Austin Bordeaux & Kevin Millet

Background
Founded by John Tappan (1894)
Help ordinary Americans achieve their financial dreams and feel confident
about their futures

Largest Employer of Certified Financial Planners

CEO
James Cracchiolo

CFO
Walter S. Berman

Products
Financial Planning
Investments
Cash, Cards & Lending

Insurance & Annuities

Personal Trust Service

Shareholder Distribution
Ameriprise Financial

Held By Institutions 89.20%

Held By Insiders 0.25%

Competitors

Held By Institutions 71.63%

Held By Insiders 13.87%

Outlook

Outlook

News
Forbes, Jan 6th
Ameriprise entered oversold territory, stock was $99.92

Mideast Times, Jan 21

Deutsch Bank reaffirmed buy rating

Keefe, Bruyette & Woods set target price at $140
Wells Fargo dropped AMP from outperform to market perform
Morgan Stanley dropped target price from $148 to $147
Number of institutions are increasing their position in AMP
Stock
Peddock Capital, First American Bank, BB&T Securities

Q4 Earnings
AMP beat Zacks Q4 earnings estimates
Operating earnings per diluted share increased from $9 to $9.32
Expenses were higher than estimates
Lost money from exchange rates and market volatility

Net Income of $357 million

CEO Jim Crachiolo, for the fifth consecutive year we returned
more than 100 percent of our operating earnings to
shareholders. And we delivered a record high operating return
on equity of 24.3 percent.

More Analysis
2012

2013

Revenue $ 10,259,000 $ 11,230,000 $

Increase/Decrease
EBITDA $

9.46%
1,781,000 $

Increase/Decrease
EBIT $

1,556,000 $

Increase/Decrease
EBT $

1,238,000 $

Increase/Decrease
Net Income $
Increase/Decrease

1,029,000 $

2014

2015E

2016E

12,296,000 $ 12,170,000 $ 12,681,140 $

9.49%

-1.02%

4.20%

2,521,000 $

3,157,000 $

3,122,273 $

3,415,767 $

41.55%

25.23%

-1.10%

2,282,000 $

2,903,000 $

2,868,577 $

3,230,017 $

46.66%

27.21%

-1.19%

12.60%

1,970,000 $

2,547,000 $

2,490,000 $

2,843,580 $

59.13%

29.29%

-2.24%

14.20%

1,334,000 $

1,619,000 $

1,562,000 $

1,679,150 $

29.64%

21.36%

-3.52%

9.4%

7.5%

2017E

2018E

13,289,835 $ 13,980,906
4.80%

5.20%

3,774,422 $ 4,317,939
10.50%

14.40%

3,675,760 $ 4,238,151
13.80%

15.30%

3,284,335 $ 3,816,397
15.50%

16.20%

1,836,990 $ 2,048,244
9.4%

11.5%

Analyst Future Predictions

Competitors
AMG - Affiliated Managers Group Inc.
APAM - Artisan Partners Asset Management
Inc.

Good Decision to Sell XLF?

Buy Price = $17.75
Sell Price $21.25
Difference $3.50
Profit = $325,125

YES
*Todays Price =
$21.15*

Recent Activity (3 Months)

Recent Activity (2 Year)

Recent Activity (5 Year)

Regression 3 Year

Regression 1 Year

Regression 3 Month

Dividend Estimates
Growth rate dividend returns from 2007-2015 was over 15%
Eliminated 40-60% increase outliers from years 2012 & 2013
AMP usually gives out same amount quarterly
We used 5% (approx. average of low dividend growth years) due to
unrealistic future dividends with 15% growth
Have been experiencing periods of high dividend growth, we believe this will slow
dramatically

2014

2015

2016E

2017E

2018E

2.26

2.68

2.81

2.95

3.10

12.44%

18.58%

5.00%

5.00%

5.00%

Cost of Equity
Risk Free Rate - .47% (Current 1-year rate on Treasury.Gov)
Beta 1.4036 (Taken from 3-Month Regression)
Return on Market- 10.3% (Morningstar 5-Year Average)
Cost of Equity (based on CAPM): 0.47%+1.4036(10.3%-.47%)

=14.2674%

Cost of Debt

Debt and Equity Weights

WACC
Tax Rate: 24.44% (Averages from 2012-2014)
WACC = 14.2674% * 40.6% + 3.7% * 59.4% * (1-24.44%)

=7.4532%

Gordon Model Stock Price Prediction

Discounting years 2016-2018 brings dividends of:
2.62, 2.75, 2.89

Terminal Value at end of year 2018: 3.74/(1+.074532) =$126.46

Discount to Present value: 160.78/1.074532^3+ PV of Future Dividends:

Estimated Stock Value Today: $110.19

Actual Price

Why We Think This Stock Is Good

Strong Company
Good Dividends

Good Fourth Quarter Earning in Volatility Market

Low Stock Price
High Potential to Rise

Current Portfolio

Recommendation
Buy Stock
Target Price to Buy $85.00 $95.00
1,400 Shares $122,178.00
Stop Loss = $77.00