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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on AMP

Ameriprise Financial's recent performance faced challenges due to rising expenses, although its Q3 earnings beat expectations. The company's revenue growth was driven by strong wealth management and record AUM growth. However, concerns over cash sweep revenue from potential Fed rate cuts may impact future earnings. Despite this, the company's disciplined cost control and robust share buybacks, which increased EPS, helped mitigate these effects. Additionally, Ameriprise's solid earnings estimate revisions and strong industry position support its financials.

1.c. Company Highlights

2. Ameriprise Delivers Strong Q3 Earnings

Ameriprise reported a robust third quarter, with adjusted operating EPS, excluding unlocking, rising 12% to $9.92, surpassing analyst estimates of $9.77. The company's firm-wide margin remained exceptionally strong at 27%, while return on equity (ROE) stood at nearly 53%, one of the highest in the financial services sector. Adjusted operating net revenues, excluding unlocking, increased 6% to $4.6 billion, driven by asset growth. The company's expense discipline remains robust, a result of its ongoing firm-wide transformation initiatives.

Publication Date: Nov -01

📋 Highlights
  • Assets Under Management Surge: AUM, administration, and advisement hit $1.7 trillion, up 8% YoY.
  • Earnings Growth Accelerates: Adjusted EPS rose 12% to $9.92, driven by 6% revenue growth and 27% firm-wide margin.
  • Adviser Productivity Rises: Adviser count and productivity increased by 10%, with wrap assets up 14% YoY.
  • Asset Management Outperforms: 80% of funds outperformed the median for 10 years, with $714 billion in AUM.
  • Strong Capital Returns: $3.1 billion returned to shareholders, targeting 85% payout ratio, with $2.2 billion in excess capital.

Asset Growth and Adviser Productivity

Assets under management, administration, and advisement reached a new high of $1.7 trillion, up 8% year-over-year. The company's advisers continued to leverage its proven advice value proposition, generating high client value satisfaction and practice growth. Adviser count increased, and adviser productivity remained very strong, rising another 10%. The company's Asset Management business saw strong investment performance, with over 65% of its funds outperforming the median on an asset-weighted basis for the 1-year period.

Valuation and Outlook

With a P/E Ratio of 16.05 and a P/B Ratio of 6.75, Ameriprise's valuation appears reasonable considering its strong financial performance. The company's ROE of 46.86% is particularly noteworthy. Analysts estimate revenue growth of 4.2% for next year, indicating a stable outlook. Ameriprise's focus on sustainable profitable growth, combined with its strong balance sheet and excess capital position of $2.2 billion, positions the company well for continued success.

Business Segment Performance

The company's Retirement & Protection Solutions segment delivered another solid quarter, with pretax adjusted operating earnings, excluding unlocking, in line with expectations at $200 million. The Asset Management business continued to make progress, with $714 billion in assets under management, administration. The company's digital transformation is enhancing the client-advisor experience and reducing costs, positioning Ameriprise for sustainable growth.

Capital Return and Investor Appeal

Ameriprise remains committed to returning capital to shareholders, targeting an 85% payout ratio for the fourth quarter. The company's strong free cash flow generation and excellent excess capital position support this commitment. With a Dividend Yield of 1.36%, Ameriprise offers an attractive return to investors. The company's focus on long-term profitability and its ability to navigate various market environments make it an appealing investment opportunity.

3. NewsRoom

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Edgestream Partners L.P. Has $5.82 Million Holdings in Ameriprise Financial, Inc. $AMP

Dec -03

Source: defenseworld.net

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BLI Banque de Luxembourg Investments Acquires New Shares in Ameriprise Financial, Inc. $AMP

Dec -01

Source: defenseworld.net

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Columbia Global Technology Growth Fund Celebrates 25-Year Anniversary

Nov -25

Source: businesswire.com

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Advisor Team With Over $160 Million in Assets Joins Ameriprise Financial for Integrated Planning Capabilities and Service Support

Nov -25

Source: businesswire.com

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Associated Banc Corp Sells 440 Shares of Ameriprise Financial, Inc. $AMP

Nov -25

Source: defenseworld.net

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Ameriprise Financial, Inc. (NYSE:AMP) Receives Consensus Rating of “Hold” from Brokerages

Nov -23

Source: defenseworld.net

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Ameriprise Financial, Inc. $AMP Stock Position Raised by Bank Julius Baer & Co. Ltd Zurich

Nov -22

Source: defenseworld.net

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Avantax Advisory Services Inc. Has $1.96 Million Position in Ameriprise Financial, Inc. $AMP

Nov -22

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.40%)

6. Segments

Advice & Wealth Management

Expected Growth: 5.0%

The growing demand for wealth management services and the ability to leverage digital platforms to reach more clients are expected to drive growth in this segment, slightly above the global average.

