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Ameriprise Financial Inc. (AMP) Stock

Ameriprise Financial Inc. Stock Details, Movements and Public Alerts

Ameriprise Financial Inc. (AMP): The $45 Billion Wealth Management Powerhouse Thriving in Advisor-Led Growth

When James M. Cracchiolo took the CEO role at Ameriprise Financial in 2005, the company was still tied to its American Express heritage, offering everything from insurance to banking. Twenty years later, Cracchiolo has orchestrated a masterful transformation: Ameriprise now manages $1.4 trillion in client assets through 10,000+ financial advisors, operates the prestigious Columbia Threadneedle Investments platform with $650 billion AUM, and delivers industry-leading profit margins exceeding 20%. With a forward P/E of just 12.18—well below peers like Morgan Stanley (15x) and Raymond James (17x)—Ameriprise offers value investors a rare entry point into a premium wealth management franchise experiencing secular tailwinds from aging demographics and fee-based advisory growth.

52-Week Range

$576.69 - $393.57

-20.73% from high · +16.15% from low

Avg Daily Volume

676,730

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

15.55

Near market average

Forward P/E

12.18

Earnings expected to grow

PEG Ratio

1.76

Reasonably valued

Price to Book

7.74

EPS (TTM)

$32.12

Price to Sales

2.59

Beta

1.27

Similar volatility to market

How is AMP valued relative to its earnings and growth?
Ameriprise Financial Inc. trades at a P/E ratio of 15.55, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 12.18 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.76 indicates reasonable value when growth is considered.
What is AMP's risk profile compared to the market?
With a beta of 1.27, Ameriprise Financial Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 7.74 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

17.70%

Operating Margin

36.30%

EBITDA

$4.27B

Return on Equity

58.20%

Return on Assets

2.20%

Revenue Growth (YoY)

2.20%

Earnings Growth (YoY)

33.80%

How profitable and efficient is AMP's business model?
Ameriprise Financial Inc. achieves a profit margin of 17.70%, meaning it retains $17.70 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 36.30% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 58.20% and ROA at 2.20%, the company generates strong returns on invested capital.
What are AMP's recent growth trends?
Ameriprise Financial Inc.'s revenue grew by 2.20% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 33.80% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against ASSET MANAGEMENT industry averages for proper context.

Dividend Information

Dividend Per Share

$6.04

Dividend Yield

1.21%

Ex-Dividend Date

Aug 4, 2025

Dividend Date

Aug 18, 2025

What dividend income can investors expect from AMP?
Ameriprise Financial Inc. offers a dividend yield of 1.21%, paying $6.04 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Aug 4, 2025.
How reliable is AMP's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Ameriprise Financial Inc. pays $6.04 per share in dividends against earnings of $32.12 per share, resulting in a payout ratio of 18.80%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Aug 18, 2025.

Company Size & Market

Market Cap

$47.1B

Revenue (TTM)

$18.18B

Revenue/Share (TTM)

$183.91

Shares Outstanding

94.27M

Book Value/Share

$64.42

Asset Type

Common Stock

What is AMP's market capitalization and position?
Ameriprise Financial Inc. has a market capitalization of $47.1B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 94.27M shares outstanding, the company's ownership is relatively concentrated. As a participant in the ASSET MANAGEMENT industry, it competes with other firms in this sector.
How does AMP's price compare to its book value?
Ameriprise Financial Inc.'s book value per share is $64.42, while the current stock price is $457.12, resulting in a price-to-book (P/B) ratio of 7.10. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$558.90

22.27% upside potential

Analyst Recommendations

Strong Buy

1

Buy

4

Hold

6

Sell

1

Strong Sell

1

How reliable are analyst predictions for AMP?
13 analysts cover AMP with 38% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $558.90 implies 22.3% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on AMP?
Current analyst recommendations:1 Strong Buy, 4 Buy, 6 Hold, 1 Sell, 1 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Oct 1, 2025, 05:18 AM

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Ameriprise Financial Inc. (AMP) Stock Analysis 2025: Complete Investment Guide

From Conglomerate to Wealth Management Pure Play

Ameriprise Financial spun off from American Express in 2005, inheriting a sprawling business spanning insurance, banking, and advisory services. James Cracchiolo immediately began reshaping the company, divesting non-core assets and doubling down on wealth management and asset management. By 2025, this strategy has delivered spectacular results: Ameriprise now manages $1.4 trillion in client assets, operates one of the industry's largest advisor networks, and generates returns on equity exceeding 40%—nearly double the industry average.

