Return On Invested Capital (51.80%) than 99.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for APAM is significantly above the industry average of 7.84%.
The last Return On Invested Capital (51.80%) for APAM is above the 3 year average (34.78%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.26% | ||
| ROE | 81.7% | ||
| ROIC | 51.8% |
ROA(3y)14.66%
ROA(5y)17.13%
ROE(3y)64.55%
ROE(5y)81.8%
ROIC(3y)34.78%
ROIC(5y)46.29%
1.3 Margins
APAM's Profit Margin of 20.97% is fine compared to the rest of the industry. APAM outperforms 61.80% of its industry peers.
In the last couple of years the Profit Margin of APAM has grown nicely.
The Operating Margin of APAM (32.63%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of APAM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.63% | ||
| PM (TTM) | 20.97% | ||
| GM | N/A |
OM growth 3Y-9.19%
OM growth 5Y-1.45%
PM growth 3Y-4.94%
PM growth 5Y4.74%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, APAM has more shares outstanding
APAM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for APAM has been reduced compared to a year ago.
2.2 Solvency
APAM has an Altman-Z score of 4.26. This indicates that APAM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.26, APAM belongs to the best of the industry, outperforming 81.97% of the companies in the same industry.
The Debt to FCF ratio of APAM is 0.58, which is an excellent value as it means it would take APAM, only 0.58 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.58, APAM belongs to the best of the industry, outperforming 89.70% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that APAM is somewhat dependend on debt financing.
APAM's Debt to Equity ratio of 0.56 is fine compared to the rest of the industry. APAM outperforms 66.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 4.26 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
APAM has a Current Ratio of 0.65. This is a bad value and indicates that APAM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.65, APAM is doing worse than 70.82% of the companies in the same industry.
A Quick Ratio of 0.65 indicates that APAM may have some problems paying its short term obligations.
APAM's Quick ratio of 0.65 is on the low side compared to the rest of the industry. APAM is outperformed by 70.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
APAM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.26%, which is quite impressive.
Measured over the past 5 years, APAM shows a small growth in Earnings Per Share. The EPS has been growing by 5.86% on average per year.
APAM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.02%.
APAM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.83% yearly.
EPS 1Y (TTM)23.26%
EPS 3Y-10.97%
EPS 5Y5.86%
EPS Q2Q%0%
Revenue 1Y (TTM)14.02%
Revenue growth 3Y-3.24%
Revenue growth 5Y6.83%
Sales Q2Q%0%
3.2 Future
APAM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.96% yearly.
Based on estimates for the next years, APAM will show a very negative growth in Revenue. The Revenue will decrease by -26.12% on average per year.
EPS Next Y-4.18%
EPS Next 2Y0.25%
EPS Next 3Y5.96%
EPS Next 5YN/A
Revenue Next Year1.86%
Revenue Next 2Y3.52%
Revenue Next 3Y-26.12%
Revenue Next 5YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.10, the valuation of APAM can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of APAM is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.45. APAM is valued rather cheaply when compared to this.
APAM is valuated correctly with a Price/Forward Earnings ratio of 13.03.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APAM is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.90. APAM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 13.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APAM is valued cheaply inside the industry as 91.85% of the companies are valued more expensively.
APAM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. APAM is cheaper than 74.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.91 | ||
| EV/EBITDA | 7.97 |
4.3 Compensation for Growth
The decent profitability rating of APAM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.23
EPS Next 2Y0.25%
EPS Next 3Y5.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.56%, APAM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.15, APAM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, APAM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.56% |
5.2 History
The dividend of APAM has a limited annual growth rate of 2.62%.
APAM has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of APAM decreased recently.
Dividend Growth(5Y)2.62%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
APAM pays out 84.33% of its income as dividend. This is not a sustainable payout ratio.