Retirement and Protection Solution

Expected Growth: 4.8%

The growing demand for retirement and protection products, driven by the aging population and increasing awareness of retirement planning, is expected to drive growth in this segment, slightly above the global average.

Asset Management

Expected Growth: 5.2%

The growing demand for asset management services, driven by institutional investors and the increasing popularity of passive investment products, is expected to drive growth in this segment, above the global average.

Corporate & Other

Expected Growth: 4.4%

The growth in this segment is expected to be in line with the global average, driven by the overall performance of the company's investments and the elimination of intersegment revenues.

Unallocated Non-Operating Revenue

Expected Growth: 4.0%

The growth in this segment is expected to be conservative, as it is not directly related to the core operations of the company, and is likely to be influenced by various miscellaneous revenue items.

Elimination of Intersegment Revenues

Expected Growth: 4.4%

The growth in this segment is expected to be in line with the global average, as the eliminations are directly related to the revenues of other segments, which are expected to grow at the global average rate.

7. Detailed Products

Wealth Management

Ameriprise Financial offers a comprehensive wealth management service that provides personalized financial planning, investment management, and wealth protection to individuals, families, and businesses.

Investment Products

Ameriprise Financial offers a range of investment products, including mutual funds, exchange-traded funds (ETFs), and variable universal life insurance, to help clients achieve their investment goals.

Insurance Services

Ameriprise Financial provides a range of insurance products, including life insurance, disability insurance, and long-term care insurance, to help clients protect their financial well-being.

Retirement and Estate Planning

Ameriprise Financial offers retirement and estate planning services to help clients plan for their retirement, create a lasting legacy, and ensure the distribution of their assets according to their wishes.

Brokerage Services

Ameriprise Financial provides brokerage services, including online trading, options trading, and margin lending, to help clients buy and sell securities, manage their investments, and achieve their financial goals.

Financial Planning

Ameriprise Financial offers comprehensive financial planning services to help clients create a personalized financial plan, set financial goals, and achieve financial independence.

8. Ameriprise Financial, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ameriprise Financial, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and diversified product offerings.

Bargaining Power Of Customers

Ameriprise Financial, Inc. has a large and diversified customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often complex and require specialized knowledge, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

Ameriprise Financial, Inc. has a diversified supplier base, and the company is not heavily dependent on any single supplier. This reduces the bargaining power of suppliers and allows the company to negotiate favorable terms.

Threat Of New Entrants

The financial services industry is heavily regulated, and new entrants face significant barriers to entry, including high capital requirements and complex regulatory hurdles. This reduces the threat of new entrants to Ameriprise Financial, Inc.

Intensity Of Rivalry

The financial services industry is highly competitive, and Ameriprise Financial, Inc. faces intense competition from established players and new entrants. The company must continually innovate and differentiate its products and services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 54.89%
Debt Cost 7.12%
Equity Weight 45.11%
Equity Cost 10.70%
WACC 8.74%
Leverage 121.70%

11. Quality Control: Ameriprise Financial, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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BNY Mellon

A-Score: 6.7/10

Value: 3.9

Growth: 6.6

Quality: 6.8

Yield: 5.0

Momentum: 8.5

Volatility: 9.7

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Ameriprise Financial

A-Score: 5.9/10

Value: 5.1

Growth: 7.8

Quality: 7.8

Yield: 2.0

Momentum: 4.0

Volatility: 8.7

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BlackRock

A-Score: 5.8/10

Value: 2.2

Growth: 5.3

Quality: 7.5

Yield: 4.0

Momentum: 7.0

Volatility: 9.0

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Blackstone

A-Score: 5.2/10

Value: 0.3

Growth: 4.1

Quality: 7.5

Yield: 7.0

Momentum: 6.0

Volatility: 6.3

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Ares Management

A-Score: 4.9/10

Value: 2.4

Growth: 5.7

Quality: 4.9

Yield: 6.0

Momentum: 4.0

Volatility: 6.3

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KKR

A-Score: 3.9/10

Value: 1.7

Growth: 6.6

Quality: 3.8

Yield: 2.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

474.11$

Current Price

474.11$

Potential

-0.00%

Expected Cash-Flows