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Acadian Asset Management

AAMI
43
Asset Management · Financial Services
Price
$82.79
-0.48 (-0.58%)
Market Cap
$2.95B
Winston Score
43
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

55.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 80.5M (2021) → 36.2M (2025)

Acadian Asset Management is an investment firm that manages money on behalf of large clients like pension funds, endowments, and sovereign wealth funds. The company specializes in quantitative investing, meaning it uses computer models and data analysis — rather than human gut instinct — to decide which stocks and other assets to buy and sell. It operates primarily in global equity markets, managing diversified portfolios across dozens of countries.

Acadian earns revenue mainly through management fees, which are a percentage of the assets it oversees, giving it a relatively stable and recurring income stream. The firm operates globally, serving institutional clients across North America, Europe, and Asia-Pacific. Its main competitive advantage is its proprietary quantitative research platform, which is expensive and time-consuming for rivals to replicate. The key risk is that sustained underperformance of its models versus benchmarks could trigger client withdrawals, shrinking the asset base that drives its fees.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+39.4% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+25.9% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

0.6%ownership

Relatively low insider ownership

Cash Runway

~8 months

$129M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Revenue accelerating

Acadian Asset Management grew revenue 39% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
95.3%
Premium pricing power — 95.3% gross margin
Operating Margin
25.1%
Excellent — 25.1% operating margin
ROCE
11.6%
Below par — 11.6% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+23.4%
Fast-growing sales (23.4% YoY)
EPS YoY
-3.3%
Earnings shrinking (-3.3% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
5%
Weak — only 5% of profit becomes cash
FCF Margin
-1.4%
Burning cash (-1.4%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
3.68
Heavy debt load (3.68)
Interest Cover
8.51x
Comfortably covers interest (8.5x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
35.2x
Pricey — P/E 35.2

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+19.6
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (35.2 → 15.7)

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Dividends

Dividend Yield
0.29%
Small dividend — 0.29% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+450.0%
Dividend growing fast (450.0% YoY)

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