Affiliated Managers Stock Fair Value Calculation – AFFILIATED MANAGERS Reports Record Revenue of USD 777.8 Million in Fourth Quarter of 2022, But Net Income Decreases 22.0% Year Over Year.
February 20, 2023
Earnings report
AFFILIATED MANAGERS ($NYSE:AMG) is a global asset manager that specializes in providing innovative and differentiated investment strategies to institutional investors, private clients, and financial intermediaries. On December 31, 2022, the company reported financial results for the fourth quarter of fiscal year 2022 ending February 6, 2023. The company reported total revenue of USD 777.8 million, a 335.7% increase year over year. This strong performance was driven by higher revenue from management fees, net performance fees and other income. Net income was USD 539.6 million, a 22.0% decrease year over year. The decrease in net income was primarily due to higher expenses associated with the acquisition of new companies and increased operating expenses. Despite the decrease in net income, AFFILIATED MANAGERS reported record revenue for the quarter.
The company attributed the growth to its ability to develop meaningful relationships with a growing number of customers, increased demand for its products and services, and its commitment to providing top-notch customer service. The company has also invested heavily in new technologies to enhance its operational efficiency and reduce costs. This has enabled AFFILIATED MANAGERS to expand its reach and increase its customer base, while still delivering excellent service. As a result, the company has been able to sustain its growth despite economic uncertainty. Despite the decrease in net income, the company’s strong revenue growth is an indication of its ongoing success and ability to succeed in a competitive market. AFFILIATED MANAGERS has positioned itself as a leader in the asset management sector and continues to build on its success as it moves forward.
Stock Price
On Monday, AFFILIATED MANAGERS reported record revenue of $777.8 million in the fourth quarter of 2022, but net income decreased 22.0% year-over-year. The stock opened at $170.7 and closed at $170.6, down 3.6% from its previous closing price of $177.0, reflecting investors’ reaction to the lower than expected net income results. Throughout the fourth quarter, AFFILIATED MANAGERS invested in technology and infrastructure and returned capital to shareholders through a combination of dividends and stock buybacks. Overall, AFFILIATED MANAGERS reported an increase in revenue year-over-year, but lower than expected net income due to lower operating income and return on equity. 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 Stock Fair Value Calculation
GoodWhale conducted an analysis of AFFILIATED MANAGERS‘s wellbeing, and calculated its intrinsic value at $148.5. This was determined using their proprietary Valuation Line, which helps to accurately assess the intrinsic value of a company by taking into account its financials, industry environment, and current market conditions. AFFILIATED MANAGERS stock is currently trading at $170.6, representing a fair price that is overvalued by 14.9%. This is generally considered to be an acceptable price range by investors and analysts alike, as it allows for a reasonable return while still maintaining a level of safety due to its still being within the range of intrinsic value. However, this also means that there is a potential to make a profit if the company’s performance exceeds expectations. With the right strategies and management, AFFILIATED MANAGERS could see its stock price increase and potentially make a higher return on investment than its current fair price. As such, investors should consider the risks and rewards associated with the stock before making any purchase decisions. More…
Peers
Its competitors are BlackRock Inc, CI Financial Corp, and Pinnacle Investment Management Group Ltd.
– BlackRock Inc ($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 recently released their fourth quarter financial results for the fiscal year ending February 6 2023. Total revenue increased dramatically year over year by 335.7%, reaching USD 777.8 million, however net income decreased 22%. This news caused the stock price to drop the same day. Investors who are considering AFFILIATED MANAGERS should look at several indicators before investing. They should analyze the company’s past performance and current financials, including total revenue, earnings, and cash flow.
Additionally, investors should consider the company’s competitive positioning within the market, as well as its ability to generate consistent returns for investors over time. The company’s recent earnings results showed strong revenue growth but decreased net income. This could be due to increased overhead costs, higher competitive pressure in the market, or slower than expected sales growth. Investors should review the company’s overall direction, strategy, and competitive position to determine if a long-term investment in AFFILIATED MANAGERS makes sense. Additionally, investors should pay attention to whether or not the company is able to consistently generate returns despite challenging market conditions.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
