AMERICAN EXPRESS CO (AEC1.DE) Stock Fundamental Analysis
Europe - FRA:AEC1 - US0258161092 - Common Stock
280.7 EUR
+0.85 (+0.3%)
AEC1 gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 8 industry peers in the Consumer Finance industry. While AEC1 has a great profitability rating, there are quite some concerns on its financial health. AEC1 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AEC1 was profitable.
In the past year AEC1 had a positive cash flow from operations.
Each year in the past 5 years AEC1 has been profitable.
AEC1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.39%, AEC1 belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
The Return On Equity of AEC1 (31.00%) is better than 100.00% of its industry peers.
AEC1's Return On Invested Capital of 3.62% is fine compared to the rest of the industry. AEC1 outperforms 75.00% 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 4.44%.
| 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
AEC1 has a Profit Margin of 13.38%. This is amongst the best in the industry. AEC1 outperforms 87.50% of its industry peers.
In the last couple of years the Profit Margin of AEC1 has remained more or less at the same level.
The Operating Margin of AEC1 (17.21%) is better than 87.50% of its industry peers.
In the last couple of years the Operating Margin of AEC1 has remained more or less at the same level.
With a decent Gross Margin value of 61.37%, AEC1 is doing good in the industry, outperforming 62.50% of the companies in the same industry.
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.
Compared to 1 year ago, AEC1 has less shares outstanding
Compared to 5 years ago, AEC1 has less shares outstanding
The debt/assets ratio for AEC1 is higher compared to a year ago.
2.2 Solvency
AEC1 has an Altman-Z score of 0.84. This is a bad value and indicates that AEC1 is not financially healthy and even has some risk of bankruptcy.
AEC1 has a better Altman-Z score (0.84) than 87.50% of its industry peers.
The Debt to FCF ratio of AEC1 is 18.84, which is on the high side as it means it would take AEC1, 18.84 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 18.84, AEC1 is doing worse than 62.50% of the companies in the same industry.
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 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.47 | ||
| Debt/FCF | 18.84 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.37
WACC9.79%
2.3 Liquidity
AEC1 has a Current 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 Current ratio value of 0.71, AEC1 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 0.71 indicates that AEC1 may have some problems paying its short term obligations.
AEC1 has a Quick ratio (0.71) which is in line with its industry peers.
| 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.
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 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.
Based on estimates for the next years, AEC1 will show a small growth in Revenue. The Revenue will grow by 7.38% on average per year.
EPS Next Y15.9%
EPS Next 2Y14.31%
EPS Next 3Y13.8%
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
Based on the Price/Earnings ratio of 23.16, the valuation of AEC1 can be described as rather expensive.
Based on the Price/Earnings ratio, AEC1 is valued a bit cheaper than 75.00% of the companies in the same industry.
AEC1 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.91, the valuation of AEC1 can be described as rather expensive.
62.50% of the companies in the same industry are cheaper than AEC1, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AEC1 to the average of the S&P500 Index (23.32), we can say AEC1 is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.16 | ||
| Fwd PE | 18.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AEC1 is valued a bit cheaper than 75.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AEC1 is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.69 | ||
| EV/EBITDA | 15.71 |
4.3 Compensation for Growth
The 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.
AEC1's earnings are expected to grow with 13.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.46
PEG (5Y)2.26
EPS Next 2Y14.31%
EPS Next 3Y13.8%
5. Dividend
5.1 Amount
With a yearly dividend of 0.96%, AEC1 is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.99, AEC1 pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, AEC1's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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
21.24% of the earnings are spent on dividend by AEC1. This is a low number and sustainable payout ratio.
AEC1's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP21.24%
EPS Next 2Y14.31%
EPS Next 3Y13.8%
FRA:AEC1 (10/3/2025, 7:00:00 PM)
280.7
+0.85 (+0.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.31%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap195.33B
Analysts68
Price Target275.14 (-1.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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)-0.77%
PT rev (3m)5.68%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-1.04%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.65%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.16 | ||
| Fwd PE | 18.91 | ||
| P/S | 3.07 | ||
| P/FCF | 20.69 | ||
| P/OCF | 17.53 | ||
| P/B | 7.11 | ||
| P/tB | 7.11 | ||
| EV/EBITDA | 15.71 |
EPS(TTM)12.12
EY4.32%
EPS(NY)14.84
Fwd EY5.29%
FCF(TTM)13.56
FCFY4.83%
OCF(TTM)16.01
OCFY5.7%
SpS91.56
BVpS39.5
TBVpS39.5
PEG (NY)1.46
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
WACC9.79%
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 Y15.9%
EPS Next 2Y14.31%
EPS Next 3Y13.8%
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 3Y10%
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%