AMERICAN EXPRESS CO (AEC1.DE) Stock Fundamental Analysis
Europe - FRA:AEC1 - US0258161092 - Common Stock
307.95 EUR
-9.2 (-2.9%)
We assign a fundamental rating of 5 out of 10 to AEC1. AEC1 was compared to 9 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 not valued too expensively and it also shows a decent growth rate.
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.
AEC1 had positive earnings in each of the past 5 years.
In the past 5 years AEC1 always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 3.50%, AEC1 belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
AEC1 has a Return On Equity of 32.12%. This is amongst the best in the industry. AEC1 outperforms 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 77.78% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AEC1 is in line with the industry average of 4.43%.
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 better Profit Margin (13.72%) than 88.89% of its industry peers.
AEC1's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 17.76%, AEC1 belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
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 61.93%, AEC1 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 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AEC1 is destroying value.
Compared to 1 year ago, AEC1 has less shares outstanding
AEC1 has less shares outstanding than it did 5 years ago.
AEC1 has a worse debt/assets ratio than last year.
2.2 Solvency
AEC1 has an Altman-Z score of 0.88. This is a bad value and indicates that AEC1 is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.88, AEC1 is doing good in the industry, outperforming 66.67% of the companies in the same industry.
AEC1 has a debt to FCF ratio of 11.04. This is a negative value and a sign of low solvency as AEC1 would need 11.04 years to pay back of 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 55.56% of the companies in the same industry.
AEC1 has a Debt/Equity ratio of 6.45. This is a high value indicating a heavy dependency on external financing.
AEC1 has a worse Debt to Equity ratio (6.45) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.39
WACC9.6%
2.3 Liquidity
A Current Ratio of 0.68 indicates that AEC1 may have some problems paying its short term obligations.
AEC1 has a Current ratio (0.68) which is in line with its industry peers.
A Quick Ratio of 0.68 indicates that AEC1 may have some problems paying its short term obligations.
With a Quick ratio value of 0.68, AEC1 perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
| 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 15.24% over the past year.
AEC1 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.27% yearly.
AEC1 shows a small growth in Revenue. In the last year, the Revenue has grown by 4.37%.
The Revenue has been growing by 8.79% on average over the past years. This is quite good.
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
AEC1 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.40% yearly.
AEC1 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.38% yearly.
EPS Next Y16.89%
EPS Next 2Y14.8%
EPS Next 3Y14.62%
EPS Next 5Y10.4%
Revenue Next Year9.39%
Revenue Next 2Y9.13%
Revenue Next 3Y8.92%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
AEC1 is valuated rather expensively with a Price/Earnings ratio of 24.02.
Based on the Price/Earnings ratio, AEC1 is valued a bit cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of AEC1 to the average of the S&P500 Index (25.89), we can say AEC1 is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 20.34, the valuation of AEC1 can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as AEC1.
AEC1 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 20.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AEC1 is valued a bit cheaper than 77.78% of the companies in the same industry.
66.67% of the companies in the same industry are more expensive than AEC1, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.01 | ||
| EV/EBITDA | 17.04 |
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 14.62% in the coming years.
PEG (NY)1.42
PEG (5Y)2.34
EPS Next 2Y14.8%
EPS Next 3Y14.62%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, AEC1 is not a good candidate for dividend investing.
AEC1's Dividend Yield is a higher than the industry average which is at 2.90.
Compared to an average S&P500 Dividend Yield of 2.36, AEC1's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
On average, the dividend of AEC1 grows each year by 10.33%, which is quite nice.
Dividend Growth(5Y)10.33%
Div Incr Years3
Div Non Decr Years6
5.3 Sustainability
21.11% 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.
DP21.11%
EPS Next 2Y14.8%
EPS Next 3Y14.62%
FRA:AEC1 (11/14/2025, 7:00:00 PM)
307.95
-9.2 (-2.9%)
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 Cap212.13B
Revenue(TTM)75.91B
Net Income(TTM)10.41B
Analysts68.89
Price Target305.24 (-0.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend2.43
Dividend Growth(5Y)10.33%
DP21.11%
Div Incr Years3
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.22%
Min EPS beat(2)2.58%
Max EPS beat(2)3.86%
EPS beat(4)3
Avg EPS beat(4)2.4%
Min EPS beat(4)-0.95%
Max EPS beat(4)4.09%
EPS beat(8)6
Avg EPS beat(8)3.9%
EPS beat(12)8
Avg EPS beat(12)2.15%
EPS beat(16)12
Avg EPS beat(16)3.7%
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-0.18%
Max Revenue beat(2)1.09%
Revenue beat(4)1
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)1.09%
Revenue beat(8)1
Avg Revenue beat(8)-0.95%
Revenue beat(12)3
Avg Revenue beat(12)0.48%
Revenue beat(16)7
Avg Revenue beat(16)1.9%
PT rev (1m)9.21%
PT rev (3m)9.25%
EPS NQ rev (1m)-1.48%
EPS NQ rev (3m)-1.22%
EPS NY rev (1m)0.85%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)0.81%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 20.34 | ||
| P/S | 3.25 | ||
| P/FCF | 13.01 | ||
| P/OCF | 11.66 | ||
| P/B | 7.6 | ||
| P/tB | 7.6 | ||
| EV/EBITDA | 17.04 |
EPS(TTM)12.82
EY4.16%
EPS(NY)15.14
Fwd EY4.92%
FCF(TTM)23.67
FCFY7.68%
OCF(TTM)26.41
OCFY8.58%
SpS94.84
BVpS40.5
TBVpS40.5
PEG (NY)1.42
PEG (5Y)2.34
Graham Number108.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 32.12% | ||
| ROCE | 10.25% | ||
| ROIC | 3.77% | ||
| ROICexc | 4.62% | ||
| ROICexgc | 5.14% | ||
| OM | 17.76% | ||
| PM (TTM) | 13.72% | ||
| GM | 61.93% | ||
| FCFM | 24.95% |
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%
ROICexgc growth 3Y-4.54%
ROICexgc 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-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Debt/EBITDA | 13.73 | ||
| Cap/Depr | 126.1% | ||
| Cap/Sales | 2.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 138.84% | ||
| Profit Quality | 181.93% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 0.88 |
F-Score6
WACC9.6%
ROIC/WACC0.39
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)15.24%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%18.62%
EPS Next Y16.89%
EPS Next 2Y14.8%
EPS Next 3Y14.62%
EPS Next 5Y10.4%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%10.76%
Revenue Next Year9.39%
Revenue Next 2Y9.13%
Revenue Next 3Y8.92%
Revenue Next 5Y7.38%
EBIT growth 1Y10.4%
EBIT growth 3Y7.6%
EBIT growth 5Y8.16%
EBIT Next Year45.1%
EBIT Next 3Y10%
EBIT Next 5YN/A
FCF growth 1Y1.99%
FCF growth 3Y-2.5%
FCF growth 5Y0.25%
OCF growth 1Y4.53%
OCF growth 3Y-1.37%
OCF growth 5Y0.61%
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.
What is the valuation status for AEC1 stock?
ChartMill assigns a valuation rating of 5 / 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 are the PE and PB ratios of AMERICAN EXPRESS CO (AEC1.DE) stock?
The Price/Earnings (PE) ratio for AMERICAN EXPRESS CO (AEC1.DE) is 24.02 and the Price/Book (PB) ratio is 7.6.
How sustainable is the dividend of AMERICAN EXPRESS CO (AEC1.DE) stock?
The dividend rating of AMERICAN EXPRESS CO (AEC1.DE) is 4 / 10 and the dividend payout ratio is 21.11%.