Ameriprise Financial (AMP) AI Stock Analysis

• Market Cap: $47.60B
• Dividend Yield: 1.22%
• Average Volume (3M): 421.05K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 1.23
• Revenue Growth: 7.09%
• EPS Growth: 9.89%
• Country: US
• Employees: 13,600
• Sector: Financial
• Sector Strength: 67
• Industry: Asset Management
• EPS (TTM): 9.11
• Shares Outstanding: 94,271,570
• 10 Day Avg. Volume: 419,790
• 30 Day Avg. Volume: 421,053
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 2.88
• Enterprise Value/Gross Profit: 2.88
• Enterprise Value/Ebitda: 13.72
• 1Y Price Target: $558.75
• Price Target Upside: 10.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 75 Outperform
• Price Target: $586.00 ▲(16.05% Upside)

The overall stock score of 74.9 reflects strong financial performance and positive earnings call highlights. Technical analysis and valuation are neutral, slightly tempering the score. The company's robust growth in assets and profitability, combined with effective cash management, are substantial strengths.

Positive Factors

Financial Performance

Higher management fees and investment income are contributing to an increase in earnings estimates for Ameriprise Financial.

Recruitment and Growth

Management sounded more bullish on the call with regards to its recruitment pipeline which could translate into better NNAs.

Stock Valuation

The price target for Ameriprise Financial has been increased by $34, indicating a strong outlook for the company's stock.

Negative Factors

Earnings Growth

Ameriprise is being downgraded to Market Perform from Outperform due to moderating earnings growth prospects.

Expense Management

Post 4Q24 earnings, the adjusted EPS for 1Q25 is lowered due to higher general and administrative expenses and reduced management and advisory fees.

Interest Rates Impact

Declining interest rates are putting pressure on the core wealth management business, which makes up 65% of the earnings mix.

Ameriprise Financial Business Overview & Revenue Model

Company Description

Ameriprise Financial, Inc., through its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through four segments: Advice & Wealth Management, Asset Management, Retirement & Protection Solutions, and Corporate & Other. The Advice & Wealth Management segment provides financial planning and advice; brokerage products and services for retail and institutional clients; discretionary and non-discretionary investment advisory accounts; mutual funds; insurance and annuities products; cash management and banking products; and face-amount certificates. The Asset Management segment offers investment management and advice, and investment products to retail, high net worth, and institutional clients through unaffiliated third-party financial institutions and institutional sales force. This segment products also include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds, variable product funds underlying insurance, and annuity separate accounts; and institutional asset management products, such as traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective funds, and property and infrastructure funds. The Retirement & Protection Solutions segment provides variable annuity products to individual clients, as well as life and DI insurance products to retail clients. The company was formerly known as American Express Financial Corporation and changed its name to Ameriprise Financial, Inc. in September 2005. Ameriprise Financial, Inc. was founded in 1894 and is headquartered in Minneapolis, Minnesota.

How the Company Makes Money

Ameriprise Financial makes money primarily through fees and commissions associated with its wealth and asset management services. These include advisory fees charged for financial planning and investment management services provided to clients. Additionally, the company earns revenue from insurance premiums through its life and health insurance products. Ameriprise also generates income from its asset management business, which involves managing mutual funds and institutional client assets, earning fees based on the assets under management. Key revenue streams include advisory fees, distribution fees, and insurance premiums. Partnerships with financial advisors and third-party distributors play a significant role in expanding its client base and assets under management, contributing to its overall earnings.

Ameriprise Financial Financial Statement Overview

Summary

Ameriprise Financial demonstrates strong financial health with robust revenue growth, improved profitability metrics, and a solid balance sheet. Despite a decline in free cash flow, the company maintains effective cost and debt management.

Income Statement

Ameriprise Financial demonstrated strong revenue growth, increasing from $16.10 billion in 2023 to $17.93 billion in 2024, a growth rate of 7.04%. The gross profit margin remained robust at 100%, indicating effective cost management. Net profit margin improved to 18.97%, reflecting enhanced profitability. EBIT margin also increased significantly to 44.62%, showcasing operational efficiency.

Balance Sheet

The company exhibits a strong equity position with an equity ratio of 92.64%, reflecting financial stability. The absence of total debt in 2024 further strengthens its balance sheet. Return on Equity (ROE) improved substantially to 2.49%, driven by increased net income and a larger equity base.

Cash Flow

Free cash flow declined from $4.50 billion in 2023 to $2.89 billion in 2024, resulting in a negative free cash flow growth rate. However, operating cash flow to net income ratio stood at 0.85, indicating healthy cash generation relative to net income. The free cash flow to net income ratio was positive at 0.85, suggesting efficient cash flow management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.26B	15.54B	14.26B	13.38B	11.90B
Gross Profit	17.26B	15.54B	14.26B	13.38B	11.90B
EBITDA	4.11B	3.08B	3.89B	4.28B	2.04B
Net Income	3.40B	2.56B	3.15B	3.42B	1.53B
Balance Sheet
Total Assets	181.40B	175.19B	158.47B	175.98B	165.88B
Cash, Cash Equivalents and Short-Term Investments	60.67B	7.56B	7.10B	7.25B	43.13B
Total Debt	5.47B	5.75B	5.38B	5.20B	4.94B
Total Liabilities	176.18B	170.46B	154.85B	170.29B	160.02B
Stockholders Equity	5.23B	4.73B	3.61B	5.68B	5.87B
Cash Flow
Free Cash Flow	6.42B	4.50B	4.22B	3.21B	4.48B
Operating Cash Flow	6.59B	4.68B	4.41B	3.33B	4.62B
Investing Cash Flow	-551.00M	-9.26B	-13.58B	-4.38B	-2.89B
Financing Cash Flow	-5.17B	4.41B	8.43B	1.72B	952.00M

Ameriprise Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 504.96
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMP, the sentiment is Negative. The current price of 504.96 is below the 20-day moving average (MA) of 519.70, below the 50-day MA of 519.84, and below the 200-day MA of 516.82, indicating a bearish trend. The MACD of -5.77 indicates Positive momentum. The RSI at 41.95 is Neutral, neither overbought nor oversold. The STOCH value of 22.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMP.

Ameriprise Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TROW	80 Outperform	$23.08B	11.75	19.39%	4.78%	4.43%	5.55%
BEN	75 Outperform	$13.08B	48.30	2.16%	5.08%	4.72%	-67.85%
AMP	75 Outperform	$47.60B	15.71	58.24%	1.22%	7.09%	9.89%
BLK	74 Outperform	$173.60B	27.08	14.35%	1.83%	15.56%	2.86%
PFLT	70 Outperform	$1.04B	11.70	7.59%	11.71%	93.63%	24.41%
Sector *	67 Neutral	$17.05B	11.60	9.79%	3.95%	10.63%	1.86%
BX	66 Neutral	$206.73B	45.71	37.72%	2.52%	27.13%	41.35%

Ameriprise Financial Corporate Events

Ameriprise Financial Appoints Glynis Bryan as Director

Ameriprise Financial announced the appointment of Glynis A. Bryan as a director and a member of its Audit and Risk Committee, effective March 1, 2025. Bryan, who has a robust background in finance and has served in leadership roles at Insight Enterprises Inc., Swift Transportation, and APL Logistics, brings extensive experience to the company. Her appointment is expected to enhance the company’s governance and strategic oversight.