Ameriprise Financial, Inc.
Ameriprise Financial, Inc. Fundamental Analysis
Ameriprise Financial, Inc. (AMP) shows strong financial fundamentals with a PE ratio of 10.83, profit margin of 20.18%, and ROE of 61.59%. The company generates $18.6B in annual revenue with moderate year-over-year growth of 5.17%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze AMP's fundamental strength across five key dimensions:
Efficiency Score
WeakAMP struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAMP trades at attractive valuation levels.
Growth Score
ModerateAMP shows steady but slowing expansion.
Financial Health Score
ModerateAMP shows balanced financial health with some risks.
Profitability Score
ExcellentAMP achieves industry-leading margins.
Key Financial Metrics
Is AMP Expensive or Cheap?
P/E Ratio
AMP trades at 10.83 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AMP's PEG of 0.30 indicates potential undervaluation.
Price to Book
The market values Ameriprise Financial, Inc. at 6.79 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.55 times EBITDA. This is generally considered low.
How Well Does AMP Make Money?
Net Profit Margin
For every $100 in sales, Ameriprise Financial, Inc. keeps $20.18 as profit after all expenses.
Operating Margin
Core operations generate 27.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $61.59 in profit for every $100 of shareholder equity.
ROA
Ameriprise Financial, Inc. generates $2.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ameriprise Financial, Inc. generates limited operating cash flow of $1.61B, signaling weaker underlying cash strength.
Free Cash Flow
Ameriprise Financial, Inc. produces free cash flow of $1.61B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $17.93 in free cash annually.
FCF Yield
AMP converts 4.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.62
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How AMP Stacks Against Its Sector Peers
| Metric | AMP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.83 | 18.96 | Better (Cheaper) |
| ROE | 61.59% | 797.00% | Weak |
| Net Margin | 20.18% | -7699.00% (disorted) | Strong |
| Debt/Equity | 0.53 | 2.38 | Strong (Low Leverage) |
| Current Ratio | 0.70 | 560.28 | Weak Liquidity |
| ROA | 2.11% | -23967.00% (disorted) | Weak |
AMP outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ameriprise Financial, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
105.33%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
203.32%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-18.28%
Industry Style: Value, Dividend, Cyclical
Declining