AMERIPRISE FINANCIAL INC (AMP) Stock Fundamental Analysis
USA - NYSE:AMP - US03076C1062 - Common Stock
486.17 USD
+0.04 (+0.01%)
486.17 USD
0 (0%)
Taking everything into account, AMP scores 4 out of 10 in our fundamental rating. AMP was compared to 237 industry peers in the Capital Markets industry. There are concerns on the financial health of AMP while its profitability can be described as average. AMP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
AMP had positive earnings in the past year.
In the past year AMP had a positive cash flow from operations.
In the past 5 years AMP has always been profitable.
Each year in the past 5 years AMP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.74%, AMP is in line with its industry, outperforming 42.19% of the companies in the same industry.
AMP has a Return On Equity of 53.03%. This is amongst the best in the industry. AMP outperforms 97.89% of its industry peers.
AMP has a worse Return On Invested Capital (2.34%) than 64.13% of its industry peers.
AMP had an Average Return On Invested Capital over the past 3 years of 2.01%. This is significantly below the industry average of 7.61%.
The 3 year average ROIC (2.01%) for AMP is below the current ROIC(2.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 53.03% | ||
| ROIC | 2.34% |
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
Looking at the Profit Margin, with a value of 17.74%, AMP is in line with its industry, outperforming 53.16% of the companies in the same industry.
In the last couple of years the Profit Margin of AMP has grown nicely.
Looking at the Operating Margin, with a value of 29.61%, AMP is in line with its industry, outperforming 55.70% of the companies in the same industry.
In the last couple of years the Operating Margin of AMP has grown nicely.
AMP's Gross Margin of 51.86% is fine compared to the rest of the industry. AMP outperforms 60.34% of its industry peers.
In the last couple of years the Gross Margin of AMP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.61% | ||
| PM (TTM) | 17.74% | ||
| GM | 51.86% |
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
The number of shares outstanding for AMP has been reduced compared to 1 year ago.
The number of shares outstanding for AMP has been reduced compared to 5 years ago.
The debt/assets ratio for AMP has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.45, we must say that AMP is in the distress zone and has some risk of bankruptcy.
AMP has a worse Altman-Z score (0.45) than 62.87% of its industry peers.
AMP has a debt to FCF ratio of 6.05. This is a slightly negative value and a sign of low solvency as AMP would need 6.05 years to pay back of all of its debts.
AMP's Debt to FCF ratio of 6.05 is fine compared to the rest of the industry. AMP outperforms 67.09% of its industry peers.
A Debt/Equity ratio of 6.67 is on the high side and indicates that AMP has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 6.67, AMP is doing worse than 87.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.67 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 0.45 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.62 indicates that AMP may have some problems paying its short term obligations.
AMP has a Current ratio of 0.62. This is in the lower half of the industry: AMP underperforms 72.15% of its industry peers.
AMP has a Quick Ratio of 0.62. This is a bad value and indicates that AMP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AMP (0.62) is worse than 72.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
AMP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.35%, which is quite good.
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 7.19% 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)15.35%
EPS 3Y14.95%
EPS 5Y16.3%
EPS Q2Q%4.47%
Revenue 1Y (TTM)7.19%
Revenue growth 3Y10.07%
Revenue growth 5Y6.82%
Sales Q2Q%3.93%
3.2 Future
The Earnings Per Share is expected to grow by 6.97% on average over the next years.
Based on estimates for the next years, AMP will show a small growth in Revenue. The Revenue will grow by 6.18% on average per year.
EPS Next Y10.19%
EPS Next 2Y9.08%
EPS Next 3Y8.96%
EPS Next 5Y6.97%
Revenue Next Year3.79%
Revenue Next 2Y4.41%
Revenue Next 3Y4.42%
Revenue Next 5Y6.18%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 13.48.
Compared to the rest of the industry, the Price/Earnings ratio of AMP is on the same level as its industry peers.
AMP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
The Price/Forward Earnings ratio is 11.82, which indicates a very decent valuation of AMP.
