AMERICAN EXPRESS CO (1AXP.MI) Stock Fundamental Analysis
BIT:1AXP - Euronext Milan - US0258161092 - Common Stock - Currency: EUR
Overall 1AXP gets a fundamental rating of 5 out of 10. We evaluated 1AXP against 7 industry peers in the Consumer Finance industry. 1AXP has an excellent profitability rating, but there are concerns on its financial health. 1AXP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1AXP was profitable.
In the past year 1AXP had a positive cash flow from operations.
Each year in the past 5 years 1AXP has been profitable.
In the past 5 years 1AXP always reported a positive cash flow from operatings.
1.2 Ratios
1AXP has a Return On Assets of 3.59%. This is amongst the best in the industry. 1AXP outperforms 85.71% of its industry peers.
The Return On Equity of 1AXP (32.50%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.70%, 1AXP is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1AXP is in line with the industry average of 4.72%.
The 3 year average ROIC (3.64%) for 1AXP is below the current ROIC(3.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 32.5% | ||
| ROIC | 3.7% |
ROA(3y)3.36%
ROA(5y)3.17%
ROE(3y)30.79%
ROE(5y)28.26%
ROIC(3y)3.64%
ROIC(5y)3.45%
1.3 Margins
With an excellent Profit Margin value of 13.95%, 1AXP belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
1AXP's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 17.29%, 1AXP belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Operating Margin of 1AXP has remained more or less at the same level.
Looking at the Gross Margin, with a value of 61.84%, 1AXP is in line with its industry, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Gross Margin of 1AXP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.29% | ||
| PM (TTM) | 13.95% | ||
| GM | 61.84% |
OM growth 3Y-9.36%
OM growth 5Y-1.39%
PM growth 3Y-8.95%
PM growth 5Y-1.04%
GM growth 3Y-3.2%
GM growth 5Y-1.9%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1AXP is destroying value.
The number of shares outstanding for 1AXP has been reduced compared to 1 year ago.
Compared to 5 years ago, 1AXP has less shares outstanding
The debt/assets ratio for 1AXP is higher compared to a year ago.
2.2 Solvency
1AXP has an Altman-Z score of 0.79. This is a bad value and indicates that 1AXP is not financially healthy and even has some risk of bankruptcy.
1AXP's Altman-Z score of 0.79 is fine compared to the rest of the industry. 1AXP outperforms 71.43% of its industry peers.
The Debt to FCF ratio of 1AXP is 17.60, which is on the high side as it means it would take 1AXP, 17.60 years of fcf income to pay off all of its debts.
1AXP's Debt to FCF ratio of 17.60 is in line compared to the rest of the industry. 1AXP outperforms 57.14% of its industry peers.
1AXP has a Debt/Equity ratio of 6.38. This is a high value indicating a heavy dependency on external financing.
1AXP's Debt to Equity ratio of 6.38 is in line compared to the rest of the industry. 1AXP outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.38 | ||
| Debt/FCF | 17.6 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.49
WACC7.54%
2.3 Liquidity
1AXP has a Current Ratio of 0.68. This is a bad value and indicates that 1AXP is not financially healthy enough and could expect problems in meeting its short term obligations.
1AXP has a Current ratio of 0.68. This is comparable to the rest of the industry: 1AXP outperforms 42.86% of its industry peers.
1AXP has a Quick Ratio of 0.68. This is a bad value and indicates that 1AXP is not financially healthy enough and could expect problems in meeting its short term obligations.
1AXP has a Quick ratio of 0.68. This is comparable to the rest of the industry: 1AXP outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.52% over the past year.
Measured over the past years, 1AXP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.27% on average per year.
The Revenue has grown by 8.00% in the past year. This is quite good.
1AXP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.69% yearly.
EPS 1Y (TTM)12.52%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%9.31%
Revenue 1Y (TTM)8%
Revenue growth 3Y18.7%
Revenue growth 5Y9.69%
Sales Q2Q%7.38%
3.2 Future
Based on estimates for the next years, 1AXP will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.40% on average per year.
1AXP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.38% yearly.
EPS Next Y14.89%
EPS Next 2Y14.58%
EPS Next 3Y14.62%
EPS Next 5Y10.4%
Revenue Next Year8.12%
Revenue Next 2Y8.07%
Revenue Next 3Y7.9%
Revenue Next 5Y7.38%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
1AXP is valuated rather expensively with a Price/Earnings ratio of 21.81.
1AXP's Price/Earnings ratio is a bit cheaper when compared to the industry. 1AXP is cheaper than 71.43% of the companies in the same industry.
1AXP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.00, the valuation of 1AXP can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as 1AXP.
The average S&P500 Price/Forward Earnings ratio is at 22.19. 1AXP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 17 |
4.2 Price Multiples
1AXP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1AXP is cheaper than 71.43% of the companies in the same industry.
