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AMP Limited (AU:AMP)
ASX:AMP

AMP (AMP) AI Stock Analysis

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AU

AMP

(Sydney:AMP)

Rating:51Neutral
Price Target:
AU$1.50
▲(20.97%Upside)
AMP Limited's stock score is primarily influenced by its financial performance, which shows some recovery but is hindered by high leverage and operational challenges. Technical analysis provides mixed signals, and valuation is fair but not overly attractive. The absence of impactful earnings call data or corporate events keeps the focus on fundamental and technical analysis.
Positive Factors
Capital Management
Capital management opportunities outside of dividends provide potential for additional value.
Platform Trends
Stable positive net flows in Platforms with improving trends.
Negative Factors
Bank Performance
The bank appears to be structurally challenged, despite potential to perform better with lower interest rates.
Platform Risk
There is a risk to platform flows due to the sale of the advice business, with uncertainty in markets.

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

AMP Business Overview & Revenue Model

Company DescriptionAMP Limited operates as a wealth management company in Australia and internationally. It operates through Australian wealth management (AWM), AMP Bank, AMP Capital, and New Zealand wealth management segments. The AWM segment provides advice, retirement income, and managed investments products, as well as offers superannuation, retirement, and investment solutions; wealth management solutions for retail and corporate; and financial advice and equity investments services. The AMP Bank segment provides residential mortgages, deposits, and transaction banking; and focuses on investing in technology. The AMP Capital segment offers real estate, equities, fixed interest, diversified, multi-manager, and multi-asset funds. The New Zealand wealth management segment provides wealth management solutions, such as KiwiSaver, corporate superannuation, retail investments, and operates wrap investment management platform. AMP Limited was founded in 1849 and is based in Sydney, Australia.
How the Company Makes MoneyAMP Limited generates revenue through multiple streams, primarily driven by its wealth management, banking, and investment management services. The wealth management division earns fees and commissions from advising and managing client portfolios, providing superannuation, and retirement products. The banking segment contributes to income via interest earned on loans, mortgages, and other financial products, as well as through transaction fees. Additionally, AMP's investment management services generate income from management fees related to the administration of investment funds. The company also benefits from strategic partnerships and alliances that enhance its product offerings and market reach, further bolstering its earnings.

AMP Earnings Call Summary

Earnings Call Date:Feb 13, 2025
(Q2-2024)
|
% Change Since: -28.61%|
Next Earnings Date:Aug 07, 2025
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 profit margin and free cash flow. However, high leverage and operational inefficiencies persist, along with vulnerabilities in revenue growth and cash flow stability.
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
856.00M2.98B1.55B1.65B2.50B
Gross Profit
856.00M2.16B1.43B2.25B2.41B
EBIT
-141.00M1.71B572.00M15.00M480.00M
EBITDA
1.92B1.11B547.00M179.00M590.00M
Net Income Common Stockholders
150.00M265.00M-16.00M-252.00M177.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
7.18B1.44B1.82B2.92B2.43B
Total Assets
33.16B33.88B34.95B32.20B32.15B
Total Debt
28.71B28.92B29.53B26.25B25.13B
Net Debt
27.34B27.48B27.71B23.34B22.70B
Total Liabilities
29.51B30.00B30.77B28.22B27.88B
Stockholders Equity
3.65B3.87B4.17B3.98B4.27B
Cash FlowFree Cash Flow
169.00M-137.00M933.00M1.63B-2.83B
Operating Cash Flow
216.00M-105.00M963.00M1.68B-2.74B
Investing Cash Flow
-478.00M1.25B-1.32B-565.00M3.21B
Financing Cash Flow
201.00M-1.74B-511.00M-722.00M-1.99B

AMP Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.24
Price Trends
50DMA
1.24
Positive
100DMA
1.36
Negative
200DMA
1.40
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
41.42
Neutral
STOCH
25.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AMP, the sentiment is Negative. The current price of 1.24 is below the 20-day moving average (MA) of 1.28, above the 50-day MA of 1.24, and below the 200-day MA of 1.40, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.42 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AMP.

