Ameriprise Financial Inc
AMP
Investment Advice
Mkt Cap
$36.76BPE
13.75Debt
-Cash
$7.991BEV
-FCF
$3.569BP/E Ratio
13.75Debt
-Cash
$7.991BEV
-FCF
$3.569BAmeriprise 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 four segments: Advice & Wealth Management, Asset Management, Retirement & Protection Solutions, and Corporate & Other. The Advice & Wealth Management segment provides financial planning and advice; brokerage products and services for retail and institutional clients; discretionary and non-discretionary investment advisory accounts; mutual funds; insurance and annuities products; cash management and banking products; and face-amount certificates. 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. This segment 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 and infrastructure funds. The Retirement & Protection Solutions segment provides variable annuity products to individual clients, as well as life and DI insurance products to retail clients. The company was formerly known as American Express Financial Corporation and changed its name to Ameriprise Financial, Inc. in September 2005. The company was founded in 1894 and is headquartered in Minneapolis, Minnesota.
Sector
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DCF
Discounted Cash Flow Valuation of Ameriprise Financial Inc
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $3.569B | $3.865B | $4.171B | $4.486B | $4.808B | $5.136B | $5.468B | $5.801B | $6.133B | $6.462B | $6.786B | $67.86B |
| DCF | $3.361B | $3.154B | $2.949B | $2.749B | $2.554B | $2.364B | $2.181B | $2.005B | $1.837B | $1.677B | $16.77B | |
| Value | $41.6B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 7.6%
Earnings Stability 46%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 13% | 13% | 11% | 12% | 16% | 14% | 13% | 21% | 18% | 17% |
| ROA | - | - | 1.1% | 1.5% | 1.8% | 1.5% | 1.1% | 1.9% | 2% | 2% |
| ROE | 17% | 19% | 21% | 25% | 38% | 33% | 26% | 49% | 71% | 70% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +15.69%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +1.12%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +1.63%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +0.07%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +40.13%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +7.34%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | - | - | - | - | 1.41 | - | - | - | - |
| Debt Equity | - | - | - | - | - | 0.54 | - | - | - | - |
| MIN | ||||||||||
| Graham Stability | - | - | 87% | 99% | 100% | 100% | 84% | 100% | 100% | 84% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is -.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.84.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 2.3% | 3.5% | 3.1% | 6.7% | 0.29% |
| Net Income | 7.3% | 12% | 11% | -7.3% | 1.8% |
| Stockholders Equity | -11% | -9.6% | -14% | -36% | -1.1% |
| FCF | 8.2% | 22% | 24% | 32% | -0.71% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +3.51%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +0.29%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +11.57%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +1.79%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is -9.64%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -1.12%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +22.38%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -0.71%.