AssetMark Financial Holdings (Ticker: AMK) is a wealth management company based in the U.S. They currently manage around $55.2 billion in client funds and has around 344,000 clients. This stock has been on my watchlist for a while now, and in this article, I want to answer the question, is the stock a buy?
AssetMark is currently trading at a market cap of ~$2.6 billion. They have a p/e ratio (price/earnings per share) of 21.09 and are trading at 2 times their book value. The company currently has $235.68 million in cash and $124.36 million in debt. This gives them a current ratio (calculates how well a company can pay their debt) of 3.84 which means that the company could pay its debt 3.84 times over. Judging by its trading multiple of 21.09 times their earnings per share, this is a company that needs to be growing well for me to consider buying it, so with that in mind, let’s look at the growth.
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Analysts are expecting AssetMark to make $2.60 per share in 2024. They are also expecting the company to grow earnings per share to $2.75 in 2025. In 2023, the company earned $2.30 per share. Analysts are also expecting the company to generate $610.64 million in revenue in 2024, and they are expecting that to grow to $657.96 million in 2025. In 2023, the company generated $546.08 million. This represents 11.8% growth in 2024 and 7.70% growth in 2025. These numbers, however, are projections and there is no guarantee that AssetMark will hit these. Although, AssetMark has managed to grow both revenue and earnings every year over the last four years.
While the company is trading at a decent premium to its earnings, I do think that the company will continue to grow. I most likely will be buying shares of this stock, but this is not financial advice and is for informational purposes only so do your own research before buying the stock.
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Finance by CWT 