AMERICAN EXPRESS CO (AEC1.DE) Stock Fundamental Analysis
FRA:AEC1 - US0258161092 - Common Stock
277.7 EUR
-3.75 (-1.33%)
Taking everything into account, AEC1 scores 5 out of 10 in our fundamental rating. AEC1 was compared to 9 industry peers in the Consumer Finance industry. AEC1 scores excellent on profitability, 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.
In the past year AEC1 had a positive cash flow from operations.
In the past 5 years AEC1 has always been profitable.
AEC1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 3.39%, AEC1 belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
AEC1's Return On Equity of 31.00% is amongst the best of the industry. AEC1 outperforms 100.00% of its industry peers.
The Return On Invested Capital of AEC1 (3.62%) is better than 77.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AEC1 is in line with the industry average of 4.69%.
| 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
With an excellent Profit Margin value of 13.38%, AEC1 belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
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 17.21% is amongst the best of the industry. AEC1 outperforms 88.89% of its industry peers.
AEC1's Operating Margin has been stable in the last couple of years.
The Gross Margin of AEC1 (61.37%) is better than 66.67% 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 | 17.21% | ||
| 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
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.
The number of shares outstanding for AEC1 has been reduced compared to 5 years ago.
AEC1 has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.83, we must say that AEC1 is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AEC1 (0.83) is better than 77.78% of its industry peers.
AEC1 has a debt to FCF ratio of 18.84. This is a negative value and a sign of low solvency as AEC1 would need 18.84 years to pay back of all of its debts.
AEC1's Debt to FCF ratio of 18.84 is in line compared to the rest of the industry. AEC1 outperforms 44.44% of its industry peers.
AEC1 has a Debt/Equity ratio of 6.47. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 6.47, AEC1 is doing worse than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.47 | ||
| Debt/FCF | 18.84 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.37
WACC9.7%
2.3 Liquidity
A Current Ratio of 0.71 indicates that AEC1 may have some problems paying its short term obligations.
With a Current ratio value of 0.71, AEC1 perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
AEC1 has a Quick Ratio of 0.71. This is a bad value and indicates that AEC1 is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.71, AEC1 perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
AEC1 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.85%, which is quite good.
AEC1 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.27% yearly.
Looking at the last year, AEC1 shows a small growth in Revenue. The Revenue has grown by 5.28% 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)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, AEC1 will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.40% on average per year.
AEC1 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 Year8.55%
Revenue Next 2Y8.45%
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.
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 22.80, the valuation of AEC1 can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AEC1 indicates a somewhat cheap valuation: AEC1 is cheaper than 66.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.06, AEC1 is valued at the same level.
With a Price/Forward Earnings ratio of 18.63, AEC1 is valued on the expensive side.
AEC1's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, AEC1 is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.8 | ||
| Fwd PE | 18.63 |
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 77.78% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AEC1 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.37 | ||
| EV/EBITDA | 15.52 |
4.3 Compensation for Growth
AEC1's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AEC1 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AEC1's earnings are expected to grow with 13.77% in the coming years.
PEG (NY)1.44
PEG (5Y)2.22
EPS Next 2Y14.28%
EPS Next 3Y13.77%
5. Dividend
5.1 Amount
AEC1 has a yearly dividend return of 0.99%, which is pretty low.
Compared to an average industry Dividend Yield of 3.47, AEC1 has a dividend in line with its industry peers.
With a Dividend Yield of 0.99, AEC1 pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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 21.24% of its income as dividend. This is a sustainable payout ratio.
The dividend of AEC1 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%
FRA:AEC1 (9/5/2025, 7:00:00 PM)
277.7
-3.75 (-1.33%)
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 Cap193.25B
Analysts68
Price Target277.29 (-0.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend2.4
Dividend Growth(5Y)10.33%
DP21.24%
Div Incr Years3
Div Non Decr Years6
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)0.05%
PT rev (3m)5.3%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)0.52%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.8 | ||
| Fwd PE | 18.63 | ||
| P/S | 3.02 | ||
| P/FCF | 20.37 | ||
| P/OCF | 17.26 | ||
| P/B | 7 | ||
| P/tB | 7 | ||
| EV/EBITDA | 15.52 |
EPS(TTM)12.18
EY4.39%
EPS(NY)14.91
Fwd EY5.37%
FCF(TTM)13.63
FCFY4.91%
OCF(TTM)16.09
OCFY5.79%
SpS92
BVpS39.7
TBVpS39.7
PEG (NY)1.44
PEG (5Y)2.22
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 | 0.83 |
F-Score5
WACC9.7%
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 Year8.55%
Revenue Next 2Y8.45%
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%