AMERICAN EXPRESS CO (AEC1.DE) Stock Fundamental Analysis
FRA:AEC1 - Deutsche Boerse Ag - US0258161092 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to AEC1. AEC1 was compared to 7 industry peers in the Consumer Finance industry. AEC1 scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, AEC1 is valued expensive at the moment.
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.
In the past 5 years AEC1 has always been profitable.
In the past 5 years AEC1 always reported a positive cash flow from operatings.
1.2 Ratios
AEC1 has a better Return On Assets (3.59%) than 85.71% of its industry peers.
AEC1 has a better Return On Equity (32.50%) than 100.00% of its industry peers.
AEC1's Return On Invested Capital of 3.70% is fine compared to the rest of the industry. AEC1 outperforms 71.43% 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 4.95%.
The 3 year average ROIC (3.64%) for AEC1 is below the current ROIC(3.70%), indicating increased profibility in the last year.
| 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
AEC1's Profit Margin of 13.95% is amongst the best of the industry. AEC1 outperforms 100.00% of its industry peers.
AEC1's Profit Margin has been stable in the last couple of years.
AEC1 has a Operating Margin of 17.29%. This is amongst the best in the industry. AEC1 outperforms 85.71% 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 Gross Margin value of 61.84%, AEC1 perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
AEC1's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AEC1 is destroying value.
AEC1 has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AEC1 has less shares outstanding
Compared to 1 year ago, AEC1 has a worse debt to assets ratio.
2.2 Solvency
AEC1 has an Altman-Z score of 0.85. This is a bad value and indicates that AEC1 is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AEC1 (0.85) is better than 85.71% of its industry peers.
The Debt to FCF ratio of AEC1 is 17.60, which is on the high side as it means it would take AEC1, 17.60 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 17.60, AEC1 is not doing good in the industry: 71.43% 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 AEC1 has dependencies on debt financing.
The Debt to Equity ratio of AEC1 (6.38) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.38 | ||
| Debt/FCF | 17.6 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.48
WACC7.77%
2.3 Liquidity
A Current Ratio of 0.68 indicates that AEC1 may have some problems paying its short term obligations.
AEC1's Current ratio of 0.68 is in line compared to the rest of the industry. AEC1 outperforms 42.86% of its industry peers.
AEC1 has a Quick Ratio of 0.68. This is a bad value and indicates that AEC1 is not financially healthy enough and could expect problems in meeting 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
The Earnings Per Share has grown by an nice 12.52% over the past year.
The Earnings Per Share has been growing by 10.27% on average over the past years. This is quite good.
AEC1 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.00%.
AEC1 shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.69% yearly.
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
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 Y15.15%
EPS Next 2Y14.66%
EPS Next 3Y14.55%
EPS Next 5Y10.4%
Revenue Next Year8.12%
Revenue Next 2Y8.07%
Revenue Next 3Y7.91%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.91, which indicates a rather expensive current valuation of AEC1.
The rest of the industry has a similar Price/Earnings ratio as AEC1.
AEC1 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.60, which indicates a rather expensive current valuation of AEC1.
The rest of the industry has a similar Price/Forward Earnings ratio as AEC1.
AEC1 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.91 | ||
| Fwd PE | 18.6 |
4.2 Price Multiples
71.43% of the companies in the same industry are more expensive than AEC1, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AEC1 is valued a bit more expensive than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.21 | ||
| EV/EBITDA | 16.04 |
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 AEC1 may justify a higher PE ratio.
A more expensive valuation may be justified as AEC1's earnings are expected to grow with 14.55% in the coming years.
PEG (NY)1.58
PEG (5Y)2.33
EPS Next 2Y14.66%
EPS Next 3Y14.55%
5. Dividend
5.1 Amount
AEC1 has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
AEC1's Dividend Yield is comparable with the industry average which is at 3.28.
Compared to an average S&P500 Dividend Yield of 2.42, AEC1's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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
20.27% of the earnings are spent on dividend by AEC1. This is a low number and 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.
DP20.27%
EPS Next 2Y14.66%
EPS Next 3Y14.55%
FRA:AEC1 (7/4/2025, 7:00:00 PM)
277.1
-1.65 (-0.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.1%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap194.13B
Analysts70.29
Price Target260.36 (-6.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend2.4
Dividend Growth(5Y)10.33%
DP20.27%
Div Incr Years3
Div Non Decr Years6
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)-0.33%
PT rev (3m)-10.79%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)-0.81%
EPS NY rev (1m)0.22%
EPS NY rev (3m)-0.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.91 | ||
| Fwd PE | 18.6 | ||
| P/S | 3.15 | ||
| P/FCF | 20.21 | ||
| P/OCF | 17.25 | ||
| P/B | 7.33 | ||
| P/tB | 7.33 | ||
| EV/EBITDA | 16.04 |
EPS(TTM)11.59
EY4.18%
EPS(NY)14.9
Fwd EY5.38%
FCF(TTM)13.71
FCFY4.95%
OCF(TTM)16.07
OCFY5.8%
SpS88.1
BVpS37.8
TBVpS37.8
PEG (NY)1.58
PEG (5Y)2.33
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 | 0.85 |
F-Score6
WACC7.77%
ROIC/WACC0.48
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 Y15.15%
EPS Next 2Y14.66%
EPS Next 3Y14.55%
EPS Next 5Y10.4%
Revenue 1Y (TTM)8%
Revenue growth 3Y18.7%
Revenue growth 5Y9.69%
Sales Q2Q%7.38%
Revenue Next Year8.12%
Revenue Next 2Y8.07%
Revenue Next 3Y7.91%
Revenue Next 5Y7.38%
EBIT growth 1Y8.05%
EBIT growth 3Y7.6%
EBIT growth 5Y8.16%
EBIT Next Year45.1%
EBIT Next 3Y9.75%
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%