Man Group Limited (EMG.L) | Investment Case

1. Company Snapshot

1.a. Company Description

Man Group Plc is a publicly owned investment manager.The firm provides long-only and alternative investment management services worldwide.It offers a range of liquid investment products and solutions, which include quantitative, multi-manager and discretionary investment styles, and span across various asset classes, like equity, real estate, currency, credit, volatility, and commodities.

The firm distributes its products and solutions directly to institutions and to private investors through a global network of intermediaries.Man Group Plc was founded in 1783 and is based in St. Helier, Jersey with an additional office in London, United Kingdom.

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1.b. Last Insights on EMG

Man Group's recent performance was driven by a 23% year-over-year revenue growth to $1.43 billion, beating expectations. The company's full-year 2024 results showed a strong performance in its alternative investment business. Man Group's CEO has also expressed interest in further acquisitions, particularly in the fast-growing credit space, which presents a "cracking opportunity". Additionally, the company has been identified as one of the top UK dividend stocks, yielding up to 6.2%, providing a stable income stream for investors.

1.c. Company Highlights

Last Price	210
Change Percentage	0.38%
Open	210.6
Previous Close	209.2
Market Cap ( Millions)	2344
Volume	1712767
Year High	221.52
Year Low	150.4
M A 50	200.2
M A 200	181.56

FCF Yield	9.06%
Dividend Yield	6.15%
ROE	11.73%
Debt / Equity	26.74%
Net Debt / EBIDTA	46.72%
Price To Book	2.2
Price Earnings Ratio	17.54
Price To FCF	11.04
Price To sales	2.39
EV / EBITDA	8.67

2. Man Group's Strong H1 2025 Earnings Driven by Record AuM and Client-Led Growth

Man Group reported a robust first half of 2025, with core earnings per share reaching $0.097, beating analyst estimates of $0.06081 with actual EPS coming in at $0.07066. Net revenue was $604 million, with net management fees of $517 million, a 6% decrease compared to the same period last year. The company's core PBT margin decreased to 24% in the first half. Despite the margin pressure, Man Group's distribution network remains a competitive advantage, driving client-led growth and resulting in record assets under management of $193.3 billion.

Publication Date: Aug -04

                                    📋 Highlights
                                    Record AUM:
                                                Assets under management reached $193.3 billion, a record high, driven by strong net inflows of $17.6 billion.
Strong Investment Performance:
                                                Generated $2.5 billion in investment performance, with long-only strategies leading the growth.
Challenged Alternatives:
                                                Alternative strategies, particularly trend-following programs, faced headwinds due to volatile market conditions.
Core Earnings Growth:
                                                Core earnings per share were $0.097, with a 2025 interim dividend declared at $0.057 per share.
Strategic Growth Initiatives:
                                                Credit AUM grew to $42.7 billion, supported by the acquisition of Bardin Hill, and the systematic long-only business expanded by over 70% in two years.

                                

Business Segment Performance

The company's alternative strategies faced headwinds, particularly trend-following programs, due to market conditions. However, the systematic long-only business grew by over 70% in the past 2 years, with a strong track record of alpha generation. The credit business has also grown significantly, with AUM in credit reaching $42.7 billion, up from $14.7 billion 2 years ago. The acquisition of Bardin Hill, a New York-based private credit manager, is expected to expand Man Group's capabilities in opportunistic and performing credit strategies.

Valuation and Dividend

Man Group's valuation metrics indicate a relatively attractive dividend yield of 6.5%. The Price-to-Book Ratio is 1.57, suggesting a reasonable valuation. The company's disciplined capital allocation policy and focus on consistent capital returns are evident in the $165 million of shareholder returns in the first half of 2025. With a strong and liquid balance sheet, Man Group is well-positioned to continue delivering long-term value to shareholders. Analysts estimate next year's revenue growth at 15.6%, which, combined with the current valuation metrics, suggests a positive outlook for the company.

Guidance and Outlook

Man Group remains confident in its ability to deliver for clients and shareholders, with a robust platform for continued growth. The guidance range for the compensation ratio remains at 40-50%. While trend-following strategies have faced challenges, the company remains committed to its conviction that trend continues to be a valuable component in client portfolios. As Antoine Forterre, CFO, mentioned during the earnings call, the company is focused on investing in key growth areas, including credit and quant equity, while maintaining a cost-conscious approach.

