No-moat AMP’s cash flow update for the first three months of 2024 broadly supports our thesis of moderating net outflows, margin improvements, and a rebound in earnings after the lows experienced in 2022-23. We retain our fair value estimate of AUD 1.20 per share, with shares fairly valued at current prices.
AMP remains the second-largest advisor network in Australia and can leverage scale to offer its services at a relatively lower cost to customers.
Both the 2018 Royal Commission and bouts of turnover in AMP Capital since 2020 have materially reduced the competitive advantage of AMP’s brand and vertically integrated business model.
|
Metric
|
AMP
|
NAB
|
WBC
|
|---|---|---|---|
Price/Earnings (Normalized) | 54.30 | 13.64 | 13.14 |
Price/Book Value | 0.79 | 1.69 | 1.26 |
Price/Sales | 2.35 | 5.45 | 4.73 |
Price/Cash Flow | — | — | 11.33 |
|
Metric
|
AMP
|
NAB
|
WBC
|
|---|---|---|---|
Quick Ratio | 6.59 | — | — |
Current Ratio | 6.98 | — | — |
Interest Coverage | −0.24 | — | — |
|
Metric
|
AMP
|
NAB
|
WBC
|
|---|---|---|---|
Return on Assets (Normalized) | 0.57% | 0.73% | 0.72% |
Return on Equity (Normalized) | 4.87% | 12.77% | 10.25% |
Return on Invested Capital (Normalized) | 0.14% | — | — |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
IX
| ORIX Corp ADR | — | Xvyk | $23.8 Bil | |
ORXCF
| ORIX Corp | — | Rcpbz | $23.6 Bil | |
VOYA
| Voya Financial Inc | — | Mtnbv | $7.0 Bil | |
SBHGF
| SBI Holdings Inc | — | Yskp | $6.6 Bil | |
SREDF
| Storebrand ASA | — | Rdk | $3.9 Bil | |
MANDF
| Mandatum PLC | — | Xvdtm | $2.3 Bil | |
AMLTF
| AMP Ltd | — | Jkysk | $1.9 Bil | |
RILY
| B. Riley Financial Inc | — | Tdlcf | $658.8 Mil | |
TREE
| LendingTree Inc | — | Skdrc | $463.4 Mil | |
FGCO
| Financial Gravity Companies Inc | — | Tzd | $19.8 Mil |
