Ameriprise Financial, Inc.
Ameriprise Financial, Inc. Fundamental Analysis
Ameriprise Financial, Inc. (A4S.DE) shows strong financial fundamentals with a PE ratio of 10.54, profit margin of 18.83%, and ROE of 58.14%. The company generates $21.8B in annual revenue with strong year-over-year growth of 15.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze A4S.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakA4S.DE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentA4S.DE trades at attractive valuation levels.
Growth Score
ExcellentA4S.DE delivers strong and consistent growth momentum.
Financial Health Score
ExcellentA4S.DE maintains a strong and stable balance sheet.
Profitability Score
ExcellentA4S.DE achieves industry-leading margins.
Key Financial Metrics
Is A4S.DE Expensive or Cheap?
P/E Ratio
A4S.DE trades at 10.54 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, A4S.DE's PEG of 1.04 indicates fair valuation.
Price to Book
The market values Ameriprise Financial, Inc. at 5.74 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.77 times EBITDA. This signals the market has high growth expectations.
How Well Does A4S.DE Make Money?
Net Profit Margin
For every $100 in sales, Ameriprise Financial, Inc. keeps $18.83 as profit after all expenses.
Operating Margin
Core operations generate 26.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $58.14 in profit for every $100 of shareholder equity.
ROA
Ameriprise Financial, Inc. generates $1.87 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ameriprise Financial, Inc. generates strong operating cash flow of $6.95B, reflecting robust business health.
Free Cash Flow
Ameriprise Financial, Inc. generates strong free cash flow of $6.75B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $72.61 in free cash annually.
FCF Yield
A4S.DE converts 13.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.90
vs 25 benchmark
Current Ratio
Current assets to current liabilities
125.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.58
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How A4S.DE Stacks Against Its Sector Peers
| Metric | A4S.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.54 | 18.86 | Better (Cheaper) |
| ROE | 58.14% | 847.00% | Weak |
| Net Margin | 18.83% | 4202.00% | Weak |
| Debt/Equity | 0.90 | 0.91 | Neutral |
| Current Ratio | 125.26 | 667.17 | Strong Liquidity |
| ROA | 1.87% | -21543.00% (disorted) | Weak |
A4S.DE outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ameriprise Financial, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
86.61%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
138.54%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
274.04%
Industry Style: Value, Dividend, Cyclical
High Growth