3. NewsRoom

UK Stocks Estimated To Be Trading Below Their Intrinsic Value

Dec -02

Source:

How Recent Analyst Upgrades Are Shaping the Man Group Story

Dec -01

Source:

Big Tech’s AI Debt Wave Is Threatening to Swamp Credit Markets

Nov -24

Source:

Why The Story Around Man Group Is Shifting Following Latest Analyst Upgrades

Nov -17

Source:

New risk model sets benchmark for accuracy in predicting credit rating changes

Nov -06

Source:

UK's November 2025 Stocks Possibly Priced Below Estimated Value

Nov -03

Source:

How the Story Behind Man Group Is Evolving After Analyst Revisions and New Developments

Oct -20

Source:

How Recent Developments Are Shaping the Man Group Investment Story

Oct -06

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.20%)

6. Segments

Investment Management

Expected Growth: 10.2%

Growing demand for actively managed investment strategies, increasing adoption of alternative investments, and expansion into emerging markets drive growth in Man Group's Investment Management segment.

7. Detailed Products

Man AHL

A pioneer in the field of systematic trading, Man AHL offers a range of quantitative investment strategies that aim to deliver strong risk-adjusted returns.

Man GLG

A discretionary investment manager that offers a range of equity, fixed income, and alternative investment strategies.

Man FRM

A specialist investment manager that offers a range of alternative investment strategies, including hedge funds, private equity, and real assets.

Man Numeric

A quantitative investment manager that offers a range of equity and fixed income strategies that aim to deliver strong risk-adjusted returns.

Man Solutions

A provider of investment solutions that aim to help investors achieve their investment objectives.

8. Man Group Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Man Group Limited is moderate, as there are alternative investment products available in the market, but the company's diversified product offerings and strong brand reputation help to mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low, as Man Group Limited's products are diversified and cater to a wide range of customers, making it difficult for individual customers to exert significant bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as Man Group Limited relies on a range of suppliers for its operations, but the company's scale and diversification help to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low, as the investment management industry is highly regulated and requires significant capital and expertise to enter, making it difficult for new entrants to compete with established players like Man Group Limited.

Intensity Of Rivalry

The intensity of rivalry is high, as the investment management industry is highly competitive, with many established players competing for market share, and Man Group Limited must continually innovate and improve its offerings to remain competitive.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	20.79%
Debt Cost	6.20%
Equity Weight	79.21%
Equity Cost	7.62%
WACC	7.33%
Leverage	26.24%

11. Quality Control: Man Group Limited passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Vontobel

A-Score: 6.5/10

Value: 6.8

Growth: 4.1

Quality: 6.4

Yield: 7.5

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

Legal & General

A-Score: 6.2/10

Value: 4.8

Growth: 2.3

Quality: 5.6

Yield: 10.0

Momentum: 5.5

Volatility: 9.0

1-Year Total Return ->

Wendel

A-Score: 6.0/10

Value: 7.7

Growth: 3.9

Quality: 5.9

Yield: 6.9

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

Man

A-Score: 5.8/10

Value: 5.0

Growth: 5.8

Quality: 7.2

Yield: 8.1

Momentum: 2.0

Volatility: 6.7

1-Year Total Return ->

Peugeot

A-Score: 5.6/10

Value: 2.7

Growth: 6.2

Quality: 6.8

Yield: 5.6

Momentum: 5.0

Volatility: 7.3

1-Year Total Return ->

Caledonia Investments

A-Score: 5.4/10

Value: 2.5

Growth: 2.4

Quality: 7.2

Yield: 4.4

Momentum: 7.0

Volatility: 9.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-8.48%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.33%

Man Group Limited - JE00BJ1DLW90

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on EMG

1.c. Company Highlights

Expensive

Average Quality

Average Growth

Fairly Valued

Average Yield

Higher Growth

Stable Momentum

Revenues Miss

Weak Momentum

Earnings Beats

Revenues Beats

Earnings Miss

Cheaper

2. Man Group's Strong H1 2025 Earnings Driven by Record AuM and Client-Led Growth

Business Segment Performance

Valuation and Dividend

Guidance and Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.20%)

6. Segments

Investment Management

Expected Growth: 10.2%

7. Detailed Products

Man AHL

Man GLG

Man FRM

Man Numeric

Man Solutions

8. Man Group Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Man Group Limited passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.1$

Current Price

2.1$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA