AB Investment Analysis Report & Stock Research, AllianceBernstein Holding LP

AllianceBernstein Holding LP (AB)

AB Stock Report

2-Year Price History

View Larger AB Chart
(8/28 6:40PM)
Open$22.2 Mkt Cap$2.1 Billion
High$22.5 52Wk High$57.11
Low$22.08 52Wk Low$10.12
Volume633,547 Avg Vol 10D474,300

Ockham’s Rating

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AB Revenue

Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company’s stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, AB the high and low end of the Price to Sales per share ratios are 25.72x and 13.98x respectively.

Notice that AB’s current Price to Sales per share ratio is 0.37x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $22.46, AB is 99% below where we would expect to see it. This will beneficially factor into our final analysis of AB as it is not often that this stock sinks to these levels.

AB Cash Earnings

As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of AB, Ockham views their current Cash Earnings as significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for AB, the current level of Cash Earnings compared to its historical levels helps identify where AB is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 29.33 and a historical low Cash Earnings per share ratio of 15.93, an investor can relate where value becomes optimal.

So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for AB? From the Ockham perspective, we are looking specifically at AB to see if the market is recognizing the huge disparity between AB’s past stock price to Cash Earnings ratio to today’s levels. At a difference of 32% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at AB. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.

AB Dividends

A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company’s inherent expectations.

Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from AB against the historic high and low levels over an available data range. Because AB has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In AB’s case, the estimated annual dividend is $1.64 producing a current dividend yield of 7.30%. The highest dividend yield from AB in recent history was 30.16% while the lowest dividend yield was 2.81%. While it is quite common for a growth stock to pay no dividend at all, but for a mature company such as AB that has a history of paying dividends it is disappointing to see their dividend yield drop so significantly. At this time, the current dividend yield is 55.72% below the median yield.

Peer Comparison


AllianceBernstein Holding LP Industry Grouping

Company Ticker Market Cap (Ml) Latest
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding AB) 30.82 7.41 » 46.50 3.70 1.41 » 6.53 12.10% 25.75%
*10 year range does not include current year values
Baytex Energy Trust BTE $2.4 Billion $22.31 6.08 2.38 » 8.64 0.00 0.00 » 0.00 n/a 21.26%
Waddell & Reed Financial, Inc. WDR $2.3 Billion $26.64 32.10 7.63 » 51.44 2.05 0.79 » 6.23 15.07% 30.54%
Morningstar, Inc. MORN $2.2 Billion $44.67 18.46 10.30 » 40.34 4.49 2.43 » 8.82 n/a 17.22%
Greenhill & Co Inc GHL $2.1 Billion $75.69 86.01 10.98 » 53.09 10.01 3.16 » 11.72 11.86% 46.46%
AllianceBernstein Holding LP AB $2.1 Billion $22.46 15.60 4.30 » 38.90 0.37 3.78 » 33.86 22.64% 18.66%
Knight Capital Group Inc. NITE $1.8 Billion $19.68 11.44 5.76 » 79.00 1.93 0.67 » 5.89 9.38% 13.28%

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The Latest Financial News
9:48:43 AM AB $19.94 AllianceBernstein Holding LP
6/25/2009 9:48 AM
“…CFPA, it’s unclear whether the FCCC will have any teeth at all. I hope that Wayne continues to report this story, and asks giants like Fidelity and ALLIANCEBERNSTEIN why their 2010 funds were 50% and 57% in stocks, respectively, over the course of 2008. But for real regulation of these beasts, I think the SEC is our only hope. The good news is that Schapiro is on the case. The bad news is that she’s asking “whether it is necessary to improve …” – AB on Felix Salmon Reuters
View All AllianceBernstein Holding LP News

Key Fundamentals

AB – AllianceBernstein Holding LP Fundamentals
Price (8/28 6:40PM) $22.46
Volume (8/28 6:40PM) 633,547
Last Close Price $21.89
10 Day Average Volume 474,300
13 Week Price Range $17.83 – $23.66
52 Week Price Range $10.12 – $57.11
LTM Revenue $160.3 Million
Shares Outstanding (12/2008) 92.5 Million
Market Capitalization $2.1 Billion
Shares Held By Institutions 40.9 Million
Institutional Holders 237
% Shares Held By Institutions 44.30%
Earnings Per Share (EPS) $2.79
P/E Ratio 15.20
Book Value Per Share $17.88
Gross Margin n/a%
Annual Dividend 1.64
Dividend Yield 7.30%
Beta 1.97
Fiscal Year Ends December

About AllianceBernstein Holding LP

AllianceBernstein Holding LP is considered to operate in the Financial sector. They specifically operate in the Asset Management business segment contained within the Financial Services industry.

The Company provides research, diversified investment management and related services globally to a range of clients.