Ameriprise Financial (AMP) AI Stock Analysis

• Market Cap: $48.53B
• Dividend Yield: 1.2%
• Average Volume (3M): 416.48K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.23
• Revenue Growth: 7.11%
• EPS Growth: 9.89%
• Country: US
• Employees: 13,600
• Sector: Financial
• Sector Strength: 78
• Industry: Asset Management
• EPS (TTM): 9.11
• Shares Outstanding: 94,271,570
• 10 Day Avg. Volume: 375,746
• 30 Day Avg. Volume: 416,484
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: -91.06
• Enterprise Value/Gross Profit: -57.29
• Enterprise Value/Ebitda: 11.89
• 1Y Price Target: $552.14
• Price Target Upside: 7.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 66 Neutral
• Price Target: $558.00 ▲(8.39% Upside)

Ameriprise Financial's overall stock score is driven by strong earnings call performance and reasonable valuation. While financial performance shows some challenges, particularly in profitability, the company's robust cash flow and strategic focus on growth and efficiency provide a positive outlook. Technical indicators suggest a neutral market position.

Positive Factors

Earnings and Financial Performance

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

Liquidity and M&A Potential

AMP has ample sources of liquidity, with $2.3B in excess capital of its key regulatory targets which it can deploy towards share repurchases or M&A.

Recruitment and Growth Strategy

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

Negative Factors

Earnings Growth Prospects

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

General and Administrative Expenses

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

Interest Rate 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. (AMP) is a leading financial services company based in the United States, specializing in financial planning, asset management, and insurance solutions. It operates primarily through two segments: Advice & Wealth Management and Asset Management. The company offers a wide range of products and services, including personalized financial advice, investment management, retirement planning, and insurance products, catering to individual and institutional clients.

How the Company Makes Money

Ameriprise Financial generates revenue through several key streams, primarily from fees and commissions associated with its financial advisory services and asset management. The Advice & Wealth Management segment earns revenue from advisory fees based on the assets managed for clients, as well as commissions from the sale of investment products and insurance. The Asset Management segment derives income from management fees charged on the assets in its mutual funds and institutional accounts. Additionally, Ameriprise has strategic partnerships and alliances that enhance its distribution capabilities and expand its client base, contributing to its overall earnings. The company also benefits from its investment in technology and digital platforms, which streamline operations and improve client engagement, further driving revenue growth.

Ameriprise Financial Financial Statement Overview

Summary

Ameriprise Financial faces challenges in its income statement with negative revenue and margins, impacting overall profitability. However, the balance sheet is stable with manageable leverage, and strong cash flow performance provides a positive outlook, suggesting good liquidity and operational efficiency.

Income Statement

The income statement shows negative revenue and margins, indicating significant challenges in profitability. The company has experienced declining revenue growth, with a negative trend in the TTM period. Despite a positive EBIT and EBITDA, the margins are negative, highlighting inefficiencies or high costs relative to revenue.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, suggesting manageable leverage. However, the return on equity has decreased over time, indicating declining efficiency in generating returns from equity. The equity ratio is stable, showing a balanced asset structure.

Cash Flow

The cash flow statement is strong, with positive free cash flow growth and high operating cash flow to net income ratio. This indicates good cash generation capability, which is a positive sign for liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	-553.00M	-662.00M	-561.00M	-76.00M	-12.00M	11.90B
Gross Profit	-879.00M	-991.00M	-885.00M	-274.00M	-203.00M	11.90B
EBITDA	4.24B	4.44B	3.40B	4.09B	4.47B	2.20B
Net Income	3.23B	3.40B	2.56B	3.15B	3.42B	1.53B
Balance Sheet
Total Assets	184.90B	181.40B	175.19B	158.85B	175.91B	165.88B
Cash, Cash Equivalents and Short-Term Investments	46.38B	60.67B	59.13B	47.91B	39.30B	43.13B
Total Debt	6.01B	5.47B	5.75B	5.38B	5.20B	4.94B
Total Liabilities	178.82B	176.18B	170.46B	155.05B	169.97B	160.02B
Stockholders Equity	6.08B	5.23B	4.73B	3.80B	5.94B	5.87B
Cash Flow
Free Cash Flow	6.70B	6.42B	4.50B	4.22B	3.21B	4.48B
Operating Cash Flow	6.88B	6.59B	4.68B	4.41B	3.33B	4.62B
Investing Cash Flow	-1.09B	-551.00M	-9.26B	-13.58B	-4.38B	-2.89B
Financing Cash Flow	-5.06B	-5.17B	4.41B	8.43B	1.72B	952.00M

Ameriprise Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 514.81
• 50DMA: Negative
• 100DMA: Positive
• 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 514.81 is above the 20-day moving average (MA) of 509.52, below the 50-day MA of 520.25, and below the 200-day MA of 516.49, indicating a neutral trend. The MACD of -0.58 indicates Negative momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 78.01 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
BK	79 Outperform	$74.47B	16.13	11.75%	1.84%	7.41%	51.70%
CG	76 Outperform	$23.35B	18.83	23.07%	2.17%	101.10%	―
NTRS	73 Outperform	$25.11B	15.43	13.47%	2.29%	3.44%	16.76%
STT	71 Outperform	$32.62B	12.88	10.94%	2.64%	11.66%	67.88%
BX	70 Outperform	$210.51B	46.27	37.72%	2.51%	23.08%	41.35%
Sector *	68 Neutral	$17.95B	11.54	10.27%	3.74%	9.64%	1.17%
AMP	66 Neutral	$48.53B	16.02	58.24%	1.20%	7.11%	9.89%

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.