AMERICAN EXPRESS CO (1AXP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AXP - US0258161092 - Common Stock
324.25 EUR
+4.65 (+1.45%)
Overall 1AXP gets a fundamental rating of 4 out of 10. We evaluated 1AXP against 10 industry peers in the Consumer Finance industry. While 1AXP belongs to the best of the industry regarding profitability, there are concerns on its financial health. 1AXP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1AXP had positive earnings in the past year.
In the past year 1AXP had a positive cash flow from operations.
1AXP had positive earnings in each of the past 5 years.
Each year in the past 5 years 1AXP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1AXP (3.50%) is better than 80.00% of its industry peers.
1AXP's Return On Equity of 32.12% is amongst the best of the industry. 1AXP outperforms 90.00% of its industry peers.
The Return On Invested Capital of 1AXP (3.77%) is better than 70.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1AXP is in line with the industry average of 4.39%.
The last Return On Invested Capital (3.77%) for 1AXP is above the 3 year average (3.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 32.12% | ||
| ROIC | 3.77% |
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 a decent Profit Margin value of 13.72%, 1AXP is doing good in the industry, outperforming 70.00% of the companies in the same industry.
1AXP's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 17.76%, 1AXP is doing good in the industry, outperforming 80.00% 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.
The Gross Margin of 1AXP (61.93%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1AXP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.76% | ||
| PM (TTM) | 13.72% | ||
| GM | 61.93% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1AXP is destroying value.
The number of shares outstanding for 1AXP has been reduced compared to 1 year ago.
The number of shares outstanding for 1AXP has been reduced compared to 5 years ago.
The debt/assets ratio for 1AXP is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.90, we must say that 1AXP is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of 1AXP (0.90) is better than 80.00% of its industry peers.
1AXP has a debt to FCF ratio of 11.04. This is a negative value and a sign of low solvency as 1AXP would need 11.04 years to pay back of all of its debts.
1AXP has a Debt to FCF ratio of 11.04. This is comparable to the rest of the industry: 1AXP outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 6.45 is on the high side and indicates that 1AXP has dependencies on debt financing.
1AXP's Debt to Equity ratio of 6.45 is on the low side compared to the rest of the industry. 1AXP is outperformed by 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.43
WACC8.82%
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 worse Current ratio (0.68) than 60.00% 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's Quick ratio of 0.68 is on the low side compared to the rest of the industry. 1AXP is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
1AXP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.24%, which is quite good.
The Earnings Per Share has been growing by 10.27% on average over the past years. This is quite good.
Looking at the last year, 1AXP shows a small growth in Revenue. The Revenue has grown by 4.37% in the last 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)15.24%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%18.62%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%10.76%
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.
Based on estimates for the next years, 1AXP will show a small growth in Revenue. The Revenue will grow by 7.38% on average per year.
EPS Next Y17.08%
EPS Next 2Y14.97%
EPS Next 3Y14.7%
EPS Next 5Y10.4%
Revenue Next Year9.33%
Revenue Next 2Y9.09%
Revenue Next 3Y8.86%
Revenue Next 5Y7.38%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
With a Price/Earnings ratio of 25.49, 1AXP can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as 1AXP.
1AXP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.38.
1AXP is valuated rather expensively with a Price/Forward Earnings ratio of 21.52.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AXP indicates a slightly more expensive valuation: 1AXP is more expensive than 70.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.83. 1AXP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.49 | ||
| Fwd PE | 21.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1AXP is valued a bit cheaper than 70.00% of the companies in the same industry.
60.00% of the companies in the same industry are cheaper than 1AXP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.81 | ||
| EV/EBITDA | 17.55 |
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 14.70% in the coming years.
PEG (NY)1.49
PEG (5Y)2.48
EPS Next 2Y14.97%
EPS Next 3Y14.7%
5. Dividend
5.1 Amount
With a yearly dividend of 0.87%, 1AXP is not a good candidate for dividend investing.
1AXP's Dividend Yield is a higher than the industry average which is at 1.63.
With a Dividend Yield of 0.87, 1AXP pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
On average, the dividend of 1AXP grows each year by 10.33%, which is quite nice.
Dividend Growth(5Y)10.33%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1AXP pays out 21.11% 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.
