Affiliated Managers Group Inc. Common Stock (AMG)

FairStock Score: 73/100 — STEADY

Key Financials

Strengths

• Generates $450 million in annual free cash flow (6.1% yield on market cap)
• Solid return on equity of 19.9% above cost of capital
• Healthy net profit margin of 16.8% showing consistent profitability
• FairStock composite score of 73/100 places it in the top tier across value, quality, and momentum factors

AI Analysis

Affiliated Managers Group Inc. Common Stock is a small-cap financial services company valued at $7.4 billion. The business generates $2.1 billion in annual revenue with a 16.8% net margin and $450 million in free cash flow. From a quality standpoint, Affiliated shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 2.2 in the grey zone. On valuation, the stock is attractively valued at 12.5x earnings, with trades above its Graham Number with a negative 13% margin. Growth dynamics show revenue growing at 6.2% and profit growth of 114.4%. Our composite FairStock Score of 73/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Affiliated's consistent 20% ROE at just 13x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $450 million in annual free cash flow (6.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. 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