AMERICAN EXPRESS CO (1AXP.MI) Stock Fundamental Analysis
BIT:1AXP - Euronext Milan - US0258161092 - Common Stock - Currency: EUR
Overall 1AXP gets a fundamental rating of 4 out of 10. We evaluated 1AXP against 9 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.
Each year in the past 5 years 1AXP has 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 3.59%, 1AXP is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
The Return On Equity of 1AXP (32.50%) is better than 88.89% of its industry peers.
1AXP has a Return On Invested Capital of 3.70%. This is in the better half of the industry: 1AXP outperforms 66.67% of its industry peers.
1AXP had an Average Return On Invested Capital over the past 3 years of 3.64%. This is in line with the industry average of 5.57%.
The last Return On Invested Capital (3.70%) for 1AXP is above the 3 year average (3.64%), which is a sign of increasing profitability.
| 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
The Profit Margin of 1AXP (13.95%) is better than 77.78% of its industry peers.
In the last couple of years the Profit Margin of 1AXP has remained more or less at the same level.
1AXP's Operating Margin of 17.29% is fine compared to the rest of the industry. 1AXP outperforms 77.78% of its industry peers.
1AXP's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 61.84%, 1AXP perfoms like the industry average, outperforming 55.56% 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
1AXP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
1AXP has less shares outstanding than it did 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 0.80. This is a bad value and indicates that 1AXP is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.80, 1AXP belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
1AXP has a debt to FCF ratio of 17.60. This is a negative value and a sign of low solvency as 1AXP would need 17.60 years to pay back of all of its debts.
With a Debt to FCF ratio value of 17.60, 1AXP is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
A Debt/Equity ratio of 6.38 is on the high side and indicates that 1AXP has dependencies on debt financing.
1AXP's Debt to Equity ratio of 6.38 is on the low side compared to the rest of the industry. 1AXP is outperformed by 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.38 | ||
| Debt/FCF | 17.6 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.49
WACC7.63%
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.
The Current ratio of 1AXP (0.68) is comparable to the rest of the industry.
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 (0.68) which is in line with 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 12.52%, 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 quite strong growth in Revenue. The Revenue has grown by 8.00% in the last year.
Measured over the past years, 1AXP shows a quite strong growth in Revenue. The Revenue has been growing by 9.69% on average per year.
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
The Earnings Per Share is expected to grow by 9.87% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.69% on average over the next years.
EPS Next Y15.35%
EPS Next 2Y14.82%
EPS Next 3Y14.54%
EPS Next 5Y9.87%
Revenue Next Year8.19%
Revenue Next 2Y8.14%
Revenue Next 3Y7.94%
Revenue Next 5Y7.69%
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 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 21.66.
1AXP's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.03, 1AXP is valued at the same level.
The Price/Forward Earnings ratio is 16.81, which indicates a correct valuation of 1AXP.
1AXP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, 1AXP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.66 | ||
| Fwd PE | 16.81 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than 1AXP, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1AXP indicates a slightly more expensive valuation: 1AXP is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.32 | ||
| EV/EBITDA | 14.45 |
4.3 Compensation for Growth
The 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 14.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.41
PEG (5Y)2.11
EPS Next 2Y14.82%
EPS Next 3Y14.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.22%, 1AXP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.01, 1AXP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, 1AXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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 slower than its dividend. This means the dividend growth is not sustainable.
DP20.27%
EPS Next 2Y14.82%
EPS Next 3Y14.54%
BIT:1AXP (5/20/2025, 7:00:00 PM)
263.2
-6.1 (-2.27%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.26%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap184.40B
Analysts70.29
Price Target254.71 (-3.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend2.47
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)-13.85%
PT rev (3m)-15.66%
EPS NQ rev (1m)-1.07%
EPS NQ rev (3m)-1.04%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)-0.32%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.66 | ||
| Fwd PE | 16.81 | ||
| P/S | 2.85 | ||
| P/FCF | 18.32 | ||
| P/OCF | 15.63 | ||
| P/B | 6.64 | ||
| P/tB | 6.64 | ||
| EV/EBITDA | 14.45 |
EPS(TTM)12.15
EY4.62%
EPS(NY)15.66
Fwd EY5.95%
FCF(TTM)14.37
FCFY5.46%
OCF(TTM)16.84
OCFY6.4%
SpS92.34
BVpS39.62
TBVpS39.62
PEG (NY)1.41
PEG (5Y)2.11
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 | 0.8 |
F-Score6
WACC7.63%
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 Y15.35%
EPS Next 2Y14.82%
EPS Next 3Y14.54%
EPS Next 5Y9.87%
Revenue 1Y (TTM)8%
Revenue growth 3Y18.7%
Revenue growth 5Y9.69%
Sales Q2Q%7.38%
Revenue Next Year8.19%
Revenue Next 2Y8.14%
Revenue Next 3Y7.94%
Revenue Next 5Y7.69%
EBIT growth 1Y8.05%
EBIT growth 3Y7.6%
EBIT growth 5Y8.16%
EBIT Next Year45.1%
EBIT Next 3Y22.83%
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%