The company's recent acquisition strategy reinforces its premium positioning. In 2021, Ameriprise acquired BMO's EMEA asset management business for $1 billion, adding scale to Columbia Threadneedle Investments and expanding European institutional relationships. Meanwhile, organic growth continues to accelerate: net client flows turned positive in 2023 after years of advisor attrition, driven by investments in digital tools, enhanced compensation, and Cracchiolo's relentless focus on advisor productivity. For investors, Ameriprise represents a disciplined compounder hidden in plain sight, trading at a discount to flashier fintech competitors.

Business Model & Competitive Moat

Ameriprise operates two complementary businesses. The Advice & Wealth Services segment ($1 trillion AUM) employs 10,000+ financial advisors delivering holistic planning through proprietary technology platforms. Unlike wirehouses (Morgan Stanley, Merrill Lynch), Ameriprise advisors are predominantly affiliated employees, creating stable relationships and recurring revenue. The Asset Management segment anchors around Columbia Threadneedle Investments ($650 billion AUM), offering actively managed mutual funds, ETFs, and institutional strategies across equities, fixed income, and alternatives.

Ameriprise's moat rests on three pillars: a captive advisor network with 95%+ client retention rates that compound over decades; proprietary planning software (Ameriprise Confident Retirement®) that deepens client relationships; and diversified revenue streams (60% advisory fees, 25% asset management fees, 15% other) that insulate against market volatility. Cracchiolo's relentless focus on advisor productivity—measured by assets per advisor, which have doubled to $140 million since 2010—creates operating leverage that few competitors can match.

Financial Performance

Ameriprise delivered $15.6 billion in revenue in 2024, with adjusted operating earnings exceeding $3.2 billion. The company's financial profile stands out: operating margins over 20% (vs. 15-18% for peers), ROE above 40%, and free cash flow conversion near 100%. These metrics reflect Ameriprise's shift toward fee-based revenue, which now represents 85% of total income.

  • •Revenue Growth: 6-8% annually, driven by net client asset flows, market appreciation, and advisor recruitment
  • •Operating Margins: 20-22%, reflecting high-margin advisory fees and operational efficiency gains
  • •Return on Equity: 40%+, among the highest in financial services due to capital-light business model
  • •Free Cash Flow: $3B+ annually, supporting $1.5B in dividends and $1B+ in share buybacks
  • •Debt Levels: Conservative leverage at 25% debt-to-capital, maintaining financial flexibility

Growth Catalysts

  • •Baby Boomer Wealth Transfer: $84 trillion transferring to heirs over next 20 years creates massive advisory demand, favoring Ameriprise's holistic planning model.
  • •Advisor Productivity Gains: Digital tools and AI-powered financial planning increase assets per advisor from $140M to $180M+ target, driving margin expansion.
  • •Columbia Threadneedle Expansion: Active management renaissance and institutional mandate wins position AUM to grow 8-10% annually.
  • •Fee-Based Conversion: Shift from commission-based to fee-based accounts increases recurring revenue predictability and client lifetime value.
  • •Share Buybacks: Aggressive repurchases (40% reduction since 2013) create consistent EPS growth even with modest revenue gains.

Risks & Challenges

  • •Market Sensitivity: 60% of revenue tied to equity markets; a prolonged bear market would compress asset values and fees despite recurring nature.
  • •Advisor Attrition: Recruiting and retaining advisors is expensive and competitive, with wirehouses and RIAs aggressively poaching top producers.
  • •Regulatory Pressure: DOL fiduciary rule changes and SEC oversight of fee structures could increase compliance costs or limit pricing flexibility.
  • •Passive Investing Shift: Continued ETF growth pressures Columbia Threadneedle's active management fees, which carry higher margins but face outflow risks.
  • •Technology Disruption: Robo-advisors and low-cost digital platforms (Vanguard Personal Advisor, Schwab Intelligent Portfolios) threaten lower-end client segments.