71.43% of the companies in the same industry are more expensive than 1AXP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.44 | ||
| EV/EBITDA | 14.3 |
4.3 Compensation for Growth
1AXP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1AXP has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1AXP's earnings are expected to grow with 14.62% in the coming years.
PEG (NY)1.46
PEG (5Y)2.12
EPS Next 2Y14.58%
EPS Next 3Y14.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.10%, 1AXP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.47, 1AXP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, 1AXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
The dividend of 1AXP is nicely growing with an annual growth rate of 10.33%!
Dividend Growth(5Y)10.33%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
20.27% of the earnings are spent on dividend by 1AXP. This is a low number and sustainable payout ratio.
1AXP's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP20.27%
EPS Next 2Y14.58%
EPS Next 3Y14.62%
BIT:1AXP (6/20/2025, 7:00:00 PM)
259.55
+4.35 (+1.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.1%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap181.84B
Analysts70.29
Price Target263.98 (1.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend2.44
Dividend Growth(5Y)10.33%
DP20.27%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.57%
Min EPS beat(2)-0.95%
Max EPS beat(2)4.09%
EPS beat(4)3
Avg EPS beat(4)3.73%
Min EPS beat(4)-0.95%
Max EPS beat(4)6.52%
EPS beat(8)6
Avg EPS beat(8)4.72%
EPS beat(12)8
Avg EPS beat(12)2.19%
EPS beat(16)12
Avg EPS beat(16)8.98%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)-0.81%
Revenue beat(4)0
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)-0.81%
Revenue beat(8)0
Avg Revenue beat(8)-1.64%
Revenue beat(12)4
Avg Revenue beat(12)0.75%
Revenue beat(16)8
Avg Revenue beat(16)1.65%
PT rev (1m)3.64%
PT rev (3m)-14.65%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)-0.75%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 17 | ||
| P/S | 2.87 | ||
| P/FCF | 18.44 | ||
| P/OCF | 15.74 | ||
| P/B | 6.69 | ||
| P/tB | 6.69 | ||
| EV/EBITDA | 14.3 |
EPS(TTM)11.9
EY4.58%
EPS(NY)15.27
Fwd EY5.88%
FCF(TTM)14.07
FCFY5.42%
OCF(TTM)16.49
OCFY6.35%
SpS90.43
BVpS38.8
TBVpS38.8
PEG (NY)1.46
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 32.5% | ||
| ROCE | 10.41% | ||
| ROIC | 3.7% | ||
| ROICexc | 4.59% | ||
| ROICexgc | 5.09% | ||
| OM | 17.29% | ||
| PM (TTM) | 13.95% | ||
| GM | 61.84% | ||
| FCFM | 15.56% |
ROA(3y)3.36%
ROA(5y)3.17%
ROE(3y)30.79%
ROE(5y)28.26%
ROIC(3y)3.64%
ROIC(5y)3.45%
ROICexc(3y)4.36%
ROICexc(5y)4.08%
ROICexgc(3y)4.66%
ROICexgc(5y)4.41%
ROCE(3y)9.86%
ROCE(5y)9.06%
ROICexcg growth 3Y-4.54%
ROICexcg growth 5Y1.68%
ROICexc growth 3Y-3.59%
ROICexc growth 5Y1.93%
OM growth 3Y-9.36%
OM growth 5Y-1.39%
PM growth 3Y-8.95%
PM growth 5Y-1.04%
GM growth 3Y-3.2%
GM growth 5Y-1.9%
F-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.38 | ||
| Debt/FCF | 17.6 | ||
| Debt/EBITDA | 13.94 | ||
| Cap/Depr | 113.15% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.81% | ||
| Profit Quality | 111.59% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 0.79 |
F-Score6
WACC7.54%
ROIC/WACC0.49
Cap/Depr(3y)107.59%
Cap/Depr(5y)102%
Cap/Sales(3y)2.82%
Cap/Sales(5y)3.22%
Profit Quality(3y)195.73%
Profit Quality(5y)177.62%
High Growth Momentum
Growth
EPS 1Y (TTM)12.52%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%9.31%
EPS Next Y14.89%
EPS Next 2Y14.58%
EPS Next 3Y14.62%
EPS Next 5Y10.4%
Revenue 1Y (TTM)8%
Revenue growth 3Y18.7%
Revenue growth 5Y9.69%
Sales Q2Q%7.38%
Revenue Next Year8.12%
Revenue Next 2Y8.07%
Revenue Next 3Y7.9%
Revenue Next 5Y7.38%
EBIT growth 1Y8.05%
EBIT growth 3Y7.6%
EBIT growth 5Y8.16%
EBIT Next Year45.1%
EBIT Next 3Y9.75%
EBIT Next 5YN/A
FCF growth 1Y-24.82%
FCF growth 3Y-2.5%
FCF growth 5Y0.25%
OCF growth 1Y-21.16%
OCF growth 3Y-1.37%
OCF growth 5Y0.61%