Ameriprise Earnings Analysis and Financial Review

Ameriprise Financial's earnings report is a closely watched event in the financial industry. The company's net income increased by 13% to $1.14 billion in the fourth quarter of 2022.

Ameriprise's revenue growth is largely driven by its asset management and advisory services. The company's assets under management (AUM) grew by 7% to $1.1 trillion in the same quarter.

Ameriprise's operating margin expanded by 20 basis points to 22.1% in the fourth quarter. This is due to the company's focus on cost management and efficiency improvements.

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Ameriprise's wealth management segment had a strong quarter, with profits soaring 30% in the third quarter, driven by higher interest rates and growth in its cash business.

The firm's Advice & Wealth Management unit added over 200 independent financial advisors for the second quarter in a row, with existing advisors improving their productivity due to higher cash and other brokerage assets.

Ameriprise's recruiting efforts are attracting more experienced advisors, enabling the firm to retain more productive practices and offset the impact of stock volatility.

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The firm's higher headcount and growth of advisors' practices helped offset the impact of stock volatility in the first quarter, according to the firm's April 25 earnings statement.

Ameriprise's CEO, Jim Cracchiolo, said the firm delivered another good quarter during a period of heightened market volatility and geopolitical uncertainty, and is well-positioned to continue driving organic growth.

The average PE ratio for Ameriprise Financial's stock can give us a better understanding of how the company's earnings compare to its stock price. The 3-year average PE ratio for Ameriprise Financial (AMP) is 12.17.

In the past 5 years, the average PE ratio for AMP stock has been 12.38, which is slightly higher than the 3-year average.

Ameriprise Financial's PE ratio has remained relatively stable over the past few years, indicating that investors may be willing to pay a consistent premium for the company's stock.

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AMP's PE ratio is currently higher than its 3, 5, and 10-year averages.

As of Jan 27, 2025, AMP's price to earnings ratio is 21.16.

The 3-year average PE ratio for AMP stock is 12.17.

AMP's PE ratio has reached its highest level at 26.96 in the Jun 2021 quarter.

This is significantly higher than the current PE ratio of 21.16.