Breaking Down Affiliated Managers Group, Inc. (AMG) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments? Have you ever wondered about the financial stability of the asset management firms handling your money? Let's dive into the financial health of Affiliated Managers Group (AMG), a global asset management company. In 2024, AMG reported assets under management of approximately $708 billion. The company's revenue stood at $2.04 billion, reflecting a slight decrease compared to the previous year. With a debt of $2.62 billion, how is AMG managing its financial obligations, and what does it mean for investors like you? Keep reading to find out!

Affiliated Managers Group, Inc. (AMG) Revenue Analysis

Affiliated Managers Group, Inc. (AMG) generates revenue primarily through investment management services provided by its affiliated investment firms. These affiliates manage assets for a diverse client base, including high-net-worth individuals and institutional investors.

Understanding AMG's revenue streams involves analyzing several key components:

• Breakdown of Primary Revenue Sources: AMG’s revenue is derived predominantly from investment management fees, which are typically a percentage of assets under management (AUM). Performance fees, earned when investment returns exceed specific benchmarks, also contribute to revenue.
• Year-over-Year Revenue Growth Rate: Monitoring the historical trends in AMG's revenue growth provides insights into its overall performance and market position. Fluctuations in AUM due to market conditions and net client flows significantly impact this growth rate.
• Contribution of Different Business Segments to Overall Revenue: AMG operates through various affiliated investment firms, each specializing in different asset classes and investment strategies. Analyzing the revenue contribution of these segments helps identify key growth drivers and areas of strength.
• Analysis of Any Significant Changes in Revenue Streams: Changes in AMG's revenue streams can result from factors such as acquisitions, divestitures, shifts in client preferences, and regulatory changes. Evaluating these changes is crucial for understanding the company's long-term growth prospects.

According to the 2024 data, Affiliated Managers Group, Inc. (AMG) reported a revenue of $2.64 billion. This figure reflects the combined earnings from management fees and performance allocations across its diverse range of investment strategies and global client base.

For a deeper understanding of AMG's strategic direction, explore: Mission Statement, Vision, & Core Values of Affiliated Managers Group, Inc. (AMG).

The year-over-year revenue growth rate for AMG in 2024 was approximately 1.5%. This modest increase reflects stable performance across its affiliates, driven by consistent investment management fees and incremental gains in performance allocations.

In 2024, the composition of AMG's revenue streams highlighted the significance of management fees, constituting 92% of the total revenue. Performance fees made up the remaining 8%, demonstrating the impact of market performance on AMG's earnings.

Affiliated Managers Group, Inc. (AMG) Profitability Metrics

Affiliated Managers Group, Inc. (AMG) showcases its financial health through several key profitability metrics. These metrics provide insights into the company's ability to generate earnings relative to its revenue, assets, and equity. A closer look at these figures helps investors understand AMG's operational efficiency and overall financial performance.

Here's a detailed breakdown:

• Gross Profit: Gross profit is the revenue a company retains after deducting the costs associated with producing its goods and services. It indicates how efficiently a company uses its resources to generate income.
• Operating Profit: Operating profit, also known as earnings before interest and taxes (EBIT), measures the profit a company generates from its core operations. It excludes interest expenses and income taxes, providing a clear view of operational efficiency.
• Net Profit: Net profit, or net income, is the profit remaining after all expenses, including interest, taxes, and other overheads, have been deducted from total revenue. It represents the actual profit available to shareholders.

Analyzing these margins over time helps identify trends in AMG's profitability. An increasing margin generally indicates improved efficiency and higher profitability, while a decreasing margin may signal operational challenges or increased costs.

When evaluating AMG's profitability, it's essential to compare its ratios with industry averages. This comparison provides context and helps determine whether AMG is performing better or worse than its peers. Industry-specific factors can significantly influence these ratios, so a relative comparison offers valuable insights.

Operational efficiency is crucial for maintaining and improving profitability. Effective cost management and optimized resource utilization can lead to higher gross margins and, consequently, better overall profitability.

For instance, trends in the gross margin can highlight how well AMG manages its production costs relative to revenue. A rising gross margin suggests improved cost control or pricing strategies, while a declining margin may indicate rising costs or pricing pressures.

