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 has a valuation in line with the averages, but it does not seem to be growing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year AMP was profitable.
In the past year AMP had a positive cash flow from operations.
Of the past 5 years AMP 4 years were profitable.
AMP had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

AMP has a Return On Assets (1.91%) which is in line with its industry peers.
AMP has a Return On Equity of 56.17%. This is amongst the best in the industry. AMP outperforms 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.
Measured over the past 3 years, the Average Return On Invested Capital for AMP is significantly below the industry average of 7.28%.
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 53.16% of the companies in the same industry.
In the last couple of years the Profit Margin of AMP has grown nicely.
AMP has a better Operating Margin (30.50%) than 60.34% of its industry peers.
In the last couple of years the Operating Margin of AMP has grown nicely.
AMP has a Gross Margin of 52.46%. This is comparable to the rest of the industry: AMP outperforms 59.49% of its industry peers.
AMP's Gross Margin has improved in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

AMP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

Based on the Altman-Z score of 0.48, we must say that AMP is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.48, AMP is not doing good in the industry: 61.18% of the companies in the same industry are doing better.
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.
Looking at the Debt to FCF ratio, with a value of 6.74, AMP is in the better half of the industry, outperforming 65.82% of the companies in the same industry.
AMP has a Debt/Equity ratio of 6.12. This is a high value indicating a heavy dependency on external financing.
AMP has a worse Debt to Equity ratio (6.12) than 86.08% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	6.12
Debt/FCF	6.74
Altman-Z	0.48

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 67.09% 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 66.67% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.68
Quick Ratio	0.68

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 13.71% 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 18.46% yearly.

EPS 1Y (TTM)13.71%

EPS 3Y16.04%

EPS 5Y18.46%

EPS Q2Q%15.71%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%10.15%

3.2 Future

The Earnings Per Share is expected to grow by 5.34% on average over the next years.
The Revenue is expected to grow by 5.62% on average over the next years.

EPS Next Y7.93%

EPS Next 2Y7.6%

EPS Next 3Y6.84%

EPS Next 5Y5.34%

Revenue Next Year5.7%

Revenue Next 2Y5.45%

Revenue Next 3Y5.62%

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 13.41, which indicates a correct valuation of AMP.
Compared to the rest of the industry, the Price/Earnings ratio of AMP is on the same level as its industry peers.
When comparing the Price/Earnings ratio of AMP to the average of the S&P500 Index (28.32), we can say AMP is valued rather cheaply.
AMP is valuated correctly with a Price/Forward Earnings ratio of 12.43.
Based on the Price/Forward Earnings ratio, AMP is valued a bit cheaper than 61.18% of the companies in the same industry.
AMP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	13.41
Fwd PE	12.43

4.2 Price Multiples

81.86% 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	8.36
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.
AMP has a very decent profitability rating, which may justify a higher PE ratio.

PEG (NY)1.69

PEG (5Y)0.73

EPS Next 2Y7.6%

EPS Next 3Y6.84%

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5. Dividend

5.1 Amount

AMP has a Yearly Dividend Yield of 1.23%.
AMP's Dividend Yield is slightly below the industry average, which is at 6.00.
AMP's Dividend Yield is slightly below the S&P500 average, which is at 1.83.

		Industry Rank	Sector Rank
Dividend Yield	1.23%

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

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 2Y7.6%

EPS Next 3Y6.84%

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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 5 / 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 13.41 and the Price/Book (PB) ratio is 7.59.

How financially healthy is AMERIPRISE FINANCIAL INC?

The financial health rating of AMERIPRISE FINANCIAL INC (AMP) is 1 / 10.