Highlights

  • 108.84% one-year basic EPS growth, P/E of 13.26 and PEG of 0.72.
  • Second quarter net income (controlling interest) was $185.9 million, against $84.3 million.
  • Assets under management were $942.4 billion at June 30, 2026, against $771.0 billion.
  • The company repurchased 1.2 million shares at an average $310.29 in six months.

Affiliated Managers Group (NYSE:AMG) shares were trading at USD 390.90 on October 28, 2026, down 0.28%, alongside one-year basic EPS growth of 108.84%, a trailing twelve-month P/E of 13.26 and an expected-basis PEG of 0.72, the three figures behind its place among undervalued growth stocks. In its latest disclosures, the investment management holding company authorized a repurchase program of 4.2 million shares in January 2026, amended and restated its revolving credit facility in June 2026, and reported second quarter 2026 net income (controlling interest) of $185.9 million in its August quarterly filing.

Based in Jupiter, Florida, and incorporated in Delaware, Affiliated Managers Group describes itself as a strategic partner to leading independent investment firms globally. It invests in partner-owned firms it calls Affiliates, which retain autonomy and equity ownership, and supports them with growth capital, product strategy and succession planning. The company operates in one segment, and its Affiliates manage private markets, liquid alternative and differentiated long-only strategies.

Growth: Second Quarter Earnings, Fees and Assets Under Management

Net income (controlling interest) was $185.9 million in the second quarter of 2026 against $84.3 million a year earlier, and $296.3 million for the six months against $156.6 million, an increase the company stated as 89%. Basic earnings per share were $7.05 against $2.96 for the quarter, and diluted earnings per share were $6.95 against $2.80. For the six months, basic earnings per share were $11.16 against $5.43 and diluted earnings per share were $10.76 against $5.01.

The company attributed the quarterly increase primarily to a $147.5 million increase in consolidated revenue and a $59.3 million increase in equity method income (net). Consolidated revenue was $640.7 million against $493.2 million, up 30%, with asset-based fees up 18% and performance-based fees up 12%.

Assets under management were $942.4 billion at June 30, 2026, against $771.0 billion, up 22%. Aggregate fees were $1,661.5 million against $1,173.5 million, up 42%. Net client cash flows were $12.9 billion in the quarter, including $7.8 billion in private markets and $21.1 billion in liquid alternatives.

Valuation: P/E of 13.26, PEG of 0.72 and Cash Generation

The P/E ratio of 13.26 is measured on trailing twelve-month earnings, and the PEG ratio of 0.72 on expected growth. Operating cash flow was $538.3 million for the six months against $439.7 million. Economic net income (controlling interest), a non-GAAP measure, was $221.4 million for the quarter against $159.2 million, up 39%, and Adjusted EBITDA (controlling interest), also non-GAAP, was $316.0 million, up 44%.

Total stockholders' equity was $3,038.0 million at June 30, 2026, against $3,238.4 million at December 31, 2025. Dividends were $0.01 per share.

Capital Returns, Debt and Liquidity

The Board authorized repurchase programs in July 2024 and January 2026 for up to 5.4 million and 4.2 million shares, with no expiry. The company repurchased 0.6 million shares at an average $313.56 in the quarter and 1.2 million at $310.29 in the six months, including $364.8 million of repurchases of common stock, net, in financing cash flows.

Cash and cash equivalents were $411.0 million. Debt was $3,004.0 million against $2,691.3 million at December 31, 2025, including $650.0 million of senior bank debt. In June 2026 the company extended the $1.25 billion revolver maturity from November 15, 2029 to June 9, 2031, and it settled its junior convertible securities for $514.6 million. It is rated A3 by Moody's and BBB+ by S&P Global Ratings, and its nearest note maturity is $350.0 million of senior notes due June 2030.

Disclosed Risks and Outlook

Equity strategies had net outflows of $14.5 billion in the quarter, which the company said were in line with industry trends. In the first quarter of 2026 it recorded a $30.5 million impairment attributable to the controlling interest, or $43.0 million in aggregate, on a mutual fund client relationship, citing current and projected declines in assets under management. Adjusted EBITDA (controlling interest) rose less than aggregate fees, which the company tied to performance-based fees earned by Affiliates in which it holds a lesser economic interest.

Unfunded co-investment commitments were $410.5 million and may be called in future periods. The company was contingently liable for $569.6 million of payments tied to financial targets at certain equity method Affiliates, of which $360.1 million may become payable in 2027, and had deferred payment obligations of $84.0 million.

The company expects net purchases of approximately $35 million of Affiliate equity during the remainder of 2026. It said its cash balance, operating cash flows and revolver borrowings should support its uses of cash for the foreseeable future, and that it expects its business mix to evolve toward private markets and liquid alternatives.