The dividend of APAM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP84.33%
EPS Next 2Y0.25%
EPS Next 3Y5.96%
46.49
-0.01 (-0.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners92.09%
Inst Owner Change0.5%
Ins Owners2%
Ins Owner Change12.25%
Market Cap3.75B
Analysts48.89
Price Target41.88 (-9.92%)
Short Float %4.28%
Short Ratio4.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.56% |
Yearly Dividend2.77
Dividend Growth(5Y)2.62%
DP84.33%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.96%
Min EPS beat(2)7.79%
Max EPS beat(2)8.14%
EPS beat(4)3
Avg EPS beat(4)2.89%
Min EPS beat(4)-4.86%
Max EPS beat(4)8.14%
EPS beat(8)4
Avg EPS beat(8)0.73%
EPS beat(12)7
Avg EPS beat(12)0.14%
EPS beat(16)8
Avg EPS beat(16)-0.4%
Revenue beat(2)0
Avg Revenue beat(2)-1.73%
Min Revenue beat(2)-2.94%
Max Revenue beat(2)-0.52%
Revenue beat(4)0
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-3.23%
Max Revenue beat(4)-0.52%
Revenue beat(8)0
Avg Revenue beat(8)-2.29%
Revenue beat(12)1
Avg Revenue beat(12)-1.96%
Revenue beat(16)1
Avg Revenue beat(16)-2.1%
PT rev (1m)9.5%
PT rev (3m)-5.74%
EPS NQ rev (1m)0.86%
EPS NQ rev (3m)-8.53%
EPS NY rev (1m)2.07%
EPS NY rev (3m)-5.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 13.03 | ||
| P/S | 2.7 | ||
| P/FCF | 10.91 | ||
| P/OCF | 10.82 | ||
| P/B | 10.52 | ||
| P/tB | 10.52 | ||
| EV/EBITDA | 7.97 |
EPS(TTM)3.55
EY7.64%
EPS(NY)3.57
Fwd EY7.67%
FCF(TTM)4.26
FCFY9.16%
OCF(TTM)4.3
OCFY9.25%
SpS17.22
BVpS4.42
TBVpS4.42
PEG (NY)N/A
PEG (5Y)2.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.26% | ||
| ROE | 81.7% | ||
| ROCE | 64.5% | ||
| ROIC | 51.8% | ||
| ROICexc | 82.04% | ||
| ROICexgc | 82.04% | ||
| OM | 32.63% | ||
| PM (TTM) | 20.97% | ||
| GM | N/A | ||
| FCFM | 24.74% |
ROA(3y)14.66%
ROA(5y)17.13%
ROE(3y)64.55%
ROE(5y)81.8%
ROIC(3y)34.78%
ROIC(5y)46.29%
ROICexc(3y)45.82%
ROICexc(5y)67.07%
ROICexgc(3y)46.19%
ROICexgc(5y)68.12%
ROCE(3y)43.3%
ROCE(5y)57.63%
ROICexcg growth 3Y-25.48%
ROICexcg growth 5Y-14.62%
ROICexc growth 3Y-25.17%
ROICexc growth 5Y-14.51%
OM growth 3Y-9.19%
OM growth 5Y-1.45%
PM growth 3Y-4.94%
PM growth 5Y4.74%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 0.58 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 31.19% | ||
| Cap/Sales | 0.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.86% | ||
| Profit Quality | 117.96% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 4.26 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)130.45%
Cap/Depr(5y)104.84%
Cap/Sales(3y)1.09%
Cap/Sales(5y)0.82%
Profit Quality(3y)143.69%
Profit Quality(5y)143%
High Growth Momentum
Growth
EPS 1Y (TTM)23.26%
EPS 3Y-10.97%
EPS 5Y5.86%
EPS Q2Q%0%
EPS Next Y-4.18%
EPS Next 2Y0.25%
EPS Next 3Y5.96%
EPS Next 5YN/A
Revenue 1Y (TTM)14.02%
Revenue growth 3Y-3.24%
Revenue growth 5Y6.83%
Sales Q2Q%0%
Revenue Next Year1.86%
Revenue Next 2Y3.52%
Revenue Next 3Y-26.12%
Revenue Next 5YN/A
EBIT growth 1Y44.81%
EBIT growth 3Y-12.14%
EBIT growth 5Y5.28%
EBIT Next Year5.65%
EBIT Next 3Y5.49%
EBIT Next 5YN/A
FCF growth 1Y53.81%
FCF growth 3Y0.59%
FCF growth 5Y5.77%
OCF growth 1Y43.24%
OCF growth 3Y0.47%
OCF growth 5Y4.73%