Ameriprise Financial Stock Fair Value Calculator – Ameriprise Financial Rating Downgraded Despite Positive Outlook

January 3, 2024

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Ameriprise Financial ($NYSE:AMP), a financial services and investment firm headquartered in Minneapolis, Minnesota, recently received a rating downgrade despite having a positive outlook. The company provides a wide range of services and products to its clients, including asset management, financial planning, and insurance. Despite the fact that Ameriprise Financial has seen steady growth in the past few years, with a strong balance sheet and a diversified portfolio of businesses, their stock valuation did not justify a higher rating. Analysts have observed that Ameriprise Financial continues to be competitive in the industry, with sound financials and long-term stability.

However, despite the company’s operational strengths, they face significant competition from various other providers. As a result, the rating downgrade is likely to put additional pressure on its stock price in the near future. Ameriprise Financial has responded to the rating downgrade by taking proactive steps to improve its stock valuation. The company has implemented cost control measures, improved risk management practices, and is looking for new ways to grow its business. Nevertheless, the stock price will remain under pressure until the company can fully recover and regain its former rating. Despite the recent downgrade, investors remain optimistic about the future of Ameriprise Financial and its prospects for growth.

Price History

On Tuesday, AMERIPRISE FINANCIAL’s stock opened at $378.9 and closed at $379.0, down by 0.2% from the previous closing price of 379.8. The company has invested heavily in technology and digitalization to remain competitive and also continues to be committed to building relationships with its clients. Furthermore, Ameriprise Financial has been able to maintain a strong track record of financial performance. These factors have contributed to the company’s overall rating, which, despite the recent downgrade, remains positive. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Ameriprise Financial. More…

    Total Revenues Net Income Net Margin
    15.22k 2.24k 14.7%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Ameriprise Financial. More…

    Operations Investing Financing
    3.76k -11.68k 6.25k
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Ameriprise Financial. More…

    Total Assets Total Liabilities Book Value Per Share
    165.14k 161.31k 37.72
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Ameriprise Financial are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    8.9% 20.4%
    FCF Margin ROE ROA
    23.5% 49.2% 1.2%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Ameriprise Financial Stock Fair Value Calculator

    At GoodWhale, we conducted an analysis of the wellbeing of AMERIPRISE FINANCIAL and concluded that it is currently overvalued by 11.7%. Our proprietary Valuation Line estimated the intrinsic value of AMERIPRISE FINANCIAL’s share to be around $339.4, yet it is currently trading at $379.0. We believe this indicates that the stock is trading at a fair price, but slightly higher than its true value. Therefore, we recommend that investors be aware of the current overvaluation and act accordingly. More…

  • Star Chart Analysis
  • Valuation Analysis




  • Peers

    Ameriprise Financial Inc. is one of the largest financial services companies in the United States with tens of thousands of employees and advisors. The company offers a full range of financial services including banking, investments, insurance, and advice. Ameriprise Financial Inc. has a large network of branches and ATMs across the United States. The company’s competitors include Azimut Holding SPA, KKR & Co Inc, CI Financial Corp, and others.

    – Azimut Holding SPA ($OTCPK:AZIHY)

    Azimut Holding SPA is a holding company for the Azimut Group, a financial services provider. The Group offers a wide range of services, including asset management, private banking, and insurance. As of 2022, the Group had a market capitalization of 2.89 billion euros and a return on equity of 40.25%. The Group’s products and services are available in more than 20 countries worldwide.

    – KKR & Co Inc ($NYSE:KKR)

    KKR & Co Inc is a New York City-based global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit, and hedge funds. The company had a market cap of $44.73B as of 2022 and a ROE of 4.34%. KKR’s portfolio includes some of the world’s leading companies, such as First Data, Dell Technologies, and Walgreens Boots Alliance. The company has a team of over 1,600 professionals operating in 28 countries.

    – CI Financial Corp ($TSX:CIX)

    CI Financial Corp is a diversified wealth management company that provides financial services to clients through its subsidiaries. The company has a market cap of 2.62B as of 2022 and a ROE of 28.09%. CI Financial’s subsidiaries include CI Investments, Assante Wealth Management, and CI Private Counsel. The company’s primary operations are in Canada, but it also has a presence in the United States, Europe, and Asia.

    Summary

    Ameriprise Financial (AMP) has a wide range of businesses that have been performing well, however its valuation has not been impressive. Analysts have downgraded their rating on the stock, citing concerns about its current trading price. Investors should consider a range of factors when assessing potential investments, including market conditions, management performance and the company’s competitive position. AMP’s recent financial performance indicates it has strong revenue growth prospects, wide profit margins and healthy return on equity. Its balance sheet is sound, and it has sufficient liquidity to weather economic uncertainty.

    However, investors should be aware that AMP’s stock price may be vulnerable to macroeconomic risks such as rising interest rates or a prolonged market downturn. Ultimately, investors need to weigh the potential risks and rewards when considering AMP as an investment opportunity.

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