NYSE:AMP

Stock Analysis Report

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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

Outstanding track record, undervalued 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

Stable Share Price: AMP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.0%

AMP

2.2%

US Capital Markets

-0.04%

US Market


1 Year Return

26.3%

AMP

9.3%

US Capital Markets

17.1%

US Market

Return vs Industry: AMP exceeded the US Capital Markets industry which returned 8.1% over the past year.

Return vs Market: AMP exceeded the US Market which returned 16.8% over the past year.


Shareholder returns

AMPIndustryMarket
7 Day6.0%2.2%-0.04%
30 Day9.4%1.8%5.1%
90 Day38.5%17.9%19.5%
1 Year29.8%26.3%11.6%9.3%19.6%17.1%
3 Year21.3%12.2%25.7%18.1%42.5%33.3%
5 Year52.0%32.7%59.9%44.4%75.1%56.2%

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 ($162.55) is trading below our estimate of fair value ($346.91)

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 (8.3x) compared to the US Capital Markets industry average (26.3x).

PE vs Market: AMP is good value based on its PE Ratio (8.3x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: AMP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AMP is good value based on its PB Ratio (3x) compared to the US Capital Markets industry average (9.3x).


Next Steps

Future Growth

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

-12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMP's earnings are forecast to decline over the next 3 years (-12.2% per year).

Earnings vs Market: AMP's earnings are forecast to decline over the next 3 years (-12.2% per year).

High Growth Earnings: AMP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AMP's revenue (4.5% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: AMP's revenue (4.5% 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 high in 3 years time (32.7%)


Next Steps

Past Performance

How has Ameriprise Financial performed over the past 5 years?

12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMP has high quality earnings.

Growing Profit Margin: AMP's current net profit margins (20.5%) are higher than last year (14.9%).


Past Earnings Growth Analysis

Earnings Trend: AMP's earnings have grown by 12.3% per year over the past 5 years.

Accelerating Growth: AMP's earnings growth over the past year (29.7%) exceeds its 5-year average (12.3% per year).

Earnings vs Industry: AMP earnings growth over the past year (29.7%) exceeded the Capital Markets industry 13.6%.


Return on Equity

High ROE: AMP's Return on Equity (38.5%) is considered high.


Next Steps

Financial Health

How is Ameriprise Financial's financial position?


Financial Position Analysis

Short Term Liabilities: AMP's short term assets ($17.4B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: AMP's short term assets ($17.4B) do not cover its long term liabilities ($146.6B).


Debt to Equity History and Analysis

Debt Level: AMP's debt to equity ratio (68%) is considered high.

Reducing Debt: AMP's debt to equity ratio has reduced from 129.5% to 68% over the past 5 years.

Debt Coverage: AMP's debt is well covered by operating cash flow (159.8%).

Interest Coverage: AMP's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Next Steps

Dividend

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

2.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AMP's dividend (2.56%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: AMP's dividend (2.56%) is low compared to the top 25% of dividend payers in the US market (4.29%).


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 low payout ratio (20.2%), 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 (24.1% payout ratio).


Next Steps

Management

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

8.0yrs

Average management tenure


CEO

Jim Cracchiolo (61 yo)

14.92yrs

Tenure

US$24,516,930

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 ($USD24.52M) is above average for companies of similar size in the US market ($USD11.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Cracchiolo
Chairman & CEO14.92yrsUS$24.52m0.11%
$ 22.0m
Walter Berman
Executive VP & CFO14.92yrsUS$9.64m0.00028%
$ 54.9k
Colin Moore
Executive VP & Global Chief Investment Officer7.17yrsUS$6.28m0.045%
$ 8.9m
William Truscott
Chief Executive Officer of Global Asset Management7.92yrsUS$7.73m0.054%
$ 10.5m
Joseph Sweeney
President of Advice & Wealth Management - Products and Service Delivery11.25yrsUS$5.11m0.023%
$ 4.5m
Charles Maglaque
President of Advice8.17yrsno datano data
John Hutt
Senior VP of Corporate Finance1.17yrsno data0.0015%
$ 294.1k
Randy Kupper
Executive VP & Chief Information Officer8.17yrsno data0.015%
$ 3.0m
Alicia Charity
Senior Vice President of Investor Relations5.58yrsno datano data
Karen Thissen
Executive VP & General Counsel3.58yrsno data0.012%
$ 2.4m
Deirdre N. McGraw
Executive Vice President of Marketing6.25yrsno datano data
Kelli Ann Petruzillo
Executive Vice President of Human Resources14.92yrsno datano data

8.0yrs

Average Tenure

60yo

Average Age

Experienced Management: AMP's management team is seasoned and experienced (8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Cracchiolo
Chairman & CEO14.92yrsUS$24.52m0.11%
$ 22.0m
Robert Sharpe
Presiding Independent Directorno dataUS$290.00k0.021%
$ 4.1m
Jeffrey Noddle
Independent Director14.92yrsUS$276.32k0.00041%
$ 80.4k
Lon Greenberg
Independent Director9.17yrsUS$275.00k0.0066%
$ 1.3m
Christopher Williams
Independent Director3.92yrsUS$290.00k0.00017%
$ 33.3k
W. Walter
Independent Director2.33yrsUS$275.00k0.00083%
$ 162.7k
Amy DiGeso
Independent Director6.5yrsUS$270.00k0.00013%
$ 25.5k
Brian Shea
Independent Director1.17yrsUS$199.25k0.0026%
$ 501.9k
Dianne Blixt
Independent Director6.5yrsUS$288.68k0.00083%
$ 162.7k

6.5yrs

Average Tenure

64yo

Average Age

Experienced Board: AMP's board of directors are considered experienced (6.5 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$19.604b
  • Shares outstanding: 120.60m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 23:33
End of Day Share Price2020/08/11 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.