Ameriprise Financial (AMP) AI Stock Analysis

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Ameriprise Financial

(NYSE:AMP)

Rating:79Outperform

Price Target:―

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

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

Efficiency

Management meeting takeaways indicate that AI is enhancing efficiency at Ameriprise Financial.

Market Strategy

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

Negative Factors

Asset Management

A&WM earnings missed expectations largely due to the impact of Fed Funds rate cuts on bank NII.

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 (AMP) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$48.87B

Dividend Yield1.18%

Average Volume (3M)465.17K

Price to Earnings (P/E)17.4

Beta (1Y)1.23

Revenue Growth9.14%

EPS Growth0.05%

CountryUS

Employees13,600

SectorFinancial

Sector Strength83

IndustryAsset Management

Share Statistics

EPS (TTM)9.50

Shares Outstanding95,222,670

10 Day Avg. Volume478,686

30 Day Avg. Volume465,172

Financial Highlights & Ratios

PEG Ratio-1.47

Price to Book (P/B)8.93

Price to Sales (P/S)0.00

P/FCF Ratio6.98

Enterprise Value/Market Cap0.96

Enterprise Value/Revenue0.69

Enterprise Value/Gross Profit2.68

Enterprise Value/Ebitda3.18

Forecast

1Y Price Target

$524.86

Price Target Upside3.42% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering10

Ameriprise Financial Business Overview & Revenue Model

Company DescriptionAmeriprise 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 MoneyAmeriprise 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 Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q1-2025)

% Change Since: 7.92%|

Next Earnings Date:Jul 23, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a strong performance by Ameriprise Financial, Inc. with significant growth in assets under management and wealth management, as well as strong earnings and return on equity. Notable achievements include technology awards and increased productivity. However, challenges remain in the asset management segment with significant outflows impacting the overall performance. Despite these challenges, the company's strengths and achievements in other areas contribute to a balanced sentiment.

Q1-2025 Updates

Positive Updates

Record Growth in Assets Under Management

Assets under management grew to $1.5 trillion, a 7% increase in client assets to $1 trillion, with strong client flows of $10.3 billion.

Strong Earnings and Return on Equity

Earnings were up 8% with EPS increasing by 13%. The return on equity excluding AOCI remains best in class at 52%.

Significant Growth in Wealth Management

Wrap flows grew 34% to $8.7 billion, representing a 6% annualized flow rate in the quarter. Total wrap assets grew to $573 billion, up 10%.

Technology Innovation and Awards

Ameriprise Financial, Inc. received the February 2025 technology innovation award from the Bank Insurance and Securities Association for an adviser practice tech platform.

Increase in Productivity and Adviser Recruitment

Adviser productivity increased 12% to approximately $1.1 million per adviser, with 82 experienced advisers joining Ameriprise Financial, Inc.

Capital Return to Shareholders

Returned $765 million to shareholders through dividends and share repurchase program, with an 8% increase in dividend and a new $4.5 billion share repurchase authorization.

Negative Updates

Asset Management Outflows

Higher outflows of $18.3 billion in the quarter, with retail outflows at $5.8 billion and institutional outflows of $11.5 billion impacted by a large client repositioning into passive investments.

Challenges in Asset Management Flows

Retail redemptions increased significantly, and institutional outflows were impacted by client repositioning and the exit of the Limestone business.

Company Guidance

During the Q1 2025 earnings call, Ameriprise Financial provided a comprehensive overview of its financial performance and strategic initiatives. The company reported a 5% increase in total revenues and an 8% rise in earnings, with EPS up 13%. Assets under management and administration grew to $1.5 trillion, highlighting strong client engagement and inflows of $10.3 billion. Wealth management saw a 12% increase in productivity per adviser, with assets up 7% to $1 trillion. Notably, wrap assets rose 10% to $573 billion, and transactional activity increased by 6%. The company maintained a robust return on equity ex AOCI at 52%. Ameriprise announced an 8% dividend increase and a new $4.5 billion share repurchase authorization, emphasizing its strong capital position and commitment to returning value to shareholders. In asset management, despite a challenging quarter with $18.3 billion in outflows, margins remained strong at 43%. The company outlined its plans to launch new products like Signature Wealth and enhance its adviser platforms to sustain growth and navigate market volatility effectively.

