AMERIPRISE FINANCIAL INC (AMP) Stock Fundamental Analysis
NYSE:AMP - New York Stock Exchange, Inc. - US03076C1062 - Common Stock - Currency: USD
Overall AMP gets a fundamental rating of 4 out of 10. We evaluated AMP against 233 industry peers in the Capital Markets industry. While AMP is still in line with the averages on profitability rating, there are concerns on its financial health. AMP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AMP was profitable.
AMP had a positive operating cash flow in the past year.
Each year in the past 5 years AMP has been profitable.
In the past 5 years AMP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.67%, AMP is in line with its industry, outperforming 43.78% of the companies in the same industry.
AMP has a better Return On Equity (55.18%) than 97.85% of its industry peers.
With a Return On Invested Capital value of 2.34%, AMP is not doing good in the industry: 65.67% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for AMP is significantly below the industry average of 7.84%.
The last Return On Invested Capital (2.34%) for AMP is above the 3 year average (2.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 55.18% | ||
| ROIC | 2.34% |
ROA(3y)1.65%
ROA(5y)1.49%
ROE(3y)62.13%
ROE(5y)51.8%
ROIC(3y)2.01%
ROIC(5y)1.73%
1.3 Margins
AMP has a Profit Margin (16.56%) which is in line with its industry peers.
AMP's Profit Margin has improved in the last couple of years.
AMP has a Operating Margin of 28.79%. This is comparable to the rest of the industry: AMP outperforms 51.07% of its industry peers.
In the last couple of years the Operating Margin of AMP has grown nicely.
With a Gross Margin value of 51.19%, AMP perfoms like the industry average, outperforming 56.65% of the companies in the same industry.
In the last couple of years the Gross Margin of AMP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.79% | ||
| PM (TTM) | 16.56% | ||
| GM | 51.19% |
OM growth 3Y3.43%
OM growth 5Y10.96%
PM growth 3Y-2.6%
PM growth 5Y5.26%
GM growth 3Y-0.51%
GM growth 5Y3.31%
2. Health
2.1 Basic Checks
AMP has less shares outstanding than it did 1 year ago.
The number of shares outstanding for AMP has been reduced compared to 5 years ago.
The debt/assets ratio for AMP has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.47, we must say that AMP is in the distress zone and has some risk of bankruptcy.
AMP's Altman-Z score of 0.47 is on the low side compared to the rest of the industry. AMP is outperformed by 65.67% of its industry peers.
The Debt to FCF ratio of AMP is 6.26, which is on the high side as it means it would take AMP, 6.26 years of fcf income to pay off all of its debts.
AMP's Debt to FCF ratio of 6.26 is fine compared to the rest of the industry. AMP outperforms 63.52% of its industry peers.
AMP has a Debt/Equity ratio of 7.71. This is a high value indicating a heavy dependency on external financing.
AMP has a Debt to Equity ratio of 7.71. This is amonst the worse of the industry: AMP underperforms 88.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.71 | ||
| Debt/FCF | 6.26 | ||
| Altman-Z | 0.47 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
AMP has a Current Ratio of 0.60. This is a bad value and indicates that AMP is not financially healthy enough and could expect problems in meeting its short term obligations.
AMP has a Current ratio of 0.60. This is in the lower half of the industry: AMP underperforms 73.39% of its industry peers.
AMP has a Quick Ratio of 0.60. This is a bad value and indicates that AMP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AMP (0.60) is worse than 73.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.97% over the past year.
AMP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.30% yearly.
The Revenue has grown by 9.09% in the past year. This is quite good.
AMP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.82% yearly.
EPS 1Y (TTM)18.97%
EPS 3Y14.95%
EPS 5Y16.3%
EPS Q2Q%13.23%
Revenue 1Y (TTM)9.09%
Revenue growth 3Y10.07%
Revenue growth 5Y6.82%
Sales Q2Q%5.1%
3.2 Future
The Earnings Per Share is expected to grow by 6.97% on average over the next years.
Based on estimates for the next years, AMP will show a small growth in Revenue. The Revenue will grow by 5.70% on average per year.
EPS Next Y7.33%
EPS Next 2Y7.53%
EPS Next 3Y9.06%
EPS Next 5Y6.97%
Revenue Next Year3.23%
Revenue Next 2Y4.07%
Revenue Next 3Y4.17%
Revenue Next 5Y5.7%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.02, which indicates a correct valuation of AMP.
The rest of the industry has a similar Price/Earnings ratio as AMP.
AMP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 13.41, which indicates a correct valuation of AMP.
AMP's Price/Forward Earnings ratio is in line with the industry average.
AMP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 13.41 |
4.2 Price Multiples
AMP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AMP is cheaper than 79.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.64 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AMP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.05
PEG (5Y)0.92
EPS Next 2Y7.53%
EPS Next 3Y9.06%
5. Dividend
5.1 Amount
AMP has a Yearly Dividend Yield of 1.18%.
