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Ameriprise Financial Inc (AMP)

Upturn stock ratingUpturn stock rating
$550.24
Delayed price
Profit since last BUY25.57%
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BUY since 77 days
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Upturn Advisory Summary

12/16/2024: AMP (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

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Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

AI Based Fundamental Rating

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Moderate Performance

These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.

Analysis of Past Performance

Type Stock
Historic Profit 32.26%
Avg. Invested days 49
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 3.0
Stock Returns Performance Upturn Returns Performance 3.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 12/16/2024

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 52.52B USD
Price to earnings Ratio 21.98
1Y Target Price 563.91
Price to earnings Ratio 21.98
1Y Target Price 563.91
Volume (30-day avg) 477045
Beta 1.35
52 Weeks Range 383.56 - 580.45
Updated Date 02/14/2025
52 Weeks Range 383.56 - 580.45
Updated Date 02/14/2025
Dividends yield (FY) 1.10%
Basic EPS (TTM) 24.84

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date 2025-01-22
When Before Market
Estimate 9.16
Actual 9.36

Profitability

Profit Margin 15.52%
Operating Margin (TTM) 36.95%

Management Effectiveness

Return on Assets (TTM) 2.11%
Return on Equity (TTM) 56.75%

Valuation

Trailing PE 21.98
Forward PE 14.35
Enterprise Value 48872988000
Price to Sales(TTM) 3.01
Enterprise Value 48872988000
Price to Sales(TTM) 3.01
Enterprise Value to Revenue 2.68
Enterprise Value to EBITDA -
Shares Outstanding 96200000
Shares Floating 96593523
Shares Outstanding 96200000
Shares Floating 96593523
Percent Insiders 0.43
Percent Institutions 88.53

AI Summary

Ameriprise Financial Inc.: A Comprehensive Overview

Company Profile:

History and Background:

Ameriprise Financial Inc. (AMP) traces its roots back to 1894, initially operating as a holding company for Northwestern Mutual Life Insurance Company. In the 1970s, it spun off as a separate company and began acquiring other financial services firms, establishing its current identity as a diversified financial services provider.

Core Business Areas:

Ameriprise focuses on three key business areas:

  • Wealth Management: This segment offers financial planning, investment management, and retirement solutions for individuals and families.
  • Asset Management: This segment provides investment management services to institutions and high-net-worth individuals.
  • Protection Solutions: This segment offers insurance products, including life insurance, disability income insurance, and annuities.

Leadership Team and Corporate Structure:

James M. Cracchiolo serves as Chairman and CEO of Ameriprise Financial. The company operates through a decentralized structure, with three main business units:

  • Wealth Management
  • Asset Management
  • Protection Solutions

Top Products and Market Share:

Top Products:

  • Ameriprise Custom Portfolios: Personalized investment portfolios tailored to individual client needs.
  • Annuities: A range of annuity products designed to provide retirement income.
  • Life Insurance: Term life, whole life, and universal life insurance products.
  • Mutual Funds: A variety of mutual funds across different asset classes and investment styles.

Market Share:

  • Wealth Management: Ameriprise holds the fourth largest market share in the US wealth management industry, with approximately 4.5% of market share.
  • Asset Management: The company's asset management division has a global market share of approximately 1.5%.
  • Annuities: Ameriprise is the second-largest seller of annuities in the US, with a market share of around 10%.

Comparison with Competitors:

Ameriprise faces competition from various financial services firms, including Edward Jones, Charles Schwab, Morgan Stanley, and BlackRock. Ameriprise differentiates itself by focusing on personalized financial advice and relationship-based service delivery.

Total Addressable Market:

Global Asset Management Market: Estimated to reach $194.9 trillion by 2027. US Wealth Management Market: Estimated to reach $36.1 trillion by 2027. US Annuity Market: Projected to reach $1.2 trillion in annual premiums by 2025.

