AMERIPRISE FINANCIAL INC (AMP) Stock Fundamental Analysis
NYSE:AMP - New York Stock Exchange, Inc. - US03076C1062 - Common Stock - Currency: USD
AMP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 225 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
AMP had positive earnings in the past year.
AMP had a positive operating cash flow in the past year.
Each year in the past 5 years AMP has been profitable.
AMP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of AMP (1.46%) is worse than 60.27% of its industry peers.
AMP has a Return On Equity of 47.37%. This is amongst the best in the industry. AMP outperforms 98.63% of its industry peers.
AMP's Return On Invested Capital of 2.01% is on the low side compared to the rest of the industry. AMP is outperformed by 65.30% of its industry peers.
AMP had an Average Return On Invested Capital over the past 3 years of 2.01%. This is below the industry average of 6.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.46% | ||
| ROE | 47.37% | ||
| ROIC | 2.01% |
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 15.52%, AMP is in line with its industry, outperforming 50.68% of the companies in the same industry.
In the last couple of years the Profit Margin of AMP has grown nicely.
AMP's Operating Margin of 26.62% is in line compared to the rest of the industry. AMP outperforms 48.40% of its industry peers.
AMP's Operating Margin has improved in the last couple of years.
The Gross Margin of AMP (50.20%) 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 | 26.62% | ||
| PM (TTM) | 15.52% | ||
| GM | 50.2% |
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
Compared to 1 year ago, AMP has less shares outstanding
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 0.44, we must say that AMP is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.44, AMP is not doing good in the industry: 70.78% of the companies in the same industry are doing better.
The Debt to FCF ratio of AMP is 5.15, which is a neutral value as it means it would take AMP, 5.15 years of fcf income to pay off all of its debts.
AMP's Debt to FCF ratio of 5.15 is fine compared to the rest of the industry. AMP outperforms 62.56% of its industry peers.
A Debt/Equity ratio of 7.38 is on the high side and indicates that AMP has dependencies on debt financing.
The Debt to Equity ratio of AMP (7.38) is worse than 89.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.38 | ||
| Debt/FCF | 5.15 | ||
| Altman-Z | 0.44 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
AMP has a Current Ratio of 0.65. 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 Current ratio of AMP (0.65) is worse than 68.04% of its industry peers.
A Quick Ratio of 0.65 indicates that AMP may have some problems paying its short term obligations.
AMP has a worse Quick ratio (0.65) than 68.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.83% 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.
AMP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.37%.
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)19.83%
EPS 3Y14.95%
EPS 5Y16.3%
EPS Q2Q%30%
Revenue 1Y (TTM)11.37%
Revenue growth 3Y10.07%
Revenue growth 5Y6.82%
Sales Q2Q%11.8%
3.2 Future
AMP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.78% yearly.
AMP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.99% yearly.
EPS Next Y11.24%
EPS Next 2Y10.48%
EPS Next 3Y10.36%
EPS Next 5Y6.78%
Revenue Next Year5.27%
Revenue Next 2Y5.27%
Revenue Next 3Y4.99%
Revenue Next 5YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.39, the valuation of AMP can be described as correct.
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 valuation a bit cheaper than the S&P500 average which is at 29.98.
Based on the Price/Forward Earnings ratio of 13.83, the valuation of AMP can be described as correct.
AMP's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of AMP to the average of the S&P500 Index (22.66), we can say AMP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 13.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMP indicates a rather cheap valuation: AMP is cheaper than 80.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.25 | ||
| 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.
PEG (NY)1.37
PEG (5Y)0.94
EPS Next 2Y10.48%
EPS Next 3Y10.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.13%, AMP has a reasonable but not impressive dividend return.
AMP's Dividend Yield is slightly below the industry average, which is at 8.75.
With a Dividend Yield of 1.13, AMP pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
The dividend of AMP is nicely growing with an annual growth rate of 8.44%!
AMP has been paying a dividend for at least 10 years, so it has a reliable track record.
AMP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.44%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
AMP pays out 20.91% 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.
DP20.91%
EPS Next 2Y10.48%
EPS Next 3Y10.36%
531.92
-5.38 (-1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners88.05%
Inst Owner Change0.9%
Ins Owners0.23%
Ins Owner Change5.95%
Market Cap51.17B
Analysts74.44
Price Target584.57 (9.9%)
Short Float %1.11%
Short Ratio2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend5.36
Dividend Growth(5Y)8.44%
DP20.91%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.42%
Min EPS beat(2)-10.06%
Max EPS beat(2)1.23%
EPS beat(4)2
Avg EPS beat(4)-3.73%
Min EPS beat(4)-10.06%
Max EPS beat(4)1.31%
EPS beat(8)3
Avg EPS beat(8)-2.29%
EPS beat(12)7
Avg EPS beat(12)0.15%
EPS beat(16)10
Avg EPS beat(16)1.39%
Revenue beat(2)0
Avg Revenue beat(2)-1.09%
Min Revenue beat(2)-2.04%
Max Revenue beat(2)-0.14%
Revenue beat(4)1
Avg Revenue beat(4)-0.52%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)1.58%
Revenue beat(8)5
Avg Revenue beat(8)0.91%
Revenue beat(12)8
Avg Revenue beat(12)1.18%
Revenue beat(16)11
Avg Revenue beat(16)0.06%
PT rev (1m)0.04%
PT rev (3m)4.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.53%
EPS NY rev (1m)-1.66%
EPS NY rev (3m)-1.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)-1.16%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 13.83 | ||
| P/S | 2.93 | ||
| P/FCF | 6.25 | ||
| P/OCF | 6.12 | ||
| P/B | 8.95 | ||
| P/tB | 8.95 | ||
| EV/EBITDA | N/A |
EPS(TTM)34.57
EY6.5%
EPS(NY)38.46
Fwd EY7.23%
FCF(TTM)85.1
FCFY16%
OCF(TTM)86.85
OCFY16.33%
SpS181.34
BVpS59.41
TBVpS59.41
PEG (NY)1.37
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.46% | ||
| ROE | 47.37% | ||
| ROCE | 3.16% | ||
| ROIC | 2.01% | ||
| ROICexc | 2.13% | ||
| ROICexgc | 4.91% | ||
| OM | 26.62% | ||
| PM (TTM) | 15.52% | ||
| GM | 50.2% | ||
| FCFM | 46.93% |
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)4.76%
ROICexgc(5y)4.41%
ROCE(3y)3.2%
ROCE(5y)2.65%
ROICexcg growth 3Y4.52%
ROICexcg growth 5Y9.62%
ROICexc growth 3Y12.85%
ROICexc growth 5Y14.93%
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-Score7
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.38 | ||
| Debt/FCF | 5.15 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.96% | ||
| Interest Coverage | 4.51 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 302.44% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 0.44 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.83%
EPS 3Y14.95%
EPS 5Y16.3%
EPS Q2Q%30%
EPS Next Y11.24%
EPS Next 2Y10.48%
EPS Next 3Y10.36%
EPS Next 5Y6.78%
Revenue 1Y (TTM)11.37%
Revenue growth 3Y10.07%
Revenue growth 5Y6.82%
Sales Q2Q%11.8%
Revenue Next Year5.27%
Revenue Next 2Y5.27%
Revenue Next 3Y4.99%
Revenue Next 5YN/A
EBIT growth 1Y10.05%
EBIT growth 3Y13.84%
EBIT growth 5Y18.53%
EBIT Next Year23.98%
EBIT Next 3Y10.4%
EBIT Next 5YN/A
FCF growth 1Y129.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y122.27%
OCF growth 3YN/A
OCF growth 5YN/A