How Does This Wealth Manager Operate?
Ameriprise Financial is a financial services company focused on wealth management and related client-facing financial solutions. It operates through advice-led relationships, managing client assets and delivering planning-oriented services. The business is scaled, with a large public-market footprint. Its revenue is tied to ongoing client activity and the financial products and services it provides.
Are Profits and Margins Holding Up?
FundamentalsFor 2025, reported in USD, revenue was USD 13.2 billion, with net income of USD 3.6 billion and an 8.4% year-over-year revenue increase. Profitability metrics over the trailing period show a 31.95% operating margin and a 20.16% net profit margin, with gross margin at 53.38%.
On the balance sheet, cash ended the period at USD 10.1 billion against USD 5.9 billion of total debt. The trailing ROE is 61.59%, and the stock’s beta is 1.21.
Is The Market Underpricing Its Balance Sheet?
DCF / MultiplesAt USD 470.12, the stock trades below the discounted cash flow range across weaker to stronger outcomes. That pricing also comes with a 10.70 trailing P/E, an EV/EBITDA of 11.72, and a price-to-sales ratio of 2.16.
Balance Sheet Strength Misread
TakeawayThe price reads like leverage is the story. The balance sheet looks positioned the other way. For this to work, profitability must stay elevated. Cash needs to remain ahead of debt over time. If margins fade, the low multiple won’t protect much. The mismatch hints at a real mispricing today.