Artisan Partners Asset Management Inc. (APAM) stock analysis

P/E below its 5-year median

Artisan Partners Asset Management's P/E of 9.1 is below its own 5-year median of 11.3.

P/E below the industry

Artisan Partners Asset Management's P/E of 9.1 is below the Services Allied with the Exchange of Securities median of 21.0.

EV/EBITDA below its 5-year median

Artisan Partners Asset Management's EV/EBITDA of 6.5 is below its 5-year median of 7.9.

P/B above the industry

Artisan Partners Asset Management's price-to-book of 7.04 is above the Services Allied with the Exchange of Securities median of 3.70.

Trading below fair value

The share price of $38.49 is below our fair value estimate of $57.34.

Margin of safety over 20%

The price is 32.9% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 6.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 11.3% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 16.5% over the last twelve months, against a 5-year average of 6.4% a year.

Growing slower than the industry

Revenue grew 8.7% over the last twelve months; the Services Allied with the Exchange of Securities median is 8.7%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 73.1% over the last twelve months and averaged 88.6% over five years.

Return on capital over 10%

Return on invested capital was 537%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Artisan Partners Asset Management's return on equity of 73.1% is above the Services Allied with the Exchange of Securities median of 15.7%.

Earnings grew over 5 years

Net income grew 6.4% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 24.5% over the last twelve months, against a 5-year average of 23.7%.

Net margin above the industry

Artisan Partners Asset Management's net margin of 24.5% is above the Services Allied with the Exchange of Securities median of 16.3%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest well covered

Operating income covers interest expense 48.7 times.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Low bankruptcy risk

The Altman Z-score is 3.94; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Artisan Partners Asset Management paid dividends worth 10.5% of the share price over the last twelve months.

Yield above Treasuries

The 10.5% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Artisan Partners Asset Management yields 10.5%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Not covered by earnings

Dividends take 93.0% of net income, leaving little room.

Covered by free cash flow

Dividends take 87.6% of free cash flow.