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Ameriprise Financial Inc AMP

Morningstar Rating
$421.56 −7.49 (1.75%)
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Company Report

Ameriprise: Increasing Our Fair Value Estimate to $450; We Expect Continued Growth in 2024

Ameriprise Financial has transformed itself into an investment management powerhouse, with about $1.4 trillion in total assets under management and advisement and around 10,000 financial advisors at the end of 2023. The firm gradually shifted away from insurance and emphasized asset and wealth management operations more. Columbia Threadneedle Investments, the firm's global asset-management business, turned Ameriprise into a contender in the global asset-management industry with around $600 billion of assets under management, or AUM. About 80% of revenue comes from the company's wealth and asset management segments which should help the company generate operating margins consistently in the mid-20s compared with midteens to low-20s historically.

Price vs Fair Value

AMP is trading at a 476% premium.
Price
$421.56
Fair Value
$856.00
Uncertainty
High
1-Star Price
$625.60
5-Star Price
$121.00
Economic Moat
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Capital Allocation
Klpsyjng

Bulls Say, Bears Say

Bulls

Ameriprise is building a well-scaled asset manager with its previous acquisition of Columbia Asset Management doubling the business and BMO’s EMEA business increasing it another 20% and further expanding its footprint globally.

Bears

The company’s diversification across wealth management, asset management, and insurance muddies the company’s financials, and investors might discount the company’s valuation because of this.

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News

Trading Information

Previous Close Price
$429.05
Day Range
$419.88429.91
52-Week Range
$306.63449.94
Bid/Ask
$402.05 / $497.22
Market Cap
$41.87 Bil
Volume/Avg
1.1 Mil / 475,838

Key Statistics

Price/Earnings (Normalized)
13.80
Price/Sales
2.82
Dividend Yield (Trailing)
1.31%
Dividend Yield (Forward)
1.40%
Total Yield
6.42%

Company Profile

Ameriprise Financial is a major player in the us market for asset and wealth management, with around $1.4 trillion in total assets under management and administration at the end of 2023. With about 10,000 advisors, Ameriprise has one of the largest branded advisor networks in the industry. About 80% of the company's revenue comes from its asset and wealth management segments. Ameriprise has reduced its exposure to insurance with the sale of its auto and home insurance business in 2019 and the exit of the sale of its proprietary fixed annuities in 2020.
Sector
Financial Services
Industry
Asset Management
Stock Style Box
Mid Core
Total Number of Employees
13,800

Competitors

Valuation

Metric
AMP
SF
RJF
Price/Earnings (Normalized)
13.8017.6213.04
Price/Book Value
8.611.892.16
Price/Sales
2.822.182.03
Price/Cash Flow
12.7712.0511.28
Price/Earnings
AMP
SF
RJF

Financial Strength

Metric
AMP
SF
RJF
Quick Ratio
Current Ratio
Interest Coverage
12.85
Quick Ratio
No chart available

Profitability

Metric
AMP
SF
RJF
Return on Assets (Normalized)
1.90%1.41%2.35%
Return on Equity (Normalized)
75.03%11.57%18.10%
Return on Invested Capital (Normalized)
7.60%
Return on Assets
AMP
SF
RJF
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