AMERICAN EXPRESS CO (AEC1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AEC1 - US0258161092 - Common Stock
306.2 EUR
-6.45 (-2.06%)
Overall AEC1 gets a fundamental rating of 5 out of 10. We evaluated AEC1 against 10 industry peers in the Consumer Finance industry. AEC1 has an excellent profitability rating, but there are 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.
- AEC1 had a positive operating cash flow in the past year.
- 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
- With an excellent Return On Assets value of 3.50%, AEC1 belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 32.12%, AEC1 belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- AEC1 has a Return On Invested Capital of 3.77%. This is in the better half of the industry: AEC1 outperforms 80.00% 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 4.52%.
- The 3 year average ROIC (3.64%) for AEC1 is below the current ROIC(3.77%), indicating increased profibility in the last year.
| 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
- The Profit Margin of AEC1 (13.72%) is better than 70.00% 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 90.00% of its industry peers.
- In the last couple of years the Operating Margin of AEC1 has remained more or less at the same level.
- The Gross Margin of AEC1 (61.93%) is comparable to the rest of the 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
- AEC1 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, AEC1 has less shares outstanding
- AEC1 has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, AEC1 has a worse debt to assets ratio.
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.
- The Altman-Z score of AEC1 (0.88) is better than 70.00% of its industry peers.
- 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.
- AEC1 has a Debt to FCF ratio (11.04) which is in line with its industry peers.
- AEC1 has a Debt/Equity ratio of 6.45. This is a high value indicating a heavy dependency on external financing.
- AEC1's Debt to Equity ratio of 6.45 is on the low side compared to the rest of the industry. AEC1 is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.52
WACC7.21%
2.3 Liquidity
- A Current Ratio of 0.68 indicates that AEC1 may have some problems paying its short term obligations.
- With a Current ratio value of 0.68, AEC1 perfoms like the industry average, 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.
- The Quick ratio of AEC1 (0.68) is comparable to the rest of the 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.
- Looking at the last year, AEC1 shows a small growth in Revenue. The Revenue has grown by 4.37% in the last year.
- Measured over the past years, AEC1 shows a quite strong growth in Revenue. The Revenue has been growing by 8.79% on average per year.
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
- Based on estimates for the next years, AEC1 will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.41% on average per year.
- AEC1 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.50% yearly.
EPS Next Y17.04%
EPS Next 2Y15.03%
EPS Next 3Y14.81%
EPS Next 5Y13.41%
Revenue Next Year9.39%
Revenue Next 2Y9.17%
Revenue Next 3Y9.04%
Revenue Next 5Y7.5%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- The Price/Earnings ratio is 24.05, which indicates a rather expensive current valuation of AEC1.
- AEC1's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, AEC1 is valued at the same level.
- With a Price/Forward Earnings ratio of 20.29, AEC1 is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, AEC1 is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
- When comparing the Price/Forward Earnings ratio of AEC1 to the average of the S&P500 Index (24.26), we can say AEC1 is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.05 | ||
| Fwd PE | 20.29 |
4.2 Price Multiples
- 80.00% of the companies in the same industry are more expensive than AEC1, based on the Enterprise Value to EBITDA ratio.
- The rest of the industry has a similar Price/Free Cash Flow ratio as AEC1.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.04 | ||
| EV/EBITDA | 16.93 |
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 14.81% in the coming years.
PEG (NY)1.41
PEG (5Y)2.34
EPS Next 2Y15.03%
EPS Next 3Y14.81%
5. Dividend
5.1 Amount
- AEC1 has a yearly dividend return of 0.92%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.51, AEC1 has a dividend in line with its industry peers.
- 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 | 0.92% |
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, but earnings are growing more, so the dividend growth is sustainable.
DP21.11%
EPS Next 2Y15.03%
EPS Next 3Y14.81%
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 3 / 10 to AMERICAN EXPRESS CO (AEC1.DE). This can be considered as Overvalued.
Can you provide the profitability details for AMERICAN EXPRESS CO?
AMERICAN EXPRESS CO (AEC1.DE) has a profitability rating of 7 / 10.
What is the financial health of AMERICAN EXPRESS CO (AEC1.DE) stock?
The financial health rating of AMERICAN EXPRESS CO (AEC1.DE) is 2 / 10.
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%.