Ameriprise Financial (AMP) AI Stock Analysis

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Ameriprise Financial

(NYSE:AMP)

Rating:80Outperform

Price Target:

$590.00

▲(11.73%Upside)

Ameriprise Financial scores strongly due to robust financial performance, particularly in revenue growth and profitability. Positive earnings call sentiment emphasizes strategic growth initiatives and shareholder value. Technical indicators show moderate bullish potential. Valuation is reasonable, though not a standout.

Positive Factors

Business Transformation

AMP is transforming its business from its roots as an insurance company with a wealth manager inside of a larger financial services firm into a pure asset & wealth manager.

Earnings Estimate

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

Stock Price Target

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

Negative Factors

Adjusted Earnings

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

AUM Net Flows

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

Earnings Performance

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

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

Market Cap

$50.28B

Dividend Yield1.21%

Average Volume (3M)473.52K

Price to Earnings (P/E)17.9

Beta (1Y)1.23

Revenue Growth9.14%

EPS Growth0.05%

CountryUS

Employees13,600

SectorFinancial

Sector Strength78

IndustryAsset Management

Share Statistics

EPS (TTM)9.50

Shares Outstanding95,222,670

10 Day Avg. Volume527,667

30 Day Avg. Volume473,518

Financial Highlights & Ratios

PEG Ratio-1.52

Price to Book (P/B)9.26

Price to Sales (P/S)0.00

P/FCF Ratio7.28

Enterprise Value/Market Cap1.04

Enterprise Value/Revenue0.77

Enterprise Value/Gross Profit3.00

Enterprise Value/Ebitda3.56

Forecast

1Y Price Target

$524.86

Price Target Upside-0.61% Downside

Rating ConsensusModerate Buy

Number of Analyst Covering10

Ameriprise Financial Business Overview & Revenue Model

Company DescriptionAmeriprise Financial, Inc. is a diversified financial services company headquartered in Minneapolis, Minnesota. It operates in sectors including wealth management, asset management, and insurance services. The company provides a wide range of financial products and services to individual and institutional clients, including financial planning, investment advice, and insurance products. Ameriprise Financial is known for its comprehensive advisory services, which aim to help clients achieve their financial goals through personalized strategies.

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 Key Performance Indicators (KPIs)

Any

Advice and Wealth Management Client Assets

Chart InsightsAmeriprise Financial's client assets in Advice and Wealth Management have shown a robust recovery and growth trajectory, surpassing the $1 trillion mark by the end of 2024. This aligns with the company's strategic focus on enhancing adviser productivity and client engagement, as highlighted in their earnings call. Despite challenges in asset management outflows, the wealth management segment remains strong, supported by increased adviser recruitment and technological innovations. The company's commitment to shareholder returns through dividends and share repurchases further underscores its solid financial position.

Data provided by:

Main Street Data

Ameriprise Financial Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q1-2025)

% Change Since: 12.29%|

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 demonstrates robust financial health with strong revenue growth, improved profitability metrics, and a solid balance sheet. The company effectively manages debt, resulting in a high equity ratio. However, the decline in free cash flow highlights the 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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	3.67B	4.11B	3.08B	3.89B	4.28B	2.04B
Net Income	2.99B	3.40B	2.56B	3.15B	3.42B	1.53B
Balance Sheet
Total Assets	179.06B	181.40B	175.19B	158.47B	175.98B	165.88B
Cash, Cash Equivalents and Short-Term Investments	0.00	60.67B	7.56B	7.10B	7.25B	43.13B
Total Debt	3.78B	5.47B	5.75B	5.38B	5.20B	4.94B
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 Price528.07

Price Trends

50DMA

500.33

Positive

100DMA

500.20

Positive

200DMA

510.29

Positive

Market Momentum

MACD

5.41

Negative

RSI

63.42

Neutral

STOCH

86.84

Negative

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 528.07 is above the 20-day moving average (MA) of 514.45, above the 50-day MA of 500.33, and above the 200-day MA of 510.29, indicating a bullish trend. The MACD of 5.41 indicates Negative momentum. The RSI at 63.42 is Neutral, neither overbought nor oversold. The STOCH value of 86.84 is Negative, 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 (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TROW	81 Outperform	$21.17B	10.91	19.47%	5.29%	6.51%	4.52%
AMP	80 Outperform	$50.28B	17.94	58.11%	1.21%	9.14%	0.05%
BLK	78 Outperform	$162.33B	25.45	14.37%	1.99%	11.73%	4.76%
BX	71 Outperform	$183.33B	45.71	34.07%	2.46%	22.06%	16.57%
BEN	70 Outperform	$12.52B	34.50	2.84%	5.37%	7.02%	-60.38%
PFLT	70 Outperform	$1.02B	11.42	7.59%	12.00%	93.63%	24.41%
Sector *	67 Neutral	$16.66B	11.44	9.71%	3.91%	11.61%	-10.70%

* Financial Sector Average

Performance Comparison

AMP

Ameriprise Financial

528.07

107.34

25.51%

BLK

BlackRock

1,047.82

282.24

36.87%

BEN

Franklin Resources

23.82

3.00

14.41%

PFLT

Pennantpark $

10.25

-0.04

-0.39%

TROW

T Rowe Price

96.10

-12.24

-11.30%

Blackstone Group

151.11

32.07

26.94%

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

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 17, 2025