APAM Stock Fair Value Calculation – ARTISAN PARTNERS ASSET MANAGEMENT Reports Profitable Second Quarter of FY2023
August 14, 2023
☀️Earnings Overview
ARTISAN PARTNERS ASSET MANAGEMENT ($NYSE:APAM) reported its second quarter FY2023 earnings results on June 30 2023, showing a total revenue of USD 242.9 million, which was a 3.4% drop from the same period in the previous year. Net income, however, increased by 21.0% year over year, reaching USD 53.6 million.
Market Price
APAM opened at $41.3, up slightly from its previous closing price of $41.5. While the stock closed slightly lower at $41.2, it was still a profitable quarter for the company. This was thanks to strong inflows of capital from institutions, foundations, and pension funds.
In addition, APAM’s strong performance was attributed to its diversified portfolio of investments, which included publicly traded stocks, bonds, ETFs, and other alternative investments. The company also reported income from its private partnerships and investments, which helped bolster its overall income for the quarter. Overall, APAM’s second quarter of FY2023 was a successful one. Despite a slight decline in its stock price, the company reported strong income growth and increased assets under management. This performance bodes well for the future of the company and its investors. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for APAM. More…
| Total Revenues | Net Income | Net Margin |
| 937.7 | 193.91 | 17.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for APAM. More…
| Operations | Investing | Financing |
| 242.05 | -63.73 | -306.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for APAM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.41k | 893.2 | 4.48 |
Key Ratios Snapshot
Some of the financial key ratios for APAM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.7% | -1.0% | 36.4% |
| FCF Margin | ROE | ROA |
| 23.8% | 76.0% | 15.2% |
Analysis – APAM Stock Fair Value Calculation
At GoodWhale, we recently conducted an analysis of ARTISAN PARTNERS ASSET MANAGEMENT’s wellbeing. After evaluating the company’s financials, market conditions, and industry trends, our proprietary Valuation Line calculated a fair value of around $27.6 for ARTISAN PARTNERS ASSET MANAGEMENT shares. However, when we checked the current market price, we found that ARTISAN PARTNERS ASSET MANAGEMENT shares are being traded at $41.2 – a whopping 49.1% overvaluation! This could be a potential opportunity for investors to consider, though we always advise conducting further research before making a final decision. More…
Peers
The competition between Artisan Partners Asset Management Inc and its competitors Franklin Resources Inc, Medley Management Inc and Value Partners Group Ltd is fierce. All four companies have a long history of success and are constantly striving to stay ahead of the competition. Each company has a unique strategy and approach to managing assets, which can give them an edge in the highly competitive asset management business.
– Franklin Resources Inc ($NYSE:BEN)
Franklin Resources Inc, formerly known as Franklin Templeton Investments, is a leading global investment management organization. The company provides investment management services for individuals, institutions, and government entities in over 160 countries worldwide. Its market capitalization as of 2023 is 14.2 billion dollars, which is indicative of its strong financial performance and market presence. Its Return on Equity (ROE) of 9.9% demonstrates the company’s ability to generate profits from its investments and operations. The company is also well-known for its commitment to ethical investing practices, which has earned it a reputation as a leader in the industry.
– Medley Management Inc ($OTCPK:MDLM)
Medley Management Inc is a publicly traded asset management firm that specializes in providing financing solutions to middle-market companies. With a market cap of 932 in 2023, Medley has proven to be a successful investment for shareholders, as it has achieved a Return on Equity of 76.36%. The company typically provides capital to its clients in the form of mezzanine debt, senior secured loans, equity investments, and other debt instruments. Medley’s success can be attributed to its ability to provide tailored financing solutions that meet its clients’ needs, while also delivering strong returns to its investors.
– Value Partners Group Ltd ($SEHK:00806)
Value Partners Group Ltd is an asset management company based in Hong Kong that provides a range of services, including investment advice and portfolio management, to institutional and retail clients. As of 2023, the company had a market cap of 6.03 billion and a Return on Equity of -1.94%. This indicates that the company has experienced a negative return on its shareholders’ equity, likely due to losses incurred in recent years. With a relatively high market cap, Value Partners Group Ltd has managed to remain competitive despite its weak ROE, suggesting that the company may have potential for growth going forward.
Summary
ARTISAN PARTNERS ASSET MANAGEMENT has reported strong financial results for the second quarter of FY2023, with total revenue of USD 242.9 million and net income of USD 53.6 million. This marks a 3.4% decrease in total revenue compared to the same period a year prior, yet a 21.0% increase in net income year over year. The company appears to be performing well and is on track to continue growing into the future. Investors should consider the long-term potential of ARTISAN PARTNERS ASSET MANAGEMENT as a viable investment option.
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