Affiliated Managers Intrinsic Value – AFFILIATED MANAGERS Reports Record Revenue of Over $777 Million for Q4 of FY2022.
February 12, 2023
Earnings report
Affiliated Managers Intrinsic Value – AFFILIATED MANAGERS ($NYSE:AMG), a leading global asset manager, recently reported its financial results for the fourth quarter of FY2022. For the quarter ended December 31, 2022, AFFILIATED MANAGERS reported total revenue of USD 777.8 million, a 335.7% increase from the same period in the previous year. The impressive surge in revenue was mainly driven by strong growth in its core business and client acquisitions.
However, AFFILIATED MANAGERS’ net income was USD 539.6 million, representing a 22.0% decrease year over year. This decline was mainly attributed to higher operating expenses. Other factors that contributed to the decline include a decrease in performance fees due to market volatility and lower interest income resulting from lower interest rates. AFFILIATED MANAGERS is a publicly traded company that has been providing asset and wealth management solutions for individuals and institutions for over two decades. It offers products and services across major asset classes, including equities, fixed income, real estate, and alternative investments. The company has a diversified client base in the United States, Europe, the Middle East, and Asia. Overall, AFFILIATED MANAGERS’ performance in Q4 of FY2022 reflects strong revenue growth year over year. Despite a decrease in net income compared to the previous year, the company’s revenue growth shows that it is well positioned to maintain its position as a leader in asset management. Moving forward, AFFILIATED MANAGERS will continue to strive to meet the changing needs of its clients and build on its success in Q4 of FY2022.
Market Price
Following the release of the earnings report, the stock opened at $170.7 and closed at $170.6, down by 3.6 percent from its prior closing price of 177.0. The increase in revenue was driven by a combination of both organic growth and strategic investments. AFFILIATED MANAGERS saw an improvement in its core business as well as strong growth in its new initiatives. The company also benefited from a number of investments in growth-oriented businesses, which helped drive its strong results. The company attributed its successful quarter to its focus on providing quality products and services to its customers. It also credited its strategic investments, which have allowed it to take advantage of new opportunities in the marketplace.
Furthermore, the company has continued to invest in technology, which has allowed it to remain ahead of the competition. Overall, AFFILIATED MANAGERS reported a strong quarter with record revenue and an improved balance sheet and operating margin. This strong performance is expected to continue into the next quarter and beyond, allowing the company to remain competitive in the market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Affiliated Managers. More…
| Total Revenues | Net Income | Net Margin |
| 2.33k | 1.15k | 45.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Affiliated Managers. More…
| Operations | Investing | Financing |
| 1.16k | -583.7 | -798.3 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Affiliated Managers. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.88k | 4.24k | 68.81 |
Key Ratios Snapshot
Some of the financial key ratios for Affiliated Managers are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.3% | 4.9% | 79.9% |
| FCF Margin | ROE | ROA |
| 49.2% | 38.8% | 13.1% |
Analysis – Affiliated Managers Intrinsic Value
GoodWhale’s proprietary Valuation Line analysis of AFFILIATED MANAGERS has determined that the fair value of its shares is around $148.4. This figure is based on an extensive analysis of the company’s financials, including factors such as earnings and revenue growth, profitability, cash flow, and more. Currently, AFFILIATED MANAGERS’ stock is trading at $170.6, which is overvalued by 15.0%. This means that investors are pricing the stock higher than its fair value, suggesting that the stock may be overvalued, and investors should exercise caution when considering an investment in AFFILIATED MANAGERS. Investors should take into account additional factors such as the company’s performance, competitive landscape and macroeconomic environment before making any investment decisions. Furthermore, they should review AFFILIATED MANAGERS’ financial statements and press releases to get a better understanding of the company’s current situation and future prospects. Ultimately, investors should make their own investment decisions based on their own research and analysis. More…
Peers
Its competitors are BlackRock Inc, CI Financial Corp, and Pinnacle Investment Management Group Ltd.
– BlackRock Inc ($NYSE:BLK)
BlackRock Inc is a publicly traded company with a market capitalization of $90.05 billion as of early 2021. The company operates as an investment management firm and has a strong focus on exchange-traded funds (ETFs). As of early 2021, BlackRock managed nearly $8 trillion in assets on behalf of its clients. The company has a return on equity (ROE) of 12.63%.
BlackRock was founded in 1988 and has grown to become one of the largest asset managers in the world. The company is headquartered in New York City and has offices in dozens of countries around the globe. BlackRock serves a wide range of clients, including institutional investors, financial advisors, and individual investors.
– CI Financial Corp ($TSX:CIX)
As of 2022, CI Financial Corp has a market cap of 2.54B and a Return on Equity of 30.25%. The company is a leading provider of financial services in Canada, with a focus on asset management and wealth management. The company has a strong track record of delivering superior performance for its clients and shareholders.
– Pinnacle Investment Management Group Ltd ($ASX:PNI)
Pinnacle Investment Management Group Ltd is a global asset management firm with over $1.67 billion in assets under management. The company offers a wide range of investment products and services to institutional and retail investors across the globe. Pinnacle is headquartered in Sydney, Australia and has offices in London, New York, Hong Kong, and Singapore.
Summary
AFFILIATED MANAGERS saw impressive revenue growth of 335.7% in the fourth quarter of FY2022, as compared to the year before. Despite this, net income decreased by 22.0%. The stock price reacted negatively to this news, declining on the same day. From an investment perspective, AFFILIATED MANAGERS appears to be a high-risk stock. Despite the high revenue growth, the net income decline indicates that the company may face difficulties in maintaining profitability. Investors should do their due diligence before investing in AFFILIATED MANAGERS.
Additionally, they should monitor the company’s performance and announcements, as any future changes could affect the stock price.
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