AMERICAN EXPRESS CO (1AXP.MI) Stock Fundamental Analysis
Europe - BIT:1AXP - US0258161092 - Common Stock
282.7 EUR
+4.4 (+1.58%)
Taking everything into account, 1AXP scores 4 out of 10 in our fundamental rating. 1AXP was compared to 8 industry peers in the Consumer Finance industry. 1AXP has an excellent profitability rating, but there are concerns on its financial health. 1AXP is valied quite expensively at the moment, while it does show 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.
In the past 5 years 1AXP has always been profitable.
Each year in the past 5 years 1AXP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.39%, 1AXP is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
With an excellent Return On Equity value of 31.00%, 1AXP belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.62%, 1AXP is doing good in the industry, outperforming 62.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1AXP is in line with the industry average of 4.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 31% | ||
| ROIC | 3.62% |
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
1AXP has a better Profit Margin (13.38%) than 87.50% of its industry peers.
1AXP's Profit Margin has been stable in the last couple of years.
1AXP has a Operating Margin of 17.21%. This is in the better half of the industry: 1AXP outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of 1AXP has remained more or less at the same level.
1AXP has a Gross Margin (61.37%) which is in line with its industry peers.
1AXP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.21% | ||
| PM (TTM) | 13.38% | ||
| GM | 61.37% |
OM growth 3Y-8.78%
OM growth 5Y-0.57%
PM growth 3Y-8.37%
PM growth 5Y-0.22%
GM growth 3Y-2.58%
GM growth 5Y-1.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1AXP is destroying value.
Compared to 1 year ago, 1AXP has less shares outstanding
The number of shares outstanding for 1AXP has been reduced compared to 5 years ago.
1AXP has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that 1AXP is in the distress zone and has some risk of bankruptcy.
1AXP's Altman-Z score of 0.84 is amongst the best of the industry. 1AXP outperforms 87.50% of its industry peers.
The Debt to FCF ratio of 1AXP is 18.84, which is on the high side as it means it would take 1AXP, 18.84 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 18.84, 1AXP is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
1AXP has a Debt/Equity ratio of 6.47. This is a high value indicating a heavy dependency on external financing.
1AXP has a worse Debt to Equity ratio (6.47) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.47 | ||
| Debt/FCF | 18.84 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.37
WACC9.78%
2.3 Liquidity
1AXP has a Current Ratio of 0.71. 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 worse Current ratio (0.71) than 62.50% of its industry peers.
1AXP has a Quick Ratio of 0.71. 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 worse Quick ratio (0.71) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.85% 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 been growing slightly by 5.28% in the past year.
1AXP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.79% yearly.
EPS 1Y (TTM)11.85%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%16.91%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%9.32%
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 Y15.84%
EPS Next 2Y14.28%
EPS Next 3Y13.77%
EPS Next 5Y10.4%
Revenue Next Year8.56%
Revenue Next 2Y8.44%
Revenue Next 3Y8.28%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.25, which indicates a rather expensive current valuation of 1AXP.
1AXP's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.27, 1AXP is valued at the same level.
With a Price/Forward Earnings ratio of 19.00, 1AXP is valued on the expensive side.
1AXP's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1AXP is more expensive than 75.00% of the companies in the same industry.
1AXP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.25 | ||
| Fwd PE | 19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1AXP is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 1AXP is valued a bit more expensive than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.78 | ||
| EV/EBITDA | 15.82 |
4.3 Compensation for Growth
1AXP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 1AXP may justify a higher PE ratio.
1AXP's earnings are expected to grow with 13.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.47
PEG (5Y)2.26
EPS Next 2Y14.28%
EPS Next 3Y13.77%
5. Dividend
5.1 Amount
1AXP has a Yearly Dividend Yield of 1.01%.
Compared to an average industry Dividend Yield of 4.00, 1AXP pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.01, 1AXP pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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
1AXP pays out 21.24% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1AXP is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP21.24%
EPS Next 2Y14.28%
EPS Next 3Y13.77%
BIT:1AXP (9/1/2025, 7:00:00 PM)
282.7
+4.4 (+1.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.51%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap196.73B
Analysts68
Price Target276.88 (-2.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend2.39
Dividend Growth(5Y)10.33%
DP21.24%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.98%
Min EPS beat(2)3.86%
Max EPS beat(2)4.09%
EPS beat(4)3
Avg EPS beat(4)3.06%
Min EPS beat(4)-0.95%
Max EPS beat(4)5.25%
EPS beat(8)6
Avg EPS beat(8)4.96%
EPS beat(12)8
Avg EPS beat(12)2.05%
EPS beat(16)12
Avg EPS beat(16)5.08%
Revenue beat(2)0
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-0.81%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)-0.18%
Revenue beat(8)0
Avg Revenue beat(8)-1.2%
Revenue beat(12)3
Avg Revenue beat(12)0.83%
Revenue beat(16)7
Avg Revenue beat(16)2.19%
PT rev (1m)5.96%
PT rev (3m)4.89%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-1.04%
EPS NY rev (1m)0.52%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.25 | ||
| Fwd PE | 19 | ||
| P/S | 3.08 | ||
| P/FCF | 20.78 | ||
| P/OCF | 17.61 | ||
| P/B | 7.13 | ||
| P/tB | 7.13 | ||
| EV/EBITDA | 15.82 |
EPS(TTM)12.16
EY4.3%
EPS(NY)14.88
Fwd EY5.26%
FCF(TTM)13.61
FCFY4.81%
OCF(TTM)16.06
OCFY5.68%
SpS91.84
BVpS39.62
TBVpS39.62
PEG (NY)1.47
PEG (5Y)2.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 31% | ||
| ROCE | 9.87% | ||
| ROIC | 3.62% | ||
| ROICexc | 4.55% | ||
| ROICexgc | 5.06% | ||
| OM | 17.21% | ||
| PM (TTM) | 13.38% | ||
| GM | 61.37% | ||
| FCFM | 14.82% |
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-8.78%
OM growth 5Y-0.57%
PM growth 3Y-8.37%
PM growth 5Y-0.22%
GM growth 3Y-2.58%
GM growth 5Y-1.09%
F-Score5
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.47 | ||
| Debt/FCF | 18.84 | ||
| Debt/EBITDA | 14.31 | ||
| Cap/Depr | 115.88% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.62% | ||
| Profit Quality | 110.76% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 0.84 |
F-Score5
WACC9.78%
ROIC/WACC0.37
Cap/Depr(3y)107.59%
Cap/Depr(5y)102%
Cap/Sales(3y)2.77%
Cap/Sales(5y)3.15%
Profit Quality(3y)195.73%
Profit Quality(5y)177.62%
High Growth Momentum
Growth
EPS 1Y (TTM)11.85%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%16.91%
EPS Next Y15.84%
EPS Next 2Y14.28%
EPS Next 3Y13.77%
EPS Next 5Y10.4%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%9.32%
Revenue Next Year8.56%
Revenue Next 2Y8.44%
Revenue Next 3Y8.28%
Revenue Next 5Y7.38%
EBIT growth 1Y6.08%
EBIT growth 3Y7.6%
EBIT growth 5Y8.16%
EBIT Next Year45.1%
EBIT Next 3Y9.75%
EBIT Next 5YN/A
FCF growth 1Y-25%
FCF growth 3Y-2.5%
FCF growth 5Y0.25%
OCF growth 1Y-20.57%
OCF growth 3Y-1.37%
OCF growth 5Y0.61%