NYSE:AMP

Stock Analysis Report

Executive Summary

Ameriprise Financial, Inc., through its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally.


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AMP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

AMP

1.1%

US Capital Markets

0.9%

US Market


1 Year Return

35.5%

AMP

18.8%

US Capital Markets

20.0%

US Market

Return vs Industry: AMP exceeded the US Capital Markets industry which returned 19% over the past year.

Return vs Market: AMP exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

AMPIndustryMarket
7 Day0.7%1.1%0.9%
30 Day3.7%0.5%1.4%
90 Day12.9%8.0%8.8%
1 Year39.0%35.5%21.2%18.8%22.5%20.0%
3 Year47.4%36.7%40.1%32.2%49.9%40.3%
5 Year50.4%32.0%83.5%66.4%73.2%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMP ($178.82) is trading below our estimate of fair value ($402.17)

Significantly Below Fair Value: AMP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AMP is good value based on its PE Ratio (12.7x) compared to the Capital Markets industry average (36x).

PE vs Market: AMP is good value based on its PE Ratio (12.7x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: AMP is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: AMP is good value based on its PB Ratio (3.9x) compared to the US Capital Markets industry average (6.7x).


Next Steps

Future Growth

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

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMP's forecast earnings growth (9.1% per year) is above the savings rate (1.7%).

Earnings vs Market: AMP's earnings (9.1% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: AMP's earnings are forecast to grow, but not significantly.

Revenue vs Market: AMP's revenue (1.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: AMP's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMP's Return on Equity is forecast to be very high in 3 years time (45.4%).


Next Steps

Past Performance

How has Ameriprise Financial performed over the past 5 years?

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMP has a high level of non-cash earnings.

Growing Profit Margin: AMP's current net profit margins (14.7%) are lower than last year (16.2%).


Past Earnings Growth Analysis

Earnings Trend: AMP's earnings have grown by 5.5% per year over the past 5 years.

Accelerating Growth: AMP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AMP had negative earnings growth (-9.8%) over the past year, making it difficult to compare to the Capital Markets industry average (8.4%).


Return on Equity

High ROE: AMP's Return on Equity (33%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ameriprise Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AMP has a low level of unsold assets or inventory.

Debt Coverage by Assets: AMP's debt is covered by short term assets (assets are 2.8x debt).


Financial Institutions Analysis

Asset Level: AMP's level of assets compared to its equity is very high.

Allowance for Bad Loans: Insufficient data to determine if AMP has a sufficient allowance for bad loans.

Low Risk Liabilities: AMP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AMP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AMP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AMP has an appropriate level of bad loans.


Next Steps

Dividend

What is Ameriprise Financial's current dividend yield, its reliability and sustainability?

2.17%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: AMP's dividend (2.17%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: AMP's dividend (2.17%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: AMP's dividends per share have been stable in the past 10 years.

Growing Dividend: AMP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27%), AMP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AMP's dividends in 3 years are forecast to be well covered by earnings (21.7% payout ratio).


Next Steps

Management

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

7.5yrs

Average management tenure


CEO

Jim Cracchiolo (60yo)

14.4yrs

Tenure

US$25,742,524

Compensation

Mr. James M. Cracchiolo, also known as Jim, has been the Chief Executive Officer and Chairman at Ameriprise Financial, Inc. (formerly, American Express Financial Corporation) since September 30, 2005. He h ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD25.74M) is above average for companies of similar size in the US market ($USD10.78M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Cracchiolo
Chairman & CEO14.4yrsUS$25.74m0.25% $54.5m
Walter Berman
Executive VP & CFO14.4yrsUS$10.07m0.039% $8.7m
Colin Moore
Executive VP & Global Chief Investment Officer6.7yrsUS$6.53m0.049% $10.8m
William Truscott
Chief Executive Officer of Global Asset Management7.4yrsUS$7.52m0.053% $11.9m
Joseph Sweeney
President of Advice & Wealth Management - Products and Service Delivery10.8yrsUS$4.78m0.018% $4.1m
Dale Cebert
President & Private Wealth Adviser1.3yrsno datano data
Charles Maglaque
President of Advice7.7yrsno datano data
John Hutt
Senior VP of Corporate Finance0.7yrsno data0.0015% $323.5k
Randy Kupper
Executive VP & Chief Information Officer7.7yrsno data0.018% $3.9m
Alicia Charity
Senior Vice President of Investor Relations5.1yrsno datano data

7.5yrs

Average Tenure

60yo

Average Age

Experienced Management: AMP's management team is seasoned and experienced (7.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Cracchiolo
Chairman & CEO14.4yrsUS$25.74m0.25% $54.5m
Robert Sharpe
Presiding Director0yrsUS$290.00k0.022% $4.9m
Jeffrey Noddle
Independent Director14.4yrsUS$290.00k0.00040% $88.6k
Lon Greenberg
Independent Director8.7yrsUS$275.00k0.0065% $1.4m
Christopher Williams
Independent Director3.4yrsUS$278.68k0.00016% $35.4k
W. Walter
Independent Director1.8yrsUS$230.33k0.00081% $179.5k
Amy DiGeso
Independent Director6yrsUS$270.00k0.00013% $28.8k
Brian Shea
Director0.7yrsno data0.0025% $551.7k
Dianne Blixt
Independent Director6yrsUS$275.00k0.00081% $179.5k

6.0yrs

Average Tenure

63yo

Average Age

Experienced Board: AMP's board of directors are considered experienced (6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AMP insiders have only sold shares 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

Ameriprise Financial, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ameriprise Financial, Inc.
  • Ticker: AMP
  • Exchange: NYSE
  • Founded: 1894
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$22.156b
  • Shares outstanding: 123.90m
  • Website: https://www.ameriprise.com

Number of Employees


Location

  • Ameriprise Financial, Inc.
  • 55 Ameriprise Financial Center
  • Minneapolis
  • Minnesota
  • 55474
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMPNYSE (New York Stock Exchange)YesCommon SharesUSUSDSep 2005
A4SDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 2005
A4SXTRA (XETRA Trading Platform)YesCommon SharesDEEURSep 2005
AMP *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNSep 2005
0HF6LSE (London Stock Exchange)YesCommon SharesGBUSDSep 2005
A1MP34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

Ameriprise Financial, Inc., through its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through five segments: Advice & Wealth Management, Asset Management, Annuities, Protection, and Corporate & Other. The Advice & Wealth Management segment provides financial planning and advice, as well as full-service brokerage services primarily to retail clients through its advisors. The Asset Management segment offers investment management and advice, and investment products to retail, high net worth, and institutional clients through unaffiliated third party financial institutions and institutional sales force. Its products also include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds, variable product funds underlying insurance, and annuity separate accounts; and institutional asset management products, such as traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective funds, and property funds. The Annuities segment provides variable and fixed annuity products to individual clients through affiliated and unaffiliated advisors, and financial institutions. The Protection segment offers various products to address the protection and risk management needs of retail clients, including life, disability income, and property casualty insurance through advisors and affinity relationships. The Corporate & Other segment consist of long term care business, net investment income or loss on corporate level assets. The company was formerly known as American Express Financial Corporation and changed its name to Ameriprise Financial, Inc. in September 2005. Ameriprise Financial, Inc. was founded in 1894 and is headquartered in Minneapolis, Minnesota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 00:08
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
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.