Silvercrest Asset Management Group Inc. (NASDAQ: SAMG)

Sector: Financial Services Industry: Asset Management CIK: 0001549966
Market Cap 140.65 Mn
P/B 2.18
P/E 17.03
P/S 1.13
ROIC (Qtr) 8.99
Div Yield % 6.74
Rev 1y % (Qtr) 2.86
Total Debt (Qtr) 21.04 Mn
Debt/Equity (Qtr) 0.36
Add ratio to table...

About

Investment thesis

Bull case

  • Strong operating cash flow of 20.14M provides robust 0.96x coverage of total debt 21.04M, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 20.14M provides exceptional 214.27x coverage of interest expenses 94000, showing strong debt service capability.
  • Strong tangible asset base of 78.88M provides 3.75x coverage of total debt 21.04M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 20.14M provides strong 11.51x coverage of stock compensation 1.75M, indicating sustainable incentive practices.
  • Robust free cash flow of 18.10M exceeds capital expenditure of 2.04M by 8.85x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 20.14M barely covers its investment activities of (2.04M), with a coverage ratio of -9.85, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 20.14M provides thin coverage of dividend payments of (13.30M) with a -1.51 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 18.10M represents just -143.63x of debt issuance (126000), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating earnings of 10.32M show weak coverage of depreciation charges of 5.46M, with a 1.89 ratio indicating high capital intensity and potential reinvestment needs.
  • Retained earnings of 43.53M provide limited buffer against comprehensive income items of (54000), which is -806.15x, indicating elevated exposure to market risks.

Peer comparison

Companies in the Asset Management
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BLK BlackRock, Inc. 199.59 Bn 85.40 21.98 15.04 Bn
2 BN BROOKFIELD Corp /ON/ 103.94 Bn 31.52 5.64 262.97 Bn
3 AMP Ameriprise Financial Inc 88.69 Bn 55.02 7.20 5.89 Bn
4 BX Blackstone Inc. 88.51 Bn 49.39 10.93 12.89 Bn
5 KKR KKR & Co. Inc. 55.86 Bn 28.33 13.23 53.12 Bn
6 STT State Street Corp 46.52 Bn 21.77 3.91 34.72 Bn
7 NTRS Northern Trust Corp 34.14 Bn 33.31 6.71 15.64 Bn
8 RJF Raymond James Financial Inc 32.89 Bn 37.63 4.14 5.10 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.80 0.94
EV to Cash from Ops. EV/CFO 6.67 41.10
EV to Debt EV to Debt 5.97 15.28
EV to EBIT EV/EBIT 9.93 23.47
EV to EBITDA EV/EBITDA 5.78 47.80
EV to Free Cash Flow [EV/FCF] EV/FCF 7.30 38.62
EV to Market Cap EV to Market Cap 0.89 7.81
EV to Revenue EV/Rev 1.01 27.38
Price to Book Value [P/B] P/B 2.18 2.34
Price to Earnings [P/E] P/E 17.03 11.81
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.50 4.66
Dividend Payout Ratio % Div Payout % (Qtr) 114.10 -5.56
Dividend per Basic Share Div per Share (Qtr) 0.81 1.73
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 37.45 49.83
Interest Coverage Int. cover (Qtr) 109.79 25.16
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -9.89 -35.10
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -37.82 15.43
Dividend Growth (1y) % Div 1y % (Qtr) 5.19 1.65
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -12.52 -90.82
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -24.11 35.24
EBIT Growth (1y) % EBIT 1y % (Qtr) -10.28 -22.13
EBT Growth (1y) % EBT 1y % (Qtr) -9.50 -163.05
EPS Growth (1y) % EPS 1y % (Qtr) -10.13 -20.61
FCF Growth (1y) % FCF 1y % (Qtr) 0.26 220.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 4.23 -53.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.80 0.22
Cash Payout Ratio Cash Payout (Qtr) 0.60 0.36
Cash Ratio Cash Ratio 0.00 0.38
Current Ratio Current Ratio 0.00 0.86
Debt to Equity Ratio Debt/Equity (Qtr) 0.36 0.70
Interest Cover Ratio Int Coverage (Qtr) 109.79 25.16
Times Interest Earned Times Interest Earned (Qtr) 109.79 25.16
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 12.60 -114.76
EBIT Margin % EBIT Margin % (Qtr) 8.23 -127.24
EBT Margin % EBT Margin % (Qtr) 8.16 -150.97
Gross Margin % Gross Margin % (Qtr) 100.00 67.88
Net Profit Margin % Net Margin % (Qtr) 5.30 -148.68