AMP Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$12.85B9.817.79%78.20%12.23%-7.93%
AUAMP
51
Neutral
$3.14B17.494.84%1.53%19.36%1261.54%
$1.53B-7.21%2.65%
DENNA
€849.24M6.2423.27%7.85%
DEPVQ
€1.21B-24.47%6.75%
AUPNI
74
Outperform
AU$4.38B29.9720.18%3.24%36.76%70.74%
AUCNI
70
Outperform
AU$1.43B19.624.97%6.03%13.48%-8.15%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AMP
AMP
1.24
0.20
19.12%
IOOFF
Insignia Financial Ltd
2.32
0.86
58.90%
DE:NNA
Magellan Financial Group Ltd
4.68
-0.10
-2.09%
DE:PVQ
Perpetual Limited
10.30
-1.73
-14.38%
AU:PNI
Pinnacle Investment Management Group Limited
20.77
8.02
62.90%
AU:CNI
Centuria Capital Group
1.76
0.16
10.00%

AMP Corporate Events

AMP Director Increases Shareholding in Strategic Move
May 7, 2025

AMP Limited announced a change in the interest of its director, Kathleen Anne Bailey-Lord, who acquired 23,390 ordinary shares, increasing her total holding to 98,701 shares. This transaction, conducted as an on-market trade, reflects a strategic move within the company’s governance structure, potentially impacting shareholder confidence and market perception of AMP’s leadership stability.

Pinnacle Investment Acquires Significant Stake in AMP Limited
Apr 24, 2025

Pinnacle Investment Management Group Limited has become a substantial holder in AMP Limited, acquiring a 5.10% voting power through 129,070,526 ordinary fully paid shares. This acquisition marks a significant stake in AMP Limited, potentially influencing the company’s strategic decisions and impacting stakeholders by altering the dynamics of shareholder voting power.

AMP Limited Reports Strong Q1 2025 Cashflows Amid Market Volatility
Apr 16, 2025

AMP Limited reported strong growth in its Q1 2025 cashflows, with notable increases in platform net cashflows and a reduction in superannuation and investment outflows. Despite market volatility impacting assets under management, AMP continues to enhance its offerings with new digital solutions and innovative products like the MyNorth Lifetime platform. The company also launched a new digital bank to diversify its funding mix, which has received positive customer feedback. These strategic initiatives aim to strengthen AMP’s market position and drive future growth.

AMP Limited Announces Change in Shareholding Interest
Apr 11, 2025

AMP Limited has announced a change in its interest in its own shares, with a slight decrease in the percentage of voting shares it controls. The company’s current interest in its shares is now at 1.04%, down from 1.06% as previously reported. This adjustment reflects changes in the voting power and derivative exposure of AMP’s controlled entities, which may impact the company’s strategic decisions and stakeholder interests.

AMP Limited AGM Results: Strong Shareholder Support for Leadership
Apr 11, 2025

AMP Limited held its Annual General Meeting on April 11, 2025, where several resolutions were put to shareholders and successfully carried. The meeting included the re-election of directors and approval of the CEO’s long-term incentive plan, indicating strong shareholder support for the company’s current leadership and strategic direction.

AMP Limited’s Strategic Focus and Resilience Amid Market Volatility
Apr 11, 2025

At the 2025 Annual General Meeting, AMP Limited’s Chair highlighted the company’s strategic focus on financial confidence and its successful financial performance in 2024. Despite market volatility due to geopolitical challenges, AMP remains committed to capital management, having returned $1.1 billion to shareholders through dividends and share buybacks. The Board aims to maintain a stable dividend policy and continues to enhance its capabilities in digital transformation and cyber risk, emphasizing diversity and renewal within its leadership.

AMP Limited Announces Cessation of Securities
Apr 9, 2025

AMP Limited announced the cessation of 286,099 securities due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This cessation may impact AMP’s issued capital and could have implications for stakeholders, reflecting on the company’s operational adjustments and market strategies.

State Street Alters Voting Power in AMP Limited
Apr 4, 2025

AMP Limited has announced a change in the interests of a substantial holder, with State Street Corporation and its subsidiaries having altered their voting power in the company. This change reflects State Street’s ongoing management of its investment interests, impacting the voting dynamics within AMP Limited and potentially influencing future shareholder decisions.

AMP Limited Announces New Dividend Distribution for AMPPB Security
Mar 17, 2025

AMP Limited has announced a new dividend distribution for its security, AMPPB, with a distribution amount of AUD 1.978 per unit. The distribution is related to a quarterly period ending on June 15, 2025, with the record date set for June 6, 2025, and payment to be made on June 16, 2025. This announcement reflects AMP’s ongoing commitment to providing returns to its stakeholders and may influence investor sentiment and market positioning.

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.