Ameriprise Financial, Inc. (NYSE:AMP): Commentary On Fundamentals

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Ameriprise Financial, Inc. (NYSE:AMP) due to its excellent fundamentals in more than one area. AMP is a financially-healthy company with a an impressive track record high-grade dividend payments, trading at a discount. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, read the full report on Ameriprise Financial here.

Very undervalued established dividend payer

AMP is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. AMP seems to have put its debt to good use, generating operating cash levels of 0.32x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. AMP’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if AMP’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, AMP’s share price is trading below the group’s average. This supports the theory that AMP is potentially underpriced.

NYSE:AMP Intrinsic Value Export January 11th 19
NYSE:AMP Intrinsic Value Export January 11th 19

AMP is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

NYSE:AMP Historical Dividend Yield January 11th 19
NYSE:AMP Historical Dividend Yield January 11th 19

Next Steps:

For Ameriprise Financial, I’ve compiled three pertinent factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for AMP’s future growth? Take a look at our free research report of analyst consensus for AMP’s outlook.
  2. Historical Performance: What has AMP’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AMP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.