Acadian Asset Management Inc. Common Stock (AAMI)

FairStock Score: 42/100 — MIXED

Key Financials

Strengths

• Generates $121 million in annual free cash flow (5.0% yield on market cap)
• High return on equity of 124.6% demonstrating efficient capital deployment

Concerns

• Trades significantly above Graham Number ($9) with negative 637% margin of safety—limited downside protection
• High leverage at 3.11x debt-to-equity increases financial risk and interest expense burden

AI Analysis

Acadian Asset Management Inc. Common Stock is a small-cap financial services company valued at $2.4 billion. Revenue stands at $564 million. From a quality standpoint, Acadian shows solid Piotroski F-Score of 6/9 and healthy Altman Z-Score of 3.2. On valuation, the stock is trading at a premium 30.3x earnings, with trades far above its Graham Number ($9) with no margin of safety. Growth dynamics show revenue growing at 2.6% and profit growth of -18.4%. Our composite FairStock Score of 42/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $121 million in annual free cash flow (5.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 30x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer