Investment Thesis
Ameriprise demonstrates strong fundamental profitability with 23.4% operating margins and robust free cash flow generation of $430M, supported by a manageable balance sheet with conservative 0.43x leverage. However, exceptionally low ROA (0.5%) relative to $184.4B in assets indicates significant capital efficiency concerns, and absence of growth trajectory data limits conviction.
Strengths
- Exceptional operating margin (23.4%) and net margin (18.7%) demonstrate profitable core business model
- Strong free cash flow generation ($430M) with minimal capital requirements (CapEx only $29M)
- Solid balance sheet with $9.4B cash, manageable 0.43x debt-to-equity ratio, and reasonable $2.7B long-term debt
Risks
- Severely depressed ROA (0.5%) despite high profitability suggests critical asset utilization inefficiency in $184.4B asset base
- No year-over-year growth metrics available; cannot assess revenue or earnings trajectory
- Asset-heavy business model ($178.2B liabilities) creates operational leverage and sector-specific regulatory/market risks
Key Metrics to Watch
- Return on Assets trend - critical efficiency indicator for asset-heavy financial services
- Revenue and earnings growth rates - assess whether profitability is expanding
- Asset quality and composition - understand allocation of $184.4B balance sheet
Financial Metrics
Revenue
4.9B
Net Income
915.0M
EPS (Diluted)
$9.68
Free Cash Flow
430.0M
Total Assets
184.4B
Cash
9.4B
Profitability Ratios
Gross Margin
N/A
Operating Margin
23.4%
Net Margin
18.7%
ROE
14.7%
ROA
0.5%
FCF Margin
8.8%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.43x
Debt/Assets
96.6%
Interest Coverage
N/A
Long-term Debt
2.7B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-08T06:31:40.800801 |
Data as of: 2026-03-31 |
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