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

Very Positive

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

Very Positive

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

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
17.47B	17.26B	15.54B	14.26B	13.38B	11.90B
	Gross Profit
17.47B	17.26B	15.54B	14.26B	13.38B	11.90B
	EBIT
3.73B	4.27B	3.23B	3.93B	4.18B	1.83B
	EBITDA
3.67B	4.11B	3.08B	3.89B	4.28B	2.04B
	Net Income Common Stockholders
2.99B	3.40B	2.56B	3.15B	3.42B	1.53B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	60.67B	7.56B	7.10B	7.25B	43.13B
	Total Assets
179.06B	181.40B	175.19B	158.47B	175.98B	165.88B
	Total Debt
3.78B	5.47B	5.75B	5.38B	5.20B	4.94B
	Net Debt
-4.02B	-3.05B	-1.81B	-1.71B	-2.05B	-1.90B
	Total Liabilities
173.63B	176.18B	170.46B	154.85B	170.29B	160.02B
	Stockholders Equity
5.43B	5.23B	4.73B	3.61B	5.68B	5.87B
Cash Flow		Free Cash Flow
6.68B	6.42B	4.50B	4.22B	3.21B	4.48B
	Operating Cash Flow
6.84B	6.59B	4.68B	4.41B	3.33B	4.62B
	Investing Cash Flow
-1.72B	-551.00M	-9.26B	-13.58B	-4.38B	-2.89B
	Financing Cash Flow
-4.22B	-5.17B	4.41B	8.43B	1.72B	952.00M

Ameriprise Financial Technical Analysis

Technical Analysis Sentiment

Positive

Last Price507.52

Price Trends

50DMA

485.76

Positive

100DMA

504.98

Positive

200DMA

503.79

Positive

Market Momentum

MACD

6.74

Positive

RSI

53.64

Neutral

STOCH

53.73

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 507.52 is below the 20-day moving average (MA) of 510.26, above the 50-day MA of 485.76, and above the 200-day MA of 503.79, indicating a neutral trend. The MACD of 6.74 indicates Positive momentum. The RSI at 53.64 is Neutral, neither overbought nor oversold. The STOCH value of 53.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMP.

Ameriprise Financial Risk Analysis

Ameriprise Financial disclosed 30 risk factors in its most recent earnings report. Ameriprise Financial reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Ameriprise Financial Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMP	79 Outperform	$48.87B	17.44	58.11%	1.18%	9.14%	0.05%
BLK	78 Outperform	$151.53B	23.76	14.37%	2.09%	11.73%	4.76%
TROW	78 Outperform	$20.30B	10.46	19.47%	5.33%	6.51%	4.52%
PFLT	70 Outperform	$1.00B	11.26	7.59%	12.05%	93.63%	24.41%
BEN	67 Neutral	$11.24B	30.96	2.84%	5.89%	7.02%	-60.38%
BX	67 Neutral	$168.41B	41.99	34.07%	2.91%	22.06%	16.57%
Sector *	64 Neutral	$12.80B	9.71	7.59%	16985.66%	12.07%	-7.53%

* Financial Sector Average

Performance Comparison

AMP

Ameriprise Financial

507.52

87.36

20.79%

BLK

BlackRock

988.97

228.03

29.97%

BEN

Franklin Resources

21.36

-0.48

-2.20%

PFLT

Pennantpark $

10.24

0.07

0.69%

TROW

T Rowe Price

93.79

-17.13

-15.44%

Blackstone Group

138.76

22.70

19.56%

Ameriprise Financial Corporate Events

Executive/Board Changes

Ameriprise Financial Appoints Glynis Bryan as Director

Positive

Feb 20, 2025

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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.