AMERIPRISE FINANCIAL INC (AMP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMP - US03076C1062 - Common Stock
447.56 USD
+5.93 (+1.34%)
447.56 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AMP. AMP was compared to 237 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 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.
AMP had positive earnings in each of the past 5 years.
In the past 5 years AMP always reported a positive cash flow from operatings.
1.2 Ratios
AMP has a Return On Assets of 1.91%. This is comparable to the rest of the industry: AMP outperforms 43.04% of its industry peers.
AMP has a better Return On Equity (56.17%) than 98.31% of its industry peers.
AMP's Return On Invested Capital of 2.39% is on the low side compared to the rest of the industry. AMP is outperformed by 62.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMP is significantly below the industry average of 7.11%.
The last Return On Invested Capital (2.39%) for AMP is above the 3 year average (2.01%), which is a sign of increasing profitability.
| 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
AMP has a Profit Margin (19.59%) which is comparable to the rest of the industry.
AMP's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 30.50%, AMP is in line with its industry, outperforming 58.65% of the companies in the same industry.
AMP's Operating Margin has improved in the last couple of years.
AMP has a Gross Margin of 52.46%. This is in the better half of the industry: AMP outperforms 62.45% 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
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.
Compared to 1 year ago, AMP has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.46, we must say that AMP is in the distress zone and has some risk of bankruptcy.
AMP has a Altman-Z score of 0.46. This is in the lower half of the industry: AMP underperforms 64.13% 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's Debt to FCF ratio of 6.74 is fine compared to the rest of the industry. AMP outperforms 66.24% of its industry peers.
AMP has a Debt/Equity ratio of 6.12. This is a high value indicating a heavy dependency on external financing.
AMP has a Debt to Equity ratio of 6.12. This is amonst the worse of the industry: AMP underperforms 87.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.12 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 0.46 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
AMP has a Current 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.
AMP has a worse Current ratio (0.68) than 69.62% of its industry peers.
A Quick Ratio of 0.68 indicates that AMP may have some problems paying its short term obligations.
AMP has a worse Quick ratio (0.68) than 69.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.75% over the past year.
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.
AMP shows a small growth in Revenue. In the last year, the Revenue has grown by 6.12%.
Measured over the past years, AMP shows a small growth in Revenue. The Revenue has been growing by 6.82% on average per year.
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 6.38% on average per year.
EPS Next Y11.69%
EPS Next 2Y9.83%
EPS Next 3Y9.16%
EPS Next 5Y6.97%
Revenue Next Year5.29%
Revenue Next 2Y5.56%
Revenue Next 3Y5.16%
Revenue Next 5Y6.38%
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 11.83, which indicates a very decent valuation of AMP.
Based on the Price/Earnings ratio, AMP is valued a bit cheaper than 61.60% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. AMP is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.73, the valuation of AMP can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMP indicates a somewhat cheap valuation: AMP is cheaper than 62.87% of the companies listed in the same industry.
AMP is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, AMP is valued a bit cheaper than 77.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.2 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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)1.01
PEG (5Y)0.73
EPS Next 2Y9.83%
EPS Next 3Y9.16%
5. Dividend
5.1 Amount
AMP has a Yearly Dividend Yield of 1.45%. Purely for dividend investing, there may be better candidates out there.
AMP's Dividend Yield is slightly below the industry average, which is at 8.61.
With a Dividend Yield of 1.45, AMP pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
The dividend of AMP is nicely growing with an annual growth rate of 8.56%!
AMP has been paying a dividend for at least 10 years, so it has 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.
AMP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.3%
EPS Next 2Y9.83%
EPS Next 3Y9.16%
447.56
+5.93 (+1.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners87.64%
Inst Owner Change0.81%
Ins Owners0.2%
Ins Owner Change2.53%
Market Cap42.19B
Revenue(TTM)18.51B
Net Income(TTM)3.63B
Analysts73
Price Target550.13 (22.92%)
Short Float %2.34%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly Dividend5.85
Dividend Growth(5Y)8.56%
DP16.3%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.4%
Min EPS beat(2)0.34%
Max EPS beat(2)0.47%
EPS beat(4)4
Avg EPS beat(4)1.7%
Min EPS beat(4)0.34%
Max EPS beat(4)3.55%
EPS beat(8)6
Avg EPS beat(8)-1.02%
EPS beat(12)7
Avg EPS beat(12)-0.96%
EPS beat(16)11
Avg EPS beat(16)0.54%
Revenue beat(2)1
Avg Revenue beat(2)1.31%
Min Revenue beat(2)-0.85%
Max Revenue beat(2)3.48%
Revenue beat(4)1
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)3.48%
Revenue beat(8)2
Avg Revenue beat(8)-0.4%
Revenue beat(12)6
Avg Revenue beat(12)0.62%
Revenue beat(16)9
Avg Revenue beat(16)0.81%
PT rev (1m)-3.55%
PT rev (3m)-3.55%
EPS NQ rev (1m)0.61%
EPS NQ rev (3m)3.98%
EPS NY rev (1m)0.27%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)0.89%
Revenue NQ rev (3m)2.48%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.83 | ||
| Fwd PE | 10.73 | ||
| P/S | 2.28 | ||
| P/FCF | 7.2 | ||
| P/OCF | 6.99 | ||
| P/B | 6.54 | ||
| P/tB | 6.54 | ||
| EV/EBITDA | N/A |
EPS(TTM)37.84
EY8.45%
EPS(NY)41.7
Fwd EY9.32%
FCF(TTM)62.17
FCFY13.89%
OCF(TTM)64.04
OCFY14.31%
SpS196.38
BVpS68.47
TBVpS68.47
PEG (NY)1.01
PEG (5Y)0.73
Graham Number241.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.91% | ||
| ROE | 56.17% | ||
| ROCE | 3.68% | ||
| ROIC | 2.39% | ||
| ROICexc | 2.52% | ||
| ROICexgc | 5.89% | ||
| OM | 30.5% | ||
| PM (TTM) | 19.59% | ||
| GM | 52.46% | ||
| FCFM | 31.66% |
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%
ROICexgc growth 3Y4.22%
ROICexgc 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-Score9
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.12 | ||
| Debt/FCF | 6.74 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.95% | ||
| Interest Coverage | 6.89 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 161.64% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 0.46 |
F-Score9
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)16.75%
EPS 3Y14.95%
EPS 5Y16.3%
EPS Q2Q%21.85%
EPS Next Y11.69%
EPS Next 2Y9.83%
EPS Next 3Y9.16%
EPS Next 5Y6.97%
Revenue 1Y (TTM)6.12%
Revenue growth 3Y10.07%
Revenue growth 5Y6.82%
Sales Q2Q%8.93%
Revenue Next Year5.29%
Revenue Next 2Y5.56%
Revenue Next 3Y5.16%
Revenue Next 5Y6.38%
EBIT growth 1Y21.6%
EBIT growth 3Y13.84%
EBIT growth 5Y18.53%
EBIT Next Year23.38%
EBIT Next 3Y8.62%
EBIT Next 5YN/A
FCF growth 1Y64.22%
FCF growth 3Y26.05%
FCF growth 5Y23.9%
OCF growth 1Y60.6%
OCF growth 3Y25.64%
OCF growth 5Y23.02%
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.
Can you provide the valuation status for AMERIPRISE FINANCIAL INC?
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 11.83 and the Price/Book (PB) ratio is 6.54.
What is the financial health of AMERIPRISE FINANCIAL INC (AMP) stock?
The financial health rating of AMERIPRISE FINANCIAL INC (AMP) is 2 / 10.