Ameriprise Financial (AMP) AI Stock Analysis

• Market Cap: $46.37B
• Dividend Yield: 1.25%
• Average Volume (3M): 492.58K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 1.23
• Revenue Growth: 7.11%
• EPS Growth: 9.89%
• Country: US
• Employees: 13,600
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 9.11
• Shares Outstanding: 94,271,570
• 10 Day Avg. Volume: 616,671
• 30 Day Avg. Volume: 492,576
• PEG Ratio: 0.40
• Price to Book (P/B): 10.29
• Price to Sales (P/S): -81.23
• P/FCF Ratio: 8.38
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 2.86
• Enterprise Value/Ebitda: 11.89
• 1Y Price Target: $552.14
• Price Target Upside: 12.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 66 Neutral
• Price Target: $558.00 ▲(13.44% Upside)

Ameriprise Financial's overall stock score of 66 reflects a mixed financial performance with strong cash flow but challenges in profitability. The positive sentiment from the earnings call, highlighting record assets under management and revenue growth, significantly boosts the score. However, neutral technical indicators and reasonable valuation suggest a balanced outlook, with no strong momentum in either direction.

Positive Factors

Assets Under Management

The record high in assets under management indicates strong client trust and effective asset growth strategies, which can drive future revenue through management fees.

Wealth Management Growth

The growth in client assets and wrap assets highlights the company's successful wealth management strategies, which enhance its competitive position and revenue potential.

Cash Flow Strength

Strong cash flow indicates good liquidity and operational efficiency, providing the company with flexibility to invest in growth opportunities and return capital to shareholders.

Negative Factors

Net Outflows in Asset Management

Significant outflows in asset management can impact fee-based revenue and indicate challenges in retaining institutional clients, affecting long-term growth prospects.

Declining Revenue Growth

Negative revenue growth and margins suggest inefficiencies or high costs, which can hinder profitability and limit the company's ability to invest in future growth.

Impact of Market Volatility

Market volatility affecting wealth management flows can lead to unpredictable revenue streams, challenging the company's ability to maintain consistent growth and client engagement.

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 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. The balance sheet is stable with manageable leverage, but declining return on equity is a concern. Strong cash flow performance provides a positive outlook, suggesting good liquidity and operational efficiency, which can help mitigate income statement weaknesses.

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	17.63B	17.26B	15.54B	14.26B	13.38B	11.90B
Gross Profit	17.63B	17.26B	15.54B	14.26B	13.38B	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: Negative
• Last Price: 491.89
• 50DMA: Negative
• 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 Negative. The current price of 491.89 is below the 20-day moving average (MA) of 498.40, below the 50-day MA of 508.42, and below the 200-day MA of 510.91, indicating a bearish trend. The MACD of -5.25 indicates Negative momentum. The RSI at 43.18 is Neutral, neither overbought nor oversold. The STOCH value of 57.70 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
BK	79 Outperform	76.24B	16.60	10.96%	1.79%	7.41%	51.70%
BX	76 Outperform	218.71B	49.91	34.29%	2.39%	23.08%	41.35%
CG	76 Outperform	23.15B	19.60	18.20%	2.19%	101.10%	―
STT	73 Outperform	32.05B	12.66	10.44%	2.69%	11.66%	67.88%
NTRS	71 Outperform	24.77B	15.34	13.47%	2.36%	3.44%	16.76%
AMP	66 Neutral	$46.37B	15.37	58.24%	1.25%	7.11%	9.89%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.