AMERIPRISE FINANCIAL INC (AMP) Stock Fundamental Analysis
NYSE:AMP - US03076C1062 - Common Stock
511.49 USD
-5.43 (-1.05%)
511.49 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AMP. AMP was compared to 238 industry peers in the Capital Markets industry. While AMP is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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
AMP's Return On Assets of 1.74% is in line compared to the rest of the industry. AMP outperforms 42.86% of its industry peers.
AMP's Return On Equity of 53.03% is amongst the best of the industry. AMP outperforms 97.90% of its industry peers.
AMP's Return On Invested Capital of 2.34% is on the low side compared to the rest of the industry. AMP is outperformed by 64.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMP is significantly below the industry average of 7.60%.
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 53.78% of the companies in the same industry.
AMP's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 29.61%, AMP perfoms like the industry average, outperforming 55.88% of the companies in the same industry.
AMP's Operating Margin has improved in the last couple of years.
AMP has a Gross Margin (51.86%) which is in line with its industry peers.
AMP's Gross Margin has improved in the last couple of years.
| 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
AMP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AMP has less shares outstanding
Compared to 1 year ago, AMP has an improved debt to assets ratio.
2.2 Solvency
AMP has an Altman-Z score of 0.46. This is a bad value and indicates that AMP is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.46, AMP is not doing good in the industry: 63.03% of the companies in the same industry are doing better.
The Debt to FCF ratio of AMP is 6.05, which is on the high side as it means it would take AMP, 6.05 years of fcf income to pay off all of its debts.
AMP has a better Debt to FCF ratio (6.05) than 66.81% of its industry peers.
AMP has a Debt/Equity ratio of 6.67. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 6.67, AMP is not doing good in the industry: 86.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.67 | ||
| Debt/FCF | 6.05 | ||
| Altman-Z | 0.46 |
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 71.85% of its industry peers.
A Quick Ratio of 0.62 indicates that AMP may have some problems paying its short term obligations.
AMP has a worse Quick ratio (0.62) than 71.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.35% over the past year.
Measured over the past years, AMP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.30% on average per year.
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
AMP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.97% yearly.
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
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
AMP is valuated correctly with a Price/Earnings ratio of 14.18.
The rest of the industry has a similar Price/Earnings ratio as AMP.
AMP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.03.
The Price/Forward Earnings ratio is 12.43, which indicates a correct valuation of AMP.
61.76% of the companies in the same industry are more expensive than AMP, based on the Price/Forward Earnings ratio.
AMP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.18 | ||
| Fwd PE | 12.43 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, AMP is valued a bit cheaper than the industry average as 77.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.2 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
AMP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AMP may justify a higher PE ratio.
PEG (NY)1.39
PEG (5Y)0.87
EPS Next 2Y9.08%
EPS Next 3Y8.96%
5. Dividend
5.1 Amount
AMP has a Yearly Dividend Yield of 1.27%. Purely for dividend investing, there may be better candidates out there.
AMP's Dividend Yield is slightly below the industry average, which is at 8.00.
With a Dividend Yield of 1.27, AMP pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
On average, the dividend of AMP grows each year by 8.56%, which is quite nice.
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.
AMP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.14%
EPS Next 2Y9.08%
EPS Next 3Y8.96%
511.49
-5.43 (-1.05%)
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 Change1.9%
Market Cap48.22B
Analysts73.68
Price Target570.38 (11.51%)
Short Float %2.02%
Short Ratio4.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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)1.3%
PT rev (3m)6.27%
EPS NQ rev (1m)0.8%
EPS NQ rev (3m)-1.43%
EPS NY rev (1m)1.44%
EPS NY rev (3m)2.65%
Revenue NQ rev (1m)1.84%
Revenue NQ rev (3m)-0.74%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.18 | ||
| Fwd PE | 12.43 | ||
| P/S | 2.65 | ||
| P/FCF | 7.2 | ||
| P/OCF | 7.01 | ||
| P/B | 7.93 | ||
| P/tB | 7.93 | ||
| EV/EBITDA | N/A |
EPS(TTM)36.07
EY7.05%
EPS(NY)41.13
Fwd EY8.04%
FCF(TTM)71.07
FCFY13.9%
OCF(TTM)72.99
OCFY14.27%
SpS192.85
BVpS64.52
TBVpS64.52
PEG (NY)1.39
PEG (5Y)0.87
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 | 0.46 |
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%