AMERICAN EXPRESS CO (AEC1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AEC1 - US0258161092 - Common Stock
301.5 EUR
+2.2 (+0.74%)
We assign a fundamental rating of 5 out of 10 to AEC1. AEC1 was compared to 8 industry peers in the Consumer Finance industry. AEC1 has an excellent profitability rating, but there are concerns on its financial health. AEC1 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- AEC1 had positive earnings in the past year.
- AEC1 had a positive operating cash flow in the past year.
- AEC1 had positive earnings in each of the past 5 years.
- AEC1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AEC1's Return On Assets of 3.50% is amongst the best of the industry. AEC1 outperforms 87.50% of its industry peers.
- The Return On Equity of AEC1 (32.12%) is better than 100.00% of its industry peers.
- With a decent Return On Invested Capital value of 3.77%, AEC1 is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- AEC1 had an Average Return On Invested Capital over the past 3 years of 3.64%. This is in line with the industry average of 4.67%.
- The last Return On Invested Capital (3.77%) for AEC1 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
- AEC1 has a Profit Margin of 13.72%. This is in the better half of the industry: AEC1 outperforms 62.50% of its industry peers.
- In the last couple of years the Profit Margin of AEC1 has remained more or less at the same level.
- AEC1's Operating Margin of 17.76% is amongst the best of the industry. AEC1 outperforms 87.50% of its industry peers.
- AEC1's Operating Margin has been stable in the last couple of years.
- The Gross Margin of AEC1 (61.93%) is better than 62.50% of its industry peers.
- In the last couple of years the Gross Margin of AEC1 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 AEC1 is destroying value.
- AEC1 has less shares outstanding than it did 1 year ago.
- AEC1 has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for AEC1 is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.86, we must say that AEC1 is in the distress zone and has some risk of bankruptcy.
- AEC1's Altman-Z score of 0.86 is amongst the best of the industry. AEC1 outperforms 87.50% of its industry peers.
- The Debt to FCF ratio of AEC1 is 11.04, which is on the high side as it means it would take AEC1, 11.04 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 11.04, AEC1 is in line with its industry, outperforming 50.00% of the companies in the same industry.
- A Debt/Equity ratio of 6.45 is on the high side and indicates that AEC1 has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 6.45, AEC1 is doing worse than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.53
WACC7.14%
2.3 Liquidity
- A Current Ratio of 0.68 indicates that AEC1 may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.68, AEC1 is in line with its industry, outperforming 50.00% of the companies in the same industry.
- A Quick Ratio of 0.68 indicates that AEC1 may have some problems paying its short term obligations.
- AEC1 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
- AEC1 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, AEC1 shows a small growth in Revenue. The Revenue has grown by 4.37% in the last year.
- AEC1 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
- The Earnings Per Share is expected to grow by 13.41% on average over the next years. This is quite good.
- Based on estimates for the next years, AEC1 will show a small growth in Revenue. The Revenue will grow by 7.50% on average per year.
EPS Next Y16.7%
EPS Next 2Y14.82%
EPS Next 3Y14.74%
EPS Next 5Y13.41%
Revenue Next Year9.39%
Revenue Next 2Y9.18%
Revenue Next 3Y9.05%
Revenue Next 5Y7.5%
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 accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 24.14, the valuation of AEC1 can be described as rather expensive.
- AEC1's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 28.82. AEC1 is around the same levels.
- Based on the Price/Forward Earnings ratio of 20.43, the valuation of AEC1 can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, AEC1 is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
- When comparing the Price/Forward Earnings ratio of AEC1 to the average of the S&P500 Index (25.95), we can say AEC1 is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.14 | ||
| Fwd PE | 20.43 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AEC1 indicates a somewhat cheap valuation: AEC1 is cheaper than 75.00% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as AEC1.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.08 | ||
| EV/EBITDA | 16.53 |
4.3 Compensation for Growth
- AEC1's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of AEC1 may justify a higher PE ratio.
- A more expensive valuation may be justified as AEC1's earnings are expected to grow with 14.74% in the coming years.
PEG (NY)1.45
PEG (5Y)2.35
EPS Next 2Y14.82%
EPS Next 3Y14.74%
5. Dividend
5.1 Amount
- AEC1 has a yearly dividend return of 0.89%, which is pretty low.
- AEC1's Dividend Yield is a higher than the industry average which is at 1.75.
- Compared to an average S&P500 Dividend Yield of 1.82, AEC1's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
- The dividend of AEC1 is nicely growing with an annual growth rate of 10.33%!
Dividend Growth(5Y)10.33%
Div Incr Years3
Div Non Decr Years6
5.3 Sustainability
- AEC1 pays out 21.11% of its income as dividend. This is a sustainable payout ratio.
- The dividend of AEC1 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.11%
EPS Next 2Y14.82%
EPS Next 3Y14.74%
AMERICAN EXPRESS CO / AEC1.DE FAQ
What is the fundamental rating for AEC1 stock?
ChartMill assigns a fundamental rating of 5 / 10 to AEC1.DE.
Can you provide the valuation status for AMERICAN EXPRESS CO?
ChartMill assigns a valuation rating of 4 / 10 to AMERICAN EXPRESS CO (AEC1.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for AMERICAN EXPRESS CO?
AMERICAN EXPRESS CO (AEC1.DE) has a profitability rating of 8 / 10.
What is the financial health of AMERICAN EXPRESS CO (AEC1.DE) stock?
The financial health rating of AMERICAN EXPRESS CO (AEC1.DE) is 3 / 10.
How sustainable is the dividend of AMERICAN EXPRESS CO (AEC1.DE) stock?
The dividend rating of AMERICAN EXPRESS CO (AEC1.DE) is 5 / 10 and the dividend payout ratio is 21.11%.