AMERIPRISE FINANCIAL INC (AMP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMP - US03076C1062 - Common Stock
490.34 USD
-4.13 (-0.84%)
490.34 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AMP. AMP was compared to 235 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.
In the past 5 years AMP has always been profitable.
AMP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.91%, AMP is in line with its industry, outperforming 45.11% of the companies in the same industry.
AMP has a better Return On Equity (56.17%) than 98.30% of its industry peers.
AMP has a worse Return On Invested Capital (2.39%) than 61.70% 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 7.07%.
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
With a Profit Margin value of 19.59%, AMP perfoms like the industry average, outperforming 56.60% of the companies in the same industry.
In the last couple of years the Profit Margin of AMP has grown nicely.
AMP has a Operating Margin (30.50%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AMP has grown nicely.
The Gross Margin of AMP (52.46%) is comparable to the rest of the industry.
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.
Compared to 5 years ago, AMP has less shares outstanding
The debt/assets ratio for AMP has been reduced compared to a year ago.
2.2 Solvency
AMP has an Altman-Z score of 0.47. This is a bad value and indicates that AMP is not financially healthy and even has some risk of bankruptcy.
AMP has a Altman-Z score of 0.47. This is in the lower half of the industry: AMP underperforms 60.00% 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.
The Debt to FCF ratio of AMP (6.74) is better than 65.96% 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.
Looking at the Debt to Equity ratio, with a value of 6.12, AMP is doing worse than 85.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.12 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 0.47 |
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.
With a Current ratio value of 0.68, AMP is not doing good in the industry: 67.66% of the companies in the same industry are doing better.
A Quick Ratio of 0.68 indicates that AMP may have some problems paying its short term obligations.
The Quick ratio of AMP (0.68) is worse than 67.23% 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.
AMP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.30% yearly.
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.
AMP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.94% yearly.
EPS Next Y13.03%
EPS Next 2Y10.8%
EPS Next 3Y9.68%
EPS Next 5Y6.97%
Revenue Next Year6.4%
Revenue Next 2Y6.3%
Revenue Next 3Y5.56%
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
A Price/Earnings ratio of 12.96 indicates a correct valuation of AMP.
60.85% of the companies in the same industry are more expensive than AMP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AMP to the average of the S&P500 Index (26.51), we can say AMP is valued rather cheaply.
AMP is valuated reasonably with a Price/Forward Earnings ratio of 11.55.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMP indicates a somewhat cheap valuation: AMP is cheaper than 64.26% of the companies listed in the same industry.
AMP is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 11.55 |
4.2 Price Multiples
80.00% 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 | 7.77 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
AMP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of AMP may justify a higher PE ratio.
PEG (NY)0.99
PEG (5Y)0.8
EPS Next 2Y10.8%
EPS Next 3Y9.68%
5. Dividend
5.1 Amount
AMP has a Yearly Dividend Yield of 1.28%.
Compared to an average industry Dividend Yield of 6.65, AMP is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.00, AMP is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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
16.30% of the earnings are spent on dividend by AMP. This is a low number and 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 2Y10.8%
EPS Next 3Y9.68%
490.34
-4.13 (-0.84%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners89.16%
Inst Owner Change0.16%
Ins Owners0.2%
Ins Owner Change1.63%
Market Cap45.56B
Revenue(TTM)18.51B
Net Income(TTM)3.63B
Analysts73
Price Target551.41 (12.45%)
Short Float %3.28%
Short Ratio4.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend5.85
Dividend Growth(5Y)8.56%
DP16.3%
Div Incr Years19
Div Non Decr Years19
Ex-DateN/A
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)0.23%
PT rev (3m)-3.33%
EPS NQ rev (1m)1.62%
EPS NQ rev (3m)5.66%
EPS NY rev (1m)1.2%
EPS NY rev (3m)2.4%
Revenue NQ rev (1m)1.01%
Revenue NQ rev (3m)3.52%
Revenue NY rev (1m)1.06%
Revenue NY rev (3m)2.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 11.55 | ||
| P/S | 2.46 | ||
| P/FCF | 7.77 | ||
| P/OCF | 7.55 | ||
| P/B | 7.06 | ||
| P/tB | 7.06 | ||
| EV/EBITDA | N/A |
EPS(TTM)37.84
EY7.72%
EPS(NY)42.44
Fwd EY8.65%
FCF(TTM)63.08
FCFY12.87%
OCF(TTM)64.98
OCFY13.25%
SpS199.26
BVpS69.48
TBVpS69.48
PEG (NY)0.99
PEG (5Y)0.8
Graham Number243.21
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 | 0.47 |
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 Y13.03%
EPS Next 2Y10.8%
EPS Next 3Y9.68%
EPS Next 5Y6.97%
Revenue 1Y (TTM)6.12%
Revenue growth 3Y10.07%
Revenue growth 5Y6.82%
Sales Q2Q%8.93%
Revenue Next Year6.4%
Revenue Next 2Y6.3%
Revenue Next 3Y5.56%
Revenue Next 5Y5.94%
EBIT growth 1Y21.6%
EBIT growth 3Y13.84%
EBIT growth 5Y18.53%
EBIT Next Year24.65%
EBIT Next 3Y8.03%
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.
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 12.96 and the Price/Book (PB) ratio is 7.06.
How financially healthy is AMERIPRISE FINANCIAL INC?
The financial health rating of AMERIPRISE FINANCIAL INC (AMP) is 2 / 10.