Ameriprise Financial (AMP) AI Stock Analysis

• Market Cap: $45.29B
• Dividend Yield: 1.24%
• Average Volume (3M): 535.62K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.25
• Revenue Growth: 9.20%
• EPS Growth: 0.05%
• Country: US
• Employees: 13,600
• Sector: Financial
• Sector Strength: 83
• Industry: Asset Management
• EPS (TTM): 9.50
• Shares Outstanding: 95,222,670
• 10 Day Avg. Volume: 501,702
• 30 Day Avg. Volume: 535,620
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.70
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $519.57
• Price Target Upside: 8.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Ameriprise Financial's strong financial performance and solid earnings growth are significant strengths, contributing to a high score. Technical indicators suggest neutral market momentum, while the valuation indicates fair pricing. The recent earnings call highlighted strong revenue and asset growth, though asset management outflows present challenges. Overall, the company's stability and growth prospects, coupled with effective governance, warrant a positive outlook.

Positive Factors

Earnings

Ameriprise reported operating EPS of $9.50, which beat the estimate of $9.26 and consensus of $9.08.

Financial Performance

High capital return helped keep EPS growth in the low teens.

Growth Strategy

The advisor recruiting environment is moving in AMP’s favor, which could benefit the company's growth and acquisition strategy.

Negative Factors

AUM Net Flows

Total AUM net flows were lower than expected with $(9.0)B vs $(7.8)B.

Earnings Expectations

The 2025 estimated EPS is reduced due to elevated expenses.

Expenses

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

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 generates revenue primarily through its Advice & Wealth Management and Asset Management segments. In the Advice & Wealth Management division, the company earns fees from financial planning, managed accounts, and advisory services provided to individual clients. This includes asset-based fees, which are recurring and based on the assets under management. The Asset Management segment contributes to revenue through mutual fund management fees and institutional investment management services. Additionally, the Annuities segment provides income through the sale of variable and fixed annuity products, which offer clients retirement income solutions. Ameriprise Financial also benefits from interest and investment income generated from its own investment portfolio. Strategic partnerships with financial advisors and distribution networks further enhance its ability to reach a broader client base and increase its revenue streams.

Ameriprise Financial Financial Statement Overview

Summary

Ameriprise Financial exhibits strong financial health with robust revenue growth of 7.04% and improved profitability metrics such as a net profit margin of 18.97% and EBIT margin of 44.62%. The balance sheet is solid with an equity ratio of 92.64% and no total debt. However, a decline in free cash flow from $4.50 billion to $2.89 billion indicates a need for careful cash 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
	EBIT
4.27B	3.23B	3.93B	4.18B	1.83B
	EBITDA
4.11B	3.08B	3.89B	4.28B	2.04B
	Net Income Common Stockholders
3.40B	2.56B	3.15B	3.42B	1.53B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
60.67B	7.56B	7.10B	7.25B	43.13B
	Total Assets
181.40B	175.19B	158.47B	175.98B	165.88B
	Total Debt
5.47B	5.75B	5.38B	5.20B	4.94B
	Net Debt
-3.05B	-1.81B	-1.71B	-2.05B	-1.90B
	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: Positive
• Last Price: 480.80
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMP, the sentiment is Positive. The current price of 480.8 is above the 20-day moving average (MA) of 469.23, above the 50-day MA of 480.67, and below the 200-day MA of 494.25, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 53.57 is Neutral, neither overbought nor oversold. The STOCH value of 67.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMP.

Ameriprise Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMP	79 Outperform	$45.29B	16.34	58.11%	1.24%	9.20%	0.05%
TROW	77 Outperform	$19.86B	10.38	19.47%	5.53%	6.51%	4.52%
BLK	75 Outperform	$141.84B	22.36	14.67%	2.23%	11.48%	4.77%
PFLT	70 Outperform	$885.72M	7.22	12.06%	12.21%	93.63%	24.41%
BEN	67 Neutral	$10.55B	28.98	2.84%	6.28%	7.02%	-60.38%
BX	67 Neutral	$162.57B	41.18	34.07%	3.02%	24.92%	16.65%
Sector *	64 Neutral	$12.51B	9.81	7.92%	16985.69%	12.67%	-5.98%

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.