Ameriprise Financial Current Valuation vs. Return On Asset

AMP Stock  USD 536.45  5.94  1.10%   
Taking into consideration Ameriprise Financial's profitability measurements, Ameriprise Financial's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Ameriprise Financial's ability to earn profits and add value for shareholders. At this time, Ameriprise Financial's Days Sales Outstanding is relatively stable compared to the past year. As of 12/27/2024, Sales General And Administrative To Revenue is likely to grow to 0.36, while Operating Cash Flow Sales Ratio is likely to drop 0.18. At this time, Ameriprise Financial's Operating Income is relatively stable compared to the past year. As of 12/27/2024, Income Tax Expense is likely to grow to about 711.9 M, while Income Before Tax is likely to drop slightly above 1.9 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.650.5854
Significantly Up
Pretty Stable
Net Profit Margin0.0960.1588
Way Down
Slightly volatile
Operating Profit Margin0.220.21
Sufficiently Up
Slightly volatile
Pretax Profit Margin0.110.2009
Way Down
Slightly volatile
Return On Assets0.00770.0146
Way Down
Slightly volatile
Return On Equity0.570.5405
Notably Up
Slightly volatile
For Ameriprise Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ameriprise Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ameriprise Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ameriprise Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ameriprise Financial over time as well as its relative position and ranking within its peers.
  

Ameriprise Financial's Revenue Breakdown by Earning Segment

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To learn how to invest in Ameriprise Stock, please use our How to Invest in Ameriprise Financial guide.
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ameriprise Financial. If investors know Ameriprise will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ameriprise Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.39)
Dividend Share
5.66
Earnings Share
26.18
Revenue Per Share
170.862
Quarterly Revenue Growth
0.119
The market value of Ameriprise Financial is measured differently than its book value, which is the value of Ameriprise that is recorded on the company's balance sheet. Investors also form their own opinion of Ameriprise Financial's value that differs from its market value or its book value, called intrinsic value, which is Ameriprise Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ameriprise Financial's market value can be influenced by many factors that don't directly affect Ameriprise Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ameriprise Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ameriprise Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ameriprise Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Ameriprise Financial Return On Asset vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Ameriprise Financial's current stock value. Our valuation model uses many indicators to compare Ameriprise Financial value to that of its competitors to determine the firm's financial worth.
Ameriprise Financial is rated second in current valuation category among its peers. It is rated below average in return on asset category among its peers . The ratio of Current Valuation to Return On Asset for Ameriprise Financial is about  2,248,175,728,389 . As of 12/27/2024, Return On Assets is likely to drop to 0.01. Comparative valuation analysis is a catch-all technique that is used if you cannot value Ameriprise Financial by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Ameriprise Current Valuation vs. Competition

Ameriprise Financial is rated second in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is presently estimated at about 141.91 Billion. Ameriprise Financial totals roughly 47.44 Billion in current valuation claiming about 33% of equities under Financials industry.

Ameriprise Return On Asset vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Ameriprise Financial

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
47.44 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Ameriprise Financial

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0211
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Ameriprise Return On Asset Comparison

Ameriprise Financial is currently under evaluation in return on asset category among its peers.

Ameriprise Financial Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Ameriprise Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ameriprise Financial will eventually generate negative long term returns. The profitability progress is the general direction of Ameriprise Financial's change in net profit over the period of time. It can combine multiple indicators of Ameriprise Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-1.8 B-1.7 B
Operating Income7.1 B7.5 B
Net Income2.6 B1.5 B
Income Tax Expense678 M711.9 M
Income Before Tax3.2 B1.9 B
Net Income Applicable To Common Shares2.9 B1.5 B
Total Other Income Expense Net3.2 B1.6 B
Net Income From Continuing Ops2.6 B1.9 B
Interest Income561 M294.1 M
Net Interest Income-324 M-340.2 M
Non Operating Income Net Other191.7 M170.4 M
Change To Netincome184.5 M115.7 M
Net Income Per Share 25.52  26.79 
Income Quality 1.83  1.92 
Net Income Per E B T 0.79  0.60 

Ameriprise Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Ameriprise Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Ameriprise Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Ameriprise Financial's important profitability drivers and their relationship over time.

Use Ameriprise Financial in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Ameriprise Financial position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ameriprise Financial will appreciate offsetting losses from the drop in the long position's value.

Ameriprise Financial Pair Trading

Ameriprise Financial Pair Trading Analysis

The ability to find closely correlated positions to Ameriprise Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ameriprise Financial when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ameriprise Financial - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ameriprise Financial to buy it.
The correlation of Ameriprise Financial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ameriprise Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ameriprise Financial moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Ameriprise Financial can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Ameriprise Financial position

In addition to having Ameriprise Financial in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Wireless Thematic Idea Now

Wireless
Wireless Theme
Companies providing wireless technology and communication services. The Wireless theme has 43 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Wireless Theme or any other thematic opportunities.
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Additional Tools for Ameriprise Stock Analysis

When running Ameriprise Financial's price analysis, check to measure Ameriprise Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ameriprise Financial is operating at the current time. Most of Ameriprise Financial's value examination focuses on studying past and present price action to predict the probability of Ameriprise Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ameriprise Financial's price. Additionally, you may evaluate how the addition of Ameriprise Financial to your portfolios can decrease your overall portfolio volatility.