For more detailed insights, you might find this resource helpful: Breaking Down Affiliated Managers Group, Inc. (AMG) Financial Health: Key Insights for Investors

Affiliated Managers Group, Inc. (AMG) Debt vs. Equity Structure

Affiliated Managers Group, Inc. (AMG) employs a mix of debt and equity to finance its operations and growth initiatives. Understanding the nuances of AMG's debt levels, ratios, and financing activities provides critical insights into its financial strategy and risk profile.

As of December 31, 2024, AMG's financial picture includes:

• Total cash and cash equivalents: $281.9 million
• Total debt: $2.12 billion

This debt consists of both short-term and long-term obligations, reflecting the company's financing decisions over time.

A key metric for assessing a company's financial leverage is the debt-to-equity ratio. This ratio indicates the proportion of debt and equity a company uses to finance its assets. As of the most recent data, AMG's debt-to-equity ratio can be evaluated using the total debt and shareholder equity figures available in their financial statements. For the year 2023, Affiliated Managers Group Inc's debt to equity ratio was 2.02. While an exact debt-to-equity ratio for 2024 isn't available in the provided search results, analyzing the current debt and equity figures from the 2024 report will provide an updated view. The debt to equity ratio is calculated as: Total Liabilities / Total Stockholder Equity

When evaluating AMG's debt-to-equity ratio, it is crucial to compare it against industry standards and peer performance. Different industries have different capital structures, and a high or low ratio should be contextualized within AMG's specific industry. Unfortunately, specific industry averages are not provided in the search results.

Recent activities, such as debt issuances, credit ratings, or refinancing, significantly impact AMG's financial health. While the provided search results do not detail specific recent debt issuances or refinancing activities, such events are typically disclosed in company financial reports and press releases. Keeping abreast of these activities is essential for a comprehensive understanding of AMG's debt management strategy.

AMG balances debt financing and equity funding by strategically using both to support its business model. The decision to issue debt or equity depends on various factors, including market conditions, interest rates, and the company's growth prospects. Equity, for example, is affected by share repurchases. During 2024, AMG repurchased 2.4 million shares of common stock for $300 million. The balance between these funding sources impacts AMG's financial flexibility and cost of capital.

For further insights into AMG's investor profile, see: Exploring Affiliated Managers Group, Inc. (AMG) Investor Profile: Who’s Buying and Why?

Affiliated Managers Group, Inc. (AMG) Liquidity and Solvency

Assessing Affiliated Managers Group, Inc. (AMG)'s financial health requires a close look at its liquidity and solvency. Liquidity refers to AMG's ability to meet its short-term obligations, while solvency concerns its ability to meet long-term obligations. These metrics are vital for investors to gauge the company's stability and risk profile.

Here’s an overview of AMG’s liquidity, incorporating key financial data:

Current and Quick Ratios:

These ratios provide insight into AMG's ability to cover its short-term liabilities with its short-term assets. As of the fiscal year 2024:

• The current ratio, calculated by dividing current assets by current liabilities, offers a general overview of liquidity.
• The quick ratio, which excludes inventories from current assets, provides a more conservative measure of liquidity, focusing on the most liquid assets.

Working Capital Trends:

Analyzing the trend in AMG's working capital—the difference between current assets and current liabilities—helps to identify whether the company's short-term financial health is improving or deteriorating. Monitoring these trends over several periods can reveal important insights. A decreasing working capital could indicate potential challenges in meeting short-term obligations, while an increasing working capital suggests improved liquidity.

Cash Flow Statements Overview:

Cash flow statements are crucial for understanding AMG's liquidity position. These statements are divided into three main sections:

• Operating Cash Flow: This reflects the cash generated from AMG's core business operations. A positive and consistent operating cash flow is a sign of a healthy business.
• Investing Cash Flow: This includes cash used for investments in assets, such as property, plant, and equipment (PP&E). It can also include cash from the sale of assets.
• Financing Cash Flow: This section shows cash flow related to debt, equity, and dividends. It indicates how AMG is funding its operations and returning value to shareholders.

Analyzing these cash flow trends helps investors understand how AMG manages its cash and whether it has sufficient cash to cover its obligations and invest in future growth.

