AAMI
Acadian Asset Management (AAMI) Scenario Analysis Analysis (2026)
Overall Score
Base Case
AAMI continues to show solid profitability with TTM net margin of 14.4% and operating margin of 27.8%.
Leverage remains manageable at net debt to EBITDA of 1.0x and interest coverage of 10.5x.
Valuation is still demanding at 4.6x sales and 75.4x free cash flow, limiting upside in the base case.
Bull Case
Strong returns on capital support upside, with ROIC at 24.6% and ROE at 161.9%.
If margins and cash conversion improve from current levels, the business could justify a higher multiple.
Stable debt service capacity gives room for execution to translate into earnings growth.
Bear Case
Liquidity remains tight with a current ratio of 1.0x and negative working capital of $7.0M.
Cash conversion is weak, with free cash flow yield at 1.3% and cash conversion cycle at 640.9 days.
High valuation leaves the stock vulnerable if growth or margins soften.
Sources
- Company filings (10-K, 10-Q, investor presentations)
- Financial and market data providers
- Public news and industry information
🔒 Go Beyond This Framework
This is one of 10 institutional-grade frameworks Invetso runs on Acadian Asset Management. Unlock the complete analysis — SWOT, Economic Moat, Porter’s Five Forces, Management, PESTLE and the Invetso Quality Score.