AMG

Affiliated Managers Group is a multi-affiliate asset manager trading at a notably low valuation relative to its profitability. FY2025 revenue was roughly flat (up 1.6% to $2.07B), but net income jumped 40.1% to $717M and diluted EPS soared 50.3% to $22.74 — the EPS growth far outpacing net income because AMG repurchased aggressively, shrinking the share count 8.8% YoY with $706M of buybacks. Margins are high and characteristic of the asset-management model: 34.5% net margin and a 22.1% return on equity, with $973M of operating cash flow (up 4.4%) comfortably funding the capital return.

The quality of the franchise shows in its capital allocation discipline — AMG runs a tiny dividend ($1M) and instead concentrates returns in buybacks, retiring shares while equity stays roughly flat (down 3.2%) and retained earnings grow 10.4% to $7.62B. Leverage is moderate (liabilities/equity 1.48x, $2.69B long-term debt), and the model's affiliate structure gives diversified exposure across alternatives and traditional managers.