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Financials Sector Report

Asset Management Industry Report

Market Cap: $3.1T
Stocks: 167
Median P/E: 16.1x
Median ROIC: 10.3%

Data sourced from SEC EDGAR filings. Report refreshed weekly.

Part of the Financials sector.

Performance Dashboard

PeriodSector (MCW)Sector (Median)
1 Day+0.5%+0.3%
1 Week-2.8%+0.4%
1 Month
3 Months
6 Months
YTD+0.9%+0.3%
1 Year+22.3%+10.4%
3 Years+113.8%+44.6%
5 Years+95.0%+34.3%

Today's Breadth: 69 advancing · 47 declining · 5 flat

Valuation Summary

MetricMedianP25P75vs 5Y Avg
P/E16.1x7.5x25.2x+27%
P/B2.0x0.7x4.9x-12%
P/S1.9x0.2x5.0x
P/FCF10.5x4.0x18.6x
EV/EBITDA12.6x6.4x16.9x
EV/EBIT13.6x6.9x18.6x
Earnings Yield
5.1%
FCF Yield
4.8%
Below Fair Value
31% of stocks

Profitability Profile

Margins

MetricMedian5Y AvgP25P75
Gross Margin59.6%60.7%43.0%80.0%
Operating Margin20.2%0.2%30.0%
Net Margin16.2%17.5%5.8%30.9%
FCF Margin26.1%6.9%40.1%

Returns on Capital

MetricMedian5Y AvgP25P75
ROE13.6%5.3%22.8%
ROA2.4%0.1%8.0%
ROIC10.3%10.4%3.0%21.4%

Growth Metrics

Metric1Y3Y CAGR5Y CAGR
Revenue+8.3%+7.6%+8.8%
EPS+22.3%+4.8%+10.2%
Free Cash Flow+16.6%+13.2%+5.6%

All values represent sector median growth rates.

Balance Sheet Health

Debt / Equity
0.5x
Net Debt / EBITDA
-0.5x
Interest Coverage
3.0x
Current Ratio
1.7x

Altman Z-Score

Safe (>3): 10 (25%)
Gray (1.8–3): 3 (8%)
Distress (<1.8): 27 (68%)

Piotroski F-Score

Strong (7–9): 8 (5%)
Moderate (4–6): 92 (55%)
Weak (0–3): 67 (40%)

Top Companies

Symbol#Mkt CapP/EEV/EBITDAROICNet MgnRev Gr.Div YldYTDQual.
GLDI1$750.5B64.0%-20.3%+30.7%-0.8%3/9
MS2$288.3B17.8x124.7x3.9%23.0%+14.4%2.1%+2.2%4/9
GS3$282.9B17.6x15.8x4.2%28.0%+8.9%1.6%+2.5%5/9
SCHW4$175.2B21.8x9.8x11.8%35.2%+22.0%1.1%+3.0%5/9
BLK5$161.0B30.8x47.0x8.7%22.9%+18.7%1.9%+0.2%2/9
CME6$108.3B24.2x22.2x13.1%61.7%+6.4%4.0%-4.3%5/9
BX7$95.0B39.7x14.8%20.9%+9.2%3.0%+9.7%4/9
KKR8$94.4B55.6x22.7x3.0%11.6%-11.0%0.6%+6.1%1/9
ICE9$94.4B28.3x17.4x7.2%26.2%+36.2%1.2%-3.5%5/9
BAM10$74.8B27.6%51.6%+21.0%3/9
APO11$67.4B26.7x-16.4x10.5%10.6%+22.7%1.4%-1.7%5/9
HOOD12$65.8B57.6x22.0%42.1%+51.6%+1.6%2/9
NDAQ13$49.8B32.1x22.2x8.7%21.6%+11.7%1.1%+2.9%5/9
AMP14$44.7B13.8x10.9x40.3%18.8%+5.5%1.2%-0.5%8/9
ARES15$38.3B6.0%7.6%+44.2%+9.5%5/9
IBKR16$33.0B29.8x18.4%40.3%+23.4%0.5%+3.8%5/9
ISMCF17$31.7B566.1x124.7%133.9%-17.0%-0.5%3/9
CBOE18$31.6B24.5x16.4x17.8%23.2%+15.1%1.1%+0.9%4/9
RJF19$31.1B16.9x56.0x14.3%13.4%+6.6%1.1%-0.1%5/9
TW20$26.7B28.5x13.2%39.6%+18.9%0.5%+2.2%5/9

Industry Composition

IndustryStocksMarket Cap%
Security Brokers, Dealers & Flotation Companies28$1.9T61.0%
Investment Advice58$657.8B21.0%
Security & Commodity Brokers, Dealers, Exchanges & Services11$351.6B11.2%
Asset Management40$103.3B3.3%
Commodity Contracts Brokers & Dealers26$100.4B3.2%
Financial - Capital Markets4$7.7B0.2%

Quality Distribution

0
1
2
3
4
5
6
7
8
9

Quality Score (0-9)

High Quality (7+)
2%
Median Piotroski F
4/9
Profitable Years
6 of 10

Dividends & Shareholder Returns

Paying Dividends
68%
Median Div Yield
2.9%
Median Buyback Yield
0.6%
Shareholder Yield
4.3%
Payout Ratio
43.3%
Div Growth (3Y)
5.4%
Div Growth (5Y)
5.0%

Strengths & Weaknesses

Strengths

  • +[Profitability]High pricing power with a median gross margin of 59.6%, reflecting differentiated products or strong brand moats.
  • +[Shareholder Returns]Generous capital returns with a median shareholder yield (dividends + buybacks) of 4.3%, rewarding investors through multiple channels.

Weaknesses

  • [Financial Health]67.5% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
  • [Leverage]Tight interest coverage at 3.0x, leaving limited cushion for debt servicing if earnings decline.
  • [Quality]Only 1.8% of companies score 7+ on the quality checklist, reflecting structural challenges in achieving consistent returns across the sector.
  • [Valuation]Elevated valuations: current median P/E of 16.1x is 27.4% above the 5-year average, suggesting the sector may be pricing in optimistic growth expectations.

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