Compared to an average industry Dividend Yield of 8.10, AMP is paying slightly less dividend.
With a Dividend Yield of 1.18, AMP pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
The dividend of AMP is nicely growing with an annual growth rate of 8.56%!
AMP has paid a dividend for at least 10 years, which is a reliable track record.
AMP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.56%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
19.37% of the earnings are spent on dividend by AMP. This is a low number and sustainable payout ratio.
AMP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.37%
EPS Next 2Y7.53%
EPS Next 3Y9.06%
536.07
-0.35 (-0.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners89.38%
Inst Owner Change0%
Ins Owners0.19%
Ins Owner Change6.21%
Market Cap51.04B
Analysts76.67
Price Target541.52 (1.02%)
Short Float %1.46%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly Dividend5.85
Dividend Growth(5Y)8.56%
DP19.37%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3%
Min EPS beat(2)2.45%
Max EPS beat(2)3.55%
EPS beat(4)3
Avg EPS beat(4)-0.71%
Min EPS beat(4)-10.06%
Max EPS beat(4)3.55%
EPS beat(8)4
Avg EPS beat(8)-2.25%
EPS beat(12)7
Avg EPS beat(12)0.01%
EPS beat(16)11
Avg EPS beat(16)0.91%
Revenue beat(2)0
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-3.02%
Max Revenue beat(2)-0.69%
Revenue beat(4)0
Avg Revenue beat(4)-1.47%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)-0.14%
Revenue beat(8)3
Avg Revenue beat(8)-0.48%
Revenue beat(12)7
Avg Revenue beat(12)0.68%
Revenue beat(16)9
Avg Revenue beat(16)-0.4%
PT rev (1m)0.89%
PT rev (3m)-7.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.81%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-3.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 13.41 | ||
| P/S | 2.82 | ||
| P/FCF | 7.64 | ||
| P/OCF | 7.47 | ||
| P/B | 9.41 | ||
| P/tB | 9.41 | ||
| EV/EBITDA | N/A |
EPS(TTM)35.68
EY6.66%
EPS(NY)39.97
Fwd EY7.46%
FCF(TTM)70.12
FCFY13.08%
OCF(TTM)71.8
OCFY13.39%
SpS189.9
BVpS56.98
TBVpS56.98
PEG (NY)2.05
PEG (5Y)0.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 55.18% | ||
| ROCE | 3.69% | ||
| ROIC | 2.34% | ||
| ROICexc | 2.45% | ||
| ROICexgc | 5.34% | ||
| OM | 28.79% | ||
| PM (TTM) | 16.56% | ||
| GM | 51.19% | ||
| FCFM | 36.93% |
ROA(3y)1.65%
ROA(5y)1.49%
ROE(3y)62.13%
ROE(5y)51.8%
ROIC(3y)2.01%
ROIC(5y)1.73%
ROICexc(3y)2.11%
ROICexc(5y)1.81%
ROICexgc(3y)4.74%
ROICexgc(5y)4.4%
ROCE(3y)3.2%
ROCE(5y)2.66%
ROICexcg growth 3Y4.22%
ROICexcg growth 5Y9.43%
ROICexc growth 3Y12.92%
ROICexc growth 5Y14.97%
OM growth 3Y3.43%
OM growth 5Y10.96%
PM growth 3Y-2.6%
PM growth 5Y5.26%
GM growth 3Y-0.51%
GM growth 5Y3.31%
F-Score6
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.71 | ||
| Debt/FCF | 6.26 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.88% | ||
| Interest Coverage | 5.53 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 223.01% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.47 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)1.13%
Cap/Sales(5y)1.1%
Profit Quality(3y)176.65%
Profit Quality(5y)187.57%
High Growth Momentum
Growth
EPS 1Y (TTM)18.97%
EPS 3Y14.95%
EPS 5Y16.3%
EPS Q2Q%13.23%
EPS Next Y7.33%
EPS Next 2Y7.53%
EPS Next 3Y9.06%
EPS Next 5Y6.97%
Revenue 1Y (TTM)9.09%
Revenue growth 3Y10.07%
Revenue growth 5Y6.82%
Sales Q2Q%5.1%
Revenue Next Year3.23%
Revenue Next 2Y4.07%
Revenue Next 3Y4.17%
Revenue Next 5Y5.7%
EBIT growth 1Y13.6%
EBIT growth 3Y13.84%
EBIT growth 5Y18.53%
EBIT Next Year18.08%
EBIT Next 3Y7.51%
EBIT Next 5YN/A
FCF growth 1Y36.96%
FCF growth 3Y26.05%
FCF growth 5Y23.9%
OCF growth 1Y35.28%
OCF growth 3Y25.64%
OCF growth 5Y23.02%