What is the AI rating for AAMI?

Acadian Asset Management Inc. (AAMI) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.

What are the key strengths of AAMI?

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

What are the risks of investing in AAMI?

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

AAMI Stock Analysis - Acadian Asset Management Inc. AI Rating & Fundamentals

Name: Acadian Asset Management Inc. (AAMI) Stock
Brand: Acadian Asset Management Inc.
Rating: 3 (1 reviews)

Investment Thesis

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.

AAMI 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

AAMI 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

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

AAMI Financial Metrics

Revenue

$563.7M

Net Income

$80.0M

EPS (Diluted)

$2.21

Free Cash Flow

$-10.3M

Total Assets

$677.0M

Cash Position

$124.4M

AAMI Profitability Ratios

Gross Margin N/A

Operating Margin 23.4%

Net Margin 14.2%

ROE 199.0%

ROA 11.8%

FCF Margin -1.8%

AAMI Balance Sheet & Liquidity

Current Ratio

N/A

Quick Ratio

N/A

Debt/Equity

4.98x

Debt/Assets

87.6%

Interest Coverage

12.83x

Long-term Debt

$200.0M

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.

Data Source: SEC EDGAR | Analysis Date: Mar 18, 2026 | Data as of: 2025-12-31 | Powered by Claude AI