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

Fundamentals

Undervalued with solid track record and pays a dividend.


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


Market Performance


7 Day Return

-4.2%

NYSE:AMP

-2.0%

US Capital Markets

-1.0%

US Market


1 Year Return

-9.4%

NYSE:AMP

-6.3%

US Capital Markets

-0.4%

US Market

AMP underperformed the Capital Markets industry which returned -7.6% over the past year.

AMP underperformed the Market in United States of America which returned -1.7% over the past year.


Share holder returns

AMPIndustryMarket
7 Day-4.2%-2.0%-1.0%
30 Day-15.8%-4.1%-3.3%
90 Day-12.1%0.04%0.4%
1 Year-6.9%-9.4%-4.2%-6.3%1.8%-0.4%
3 Year40.8%30.2%51.0%42.3%39.4%30.4%
5 Year16.5%2.6%69.9%54.2%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Ameriprise Financial's share price is below the future cash flow value, and at a moderate discount (> 20%).

Ameriprise Financial's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Ameriprise Financial is good value based on earnings compared to the US Capital Markets industry average.

Ameriprise Financial is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Ameriprise Financial is poor value based on expected growth next year.


Price Based on Value of Assets

Ameriprise Financial is good value based on assets compared to the US Capital Markets industry average.


Next Steps

Future Growth

How is Ameriprise Financial expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ameriprise Financial's revenue is expected to grow by 1.2% yearly, however this is not considered high growth (20% yearly).

Ameriprise Financial's earnings are expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).

Ameriprise Financial's revenue growth is positive but not above the United States of America market average.

Ameriprise Financial's earnings growth is positive but not above the United States of America market average.

Ameriprise Financial's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Ameriprise Financial is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Ameriprise Financial performed over the past 5 years?

4.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ameriprise Financial's year on year earnings growth rate has been positive over the past 5 years.

Ameriprise Financial's 1-year earnings growth exceeds its 5-year average (10.9% vs 4.5%)

Ameriprise Financial's earnings growth has not exceeded the US Capital Markets industry average in the past year (10.9% vs 36.2%).


Return on Equity

Ameriprise Financial has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Ameriprise Financial used its assets more efficiently than the US Capital Markets industry average last year based on Return on Assets.


Return on Capital Employed

Ameriprise Financial has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ameriprise Financial's financial position?


Financial Position Analysis

Ameriprise Financial is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Ameriprise Financial's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Ameriprise Financial's level of debt (88.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (110.6% vs 88.9% today).

Debt is well covered by operating cash flow (60.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.7x debt.


Next Steps

Dividend

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

3.19%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Ameriprise Financial's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.5%).

Ameriprise Financial's dividend is below the markets top 25% of dividend payers in United States of America (3.9%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.3x coverage).


Next Steps

Management

What is the CEO of Ameriprise Financial's salary, the management and board of directors tenure and is there insider trading?

7.0yrs

Average management tenure


CEO

Jim Cracchiolo (60yo)

13.9yrs

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

Jim's remuneration is higher than average for companies of similar size in United States of America.

Jim's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.0yrs

Average Tenure

60yo

Average Age

The average tenure for the Ameriprise Financial management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.5yrs

Average Tenure

63yo

Average Age

The tenure for the Ameriprise Financial board of directors is about average.


Insider Trading

Ameriprise Financial individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$775,93711 Jun 19
Randy Kupper
EntityIndividual
Role
Executive VP & Chief Information Officer
Shares5,160
Max PriceUS$150.38
SellUS$3,211,57927 Feb 19
Colin Moore
EntityIndividual
Role
Executive VP & Global Chief Investment Officer
Shares24,032
Max PriceUS$133.64

Ownership Breakdown


Management Team

  • Walter Berman (76yo)

    Executive VP & CFO

    • Tenure: 13.9yrs
    • Compensation: $10.07m
  • Joe Sweeney (58yo)

    President of Advice & Wealth Management - Products & Service Delivery

    • Tenure: 10.3yrs
    • Compensation: $4.78m
  • Jim Cracchiolo (60yo)

    Chairman & CEO

    • Tenure: 13.9yrs
    • Compensation: $25.74m
  • Ted Truscott (59yo)

    Chief Executive Officer of Global Asset Management

    • Tenure: 6.9yrs
    • Compensation: $7.52m
  • Colin Moore (61yo)

    Executive VP & Global Chief Investment Officer

    • Tenure: 6.2yrs
    • Compensation: $6.53m
  • Alicia Charity

    Senior Vice President of Investor Relations

    • Tenure: 4.6yrs
  • Dale Cebert

    President & Private Wealth Adviser

    • Tenure: 0.8yrs
  • Neal Maglaque (62yo)

    President of Advice

    • Tenure: 7.2yrs
  • Randy Kupper (60yo)

    Executive VP & Chief Information Officer

    • Tenure: 7.2yrs
  • John Hutt

    Senior VP of Corporate Finance

    • Tenure: 0.2yrs

Board Members

  • Lon Greenberg (69yo)

    Director

    • Tenure: 8.2yrs
    • Compensation: $275.00k
  • Jim Cracchiolo (60yo)

    Chairman & CEO

    • Tenure: 13.9yrs
    • Compensation: $25.74m
  • Amy DiGeso (67yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: $270.00k
  • Chris Williams (61yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: $278.68k
  • Robert Sharpe (67yo)

    Presiding Director

    • Compensation: $290.00k
  • Ed Walter (63yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: $230.33k
  • Dianne Blixt (60yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: $275.00k
  • Brian Shea (58yo)

    Director

    • Tenure: 0.2yrs
  • Jeffrey Noddle (72yo)

    Director

    • Tenure: 13.9yrs
    • Compensation: $290.00k

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$16.534b
  • Shares outstanding: 130.87m
  • Website: Click here

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
AMP *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNSep 2005
0HF6LSE (London Stock Exchange)YesCommon SharesGBUSDSep 2005

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 00:01
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.