AMERIPRISE FINANCIAL INC (AMP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMP - US03076C1062 - Common Stock
525.027 USD
+25.36 (+5.07%)
We assign a fundamental rating of 4 out of 10 to AMP. AMP was compared to 237 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 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.
- AMP had positive earnings in each of the past 5 years.
- Each year in the past 5 years AMP had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of AMP (1.91%) is comparable to the rest of the industry.
- AMP has a better Return On Equity (56.17%) than 98.31% of its industry peers.
- AMP has a Return On Invested Capital of 2.39%. This is in the lower half of the industry: AMP underperforms 62.45% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AMP is significantly below the industry average of 7.27%.
- The 3 year average ROIC (2.01%) for AMP is below the current ROIC(2.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.91% | ||
| ROE | 56.17% | ||
| ROIC | 2.39% |
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
- The Profit Margin of AMP (19.59%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of AMP has grown nicely.
- Looking at the Operating Margin, with a value of 30.50%, AMP is in the better half of the industry, outperforming 60.34% of the companies in the same industry.
- AMP's Operating Margin has improved in the last couple of years.
- AMP's Gross Margin of 52.46% is in line compared to the rest of the industry. AMP outperforms 59.49% of its industry peers.
- In the last couple of years the Gross Margin of AMP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.5% | ||
| PM (TTM) | 19.59% | ||
| GM | 52.46% |
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
- 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.
- AMP has a better debt/assets ratio than last year.
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.
- The Altman-Z score of AMP (0.47) is worse than 61.60% of its industry peers.
- AMP has a debt to FCF ratio of 6.74. This is a slightly negative value and a sign of low solvency as AMP would need 6.74 years to pay back of all of its debts.
- AMP has a Debt to FCF ratio of 6.74. This is in the better half of the industry: AMP outperforms 65.82% of its industry peers.
- A Debt/Equity ratio of 6.12 is on the high side and indicates that AMP has dependencies on debt financing.
- AMP's Debt to Equity ratio of 6.12 is on the low side compared to the rest of the industry. AMP is outperformed by 86.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.12 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 0.47 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 0.68 indicates that AMP may have some problems paying its short term obligations.
- The Current ratio of AMP (0.68) is worse than 67.51% of its industry peers.
- AMP has a Quick Ratio of 0.68. This is a bad value and indicates that AMP is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.68, AMP is doing worse than 67.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
- AMP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.75%, which is quite good.
- Measured over the past years, AMP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.30% on average per year.
- Looking at the last year, AMP shows a small growth in Revenue. The Revenue has grown by 6.12% in the last year.
- AMP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.82% yearly.
EPS 1Y (TTM)16.75%
EPS 3Y14.95%
EPS 5Y16.3%
EPS Q2Q%21.85%
Revenue 1Y (TTM)6.12%
Revenue growth 3Y10.07%
Revenue growth 5Y6.82%
Sales Q2Q%8.93%
3.2 Future
- Based on estimates for the next years, AMP will show a small growth in Earnings Per Share. The EPS will grow by 6.97% on average per year.
- Based on estimates for the next years, AMP will show a small growth in Revenue. The Revenue will grow by 5.94% on average per year.
EPS Next Y13.31%
EPS Next 2Y10.78%
EPS Next 3Y9.6%
EPS Next 5Y6.97%
Revenue Next Year6.88%
Revenue Next 2Y6.29%
Revenue Next 3Y5.92%
Revenue Next 5Y5.94%
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
- AMP is valuated correctly with a Price/Earnings ratio of 13.87.
- AMP's Price/Earnings ratio is in line with the industry average.
- AMP is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 12.37 indicates a correct valuation of AMP.
- AMP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AMP is cheaper than 65.40% of the companies in the same industry.
- AMP is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 12.37 |
4.2 Price Multiples
- 82.28% 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 | 8.32 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- AMP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of AMP may justify a higher PE ratio.
PEG (NY)1.04
PEG (5Y)0.85
EPS Next 2Y10.78%
EPS Next 3Y9.6%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.26%, AMP has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 5.87, AMP is paying slightly less dividend.
- Compared to the average S&P500 Dividend Yield of 1.82, AMP is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
- On average, the dividend of AMP grows each year by 8.56%, which is quite nice.
- 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)8.56%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
- AMP pays out 16.30% of its income as dividend. This is a sustainable payout ratio.
- The dividend of AMP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.3%
EPS Next 2Y10.78%
EPS Next 3Y9.6%
AMERIPRISE FINANCIAL INC / AMP FAQ
What is the ChartMill fundamental rating of AMERIPRISE FINANCIAL INC (AMP) stock?
ChartMill assigns a fundamental rating of 4 / 10 to AMP.
What is the valuation status for AMP stock?
ChartMill assigns a valuation rating of 6 / 10 to AMERIPRISE FINANCIAL INC (AMP). This can be considered as Fairly Valued.
What is the profitability of AMP stock?
AMERIPRISE FINANCIAL INC (AMP) has a profitability rating of 6 / 10.
What are the PE and PB ratios of AMERIPRISE FINANCIAL INC (AMP) stock?
The Price/Earnings (PE) ratio for AMERIPRISE FINANCIAL INC (AMP) is 13.87 and the Price/Book (PB) ratio is 7.56.
How financially healthy is AMERIPRISE FINANCIAL INC?
The financial health rating of AMERIPRISE FINANCIAL INC (AMP) is 2 / 10.