AMERIPRISE FINANCIAL INC (AMP)
US03076C1062 - Common Stock
Overall AMP gets a fundamental rating of 4 out of 10. We evaluated AMP against 218 industry peers in the Capital Markets industry. AMP has a medium profitability rating, but doesn't score so well on its financial health evaluation. AMP has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years AMP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.71%, AMP is in line with its industry, outperforming 41.86% of the companies in the same industry.
AMP's Return On Equity of 61.45% is amongst the best of the industry. AMP outperforms 98.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.12%, AMP is doing worse than 66.05% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AMP is significantly below the industry average of 6.96%.
The 3 year average ROIC (1.79%) for AMP is below the current ROIC(2.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 61.45% | ||
| ROIC | 2.12% |
ROA(3y)1.55%
ROA(5y)1.36%
ROE(3y)55.93%
ROE(5y)45.4%
ROIC(3y)1.79%
ROIC(5y)1.51%
1.3 Margins
Looking at the Profit Margin, with a value of 18.09%, AMP is in line with its industry, outperforming 53.49% of the companies in the same industry.
In the last couple of years the Profit Margin of AMP has remained more or less at the same level.
AMP's Operating Margin of 27.79% is in line compared to the rest of the industry. AMP outperforms 50.70% of its industry peers.
AMP's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 51.98%, AMP perfoms like the industry average, outperforming 53.02% of the companies in the same industry.
AMP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.79% | ||
| PM (TTM) | 18.09% | ||
| GM | 51.98% |
OM growth 3Y17.54%
OM growth 5Y5.09%
PM growth 3Y7.37%
PM growth 5Y-0.44%
GM growth 3Y5.23%
GM growth 5Y1.75%
2. Health
2.1 Basic Checks
Compared to 1 year ago, AMP has less shares outstanding
The number of shares outstanding for AMP has been reduced compared to 5 years ago.
The debt/assets ratio for AMP is higher compared to a year ago.
2.2 Solvency
AMP has an Altman-Z score of 0.45. This is a bad value and indicates that AMP is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.45, AMP is not doing good in the industry: 68.84% of the companies in the same industry are doing better.
The Debt to FCF ratio of AMP is 6.96, which is on the high side as it means it would take AMP, 6.96 years of fcf income to pay off all of its debts.
AMP has a Debt to FCF ratio (6.96) which is comparable to the rest of the industry.
A Debt/Equity ratio of 8.46 is on the high side and indicates that AMP has dependencies on debt financing.
With a Debt to Equity ratio value of 8.46, AMP is not doing good in the industry: 89.30% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.46 | ||
| Debt/FCF | 6.96 | ||
| Altman-Z | 0.45 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.59 indicates that AMP may have some problems paying its short term obligations.
AMP has a worse Current ratio (0.59) than 71.63% of its industry peers.
AMP has a Quick Ratio of 0.59. 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's Quick ratio of 0.59 is on the low side compared to the rest of the industry. AMP is outperformed by 71.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
AMP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.36%, which is quite good.
AMP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.75% yearly.
The Revenue has grown by 11.82% 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 4.49% yearly.
EPS 1Y (TTM)13.36%
EPS 3Y19.63%
EPS 5Y13.75%
EPS Q2Q%16.38%
Revenue 1Y (TTM)11.82%
Revenue growth 3Y10.41%
Revenue growth 5Y4.49%
Sales Q2Q%10.7%
3.2 Future
The Earnings Per Share is expected to grow by 8.03% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.07% on average over the next years.
EPS Next Y20.96%
EPS Next 2Y16.3%
EPS Next 3Y13.72%
EPS Next 5Y8.03%
Revenue Next Year11.35%
Revenue Next 2Y8.93%
Revenue Next 3Y7.63%
Revenue Next 5Y7.07%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.65, which indicates a rather expensive current valuation of AMP.
The rest of the industry has a similar Price/Earnings ratio as AMP.
When comparing the Price/Earnings ratio of AMP to the average of the S&P500 Index (29.20), we can say AMP is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.66, AMP is valued correctly.
AMP's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.00. AMP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 14.66 |
4.2 Price Multiples
73.02% of the companies in the same industry are more expensive than AMP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.15 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AMP has a very decent profitability rating, which may justify a higher PE ratio.
AMP's earnings are expected to grow with 13.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)1.28
EPS Next 2Y16.3%
EPS Next 3Y13.72%
5. Dividend
5.1 Amount
AMP has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
AMP's Dividend Yield is slightly below the industry average, which is at 9.01.
Compared to an average S&P500 Dividend Yield of 2.23, AMP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
The dividend of AMP is nicely growing with an annual growth rate of 8.44%!
AMP has paid a dividend for at least 10 years, which is a reliable track record.
AMP has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.44%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
AMP pays out 18.25% of its income as dividend. This is a sustainable payout ratio.
AMP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.25%
EPS Next 2Y16.3%
EPS Next 3Y13.72%
AMERIPRISE FINANCIAL INC
NYSE:AMP (11/22/2024, 8:23:06 PM)
After market: 572.07 0 (0%)572.07
+1.86 (+0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap55.50B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 14.66 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.84
PEG (5Y)1.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 61.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.79% | ||
| PM (TTM) | 18.09% | ||
| GM | 51.98% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.46 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)13.36%
EPS 3Y19.63%
EPS 5Y
EPS Q2Q%
EPS Next Y20.96%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.82%
Revenue growth 3Y10.41%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y