Competitive Landscape

Ameriprise competes across multiple fronts. In wealth management, rivals include wirehouses (Morgan Stanley Wealth Management, Merrill Lynch), independent broker-dealers (LPL Financial, Raymond James), and RIA aggregators (Focus Financial, CI Financial). In asset management, Columbia Threadneedle faces giants like BlackRock, Vanguard, and Fidelity, plus active managers like T. Rowe Price and Franklin Templeton.

Ameriprise differentiates through its integrated model: advisors access proprietary Columbia Threadneedle products, creating cross-selling synergies competitors lack. While Morgan Stanley and Merrill dominate ultra-high-net-worth (UHNW) clients, Ameriprise excels in the mass affluent segment ($500K-$5M investable assets), where personalized planning commands premium fees without the overhead costs of UHNW servicing. Cracchiolo's 20-year tenure provides strategic continuity that peers like UBS and Wells Fargo—plagued by leadership turnover—cannot match.

Who Is This Stock Suitable For?

Perfect For

  • ✓Value investors seeking financial services exposure at below-market multiples (12.18x forward P/E)
  • ✓Income-focused investors wanting 1.2% yield with 10%+ annual dividend growth
  • ✓Long-term investors (5+ years) betting on wealth transfer and advisor-led growth
  • ✓Quality-focused investors prioritizing 40%+ ROE and consistent capital returns
  • ✓Retirees seeking defensive exposure to secular wealth management trends

Less Suitable For

  • ✗Growth investors seeking explosive near-term returns (steady 6-8% revenue growth)
  • ✗ESG-focused investors (limited sustainability initiatives vs. peers)
  • ✗Short-term traders (stock lacks volatility, tends to grind higher steadily)
  • ✗Tech enthusiasts preferring fintech disruptors over traditional advisory models

Investment Thesis

Ameriprise Financial offers a compelling value proposition: a market-leading wealth management franchise trading at a 20% discount to peers despite superior profitability metrics. The forward P/E of 12.18 reflects investor skepticism about advisor attrition and passive investing headwinds, yet these concerns are overblown. James Cracchiolo's systematic investments in advisor tools, digital capabilities, and compensation have reversed advisor headcount declines, while Columbia Threadneedle's active management focus positions it for a renaissance as investors rediscover stock-picking in a volatile macro environment.

The secular tailwinds are undeniable: $84 trillion in wealth transfers, growing demand for holistic financial planning, and fee-based revenue models that compound over decades. Ameriprise's capital allocation discipline—40% share count reduction since 2013—creates a built-in earnings growth engine even if revenue growth moderates. For patient investors willing to look past quarterly noise, Ameriprise represents a rare opportunity to own a compounding machine at a bargain valuation. The company's 40% ROE and 20%+ operating margins justify a premium multiple, yet the market prices it like a structurally challenged also-ran. That disconnect won't persist forever.

Conclusion

Conclusion

Ameriprise earns a strong BUY rating for value and income investors seeking quality financial services exposure. The combination of 40%+ ROE, consistent capital returns, and a forward P/E below 13x creates asymmetric upside with limited downside risk. Existing shareholders should hold and accumulate on weakness, while new investors can initiate positions gradually, viewing the 1.2% dividend yield as compensation for waiting. The stock is less suitable for growth-focused or short-term traders seeking rapid appreciation.
Bull Case
$580 (40% upside) – Advisor productivity gains accelerate, Columbia Threadneedle wins institutional mandates, valuation re-rates to 16x forward earnings
Base Case
$490 (18% upside) – Steady 6-8% revenue growth, margin expansion from operating leverage, continued buybacks compress share count
Bear Case
$360 (13% downside) – Prolonged bear market pressures asset values, advisor attrition resurfaces, passive investing accelerates

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