Since December 2025, Ameriprise Financial has been in a holding pattern, posting a small loss of 4.7% while floating around $454.49. The stock also fell short of the S&P 500’s 10.7% gain during that period.
Is now the time to buy AMP? Find out in our full research report, it’s free.
Why Is AMP a Good Business?
Founded in 1894 and spun off from American Express in 2005, Ameriprise Financial (NYSE: AMP) provides financial planning, wealth management, asset management, and insurance products to help individuals and institutions achieve their financial goals.
1. Outstanding Long-Term EPS Growth
Analyzing the long-term change in earnings per share (EPS) shows whether a company’s incremental sales were profitable — for example, revenue could be inflated through excessive spending on advertising and promotions.
Ameriprise Financial’s EPS grew at 23.9% compounded annual growth rate over the last five years, higher than its 9.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
2. Growing TBVPS Reflects Strong Asset Base
Tangible book value per share (TBVPS) serves as a key indicator of a financial institution’s strength, representing the hard assets available to shareholders after removing intangible assets that could evaporate during economic distress.
Ameriprise Financial’s TBVPS increased by 7.8% annually over the last five years, and growth has recently accelerated as TBVPS grew at an exceptional 18.7% annual clip over the past two years (from $48.96 to $68.96 per share).
3. Stellar ROE Showcases Lucrative Growth Opportunities
Return on equity, or ROE, tells us how much profit a company generates for each dollar of shareholder equity, a key funding source for financial firms. Over a long period, financial firms with high ROE tend to compound shareholder wealth faster through retained earnings, buybacks, and dividends.
Over the last five years, Ameriprise Financial has averaged an ROE of 63.7%, exceptional for a company operating in a sector where the average shakes out around 10% and those putting up 25%+ are greatly admired. This shows Ameriprise Financial has a strong competitive moat.
Final Judgment
These are just a few reasons Ameriprise Financial is a high-quality business worth owning. With its shares lagging the market recently, the stock trades at 10.3× forward P/E (or $454.49 per share). Is now the right time to buy? See for yourself in our full research report, it’s free.
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