DP21.11%
EPS Next 2Y14.97%
EPS Next 3Y14.7%
BIT:1AXP (12/12/2025, 7:00:00 PM)
324.25
+4.65 (+1.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.15%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap223.36B
Revenue(TTM)75.91B
Net Income(TTM)10.41B
Analysts68.89
Price Target307.5 (-5.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend2.4
Dividend Growth(5Y)10.33%
DP21.11%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.22%
Min EPS beat(2)2.58%
Max EPS beat(2)3.86%
EPS beat(4)3
Avg EPS beat(4)2.4%
Min EPS beat(4)-0.95%
Max EPS beat(4)4.09%
EPS beat(8)6
Avg EPS beat(8)3.9%
EPS beat(12)8
Avg EPS beat(12)2.15%
EPS beat(16)12
Avg EPS beat(16)3.7%
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-0.18%
Max Revenue beat(2)1.09%
Revenue beat(4)1
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)1.09%
Revenue beat(8)1
Avg Revenue beat(8)-0.95%
Revenue beat(12)3
Avg Revenue beat(12)0.48%
Revenue beat(16)7
Avg Revenue beat(16)1.9%
PT rev (1m)0.95%
PT rev (3m)11.06%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.94%
EPS NY rev (1m)0.16%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.49 | ||
| Fwd PE | 21.52 | ||
| P/S | 3.45 | ||
| P/FCF | 13.81 | ||
| P/OCF | 12.38 | ||
| P/B | 8.07 | ||
| P/tB | 8.07 | ||
| EV/EBITDA | 17.55 |
EPS(TTM)12.72
EY3.92%
EPS(NY)15.07
Fwd EY4.65%
FCF(TTM)23.48
FCFY7.24%
OCF(TTM)26.2
OCFY8.08%
SpS94.09
BVpS40.18
TBVpS40.18
PEG (NY)1.49
PEG (5Y)2.48
Graham Number107.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 32.12% | ||
| ROCE | 10.25% | ||
| ROIC | 3.77% | ||
| ROICexc | 4.62% | ||
| ROICexgc | 5.14% | ||
| OM | 17.76% | ||
| PM (TTM) | 13.72% | ||
| GM | 61.93% | ||
| FCFM | 24.95% |
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%
ROICexgc growth 3Y-4.54%
ROICexgc 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-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Debt/EBITDA | 13.73 | ||
| Cap/Depr | 126.1% | ||
| Cap/Sales | 2.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 138.84% | ||
| Profit Quality | 181.93% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 0.9 |
F-Score6
WACC8.82%
ROIC/WACC0.43
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)15.24%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%18.62%
EPS Next Y17.08%
EPS Next 2Y14.97%
EPS Next 3Y14.7%
EPS Next 5Y10.4%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%10.76%
Revenue Next Year9.33%
Revenue Next 2Y9.09%
Revenue Next 3Y8.86%
Revenue Next 5Y7.38%
EBIT growth 1Y10.4%
EBIT growth 3Y7.6%
EBIT growth 5Y8.16%
EBIT Next Year45.1%
EBIT Next 3Y10%
EBIT Next 5YN/A
FCF growth 1Y1.99%
FCF growth 3Y-2.5%
FCF growth 5Y0.25%
OCF growth 1Y4.53%
OCF growth 3Y-1.37%
OCF growth 5Y0.61%
AMERICAN EXPRESS CO / 1AXP.MI FAQ
Can you provide the ChartMill fundamental rating for AMERICAN EXPRESS CO?
ChartMill assigns a fundamental rating of 4 / 10 to 1AXP.MI.
What is the valuation status for 1AXP stock?
ChartMill assigns a valuation rating of 2 / 10 to AMERICAN EXPRESS CO (1AXP.MI). This can be considered as Overvalued.
Can you provide the profitability details for AMERICAN EXPRESS CO?
AMERICAN EXPRESS CO (1AXP.MI) has a profitability rating of 7 / 10.
What are the PE and PB ratios of AMERICAN EXPRESS CO (1AXP.MI) stock?
The Price/Earnings (PE) ratio for AMERICAN EXPRESS CO (1AXP.MI) is 25.49 and the Price/Book (PB) ratio is 8.07.
Can you provide the financial health for 1AXP stock?
The financial health rating of AMERICAN EXPRESS CO (1AXP.MI) is 2 / 10.