Potential Liquidity Concerns or Strengths:

Based on the analysis of the current and quick ratios, working capital trends, and cash flow statements, any potential liquidity concerns or strengths can be identified. For example:

• A high current ratio and positive operating cash flow might indicate strong liquidity.
• Conversely, a declining working capital and negative investing cash flow could raise concerns about AMG's ability to meet its short-term obligations.

Here is a sample table illustrating key liquidity metrics for AMG, based on the 2024 fiscal year data. Actual values would be inserted based on the real financial data.

For further insights into AMG's investor profile, you might find this resource helpful: Exploring Affiliated Managers Group, Inc. (AMG) Investor Profile: Who’s Buying and Why?

Affiliated Managers Group, Inc. (AMG) Valuation Analysis

Determining whether Affiliated Managers Group, Inc. (AMG) is overvalued or undervalued requires a multifaceted approach, considering various financial ratios, stock performance, and analyst opinions.

Valuation Ratios

These ratios provide a snapshot of AMG's valuation relative to its earnings, book value, and operational cash flow.

• Price-to-Earnings (P/E) Ratio: As of April 2025, AMG's P/E ratio ranges from 5.13 to 10.60. A P/E ratio below 10 is generally considered a 'value stock', suggesting it may be undervalued. For fiscal year 2024, the P/E ratio was 10.49.
• Price-to-Book (P/B) Ratio: The P/B ratio as of January 2025 was 1.32. The average P/B ratio for 2024 was 1.19, a 5.31% increase from 2023.
• Enterprise Value-to-EBITDA (EV/EBITDA): AMG's EV/EBITDA ratio for the latest twelve months is 7.1x. The average EV/EBITDA ratio from 2020 to 2024 was 7.2x. For fiscal year 2024, the EV/EBITDA was 7.46x.

Stock Price Trends

Analyzing stock price movements over time can reveal investor sentiment and potential undervaluation or overvaluation.

• Over the last 12 months, AMG's stock price has fallen by approximately 2.68% to 3.02%.
• The stock touched a 52-week low of $147.07 amid market shifts but closed at $156.09 on April 17, 2025.
• Trading Economics forecasts AMG to be priced at $154.11 by the end of the current quarter and $143.45 in one year.

Dividend Yield and Payout Ratios

For investors seeking income, dividend yield and payout ratios are crucial indicators.

• AMG's dividend yield is approximately 0.02% to 0.03%.
• The payout ratio is around 0.2432%.
• The most recent dividend payment was $0.010 per share, with an ex-dividend date of February 18, 2025, and a payable date of March 4, 2025.

Analyst Consensus

The consensus of analysts can provide insights into the perceived valuation of AMG.

• The consensus rating for AMG is 'Hold'.
• Out of 5 analysts, 3 recommend a 'Hold' rating, and 2 recommend a 'Buy' rating.
• The average 12-month price target among brokerages is $192.40, with a high forecast of $208.00 and a low forecast of $168.00.

Recent analyst actions include:

• Bank of America reduced their target price from $211.00 to $195.00, maintaining a 'Neutral' rating.
• Goldman Sachs lowered shares from 'Buy' to 'Neutral,' decreasing the price target from $193.00 to $191.00.
• Barrington Research lowered their target price from $215.00 to $200.00, keeping an 'Outperform' rating.
• TD Cowen decreased their price target from $187.00 to $168.00, with a 'Hold' rating.
• StockNews.com upgraded shares from 'Hold' to 'Buy'.

Considering these factors, Affiliated Managers Group, Inc. (AMG) appears to be reasonably valued, with potential for moderate upside based on analyst price targets. However, investors should consider the broader market trends and their own risk tolerance before making investment decisions.

To gain further insights into AMG's financial well-being, consider reading: Breaking Down Affiliated Managers Group, Inc. (AMG) Financial Health: Key Insights for Investors

Affiliated Managers Group, Inc. (AMG) Risk Factors

Affiliated Managers Group, Inc. (AMG) faces a variety of risks that could impact its financial health. These risks stem from both internal and external factors, including industry competition, regulatory changes, and overall market conditions. Understanding these potential challenges is crucial for investors.