63.71% of the companies in the same industry are more expensive than AMP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.70. AMP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.48 | ||
| Fwd PE | 11.82 |
4.2 Price Multiples
79.32% 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 | 6.84 | ||
| 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)1.32
PEG (5Y)0.83
EPS Next 2Y9.08%
EPS Next 3Y8.96%
5. Dividend
5.1 Amount
AMP has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
AMP's Dividend Yield is slightly below the industry average, which is at 7.96.
With a Dividend Yield of 1.28, AMP pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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 18.14% 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.
DP18.14%
EPS Next 2Y9.08%
EPS Next 3Y8.96%
486.17
+0.04 (+0.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners89.03%
Inst Owner Change-5.37%
Ins Owners0.19%
Ins Owner Change1.63%
Market Cap45.83B
Analysts73.68
Price Target570.38 (17.32%)
Short Float %2.23%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend5.85
Dividend Growth(5Y)8.56%
DP18.14%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.95%
Min EPS beat(2)0.34%
Max EPS beat(2)3.55%
EPS beat(4)3
Avg EPS beat(4)-0.93%
Min EPS beat(4)-10.06%
Max EPS beat(4)3.55%
EPS beat(8)5
Avg EPS beat(8)-2.19%
EPS beat(12)7
Avg EPS beat(12)-0.26%
EPS beat(16)11
Avg EPS beat(16)0.93%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-3.02%
Max Revenue beat(2)-0.85%
Revenue beat(4)0
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)-0.14%
Revenue beat(8)2
Avg Revenue beat(8)-0.68%
Revenue beat(12)6
Avg Revenue beat(12)0.65%
Revenue beat(16)8
Avg Revenue beat(16)-0.5%
PT rev (1m)0%
PT rev (3m)5.39%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)5.18%
EPS NY rev (1m)1.44%
EPS NY rev (3m)2.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.72%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.48 | ||
| Fwd PE | 11.82 | ||
| P/S | 2.52 | ||
| P/FCF | 6.84 | ||
| P/OCF | 6.66 | ||
| P/B | 7.54 | ||
| P/tB | 7.54 | ||
| EV/EBITDA | N/A |
EPS(TTM)36.07
EY7.42%
EPS(NY)41.13
Fwd EY8.46%
FCF(TTM)71.07
FCFY14.62%
OCF(TTM)72.99
OCFY15.01%
SpS192.85
BVpS64.52
TBVpS64.52
PEG (NY)1.32
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 53.03% | ||
| ROCE | 3.65% | ||
| ROIC | 2.34% | ||
| ROICexc | 2.45% | ||
| ROICexgc | 5.6% | ||
| OM | 29.61% | ||
| PM (TTM) | 17.74% | ||
| GM | 51.86% | ||
| FCFM | 36.85% |
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%
ROICexcg growth 3Y4.22%
ROICexcg 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-Score8
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.67 | ||
| Debt/FCF | 6.05 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 1% | ||
| Interest Coverage | 6.22 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 207.75% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 0.45 |
F-Score8
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)15.35%
EPS 3Y14.95%
EPS 5Y16.3%
EPS Q2Q%4.47%
EPS Next Y10.19%
EPS Next 2Y9.08%
EPS Next 3Y8.96%
EPS Next 5Y6.97%
Revenue 1Y (TTM)7.19%
Revenue growth 3Y10.07%
Revenue growth 5Y6.82%
Sales Q2Q%3.93%
Revenue Next Year3.79%
Revenue Next 2Y4.41%
Revenue Next 3Y4.42%
Revenue Next 5Y6.18%
EBIT growth 1Y14.21%
EBIT growth 3Y13.84%
EBIT growth 5Y18.53%
EBIT Next Year24.39%
EBIT Next 3Y9.35%
EBIT Next 5YN/A
FCF growth 1Y66.5%
FCF growth 3Y26.05%
FCF growth 5Y23.9%
OCF growth 1Y63.6%
OCF growth 3Y25.64%
OCF growth 5Y23.02%