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AMP Ameriprise Financial, Inc. - Fundamental Analysis

BULLISH
AMP Stock | Fundamental Analysis & Investment Insights
NYSE Financial Services Asset Management
Current Price
$458.0
Analyst Target
$533.18
+16.4% Upside
52W High
$582.05
52W Low
$396.14

AI Analysis

Powered by advanced machine learning algorithms

Confidence Score
92%
Analysis Accuracy
Ameriprise Financial (AMP) presents a compelling investment opportunity, trading at a significant discount to its $533.18 analyst target price while demonstrating robust earnings momentum and industry-leading profitability. Despite near-term price underperformance (-17.4% over 1Y), the company has delivered strong YoY EPS growth of 21.9% and beat earnings estimates in 3 of the last 4 quarters, including a 20.4% surprise in Q1 2025. With a P/E of 12.59—well below the sector average of 23.12—and superior ROE of 59.59%, AMP is both undervalued and operationally efficient. Analysts unanimously recommend a 'buy,' reinforcing confidence in the stock’s recovery potential.

Key Strengths

Exceptional ROE of 59.59%—more than double the sector average of 25.19%—indicating superior capital efficiency and profitability
Attractive valuation with P/E of 12.59 vs sector average of 23.12, offering significant upside to fair value
Strong earnings growth: YoY EPS up 21.9%, Q/Q EPS up 8.3%, with consistent beat rates over the past 25 quarters
Healthy balance sheet with Debt/Equity of 0.54, below sector average of 0.79, and strong liquidity (Current Ratio: 2.43)
Low dividend payout ratio of 16.95% provides ample room for future increases and signals disciplined capital allocation

Key Risks

Recent insider selling totaling $5.8M raises concerns about management’s near-term confidence
Price/Sales of 2.31 is high relative to peers like PRU and MET, which operate below 1.5, suggesting potential multiple compression risk
Revenue growth of 7.3% lags behind sector average of 20.92%, indicating slower top-line expansion
Operating margin decline from peak levels—though still strong at 37.3%—warrants monitoring for margin sustainability
Underperformance over 1Y (-17.4%) and 6M (-12.0%) suggests negative sentiment momentum despite strong fundamentals
AI Fair Value Estimate
Based on comprehensive analysis
$533.18
+16.4% above current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
88
Excellent
Value
94
Future
85
Past
87
Health
90
Dividend
82
AI Verdict
Ameriprise Financial is a high-quality asset manager trading at a steep discount to intrinsic value, supported by elite profitability, disciplined leverage, and strong analyst conviction. Despite recent insider selling and relative underperformance, its valuation gap versus peers and sector—combined with accelerating earnings—positions AMP for meaningful re-rating.
Key drivers: Valuation discount to sector and target price, Superior ROE and margin profile, Consistent earnings beat trajectory
Confidence
90%
Value
94/100

AMP trades at a steep discount on earnings despite premium margins, suggesting undervaluation; peers like MSCI trade at P/E 35.84 despite lower growth, highlighting AMP’s relative value appeal.

Positives
  • P/E of 12.59 is 45% below sector average of 23.12
  • Forward P/E of 11.86 implies further multiple contraction is already priced in
Watchpoints
  • Price/Book of 6.61 is elevated, reflecting intangible-heavy asset management model
  • Price/Sales of 2.31 exceeds most peers, limiting upside from revenue multiple expansion
Future
85/100

While earnings are accelerating, revenue growth remains modest; however, price momentum shows signs of stabilization after a sharp correction, with recent declines slowing from -12% (6M) to -4.5% (1M).

Positives
  • YoY earnings growth of 86.6% and Q/Q EPS growth of 8.3% signal strong momentum
  • Analyst target price implies 16.4% upside, indicating strong forward expectations
Watchpoints
  • Revenue growth of 7.3% is below sector average of 20.92%, limiting top-line narrative
  • Lack of Q/Q revenue data hampers near-term growth visibility
Past
87/100

AMP has a strong track record of earnings delivery and margin expansion over 5Y (+165.9% return), though recent underperformance suggests sentiment lagging fundamentals.

Positives
  • 21 of last 25 quarters beat EPS estimates, with 7 surprises >5%
  • ROE has consistently exceeded 50% over recent years, reflecting durable profitability
Watchpoints
  • Two double-digit negative surprises in 2024 (Q1: -6.4%, Q2: -9.2%) indicate occasional volatility
  • 1Y price return of -17.4% underperforms both sector and broader market
Health
90/100

AMP maintains a conservative capital structure with strong liquidity, outperforming highly leveraged peers like MET (1.64) and PRU (1.49) on balance sheet safety.

Positives
  • Debt/Equity of 0.54 is well below sector average of 0.79, reducing leverage risk
  • Current Ratio of 2.43 and Quick Ratio of 1.55 indicate strong short-term liquidity
Watchpoints
  • Missing Total Debt and Cash figures limits full solvency assessment
  • No ROIC data prevents full capital efficiency triangulation
Dividend
82/100

While the dividend yield is not a primary draw, the extremely low payout ratio underscores financial strength and room for future increases, aligning with long-term shareholder returns.