Here's a breakdown of key risks:

• Industry Competition: The asset management industry is highly competitive. AMG competes with other large asset managers, boutique firms, and financial institutions. Increased competition could lead to lower fees and reduced profitability.
• Regulatory Changes: Changes in regulations, such as those governing investment advisors or financial markets, could increase compliance costs or limit AMG's ability to offer certain products or services.
• Market Conditions: AMG's financial performance is closely tied to the performance of financial markets. Economic downturns, market volatility, or declines in asset values could negatively impact AMG's assets under management (AUM) and revenue.
• Investment Performance: Underperformance by AMG's affiliated investment managers could lead to client redemptions and reduced AUM. Maintaining strong investment performance is critical for attracting and retaining clients.
• Acquisition and Integration Risks: AMG's growth strategy relies in part on acquiring and integrating new affiliated investment managers. These acquisitions may not be successful, and integration challenges could disrupt AMG's operations.
• Key Person Risk: The success of AMG's affiliated investment managers often depends on the expertise and talent of key personnel. The loss of key employees could negatively impact investment performance and client relationships.

These risks are often discussed in AMG's annual reports and other filings with the Securities and Exchange Commission (SEC). For example, the 2024 annual report likely details specific operational, financial, and strategic risks identified by the company's management.

While specific mitigation strategies can vary, AMG generally focuses on the following:

• Diversification: AMG operates a diversified business model with a wide range of affiliated investment managers and investment strategies. This diversification helps to mitigate the impact of underperformance by any single manager or strategy.
• Risk Management: AMG has a comprehensive risk management framework in place to identify, assess, and manage various risks. This framework includes regular monitoring of investment performance, compliance with regulations, and operational risk management.
• Due Diligence: AMG conducts thorough due diligence before acquiring new affiliated investment managers. This due diligence helps to assess the potential risks and rewards of each acquisition.
• Succession Planning: AMG works with its affiliated investment managers to develop succession plans for key personnel. This helps to ensure a smooth transition in the event of a departure or retirement.

For additional insights into AMG's business and investor profile, you might find this resource helpful: Exploring Affiliated Managers Group, Inc. (AMG) Investor Profile: Who’s Buying and Why?

Affiliated Managers Group, Inc. (AMG) Growth Opportunities

Affiliated Managers Group, Inc. (AMG) faces a complex landscape of growth opportunities driven by strategic initiatives and market dynamics. Understanding these factors is crucial for investors assessing the company's future performance. For additional insights, see: Breaking Down Affiliated Managers Group, Inc. (AMG) Financial Health: Key Insights for Investors.

Key growth drivers for Affiliated Managers Group, Inc. (AMG) include:

• Product Innovation: The ability to develop and introduce new investment strategies and products that meet evolving client needs.
• Market Expansion: Extending AMG's reach into new geographic regions and client segments.
• Acquisitions: Strategically acquiring boutique investment firms to expand AMG’s capabilities and assets under management (AUM).

Future revenue growth projections and earnings estimates for Affiliated Managers Group, Inc. (AMG) depend significantly on market conditions and the success of its strategic initiatives. While specific figures fluctuate, analysts' estimates provide a general outlook:

Strategic initiatives and partnerships are pivotal in shaping Affiliated Managers Group, Inc. (AMG)'s growth trajectory. These include:

• New Affiliate Investments: Partnering with high-quality boutique investment firms to broaden AMG's investment offerings and geographic reach.
• Organic Growth Initiatives: Focusing on enhancing sales and marketing efforts to drive organic AUM growth within existing affiliates.
• Strategic Partnerships: Collaborating with institutional clients and other financial institutions to develop customized investment solutions and expand distribution channels.

Affiliated Managers Group, Inc. (AMG)'s competitive advantages that position the company for growth are:

• Diversified Affiliate Base: A broad range of investment strategies and asset classes offered by its affiliates, reducing reliance on any single investment style or market.
• Decentralized Operating Model: Affiliates retain their autonomy and investment independence, fostering entrepreneurialism and innovation.
• Strong Capital Position: Enables AMG to pursue strategic acquisitions and investments to drive future growth.

To provide a clearer picture, consider a hypothetical projection based on available data and trends. Please note that these figures are illustrative and subject to change based on market dynamics and company-specific factors.

These projections assume continued growth in global financial markets and successful execution of Affiliated Managers Group, Inc. (AMG)'s strategic initiatives. However, various risks and uncertainties could impact actual results, including market volatility, changes in investor sentiment, and increased competition.