Affiliated Managers Group, Inc.

Affiliated Managers Group maintains a capital structure characterized by a debt-to-equity ratio of 0.0, indicating a conservative leverage profile relative to its equity base of $3.09 billion. The firm holds $376.1 million in cash and equivalents against total liabilities of $5.15 billion, resulting in a low liquidity risk assessment. Operating cash flow for Q1 2026 reached $299.3 million, significantly exceeding capital expenditures of $3.8 million and generating free cash flow of $295.5 million. The company actively returned capital to shareholders through $185.1 million in net share repurchases and $84.1 million in distributions to non-controlling interests during the quarter.

Profitability metrics demonstrate strong returns, with a return on equity of 23.19% and a return on assets of 7.63%. The firm reported net income of $110.4 million on revenue of $544.9 million for the three months ended March 31, 2026, representing a net margin of approximately 20.3%. Equity method income contributed $147.4 million to pre-tax income, highlighting the significance of affiliate performance to the consolidated bottom line. The valuation snapshot indicates a price-to-earnings ratio of 11.54 and an EV-to-revenue multiple of 3.8, suggesting the market prices the firm at a discount relative to its earnings power despite a high price-to-book ratio of 59.86.

Revenue concentration is driven by the firm's affiliate model, with significant exposure to specific investment strategies and geographies. The filing observations reference segments including "Affiliate" and specific geographic tags such as "country:US" and "country:GB," indicating a diversified but US-centric revenue base. The company's growth strategy focuses on partnering with high-quality new affiliates and investing in existing ones to capitalize on secular growth trends. The absence of detailed segment revenue breakdowns in the provided data limits precise concentration analysis, but the reliance on equity method income suggests that affiliate performance is a primary driver of consolidated results.

The growth trajectory shows positive momentum, with Q1 2026 revenue of $544.9 million increasing from $496.6 million in the same period of the prior year. Net income attributable to the controlling interest rose to $110.4 million from $72.4 million year-over-year. This growth is supported by increased equity method income, which nearly doubled from $75.3 million to $147.4 million, reflecting strong performance across the affiliate network. The firm continues to invest in strategic value-add capabilities to scale and diversify its affiliates' businesses.

Risk factors include dilution uncertainty, as the risk assessment notes that dilution risk could not be fully assessed due to missing basic and diluted share count details in certain contexts, although the financial snapshot provides diluted shares outstanding of 27.5 million. The company carries various debt instruments, including junior subordinated notes due between 2059 and 2064, and senior notes due in 2030, 2034, and 2036, which introduce interest rate and refinancing risks. Additionally, the firm is exposed to market volatility through its investments in affiliate-sponsored products and variable interest entities.

Recent events include the filing of an 8-K with material item 2.02, indicating a change in financial statement or securities, though specific details are not elaborated in the observation. The company also reported on the adoption of FASB ASU 2025-03 regarding business combinations and variable interest entities, which may impact future accounting treatments for acquisitions. Analyst sentiment remains positive, with a mean recommendation of 1.50 (strong buy) and a median price target of $439.00, implying significant upside from the current market price of $300.61.

Revenue $544.9M; Net margin 20.3%.

• ▍Revenue $544.9M
• ▍Net margin 20.3%

Revenue $1.52B; Net margin 24.3%.

• ▍Revenue $1.52B
• ▍Net margin 24.3%

Revenue $989.8M; Net margin 15.8%.

• ▍Revenue $989.8M
• ▍Net margin 15.8%

Revenue $2.07B; Net margin 34.5%.

• ▍Revenue $2.07B
• ▍Net margin 34.5%

Revenue $2.04B; Net margin 25.1%.

• ▍Revenue $2.04B
• ▍Net margin 25.1%

Revenue $2.04B; Net margin 25.1%.

• ▍Revenue $2.04B
• ▍Net margin 25.1%

Revenue $2.06B; Net margin 32.7%.

• ▍Revenue $2.06B
• ▍Net margin 32.7%

Revenue $2.06B; Net margin 32.7%.

• ▍Revenue $2.06B
• ▍Net margin 32.7%