AMERIPRISE FINANCIAL INC (AMP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMP - US03076C1062 - Common Stock
496.6 USD
-11.47 (-2.26%)
496.6 USD
0 (0%)
Overall AMP gets a fundamental rating of 4 out of 10. We evaluated AMP against 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 correct valuation and a medium 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.
- 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
- 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 98.32% of its industry peers.
- AMP has a worse Return On Invested Capital (2.39%) than 62.18% 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
- AMP has a Profit Margin (19.59%) which is in line with its industry peers.
- AMP's Profit Margin has improved in the last couple of years.
- The Operating Margin of AMP (30.50%) is better than 60.50% of its industry peers.
- AMP's Operating Margin has improved in the last couple of years.
- AMP has a Gross Margin (52.46%) which is in line with 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.
- Compared to 5 years ago, AMP has less shares outstanding
- 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 62.18% 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.
- With a decent Debt to FCF ratio value of 6.74, AMP is doing good in the industry, outperforming 65.97% 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's Debt to Equity ratio of 6.12 is on the low side compared to the rest of the industry. AMP is outperformed by 86.13% 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 67.65% 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 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.
- The Earnings Per Share has been growing by 16.30% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 6.12% in the past year.
- 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
- AMP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.97% yearly.
- AMP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.94% yearly.
EPS Next Y13.31%
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
- With a Price/Earnings ratio of 13.12, AMP is valued correctly.
- The rest of the industry has a similar Price/Earnings ratio as AMP.
- AMP is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 11.70, the valuation of AMP can be described as reasonable.
- Based on the Price/Forward Earnings ratio, AMP is valued a bit cheaper than 65.97% 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 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 11.7 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, AMP is valued cheaper than 82.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.87 | ||
| 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.
- AMP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.99
PEG (5Y)0.81
EPS Next 2Y10.78%
EPS Next 3Y9.6%
5. Dividend
5.1 Amount
- AMP has a Yearly Dividend Yield of 1.26%.
- Compared to an average industry Dividend Yield of 5.87, AMP is paying slightly less dividend.
- AMP's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
- The dividend of AMP is nicely growing with an annual growth rate of 8.56%!
- 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 13.12 and the Price/Book (PB) ratio is 7.15.
How financially healthy is AMERIPRISE FINANCIAL INC?
The financial health rating of AMERIPRISE FINANCIAL INC (AMP) is 2 / 10.