ASX:AMP

Stock Analysis Report

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Executive Summary

AMP Limited operates as a wealth management company in Australia and internationally. More Details


Snowflake Analysis

Moderate growth potential and overvalued.


Similar Companies

Share Price & News

How has AMP's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AMP is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: AMP's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-0.6%

AMP

3.0%

AU Diversified Financial

2.3%

AU Market


1 Year Return

-10.6%

AMP

-16.1%

AU Diversified Financial

-0.3%

AU Market

Return vs Industry: AMP exceeded the Australian Diversified Financial industry which returned -16.1% over the past year.

Return vs Market: AMP underperformed the Australian Market which returned -0.3% over the past year.


Shareholder returns

AMPIndustryMarket
7 Day-0.6%3.0%2.3%
30 Day28.6%21.7%7.2%
90 Day15.7%21.7%8.7%
1 Year-4.3%-10.6%-12.5%-16.1%3.1%-0.3%
3 Year-61.5%-66.6%-55.8%-60.8%24.2%8.8%
5 Year-62.5%-70.8%-49.8%-59.6%55.4%24.4%

Long-Term Price Volatility Vs. Market

How volatile is AMP's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AMP undervalued compared to its fair value and its price relative to the market?

1.19x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AMP (A$1.73) is trading above our estimate of fair value (A$0.74)

Significantly Below Fair Value: AMP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AMP is unprofitable, so we can't compare its PE Ratio to the AU Diversified Financial industry average.

PE vs Market: AMP is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AMP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AMP is good value based on its PB Ratio (1.2x) compared to the AU Diversified Financial industry average (1.5x).


Next Steps

Future Growth

How is AMP forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

29.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: AMP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AMP's is expected to become profitable in the next 3 years.

Revenue vs Market: AMP's revenue is expected to decline over the next 3 years (-50.6% per year).

High Growth Revenue: AMP's revenue is forecast to decline over the next 3 years (-50.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMP's Return on Equity is forecast to be low in 3 years time (10.1%).


Next Steps

Past Performance

How has AMP performed over the past 5 years?

-61.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMP is currently unprofitable.

Growing Profit Margin: AMP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AMP is unprofitable, and losses have increased over the past 5 years at a rate of 61.7% per year.

Accelerating Growth: Unable to compare AMP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AMP is unprofitable, making it difficult to compare its past year earnings growth to the Diversified Financial industry (-3%).


Return on Equity

High ROE: AMP has a negative Return on Equity (-8.41%), as it is currently unprofitable.


Next Steps

Financial Health

How is AMP's financial position?


Financial Position Analysis

Short Term Liabilities: AMP's short term assets (A$10.4B) do not cover its short term liabilities (A$18.6B).

Long Term Liabilities: AMP's short term assets (A$10.4B) do not cover its long term liabilities (A$11.0B).


Debt to Equity History and Analysis

Debt Level: AMP's debt to equity ratio (507.8%) is considered high.

Reducing Debt: AMP's debt to equity ratio has increased from 190% to 507.8% over the past 5 years.

Debt Coverage: AMP's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: AMP is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is AMP current dividend yield, its reliability and sustainability?

4.42%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AMP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AMP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AMP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AMP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AMP is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AMP's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Francesco De Ferrari

1.92yrs

Tenure

AU$13,431,000

Compensation

Mr. Francesco de Ferrari,MBA, BS (Econ) (IntBus), has been Chief Executive Officer at AMP Ltd. since December 1, 2018 and has been its Director January 31, 2019 and also serves as its Managing Director. He...


CEO Compensation Analysis

Compensation vs Market: Francesco's total compensation ($USD9.87M) is above average for companies of similar size in the Australian market ($USD1.90M).

Compensation vs Earnings: Francesco's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Francesco De Ferrari
CEO, MD & Executive Director1.92yrsAU$13.43m0.053%
A$ 3.2m
James Georgeson
Chief Financial Officer1.25yrsAU$865.75k0.0052%
A$ 305.7k
David Cullen
Group General Counsel2.58yrsAU$1.51m0.0029%
A$ 170.0k
Helen Livesey
Group Executive of People & Corporate Affairsno dataAU$1.75m0.0018%
A$ 105.5k
Howard Marks
Director of Investor Relationsno datano datano data
Robert Coulter
Head of Corporate Developmentno datano datano data
Jonathan Deane
Chief Innovation Officerno datano datano data
Marnie Reid
Head of Shareholder Services11.33yrsno datano data
Michael Lawrence
Managing Director of AMP Bank13yrsno datano data
Tim Mitchell-Adams
Managing Director of Charter & IPAC5.25yrsno datano data
Michael Paff
Managing Director3.67yrsno datano data
Dean Thomas
Managing Director3.67yrsno datano data

3.7yrs

Average Tenure

Experienced Management: AMP's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Francesco De Ferrari
CEO, MD & Executive Director1.92yrsAU$13.43m0.053%
A$ 3.2m
Michael Sammells
Independent Director0.67yrno data0.00087%
A$ 51.5k
Kathryn McKenzie
Independent Non-Executive Directorno datano datano data
Debra Hazelton
Independent & Non-Executive Chairman0.25yrAU$251.00k0.0038%
A$ 225.7k
Andrea Slattery
Independent Director1.75yrsAU$334.00k0.0025%
A$ 147.5k
John O'Sullivan
Independent Director2.42yrsAU$311.00k0.0026%
A$ 152.3k
Rahoul Chowdry
Independent Director0.83yrno data0.0029%
A$ 172.4k

1.3yrs

Average Tenure

Experienced Board: AMP's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AMP Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AMP Limited
  • Ticker: AMP
  • Exchange: ASX
  • Founded: 1849
  • Industry: Other Diversified Financial Services
  • Sector: Diversified Financials
  • Market Cap: AU$5.924b
  • Shares outstanding: 3.43b
  • Website: https://www.amp.com.au

Number of Employees


Location

  • AMP Limited
  • AMP Building
  • 33 Alfred Street
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMLT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1998
AMPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 1998
AMPNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJun 1998
AMPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1998
AMPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 1998
AMLY.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDFeb 2013
AMPPBASX (Australian Securities Exchange)FRN CNV SUB PERP AUD1000AUAUDDec 2019

Biography

AMP Limited operates as a wealth management company in Australia and internationally. The company operates through Australian Wealth Management, AMP Bank, AMP Capital, New Zealand Wealth Management, and Au...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 10:33
End of Day Share Price2020/11/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.