Ameriprise Financial, Inc. (AMP): A Bull Case Theory 

We came across a bullish thesis on Ameriprise Financial, Inc. on Benevolus’s Substack. In this article, we will summarize the bulls’ thesis on AMP. Ameriprise Financial, Inc.’s share was trading at $495.37 as of January 13th. AMP’s trailing and forward P/E were 13.63 and 12.09, respectively according to Yahoo Finance.

Ameriprise Financial, originally founded as Investors Syndicate in 1894 and later rebranded as Investors Diversified Services (IDS), has evolved into a leading U.S.-focused wealth management and financial services firm. The company’s business model is centered around providing comprehensive advisory, asset management, and in-house insurance solutions, allowing clients to access a full suite of financial services under one roof.

Today, 60% of Ameriprise’s revenue comes from its wealth management segment, which has historically driven earnings growth, with the remainder split between asset management and retirement and protection services. Growth has been fueled by rising assets under management (AUM), increased adoption of new products, and expansion of the client base, rather than advisor headcount growth, highlighting the capital-light, scalable nature of its business. The wealth management segment, in particular, benefits from a sticky client base in the mass-affluent segment and a flexible cost structure, as advisors are largely incentivized through variable compensation, allowing management to adjust costs during economic downturns.

Ameriprise has achieved a 59.6% return on equity, three-year EPS growth of 15%, and a current P/E of 12.4, with EBITDA growth of 8% enhanced by share repurchases. While industry trends toward passive investing pose challenges, Ameriprise’s transition to a wrap-fee advisory model aligns advisor and client interests, mitigating risk.

Key risks include advisor departures, fee compression, and exposure to market drawdowns affecting mass-affluent clients. Overall, Ameriprise is a well-run, high-quality compounder, leveraging its integrated service offering and independent advisor model to capture underserved clients and adapt to industry shifts, making it an attractive long-term investment with resilient growth and modest current undervaluation.

Previously, we covered a bullish thesis on BlackRock, Inc. (BLK) by Kroker Equity Research in February 2025, which highlighted the company’s unmatched scale in asset management, strong ETF franchise through iShares, expanding private markets exposure, and high-margin Aladdin platform. BLK’s stock price has appreciated by approximately 9.82% since our coverage. This is because the thesis played out as inflows and earnings growth remained robust. Benevolus shares a similar view but emphasizes Ameriprise’s wealth-management-led earnings, mass-affluent focus, and advisor-driven compounding model.

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Disclosure: None.