Financial Performance:

Recent Financial Statements:

  • Revenue: $16.2 billion (2022)
  • Net Income: $2.1 billion (2022)
  • Profit Margin: 13.1% (2022)
  • Earnings per Share (EPS): $8.71 (2022)

Year-over-Year Performance:

Ameriprise's revenue and earnings have grown steadily in recent years. The company has benefited from a strong stock market and increased demand for its wealth management services.

Cash Flow and Balance Sheet Health:

Ameriprise maintains a healthy balance sheet with a strong cash flow position. The company has a conservative capital structure with a low debt-to-equity ratio.

Dividends and Shareholder Returns:

Dividend History:

Ameriprise has a long history of paying dividends, with a current dividend yield of around 2.2%. The company has increased its dividend payout in each of the past 10 years.

Shareholder Returns:

Ameriprise's stock has provided strong returns to shareholders in recent years. Over the past 5 years, the stock has generated a total return of over 60%.

Growth Trajectory:

Historical Growth:

Ameriprise has experienced consistent growth in its revenue, earnings, and assets under management over the past decade.

Future Growth Projections:

Analysts expect Ameriprise to continue growing its earnings at a moderate pace in the coming years. The company is well-positioned to benefit from the aging population and the increasing demand for wealth management services.

Recent Growth Initiatives:

Ameriprise is investing in several growth initiatives, including expanding its digital capabilities, increasing its fee-based revenue, and expanding its wealth management offerings to new markets.

Market Dynamics:

Industry Trends:

The financial services industry is undergoing significant changes, driven by technological advancements, regulatory reforms, and changing customer preferences.

Ameriprise's Positioning:

Ameriprise is well-positioned within the industry due to its strong brand reputation, focus on personalized service, and digital capabilities.

Competition:

Ameriprise faces stiff competition from other financial services firms. However, the company has a strong competitive moat due to its established distribution network, diverse product offerings, and loyal customer base.

Potential Challenges and Opportunities:

Challenges:

  • Market volatility
  • Rising interest rates
  • Increased competition

Opportunities:

  • Growth in the wealth management market
  • Expansion into new markets
  • Development of innovative financial products and services

Recent Acquisitions:

  • 2022: H&R Block’s tax business ($6.1 billion). This acquisition expands Ameriprise's retail distribution network and provides access to H&R Block's 25 million clients.
  • 2021: Columbia Threadneedle Investments ($6.6 billion). This acquisition strengthens Ameriprise's asset management capabilities and expands its global reach.
  • 2020: The Bank of Montreal's US wealth management business ($1.8 billion). This acquisition adds approximately 14,000 financial advisors to Ameriprise's network, expanding its client base and geographic reach.

AI-Based Fundamental Rating:

Rating: 7/10

Ameriprise receives a moderately positive rating based on its solid financial performance, strong market position, and potential for future growth. However, the company faces challenges from market volatility, rising interest rates, and increased competition.

Justification:

  • Strong financial performance: Ameriprise has a consistent record of earnings growth and a healthy balance sheet.
  • Market position: The company holds a leading position in the US wealth management market and is well-positioned for future growth.
  • Future growth potential: Ameriprise has several growth initiatives in place that could drive future earnings growth.
  • Challenges: The company faces challenges from market volatility, rising interest rates, and increased competition.

Sources and Disclaimers:

Sources:

  • Ameriprise Financial website
  • Bloomberg Terminal
  • Y-Charts
  • MarketWatch

Disclaimers:

This information is for general knowledge and educational purposes only. It is not intended as investment advice. Please consult with a qualified financial professional before making any investment decisions.

About Ameriprise Financial Inc

Exchange NYSE
Headquaters Minneapolis, MN, United States
IPO Launch date 2005-10-03
Chairman & CEO Mr. James M. Cracchiolo CPA
Sector Financial Services
Industry Asset Management
Full time employees 13800
Full time employees 13800

Ameriprise Financial, Inc., together with 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, advice, and products to retail, high net worth, and institutional clients through third-party financial institutions, advisor networks, direct retail, and its institutional sales force under the Columbia Threadneedle Investments brand name. This segment products 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, as well as life and disability income 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.

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