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

5.7%

AMP

3.0%

US Capital Markets

2.3%

US Market


1 Year Return

1.0%

AMP

-0.4%

US Capital Markets

5.6%

US Market

Return vs Industry: AMP matched the US Capital Markets industry which returned -0.4% over the past year.

Return vs Market: AMP underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

AMPIndustryMarket
7 Day5.7%3.0%2.3%
30 Day-5.2%-4.0%-1.0%
90 Day-6.9%-2.9%-0.7%
1 Year3.8%1.0%1.9%-0.4%7.9%5.6%
3 Year54.1%42.5%50.2%41.8%45.6%36.3%
5 Year38.4%21.8%78.4%62.0%65.8%47.6%

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

Undervalued: AMP ($139.77) is trading below our estimate of fair value ($328.59)

Significantly Undervalued: 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 (10.2x) compared to the Capital Markets industry average (39.4x).

PE vs Market: AMP is good value based on its PE Ratio (10.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: AMP is poor value based on its PEG Ratio (1.8x)


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 (6.5x).


Next Steps

Future Growth

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

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMP's forecast earnings growth (5.7% per year) is above the savings rate (2.7%).

Earnings vs Market: AMP's earnings (5.7% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: AMP's revenue (2.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: AMP's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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

Earnings Trend: AMP's earnings have grown by 4.5% per year over the past 5 years.

Accelerating Growth: AMP's earnings growth over the past year (10.9%) exceeds its 5-year average (4.5% per year).

Earnings vs Industry: AMP earnings growth over the past year (10.9%) underperformed the Capital Markets industry 31.4%.


Return on Equity

High ROE: AMP's Return on Equity (32%) is considered high.


Return on Assets

ROA vs Industry: AMP has a higher Return on Assets than the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: AMP has improved its Return on Capital Employed over the past 3 years.


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 3.702120x 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?

2.78%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Years2.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AMP's dividend (2.78%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: AMP's dividend (2.78%) is low compared to the top 25% of dividend payers in the US market (3.76%).

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 (26.7%), 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 (23% payout ratio).


Next Steps

Management

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

7.2yrs

Average management tenure


CEO

Jim Cracchiolo (60yo)

14.1yrs

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 ($USD25.74M) is about average for companies of similar size in the US market ($USD11.23M).

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


Management Age and Tenure

7.2yrs

Average Tenure

60yo

Average Age

Experienced Management: AMP's management team is seasoned and experienced (7.2 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

63yo

Average Age

Experienced Board: AMP's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

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

Ownership Breakdown


Management Team

  • Walter Berman (76yo)

    Executive VP & CFO

    • Tenure: 14.1yrs
    • Compensation: US$10.07m
  • Jim Cracchiolo (60yo)

    Chairman & CEO

    • Tenure: 14.1yrs
    • Compensation: US$25.74m
  • Ted Truscott (59yo)

    Chief Executive Officer of Global Asset Management

    • Tenure: 7.1yrs
    • Compensation: US$7.52m
  • Joe Sweeney (58yo)

    President of Advice & Wealth Management - Products & Service Delivery

    • Tenure: 10.4yrs
    • Compensation: US$4.78m
  • Colin Moore (61yo)

    Executive VP & Global Chief Investment Officer

    • Tenure: 6.3yrs
    • Compensation: US$6.53m
  • Randy Kupper (60yo)

    Executive VP & Chief Information Officer

    • Tenure: 7.3yrs
  • Neal Maglaque (62yo)

    President of Advice

    • Tenure: 7.3yrs
  • Alicia Charity

    Senior Vice President of Investor Relations

    • Tenure: 4.8yrs
  • Dale Cebert

    President & Private Wealth Adviser

    • Tenure: 1yrs
  • John Hutt

    Senior VP of Corporate Finance

    • Tenure: 0.3yrs

Board Members

  • Jim Cracchiolo (60yo)

    Chairman & CEO

    • Tenure: 14.1yrs
    • Compensation: US$25.74m
  • Robert Sharpe (67yo)

    Presiding Director

    • Tenure: 0yrs
    • Compensation: US$290.00k
  • Jeffrey Noddle (72yo)

    Director

    • Tenure: 14.1yrs
    • Compensation: US$290.00k
  • Lon Greenberg (69yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: US$275.00k
  • Chris Williams (61yo)

    Director

    • Tenure: 3.1yrs
    • Compensation: US$278.68k
  • Ed Walter (63yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$230.33k
  • Amy DiGeso (67yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$270.00k
  • Brian Shea (58yo)

    Director

    • Tenure: 0.3yrs
  • Dianne Blixt (60yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$275.00k

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$18.292b
  • Shares outstanding: 130.87m
  • 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
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 Analysis2019/10/16 23:55
End of Day Share Price2019/10/16 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.