📊 AAMI Key Takeaways
Is Acadian Asset Management Inc. (AAMI) a Good Investment?
Acadian demonstrates solid revenue growth (+11.5% YoY) and respectable profitability with 23.4% operating margin, but concerning cash flow deterioration with negative FCF of -10.3M and declining net income (-25% YoY) signal operational challenges. The extremely high leverage (4.98x Debt/Equity) and negative operating cash flow despite profitability raise questions about earnings quality and financial sustainability.
Acadian Asset Management shows solid top-line momentum and healthy operating profitability, with revenue up 11.5% year over year and a 23.4% operating margin. However, growth quality is weakened by a 25.0% drop in net income, negative operating and free cash flow, and a highly leveraged balance sheet with very thin equity support. The fundamentals suggest a profitable business, but not one with clean enough earnings or cash generation to justify a more aggressive rating.
Why Buy Acadian Asset Management Inc. Stock? AAMI Key Strengths
- Strong revenue growth of 11.5% YoY indicates healthy top-line expansion in asset management services
- Solid operating margin of 23.4% demonstrates reasonable cost control and pricing power
- Adequate interest coverage of 12.8x suggests ability to service debt obligations
- Substantial cash reserves of $124.4M provides liquidity buffer
- Revenue growth remains strong at 11.5% year over year
- Operating profitability is solid with a 23.4% operating margin and 12.8x interest coverage
- Cash balance of $124.4M provides some liquidity support despite balance sheet pressure
AAMI Stock Risks: Acadian Asset Management Inc. Investment Risks
- Critical cash flow disconnect: negative operating cash flow of -2.4M and free cash flow of -10.3M despite positive net income indicates potential earnings quality issues or working capital problems
- Severe net income decline of 25% YoY despite revenue growth suggests margin compression or one-time charges
- Excessive leverage with Debt/Equity of 4.98x creates significant financial risk, particularly concerning given negative cash generation
- Minimal stockholders equity of $40.2M relative to $677M assets indicates highly levered capital structure vulnerable to asset impairments
- Net income declined 25.0% year over year, indicating earnings pressure despite revenue growth
- Operating cash flow and free cash flow are negative, raising concerns about earnings quality
- Leverage is elevated with 4.98x debt-to-equity and only $40.2M of equity against $593.0M of liabilities
Key Metrics to Watch
- Operating cash flow trend - must return to positive territory to validate earnings quality
- Net income trajectory - need to confirm whether 25% decline is temporary or structural
- Debt/Equity ratio - monitor for further leverage increases or deleveraging progress
- Free cash flow sustainability and path to positive FCF generation
- Asset management AUM trends and fee realization rates
- Operating cash flow and free cash flow conversion
- Net income margin and debt-to-equity trend
Acadian Asset Management Inc. (AAMI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
AAMI Profit Margin, ROE & Profitability Analysis
AAMI vs Market Sector: How Acadian Asset Management Inc. Compares
How Acadian Asset Management Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Acadian Asset Management Inc. Stock Overvalued? AAMI Valuation Analysis 2026
Based on fundamental analysis, Acadian Asset Management Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Acadian Asset Management Inc. Balance Sheet: AAMI Debt, Cash & Liquidity
AAMI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Acadian Asset Management Inc.'s revenue has declined by 38% over the 5-year period, indicating business contraction. The most recent EPS of $1.55 reflects profitable operations.
AAMI Revenue Growth, EPS Growth & YoY Performance
AAMI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $123.1M | $15.1M | $0.42 |
| Q2 2025 | $109.0M | $10.1M | $0.28 |
| Q1 2025 | $105.7M | $14.6M | $0.37 |
| Q3 2024 | $107.3M | $16.9M | $0.45 |
| Q2 2024 | $96.3M | $11.0M | $0.27 |
| Q1 2024 | $91.8M | $12.0M | $0.28 |
| Q3 2023 | $86.8M | $17.8M | $0.42 |
| Q1 2021 | $125.3M | $27.0M | $0.33 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Acadian Asset Management Inc. Dividends, Buybacks & Capital Allocation
AAMI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Acadian Asset Management Inc. (CIK: 0001748824)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AAMI
What is the AI rating for AAMI?
Acadian Asset Management Inc. (AAMI) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AAMI's key strengths?
Claude: Strong revenue growth of 11.5% YoY indicates healthy top-line expansion in asset management services. Solid operating margin of 23.4% demonstrates reasonable cost control and pricing power. ChatGPT: Revenue growth remains strong at 11.5% year over year. Operating profitability is solid with a 23.4% operating margin and 12.8x interest coverage.
What are the risks of investing in AAMI?
Claude: Critical cash flow disconnect: negative operating cash flow of -2.4M and free cash flow of -10.3M despite positive net income indicates potential earnings quality issues or working capital problems. Severe net income decline of 25% YoY despite revenue growth suggests margin compression or one-time charges. ChatGPT: Net income declined 25.0% year over year, indicating earnings pressure despite revenue growth. Operating cash flow and free cash flow are negative, raising concerns about earnings quality.
What is AAMI's revenue and growth?
Acadian Asset Management Inc. reported revenue of $563.7M.
Does AAMI pay dividends?
Acadian Asset Management Inc. pays dividends, with $0.8M distributed to shareholders in the trailing twelve months.
Where can I find AAMI SEC filings?
Official SEC filings for Acadian Asset Management Inc. (CIK: 0001748824) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AAMI's EPS?
Acadian Asset Management Inc. has a diluted EPS of $2.21.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AAMI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Acadian Asset Management Inc. has a HOLD rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AAMI stock overvalued or undervalued?
Valuation metrics for AAMI: ROE of 199.0% (sector avg: 15%), net margin of 14.2% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy AAMI stock in 2026?
Our dual AI analysis gives Acadian Asset Management Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is AAMI's free cash flow?
Acadian Asset Management Inc.'s operating cash flow is $-2.4M, with capital expenditures of $7.9M. FCF margin is -1.8%.
How does AAMI compare to other Market stocks?
Vs Default sector averages: Net margin 14.2% (avg: 12%), ROE 199.0% (avg: 15%), current ratio N/A (avg: 1.8).
Is Acadian Asset Management Inc. carrying too much debt?
AAMI has a debt-to-equity ratio of 4.98x, which is above the Market sector average of 0.7x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.
Why is AAMI's return on equity (ROE) so high?
Acadian Asset Management Inc. has a return on equity of 199.0%, significantly above the Market sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 14.2% net margin.