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Ameriprise Financial Owner Earnings per Share (TTM)

: 4.99 (As of Jun. 2021)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Ameriprise Financial's Owner Earnings per Share (TTM) ended in Jun. 2021 was $4.99. It's Price-to-Owner-Earnings ratio for today is 59.76.


The historical rank and industry rank for Ameriprise Financial's Owner Earnings per Share (TTM) or its related term are showing as below:

NYSE:AMP' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 1.65   Med: 9.83   Max: 59.74
Current: 59.74

1.65
59.74

During the past 13 years, the highest Price-to-Owner-Earnings ratio of Ameriprise Financial was 59.74. The lowest was 1.65. And the median was 9.83.


NYSE:AMP's Price-to-Owner-Earnings is ranked lower than
99.99% of the 31 Companies
in the Asset Management industry.

( Industry Median: 20.79 vs. NYSE:AMP: 59.74 )

Ameriprise Financial's Earnings per Share (Diluted) for the three months ended in Jun. 2021 was $4.88. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2021 was $8.79. It's PE Ratio ratio for today is 33.92.

Ameriprise Financial's EPS without NRI for the three months ended in Jun. 2021 was $4.88. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2021 was $8.79. It's PE Ratio without NRI ratio for today is 33.92.


Ameriprise Financial Owner Earnings per Share (TTM) Historical Data

The historical data trend for Ameriprise Financial's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ameriprise Financial Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.82 8.01 16.24 17.34 34.64

Ameriprise Financial Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 45.89 42.84 34.64 -12.37 4.99

Competitive Comparison

For the Asset Management subindustry, Ameriprise Financial's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Ameriprise Financial Owner Earnings per Share (TTM) Distribution

For the Asset Management industry and Financial Services sector, Ameriprise Financial's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Ameriprise Financial's Owner Earnings per Share (TTM) falls into.



Ameriprise Financial Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Ameriprise Financial's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 1,065
Depreciation, Depletion and Amortization 231
Change In Deferred Tax -681
5Y Average of Maintenance Capital Expenditure 145
Change In Working Capital 135
Shares Outstanding (Diluted Average) 121

1. Start with "Net Income" from income statement. Ameriprise Financial's Net Income for the trailing twelve months (TTM) ended in Jun. 2021 was $1,065 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Ameriprise Financial's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Jun. 2021 was $231 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Ameriprise Financial's Change In Deferred Tax for the trailing twelve months (TTM) ended in Jun. 2021 was $-681 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $145 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Ameriprise Financial's 5-Year Average Maintenance Capital Expenditure = $145 Mil

5. "Change In Working Capital" is from cashflow statement. Ameriprise Financial's Change In Working Capital for the trailing twelve months (TTM) ended in Jun. 2021 was $135 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Ameriprise Financial's Shares Outstanding (Diluted Average) for the months ended in Jun. 2021 was 121.200 Mil.

Ameriprise Financial's Onwer Earnings Per Share for Jun. 2021 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 1065 +231+-681
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-145+135)/121.200
=4.99

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=298.20/4.99
=59.76

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Ameriprise Financial Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Ameriprise Financial's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Ameriprise Financial Business Description

Ameriprise Financial logo
Industry
Financial Services » Asset Management NAICS : 523930 SIC : 6282
Traded in Other Exchanges
Address
1099 Ameriprise Financial Center, Minneapolis, MN, USA, 55474
Spun off from American Express in 2005, Ameriprise Financial has emerged as a major player in the U.S. market for asset and wealth management, with around $1.1 trillion in total assets under management and advisement at the end of 2020. Ameriprise has one of the largest branded advisor networks in the industry, and over 70% of the company's revenue comes from its asset and wealth management segments. Ameriprise has reduced its exposure to insurance with the sale of its auto and home insurance business in 2019 and discontinuing the sale of its proprietary fixed annuities in 2020. Around 90% of the company's pretax earnings are from the United States.
Executives
Smyth Gerard P. officer: EVP Technology and CIO 1099 AMERIPRISE FINANCIAL MINNEAPOLIS MN 55474
Woerner John Robert officer: Pres Ins & Chief Strat Officer AMERIPRISE FINANCIAL, INC. 707 SECOND AVENUE SOUTH MINNEAPOLIS MN 55474
Williams Christopher J director 650 FIFTH AVE 10TH FL NEW YORK NY 10019
Truscott William F officer: CEO, Global Asset Management AMERIPRISE FINANCIAL, INC. 50591 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS MN 55474
Sweeney Joseph Edward officer: Pres-AWM Products & Services AMERIPRISE FINANCIAL, INC. 707 SECOND AVENUE SOUTH MINNEAPOLIS MN 55474
Moore Colin officer: EVP & Global CIO C/O PUTNAM LLC ONE POST OFFICE SQ BOSTON MA 02109
Sharpe Robert Francis Jr director AMERIPRISE FINANCIAL, INC. 50591 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS MN 55474
Greenberg Lon R director 460 NORTH GULPH ROAD KING OF PRUSSIA PA 19406
Noddle Jeffrey director 11840 VALLEY VIEW ROAD EDEN PRAIRIE MN 55344
Walter W Edward director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: WALTER W EDWARD a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Neal Blixt Dianne director 714 GREEN VALLEY ROAD GREENSBORO NC 27408
Digeso Amy director C/O THE ESTEE LAUDER COMPANIES INC. 767 FIFTH AVENUE NEW YORK NY 10153
Shea Brian T director ONE PERSHING PLAZA 95 CHRISTOPHER COLUMBUS DRIVE JERSEY CITY NJ 07399
Hutt John R. officer: Sr Vice Pres and Controller 1099 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS MN 55474
Thissen Karen Wilson officer: Executive VP and GC 1098 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS MN 55474

Ameriprise Financial Headlines

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