AMP

Ameriprise is a high-quality, fee-driven wealth and asset manager firing on its core engine: total AUM rose 11% to $1.3 trillion and AUMA reached $1.7 trillion, led by a 17% jump in Advice & Wealth Management AUM ($666.4B) on market appreciation and wrap net inflows. That flows straight to the P&L — management and financial advice fees grew 10% to $11.1B and total net revenues rose 7% to $18.48B, driving pretax income up 6% to $4.5B and net income to $3.56B. Profitability is exceptional: 18.8% net margin and a 54.4% ROE, the latter amplified by an aggressive buyback that shrank shares 5.1% and lifted diluted EPS 9.8% to $36.28 even as net income grew only 4.8%. Operating cash flow of $8.32B (+26%) comfortably funds the $2.91B of repurchases and $596M of dividends, and the durable five-year revenue march ($13.4B→$18.9B) confirms a structurally growing franchise.

The stock is priced as if none of this is happening. At $467.43 it trades at 12.9x FY EPS and 2.3x sales — a clear discount for a business compounding fees, AUM and per-share earnings while returning more cash each year. The MD&A frames the model honestly: revenue and net income are 'significantly affected by investment performance and the total value and composition of assets we manage,' meaning the market tailwind that helped in 2025 is also the chief risk. But with retained earnings of $27.7B, $11.2B of cash, and a self-reinforcing buyback-plus-growth flywheel, the risk/reward skews favorably toward owners.