Company Overview
Ameriprise Financial, Inc. operates as a diversified financial services company serving individual and institutional clients primarily within the United States and internationally through its Advice & Wealth Management business unit. The firm is situated within the Financial Services sector and specifically functions in the Asset Management industry, providing comprehensive financial planning and advisory services. As of the latest available data, the company holds a market capitalization of $40.58B and generates annual revenue (TTM) of $18.91B, supported by an employee base of 13,600. These valuation and revenue figures indicate that Ameriprise Financial maintains a substantial market presence, positioning it as a significant player capable of managing extensive assets and serving a broad client demographic across multiple geographic regions.
Financial Health
The company reported revenue of $18.91B for the trailing twelve months, resulting in net income of $3.56B, while specific EBITDA figures are not disclosed in the available data. The significant gap between the $18.91B revenue and the $3.56B net income reveals a cost structure where operating expenses, including compensation, technology, and administrative costs, consume a substantial portion of top-line growth before reaching the bottom line. Despite the lack of reported EBITDA, the firm demonstrated robust financial flexibility with free cash flow reaching $3.57B, indicating a strong ability to generate cash beyond operational needs. This cash generation supports capital allocation strategies, including debt repayment, share repurchases, or organic growth initiatives without relying solely on external financing. Profitability analysis shows a gross margin of 56.2%, an operating margin of 35.3%, and a profit margin of 18.8%, illustrating that the company retains a majority of its revenue as gross profit before expenses and converts over one-fifth of sales into net earnings. Regarding leverage, the company holds $10.10B in cash against $3.77B in debt, resulting in a debt-to-equity ratio of 57.60%, which suggests a conservative balance sheet with ample liquidity to cover obligations. Short-term liquidity is further evidenced by a current ratio of 2.29, indicating that the firm possesses more than double the current assets necessary to meet its short-term liabilities. Return on equity stands at 60.5%, while return on assets is 2.3%, metrics that reveal high efficiency in utilizing shareholder capital relative to asset base, though the low ROA reflects the capital-intensive nature of the asset management business.
Valuation Assessment
The trailing twelve-month P/E ratio is 12.03, while the forward P/E stands at 9.36, implying that the market expects earnings growth in the future that would justify a lower multiple compared to current performance. The price-to-book ratio is 6.09, indicating that the stock trades at a significant premium over its tangible book value, which is common for financial firms with strong intangible assets and brand equity. Alternative valuation metrics include a price-to-sales ratio of 2.15 and an EV/EBITDA ratio listed as N/A, suggesting that analysts rely more heavily on earnings and sales multiples given the absence of standardized EBITDA reporting in the provided dataset. The stock's recent price action is bounded by a 52-week high of $550.18 and a 52-week low of $396.14, meaning the current valuation sits within this historical trading range but requires specific price data to determine the exact percentage distance from these extremes. The beta value of 1.27 indicates that the stock exhibits higher volatility than the broader market, moving approximately 27% more than the benchmark index during periods of market fluctuation.
Growth & Income
Revenue growth for the year-over-year period is 8.6%, whereas earnings growth is -1.1%, demonstrating that earnings are currently growing at a slower pace than revenue, which may reflect margin compression or one-time expenses impacting the bottom line. As a consistent dividend payer, the company offers a dividend yield of 1.5% with a payout ratio of 17.3%, a level that is highly sustainable given the modest payout relative to net income and the strong free cash flow generation. The low payout ratio allows the company to retain a significant portion of earnings for internal reinvestment rather than distributing them entirely to shareholders, supporting long-term organic expansion. Overall, the company presents a growth and income profile characterized by double-digit revenue expansion, a conservative dividend policy, and a balance sheet that prioritizes financial stability over aggressive leverage.