Affiliated Managers Group, Inc. :AMG-US: Earnings Analysis: 2016 By the Numbers : January 31, 2017

Affiliated Managers Group, Inc. reports financial results for the year ended December 31, 2016.

We analyze the earnings along side the following peers of Affiliated Managers Group, Inc. – Franklin Resources, Inc., BlackRock, Inc. and Janus Capital Group Inc. (BEN-US, BLK-US and JNS-US) that have also reported for this period.

Highlights

  • Narrowing of operating (EBIT) margins contributed to decline in earnings, despite some positive contribution from one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2016 2015 2014 2013 2012
Relevant Numbers (Annual)
Revenues 2194.6 2493.3 2522.3 2201.1 1805.5
Revenue Growth (YOY) N/A N/A N/A N/A N/A
Earnings 472.8 516 452.1 360.5 174
Earnings Growth (YOY) -8.37 14.13 25.41 107.18 5.52
Net Margin 21.54 20.7 17.92 16.38 9.64
EPS 8.57 9.29 8.01 6.54 3.28
Return on Equity 9.97 11.9 11.2 9.87 5.38
Return on Assets 5.72 6.67 6.45 5.77 3.04

Access our Ratings and Scores for Affiliated Managers Group, Inc.

Margins

The company’s earnings fell, largely because of the narrowing in operating margins, which decreased from 31.67% to 27.76%. The decline in earnings probably would have been worse, were it not for some one-time items that improved pretax margins from 43.74% to 44.41%.

EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables
EBIT Margin History
PreTax Margin History

Access our Ratings and Scores for Affiliated Managers Group, Inc.

Company Profile

Affiliated Managers Group, Inc. is an asset management company with equity investments in a diverse group of growing, boutique investment management firms. It provides assistance to investment management firms in strategic matters, marketing, distribution, product development and operations. The company operates its business through the following segments: Institutional, High Net Worth and Mutual Fund. The Institutional Distribution Channel segment offers investment styles in the Institutional distribution channel, including small, small/mid, mid and large capitalization value, growth equity and emerging markets. The Mutual Fund Distribution Channel segment provides advisory or sub-advisory services to mutual funds. The High Net Worth Distribution Channel segment consists principally of direct relationships with high net worth individuals and families and charitable foundations. Affiliated Managers Group was founded by William J. Nutt in December 1993 and is headquartered in West Palm Beach, FL.

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