September 14, 2023
Top 10 Stock Ameriprise Financial Strong Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Ameriprise Financial Strong Buy

360 METRICS	September 14, 2023
VALUE
VALUE	38
GROWTH
GROWTH	57
SAFETY
SAFETY	69
SENTIMENT
SENTIMENT	78
360° VIEW
360° VIEW	76

ANALYSIS: With an Obermatt 360° View of 76 (better than 76% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock Ameriprise Financial are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Ameriprise Financial. The consolidated Growth Rank has a good rank of 57, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth, as well as stock returns. This means that growth is higher than for 57% of competitors in the same industry. The consolidated Safety Rank at 69 means that the company has a financing structure that is safer than 69% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. Finally, the consolidated Sentiment Rank has a good rank of 78, which means that professional investors are more optimistic about the stock than for 78% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 38, meaning that the share price of Ameriprise Financial is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 62% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 76, Ameriprise Financial is better positioned than 76% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as above-average growth (Growth Rank of 57), a safe financing structure (Safety Rank of 69), and positive professional market sentiment (Sentiment Rank of 78), it is a solid stock investment where growth may be the strongest driver of the investment rationale, also reflected by institutional investors. It is typical for growth companies to have low value, as is the case here. Investors are willing to pay more for companies that outperform their competitors. So the question is, how much more do you pay for the stock of Ameriprise Financial compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (57% better than peers). The value rank could be the reverse reflection of that (43%). A Value Rank below that level may be assessed as expensive, a rank above that is still good value. Sometimes market sentiment just reflects the past, sometimes the reality. You pay more than the market average for this stock, but it may be worth it. ...read more

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Sentiment Strategy: Professional Market Sentiment for Ameriprise Financial very positive

SENTIMENT METRICS	September 14, 2023
ANALYST OPINION
ANALYST OPINION	59
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	78
MARKET PULSE
MARKET PULSE	54
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	78

ANALYSIS: With an Obermatt Sentiment Rank of 78 (better than 78% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock Ameriprise Financial is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all four indicators above average for Ameriprise Financial. Analyst Opinions are at a rank of 59 (better than 59% of alternative investments), which means that, currently, stock research analysts tend to recommend a stock investment in the company. Analyst Opinions Change is also positive with a rank of 50, which means that stock research experts are changing their opinions for the better and recommending investing in the company. They are getting more optimistic about stock investments in Ameriprise Financial. The Professional Investors rank is 78, which means that currently, professional investors hold more stock in this company than in 78% of alternative investment opportunities. Pros tend to favor investing in this company. Finally, Market Pulse has a rank of 54 which means that the current professional news and professional social networks are on the positive side when discussing this company (more positive news than for 54% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 78 (more positive than 78% compared with investment alternatives), Ameriprise Financial has a reputation among professional investors that is significantly higher than that of its competitors. Since all market sentiment indicators are positive, the professional community highly recommends investment in the company. Does this mean Ameriprise Financial stocks are a safe investment? Far from it. Even professionals make mistakes. Especially in stock investing, there is a tendency to follow the leaders. Since trees don't grow to the heavens, such positive sentiment may also be interpreted as a danger sign. A lot of optimism can often be a sign of troubles to come, albeit unforeseen by most. ...read more

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Value Strategy: Ameriprise Financial Stock Price Value below-average critical

VALUE METRICS	September 14, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	59
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	61
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	11
DIVIDEND YIELD
DIVIDEND YIELD	39
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	38

ANALYSIS: With an Obermatt Value Rank of 38 (worse than 62% compared with alternatives), Ameriprise Financial shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half are above average for Ameriprise Financial. Price-to-Sales (P/S) is 59, which means that the stock price compared with what market professionals expect for future sales is lower than for 59% of comparable companies, indicating a good value concerning Ameriprise Financial's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 61% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 39 (dividends are expected to be higher than for 39% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 89% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Ameriprise Financial to 11. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 38, is a hold recommendation based on Ameriprise Financial's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner on assets than its competitors. For instance, the company could be leasing its production facilities, or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the low Dividend Yield is also explained as such companies tend to invest their income into market development. The other good value ranks for Sales and Profits are encouraging indicators for the stock price value. ...read more

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Growth Strategy: Ameriprise Financial Growth Momentum good

GROWTH METRICS	September 14, 2023
REVENUE GROWTH
REVENUE GROWTH	30
PROFIT GROWTH
PROFIT GROWTH	73
CAPITAL GROWTH
CAPITAL GROWTH	31
STOCK RETURNS
STOCK RETURNS	73
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	57

ANALYSIS: With an Obermatt Growth Rank of 57 (better than 57% compared with alternatives), Ameriprise Financial shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Ameriprise Financial. Profit Growth has a rank of 73, which means that currently professionals expect the company to grow its profits more than 73% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 73 (above 73% of alternative investments). But Sales Growth has a below the median rank of 30, which means that, currently, professionals expect the company to grow less than 70% of its competitors, and Capital Growth also has a lower rank of 31. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 57, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Ameriprise Financial. ...read more

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Safety Strategy: Ameriprise Financial Debt Financing Safety above-average

SAFETY METRICS	September 14, 2023
LEVERAGE
LEVERAGE	7
REFINANCING
REFINANCING	85
LIQUIDITY
LIQUIDITY	73
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	69

ANALYSIS: With an Obermatt Safety Rank of 69 (better than 69% compared with alternatives), the company Ameriprise Financial has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Ameriprise Financial is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Ameriprise Financial. Refinancing is at 85, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 85% of its competitors. Liquidity is also good at 73, meaning the company generates more profit to service its debt than 73% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 7, which means the company has an above-average debt-to-equity ratio. It has more debt than 93% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 69 (better than 69% compared with alternatives), Ameriprise Financial has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Ameriprise Financial could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. ...read more

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Combined financial peformance: Ameriprise Financial Above-Average Financial Performance

COMBINED PERFORMANCE	September 14, 2023
VALUE
VALUE	38
GROWTH
GROWTH	57
SAFETY
SAFETY	73
COMBINED
COMBINED	55

ANALYSIS: With an Obermatt Combined Rank of 55 (better than 55% compared with investment alternatives), Ameriprise Financial (Asset Management & Custody, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Ameriprise Financial are low in value (priced high) with a consolidated Value Rank of 38 (worse than 62% of alternatives). But they show above-average growth (Growth Rank of 57) and are safely financed (Safety Rank of 69, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 55, is a buy recommendation based on Ameriprise Financial's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Ameriprise Financial exhibits low value (Obermatt Value Rank of 38), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 57). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 69) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). ...read more

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