Affiliated Managers Group Inc. 5.875% Junior Subordinated Notes due 2059 (MGR)

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach MGR as a 5.875% junior subordinated note due 2059, not as common stock, so the first question is whether Affiliated Managers Group can carry a long-dated subordinated obligation. The filed record is profitable. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $640.7M and net income $185.9M; in fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $493.2M and net income $84.3M. For FY2025, the year ended 2025-12-31, revenue was $2.1B, net income $716.6M, and diluted EPS $22.74; FY2024, the year ended 2024-12-31, had revenue $2.0B, net income $511.6M, and diluted EPS $15.13. That is a real earning enterprise, and the computed Lynch category is STALWART, based on 28.8% annual profit growth over five years against 0.5% revenue growth. But I also see revenue essentially flat across FY2023, FY2024, and FY2025—$2.1B, $2.0B, and $2.1B—while quarterly profits swing. A Graham-minded creditor to a junior note wants stable earnings and conservative coverage, not just a good year. The $18.69 close on 2026-10-26 is near the 52-week low of $18.34 and below the $22.13 high, so the market is already discounting something. Yet the provided data give no debt, coverage, or asset-protection figures. At this price the coupon may compensate for duration and subordination, but without credit metrics I cannot call it a bargain. The business looks decent; the security's margin of safety is unproven.

In plain English: The company behind these notes is profitable; its most recent quarter showed higher sales and profit than a year earlier. The notes pay a fixed 5.875% interest rate and mature in 2059, but their price is near the low end of the past year's range. The business looks decent though sales growth is slow, and the note's price cannot be fully judged as cheap or expensive because key debt figures are not in the data.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer