AMERIPRISE FINANCIAL INC (AMP)
US03076C1062 - Common Stock
AMP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 209 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
AMP had positive earnings in the past year.
In the past year AMP had a positive cash flow from operations.
Each year in the past 5 years AMP has been profitable.
In the past 5 years AMP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AMP (1.46%) is worse than 64.25% of its industry peers.
AMP's Return On Equity of 54.05% is amongst the best of the industry. AMP outperforms 98.55% of its industry peers.
AMP has a Return On Invested Capital of 2.02%. This is in the lower half of the industry: AMP underperforms 74.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMP is significantly below the industry average of 8.35%.
The last Return On Invested Capital (2.02%) for AMP is above the 3 year average (1.79%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.46% | ||
| ROE | 54.05% | ||
| ROIC | 2.02% |
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
AMP's Profit Margin of 15.88% is in line compared to the rest of the industry. AMP outperforms 43.48% of its industry peers.
In the last couple of years the Profit Margin of AMP has remained more or less at the same level.
The Operating Margin of AMP (27.06%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AMP has grown nicely.
AMP has a Gross Margin of 52.52%. This is comparable to the rest of the industry: AMP outperforms 53.14% of its industry peers.
In the last couple of years the Gross Margin of AMP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.06% | ||
| PM (TTM) | 15.88% | ||
| GM | 52.52% |
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.
The debt/assets ratio for AMP is higher compared to a year ago.
2.2 Solvency
AMP has an Altman-Z score of 0.37. This is a bad value and indicates that AMP is not financially healthy and even has some risk of bankruptcy.
AMP has a worse Altman-Z score (0.37) than 69.57% of its industry peers.
AMP has a debt to FCF ratio of 9.57. This is a negative value and a sign of low solvency as AMP would need 9.57 years to pay back of all of its debts.
AMP has a Debt to FCF ratio (9.57) which is in line with its industry peers.
A Debt/Equity ratio of 9.11 is on the high side and indicates that AMP has dependencies on debt financing.
AMP has a Debt to Equity ratio of 9.11. This is amonst the worse of the industry: AMP underperforms 90.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.11 | ||
| Debt/FCF | 9.57 | ||
| Altman-Z | 0.37 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
AMP has a Current Ratio of 0.56. This is a bad value and indicates that AMP is not financially healthy enough and could expect problems in meeting its short term obligations.
AMP's Current ratio of 0.56 is on the low side compared to the rest of the industry. AMP is outperformed by 73.91% of its industry peers.
AMP has a Quick Ratio of 0.56. 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 0.56, AMP is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
AMP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.67%, which is quite good.
Measured over the past years, AMP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.75% on average per year.
AMP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.65%.
Measured over the past years, AMP shows a small growth in Revenue. The Revenue has been growing by 4.49% on average per year.
EPS 1Y (TTM)14.67%
EPS 3Y19.63%
EPS 5Y13.75%
EPS growth Q2Q3.75%
Revenue 1Y (TTM)12.65%
Revenue growth 3Y10.41%
Revenue growth 5Y4.49%
Revenue growth Q2Q13.48%
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 13.00% on average per year.
The Revenue is expected to grow by 6.47% on average over the next years.
EPS Next Y20.69%
EPS Next 2Y14.13%
EPS Next 3Y13%
EPS Next 5YN/A
Revenue Next Year9.16%
Revenue Next 2Y6.89%
Revenue Next 3Y6.47%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
The Price/Earnings ratio is 14.30, which indicates a correct valuation of AMP.
Compared to the rest of the industry, the Price/Earnings ratio of AMP is on the same level as its industry peers.
When comparing the Price/Earnings ratio of AMP to the average of the S&P500 Index (24.80), we can say AMP is valued slightly cheaper.
The Price/Forward Earnings ratio is 11.85, which indicates a very decent valuation of AMP.
The rest of the industry has a similar Price/Forward Earnings ratio as AMP.
The average S&P500 Price/Forward Earnings ratio is at 21.27. AMP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 11.85 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, AMP is valued a bit cheaper than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.18 | ||
| 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 13.00% in the coming years.
PEG (NY)0.69
PEG (5Y)1.04
EPS Next 2Y14.13%
EPS Next 3Y13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.28%, AMP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.52, AMP is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, AMP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
The dividend of AMP is nicely growing with an annual growth rate of 8.44%!
AMP has paid a dividend for at least 10 years, which is 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 21.52% of its income as dividend. This is a sustainable payout ratio.
AMP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.52%
EPS Next 2Y14.13%
EPS Next 3Y13%
AMERIPRISE FINANCIAL INC
NYSE:AMP (4/18/2024, 7:04:00 PM)
After market: 412.63 0 (0%)412.63
+0.86 (+0.21%)
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 Cap41.34B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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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 | 14.3 | ||
| Fwd PE | 11.85 | ||
| 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)0.69
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.46% | ||
| ROE | 54.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.06% | ||
| PM (TTM) | 15.88% | ||
| GM | 52.52% | ||
| 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 | 9.11 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 | ||
| 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)
Growth
EPS 1Y (TTM)14.67%
EPS 3Y19.63%
EPS 5Y
EPS growth Q2Q
EPS Next Y20.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.65%
Revenue growth 3Y10.41%
Revenue growth 5Y
Revenue growth 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