AMPNEUTRAL

Gross Margin

50.3%

Higher than 30% of Financial Services sector peers

Updated 1928h ago

Sector Performance

30th percentile

AMP

50.3%

Sector Median

68.5%

Sector Avg

67.7%

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Deep Analysis

Ameriprise Financial’s gross margin of 50.3% means that for every dollar of revenue, the company keeps $0.503 after covering the direct costs of providing its services, giving a basic measure of operational efficiency.

That figure sits well below the Financial Services sector median of 76.6%, placing AMP in the 23rd percentile among its peers—indicating it retains a smaller share of revenue after direct costs than most competitors. This metric shows no trend because year-over-year change and quarter-over-quarter change are both listed as N/A, and only a single historical value is available, so no direction can be assessed. The combination of a below-median gross margin with no trend data offers neither a clear risk signal nor a clear opportunity, making it difficult to draw a strong conclusion from this metric alone. Given the overall NEUTRAL verdict on the stock, this metric does not contradict the neutral stance but highlights a relative weakness in cost efficiency compared to sector peers.

Frequently Asked Questions

What does the Gross Margin tell investors about AMP?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does AMP's Gross Margin compare to its sector?

AMP's Gross Margin of 50.3% compares to a Financial Services sector median of 68.5%, placing it in the 30th percentile.

Who are AMP's closest peers by Gross Margin?

The closest Financial Services peers by Gross Margin include: SLM (68.5%), SPGI (70.4%), JPM (64.3%), IBN (73.6%), HDB (58.4%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.