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AMP Limited (AU:AMP)
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AMP (AMP) AI Stock Analysis

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AU:AMP

AMP

(Sydney:AMP)

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Neutral 44 (OpenAI - 4o)
Rating:44Neutral
Price Target:
AU$1.50
▼(-15.73% Downside)
AMP Limited's overall stock score reflects significant financial challenges, including high leverage and operational inefficiencies. Technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation. While there are some positive trends in net income and free cash flow, the stock faces considerable risks that weigh on its overall score.
Positive Factors
Improved Net Income
Improved net income indicates better profitability, which can enhance shareholder value and provide resources for reinvestment in growth initiatives.
Positive Free Cash Flow
Positive free cash flow suggests better cash management and provides the company with more flexibility to invest in growth opportunities or reduce debt.
Strong Gross Profit Margin
A strong gross profit margin indicates efficient cost management and pricing power, which can support long-term profitability and competitive positioning.
Negative Factors
High Leverage
High leverage increases financial risk and can strain cash flow, limiting the company's ability to invest in growth or weather economic downturns.
Operational Inefficiencies
Operational inefficiencies can erode profitability and hinder the company's ability to compete effectively, impacting long-term financial health.
Negative Revenue Growth
Negative revenue growth indicates difficulties in market expansion or product adoption, which can limit future earnings potential and market share.

AMP (AMP) vs. iShares MSCI Australia ETF (EWA)

AMP Business Overview & Revenue Model

Company DescriptionAMP (AMP) is an Australian-based financial services company that provides a range of investment, superannuation, financial planning, and insurance services. Operating primarily in the wealth management sector, AMP offers solutions designed to help individuals and businesses achieve their financial goals through various products including managed funds, superannuation accounts, and life insurance policies. The company serves both retail consumers and institutional clients, leveraging its extensive network of financial advisors and digital platforms to deliver personalized financial solutions.
How the Company Makes MoneyAMP generates revenue through multiple key streams, primarily from fees associated with its financial products and services. These include management fees from investment products, commissions from insurance policies, and advisory fees charged for financial planning services. Additionally, AMP earns revenue from the administration of superannuation funds and investment platforms. Significant partnerships with financial advisors, institutions, and technology providers also enhance its service offerings, enabling AMP to attract and retain clients while optimizing operational efficiency. The company continuously seeks to innovate its product offerings and expand its market reach, which contributes to its overall earnings.

AMP Earnings Call Summary

Earnings Call Date:Aug 07, 2024
(Q2-2024)
|
% Change Since: |
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive achievements and challenges. While the company experienced significant cost reductions, NPAT growth, and successful capital returns, there were challenges such as revenue decline and losses in the bank and Advice business. The transformation in the Advice business with new partnerships was a notable positive move.
Q2-2024 Updates
Positive Updates
Strong NPAT Growth
NPAT increased by 5.4% to $118 million, reflecting better-performing businesses.
Cost Reduction Achievement
Controllable costs decreased by 6.4% to $339 million, showing progress on the business simplification program.
Successful Capital Return
Announced a $0.02 per share dividend, 20% franked, and completed $963 million in capital return through buybacks.
Platforms and Superannuation Growth
Platforms NPAT up 22% to $54 million, with net cash flows up over 56% compared to 1H '23.
Transformation in Advice Business
Announced a partnership with Entireti and AZ NGA, expected to finalize by the end of the year.
Negative Updates
Bank NPAT Decline
Bank NPAT decreased to $35 million due to NIM compression and competitive environment.
Revenue Decline
Overall revenue fell by 4% on 1H '23, primarily due to NIM contraction in the bank.
Advice Business Loss
The Advice business posted a $15 million loss for the half.
Expected Accounting Loss in Advice Sale
The sale of the Advice business is expected to result in a $30 million accounting loss.
Company Guidance
In the Q2 2024 earnings call for AMP Limited (AMP.AX), several key financial metrics and strategic initiatives were discussed. AMP reported a net profit after tax (NPAT) increase of 5.4% to $118 million, attributed to better-performing business segments. Cost management was a highlight, with costs down by nearly 6.5%, aligning with their target to deliver $690 million in savings by the year's end, although adjustments are expected. The company announced a $0.02 per share dividend, 20% franked, as part of a broader capital return strategy, having returned $963 million for buyback and planning to complete $1.1 billion by year-end. AMP is also focusing on reducing debt to maintain credit ratings. A transformational transaction was announced for the AMP Advice business, expected to complete by the end of the year, with an anticipated accounting loss on sale of about $30 million. The company remains committed to strategic pillars focusing on performance, efficiency, and new revenue opportunities, particularly in the retirement space, while navigating a competitive banking environment with a focus on margin management.

