AMERIPRISE FINANCIAL INC (AMP)
US03076C1062 - Common Stock
AMP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 219 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
In the past year AMP was profitable.
AMP had a positive operating cash flow in the past year.
AMP had positive earnings in each of the past 5 years.
AMP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AMP (1.71%) is comparable to the rest of the industry.
With an excellent Return On Equity value of 61.45%, AMP belongs to the best of the industry, outperforming 98.14% of the companies in the same industry.
AMP's Return On Invested Capital of 2.12% is on the low side compared to the rest of the industry. AMP is outperformed by 67.44% of its industry peers.
AMP had an Average Return On Invested Capital over the past 3 years of 1.79%. This is significantly below the industry average of 17.66%.
The last Return On Invested Capital (2.12%) for AMP is above the 3 year average (1.79%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 61.45% | ||
| ROIC | 2.12% |
ROA(3y)1.55%
ROA(5y)1.36%
ROE(3y)55.93%
ROE(5y)45.4%
ROIC(3y)1.79%
ROIC(5y)1.51%
1.3 Margins
The Profit Margin of AMP (18.09%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of AMP has remained more or less at the same level.
With a Operating Margin value of 27.79%, AMP perfoms like the industry average, outperforming 48.84% of the companies in the same industry.
AMP's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 51.98%, AMP is in line with its industry, outperforming 53.49% of the companies in the same industry.
In the last couple of years the Gross Margin of AMP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.79% | ||
| PM (TTM) | 18.09% | ||
| GM | 51.98% |
OM growth 3Y17.54%
OM growth 5Y5.09%
PM growth 3Y7.37%
PM growth 5Y-0.44%
GM growth 3Y5.23%
GM growth 5Y1.75%
2. Health
2.1 Basic Checks
AMP has less shares outstanding than it did 1 year ago.
The number of shares outstanding for AMP has been reduced compared to 5 years ago.
Compared to 1 year ago, AMP has a worse debt to assets ratio.
2.2 Solvency
AMP has an Altman-Z score of 0.41. This is a bad value and indicates that AMP is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AMP (0.41) is worse than 70.70% of its industry peers.
The Debt to FCF ratio of AMP is 6.96, which is on the high side as it means it would take AMP, 6.96 years of fcf income to pay off all of its debts.
AMP has a Debt to FCF ratio (6.96) which is in line with its industry peers.
AMP has a Debt/Equity ratio of 8.46. This is a high value indicating a heavy dependency on external financing.
AMP's Debt to Equity ratio of 8.46 is on the low side compared to the rest of the industry. AMP is outperformed by 89.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.46 | ||
| Debt/FCF | 6.96 | ||
| Altman-Z | 0.41 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.59 indicates that AMP may have some problems paying its short term obligations.
AMP has a worse Current ratio (0.59) than 73.02% of its industry peers.
AMP has a Quick Ratio of 0.59. 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 Quick ratio value of 0.59, AMP is not doing good in the industry: 73.02% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.44% over the past year.
The Earnings Per Share has been growing by 13.75% on average over the past years. This is quite good.
The Revenue has grown by 12.89% in the past year. This is quite good.
AMP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.49% yearly.
EPS 1Y (TTM)11.44%
EPS 3Y19.63%
EPS 5Y13.75%
EPS Q2Q%17.2%
Revenue 1Y (TTM)12.89%
Revenue growth 3Y10.41%
Revenue growth 5Y4.49%
Sales Q2Q%8.88%
3.2 Future
Based on estimates for the next years, AMP will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.03% on average per year.
Based on estimates for the next years, AMP will show a small growth in Revenue. The Revenue will grow by 7.07% on average per year.
EPS Next Y21.7%
EPS Next 2Y15.53%
EPS Next 3Y13.22%
EPS Next 5Y8.03%
Revenue Next Year10.24%
Revenue Next 2Y8.1%
Revenue Next 3Y6.88%
Revenue Next 5Y7.07%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.46, the valuation of AMP can be described as correct.
AMP's Price/Earnings ratio is in line with the industry average.
AMP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.71.
Based on the Price/Forward Earnings ratio of 11.75, the valuation of AMP can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMP is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.09, AMP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 11.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AMP indicates a somewhat cheap valuation: AMP is cheaper than 78.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.32 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as AMP's earnings are expected to grow with 13.22% in the coming years.
PEG (NY)0.67
PEG (5Y)1.05
EPS Next 2Y15.53%
EPS Next 3Y13.22%
5. Dividend
5.1 Amount
AMP has a Yearly Dividend Yield of 1.36%.
Compared to an average industry Dividend Yield of 8.61, AMP is paying slightly less dividend.
AMP's Dividend Yield is slightly below the S&P500 average, which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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 Years18
Div Non Decr Years18
5.3 Sustainability
AMP pays out 18.25% 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.
DP18.25%
EPS Next 2Y15.53%
EPS Next 3Y13.22%
AMERIPRISE FINANCIAL INC
NYSE:AMP (9/17/2024, 5:05:00 PM)
After market: 452.23 0 (0%)452.23
+7.09 (+1.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap44.40B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 11.75 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.67
PEG (5Y)1.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 61.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.79% | ||
| PM (TTM) | 18.09% | ||
| GM | 51.98% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.46 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)11.44%
EPS 3Y19.63%
EPS 5Y
EPS Q2Q%
EPS Next Y21.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.89%
Revenue growth 3Y10.41%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y