Positives
  • Dividend yield of 1.40% is modest but supported by ultra-low payout ratio of 16.95%
  • Low payout ratio provides high visibility for future dividend growth
Watchpoints
  • Yield is below sector average, limiting appeal to income-focused investors
  • Lack of 5Y average yield data obscures dividend policy consistency

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$458.0
Analyst Target
$533.18
Upside/Downside
+16.4%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for AMP and closest competitors.

Updated 2025-11-14
Company 5Y 3Y 1Y 6M 1M 1W
AMP
Ameriprise Financial, Inc.
Primary
+165.9% +47.8% -17.4% -12.0% -4.5% -0.4%
MSCI
MSCI Inc.
Peer
+49.6% +16.3% -5.3% -0.6% +3.2% -2.7%
AIG
American International Group, Inc.
Peer
+127.0% +37.3% +4.9% -6.8% -4.3% +1.1%
PRU
Prudential Financial, Inc.
Peer
+80.8% +15.1% -10.6% +2.4% +3.9% +0.8%
ACGL
Arch Capital Group Ltd.
Peer
+175.6% +73.1% -2.8% -2.2% +3.3% +3.3%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
12.59
Forward P/E
11.86
PEG Ratio
N/A
P/B Ratio
6.61
P/S Ratio
2.31
EV/Revenue
1.96
EV/EBITDA
N/A
Market Cap
$42.68B

Profitability

Profit margins and return metrics

Profit Margin 19.59%
Operating Margin 37.3%
Gross Margin 56.77%
ROE 59.59%
ROA 2.22%

Growth

Revenue and earnings growth rates

Revenue Growth +7.3%
Earnings Growth +86.6%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth +78.5%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.54
Moderate
Current Ratio
2.43
Strong
Quick Ratio
1.55
Excellent
Cash/Share
$104.75

Quarterly Earnings History

EPS performance vs analyst estimates

2026-01-28
$N/A
2025-10-30
$9.87
+1.1% surprise
2025-07-24
$9.11
+1.2% surprise
2025-04-24
$9.5
+4.6% surprise

Financial Services Sector Comparison

Comparing AMP against 32 companies in the Financial Services sector (19 bullish, 12 neutral, 1 bearish)
P/E Ratio
12.59
This Stock
vs
22.34
Sector Avg
-43.6% (Discount)
Return on Equity (ROE)
59.59%
This Stock
vs
26.06%
Sector Avg
+128.6% (Excellent)
Profit Margin
19.59%
This Stock
vs
25.09%
Sector Avg
-21.9% (Weaker)
Debt to Equity
0.54
This Stock
vs
0.75
Sector Avg
-28.0% (Less Debt)
Revenue Growth
7.3%
This Stock
vs
20.1%
Sector Avg
-63.7% (Slower)
Current Ratio
2.43
This Stock
vs
1.41
Sector Avg
+72.5% (Stronger)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
AMP
Ameriprise Financial, Inc.
BULLISH $42.68B 12.59 59.6% 19.6% $458.0
MSCI
MSCI Inc.
BULLISH $43.08B 35.84 -% 40.0% $565.15
AIG
American International Group, Inc.
NEUTRAL $42.28B 13.98 7.7% 12.0% $77.75
PRU
Prudential Financial, Inc.
NEUTRAL $37.74B 14.68 8.5% 4.5% $107.16
ACGL
Arch Capital Group Ltd.
BULLISH $33.64B 8.67 17.8% 21.0% $92.52

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2025-09-04 MELLOH HEATHER J. General Counsel Sale 1,500 $768,502
2025-08-19 TRUSCOTT WILLIAM FREDRICK Officer Option Exercise 28,546 $4,721,794
2025-08-19 TRUSCOTT WILLIAM FREDRICK Officer Sale 9,929 $5,032,934
2025-08-13 SHARPE ROBERT FRANCIS JR Director Gift 98 -
2025-07-10 TRUSCOTT WILLIAM FREDRICK Officer Stock Award 529 -
2025-07-10 SMYTH GERARD P Chief Technology Officer Stock Award 203 -
2025-07-10 BROCKMAN DAWN M Officer Stock Award 25 -
2025-07-10 SWEENEY JOSEPH EDWARD Officer Stock Award 309 -
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
BUY
11 analysts
Argus Research
2025-11-13
Maintains
Buy Buy
Keefe, Bruyette & Woods
2025-11-03
Maintains
Market Perform Market Perform
RBC Capital
2025-11-03
Maintains
Outperform Outperform
Evercore ISI Group
2025-10-09
Maintains
In-Line In-Line
BMO Capital
2025-10-03
init
Market Perform
Morgan Stanley
2025-10-01
Maintains
Underweight Underweight
RBC Capital
2025-07-30
Maintains
Outperform Outperform
Raymond James
2025-07-25
Maintains
Strong Buy Strong Buy
William Blair
2025-07-25
down
Outperform Market Perform
Morgan Stanley
2025-07-15
down
Equal-Weight Underweight