AMP Financial Statement Overview

Summary
AMP Limited shows signs of recovery with improved net income and free cash flow. However, high leverage and operational inefficiencies remain significant concerns. The company's financial statements reveal vulnerabilities in revenue growth and cash flow stability, suggesting a cautious outlook.
Income Statement
45
Neutral
AMP Limited's income statement shows fluctuating revenue with a significant decline in recent years. The net profit margin improved from a negative value to a positive 17.52% in 2024, indicating some recovery. However, the EBIT margin dropped to zero, which suggests operational inefficiencies. The gross profit margin remained strong at 100% in 2024, but the revenue growth rate has been negative, reflecting challenges in top-line growth.
Balance Sheet
40
Negative
The balance sheet indicates a high debt-to-equity ratio of 7.86 in 2024, pointing to substantial leverage. The equity ratio remains low at 11.01%, suggesting limited financial cushioning. Although there was a slight increase in stockholders' equity, the high leverage poses a financial risk. Return on equity improved to 4.11% in 2024, reflecting better profitability compared to previous years, but overall stability is a concern.
Cash Flow
35
Negative
AMP's cash flow position shows some improvement with positive free cash flow in 2024. However, the operating cash flow remains volatile, previously showing negative values. The free cash flow growth rate is notable from negative to positive, indicating better cash management. Despite this improvement, the overall cash flow stability is weak due to past negative trends.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.73B856.00M2.58B2.24B1.65B2.50B
Gross Profit984.00M856.00M2.73B864.00M2.25B2.41B
EBITDA914.00M1.92B1.19B625.00M285.00M595.00M
Net Income181.00M150.00M265.00M387.00M-252.00M177.00M
Balance Sheet
Total Assets33.35B33.16B33.88B34.95B32.20B32.15B
Cash, Cash Equivalents and Short-Term Investments1.20B7.18B1.44B1.82B2.92B2.43B
Total Debt5.33B28.71B28.92B29.53B26.25B25.13B
Total Liabilities29.61B29.51B30.00B30.77B28.22B27.88B
Stockholders Equity3.73B3.65B3.87B4.17B3.98B4.27B
Cash Flow
Free Cash Flow-922.00M169.00M-137.00M933.00M1.63B-2.83B
Operating Cash Flow-843.00M216.00M-105.00M963.00M1.68B-2.74B
Investing Cash Flow-263.00M-478.00M1.25B-1.32B-565.00M3.21B
Financing Cash Flow992.00M201.00M-1.74B-511.00M-722.00M-1.99B

AMP Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.78
Price Trends
50DMA
1.72
Positive
100DMA
1.71
Positive
200DMA
1.49
Positive
Market Momentum
MACD
0.01
Negative
RSI
60.00
Neutral
STOCH
82.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AMP, the sentiment is Positive. The current price of 1.78 is above the 20-day moving average (MA) of 1.69, above the 50-day MA of 1.72, and above the 200-day MA of 1.49, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 60.00 is Neutral, neither overbought nor oversold. The STOCH value of 82.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AMP.

AMP Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
€1.62B10.3216.50%6.10%-13.22%-29.69%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
65
Neutral
AU$1.93B23.375.59%6.18%38.64%-21.14%
61
Neutral
AU$3.63B26.6419.56%3.55%37.42%38.37%
51
Neutral
$3.06B188.800.72%-15.63%
50
Neutral
€2.14B-36.17-3.34%6.06%2.87%87.93%
44
Neutral
$4.50B24.864.59%1.69%-14.92%179.69%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AMP
AMP
1.77
0.20
12.74%
AU:IFL
Insignia Financial Ltd
4.54
1.48
48.37%
AU:MFG
Magellan Financial Group Ltd
9.75
-0.61
-5.86%
AU:PPT
Perpetual Limited
19.00
0.09
0.48%
AU:PNI
Pinnacle Investment Management Group Limited
16.72
-5.38
-24.34%
AU:CNI
Centuria Capital Group
2.13
0.40
23.12%

AMP Corporate Events

AMP Limited to Suspend and Remove AMP Capital Notes 2
Dec 4, 2025

AMP Limited has announced the suspension and upcoming removal of its AMP Capital Notes 2 from quotation on the ASX, pending redemption. This action is specific to the AMP Capital Notes 2 and does not affect any other securities of AMP, indicating a targeted adjustment in their financial instruments.

AMP Limited Announces Redemption of Capital Notes 2
Nov 6, 2025

AMP Limited has announced the redemption of its $275 million AMP Capital Notes 2, which were issued in December 2019. The redemption will occur on 16 December 2025, with holders receiving $100 per note and a final distribution of $1.8508 per note. This action does not indicate future redemptions of other capital instruments, which would require prior approval from APRA.

AMP Limited Announces Director Changes and Strengthens Compliance
Oct 20, 2025

AMP Limited announced the appointment of Linda Elkins as a new director effective September 1, 2025, and the resignation of Andrea Slattery effective August 31, 2025. The company acknowledged a delay in submitting the required documentation to the Australian Securities Exchange due to an administrative oversight and has committed to enhancing its internal controls to prevent future occurrences.

AMP Limited Reports Strong Q3 2025 Growth in AUM and Platform Cashflows
Oct 15, 2025

AMP Limited reported a 3.6% increase in total assets under management (AUM) to $159.5 billion for the third quarter of 2025, driven by strong platform net cashflows and positive investment markets. The company’s Platforms segment saw a significant rise in net cashflows by 61.6% to $1.2 billion, while Superannuation & Investments improved their net cash outflows by 27.8%. AMP Bank continued its growth with a total loan book of $23.8 billion and introduced new features in its digital banking services. Additionally, AMP settled a superannuation class action for $120 million and received $68 million from insurance settlements related to historical remediation programs.

AMP Limited Issues A$125 Million Subordinated Notes to Strengthen Capital Base
Oct 7, 2025

AMP Limited and its subsidiary AMP Bank Limited have announced the issuance of A$125 million in Floating Rate Subordinated Notes due in 2035. These notes are intended to serve as Tier 2 Capital, as per the Australian Prudential Regulation Authority’s standards, and are designed to bolster the bank’s financial stability. The notes will not be registered under U.S. securities laws and are aimed at wholesale investors. The issuance is structured to allow conversion into AMP’s ordinary shares or a write-off in case of non-viability, ensuring compliance with regulatory capital requirements.

AMP Limited Reports Change in Shareholding Exposure
Sep 26, 2025

AMP Limited has announced a change in its net economic exposure to its own shares, as per the exemption under Sub-section 259C(2) of the Corporations Act. The company reported a decrease in its ordinary shares from 21,425,012 to 20,618,359, representing a slight reduction in its percentage of total shares from 0.85% to 0.81%. This adjustment in shareholding may impact the company’s control over voting shares and its strategic positioning in the market.

AMP Limited Announces New Dividend Distribution for AMPPB Security
Sep 16, 2025

AMP Limited has announced a new dividend distribution for its security AMPPB, with a distribution amount of AUD 1.8508. The dividend relates to a quarter ending on December 15, 2025, with key dates including an ex-date of December 5, 2025, and a payment date of December 16, 2025. This announcement reflects AMP’s ongoing commitment to providing returns to its stakeholders and could impact its market positioning by reinforcing investor confidence.

AMP Settles with Insurers Over Historical Remediation Claims
Sep 15, 2025

AMP, a financial services company, has reached settlements with some insurers regarding legal proceedings for historical remediation programs that ended in 2022. The company has received approximately $44 million from these settlements and continues discussions with other insurers following a recent hearing.

AMP Settles Superannuation Class Action for $120 Million
Sep 15, 2025

AMP has reached an agreement in principle to settle a class action lawsuit concerning fees and interest rates charged to certain superannuation clients from July 2008 to May 2020. The settlement totals $120 million, with AMP contributing $75 million, and is pending approval by the Federal Court of Australia. This resolution marks a significant step for AMP, allowing the company to move past this legacy issue and continue focusing on enhancing its superannuation offerings.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 21, 2025