AMERICAN EXPRESS CO (AEC1.DE) Stock Fundamental Analysis
FRA:AEC1 - Deutsche Boerse Ag - US0258161092 - Common Stock - Currency: EUR
Overall AEC1 gets a fundamental rating of 5 out of 10. We evaluated AEC1 against 8 industry peers in the Consumer Finance industry. AEC1 has an excellent profitability rating, but there are concerns on its financial health. AEC1 has a correct valuation and a medium 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.
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
AEC1's Return On Assets of 3.39% is amongst the best of the industry. AEC1 outperforms 87.50% of its industry peers.
The Return On Equity of AEC1 (31.00%) is better than 100.00% of its industry peers.
AEC1 has a better Return On Invested Capital (3.62%) than 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 4.94%.
| 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.
AEC1 has a better Operating Margin (17.21%) 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.
AEC1 has a better Gross Margin (61.37%) than 62.50% of its industry peers.
AEC1's Gross Margin has been stable in the last couple of years.
| 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.
AEC1 has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AEC1 is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.77, we must say that AEC1 is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.77, AEC1 belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
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.
The Debt to FCF ratio of AEC1 (18.84) is worse than 62.50% of its industry peers.
A Debt/Equity ratio of 6.47 is on the high side and indicates that AEC1 has dependencies on debt financing.
The Debt to Equity ratio of AEC1 (6.47) is worse than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.47 | ||
| Debt/FCF | 18.84 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.55
WACC6.54%
2.3 Liquidity
A Current Ratio of 0.71 indicates that AEC1 may have some problems paying its short term obligations.
AEC1 has a Current ratio of 0.71. This is comparable to the rest of the industry: AEC1 outperforms 50.00% of its industry peers.
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.
The Quick ratio of AEC1 (0.71) is comparable to the rest of the 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.
Measured over the past years, AEC1 shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.27% on average per year.
Looking at the last year, AEC1 shows a small growth in Revenue. The Revenue has grown by 5.28% in the last year.
The Revenue has been growing by 8.79% on average over the past years. This is quite good.
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
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 Y15.24%
EPS Next 2Y14.6%
EPS Next 3Y14.46%
EPS Next 5Y10.4%
Revenue Next Year8.58%
Revenue Next 2Y8.48%
Revenue Next 3Y8.37%
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 20.22, the valuation of AEC1 can be described as rather expensive.
Based on the Price/Earnings ratio, AEC1 is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.82, AEC1 is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.44, which indicates a correct valuation of AEC1.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AEC1 is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 36.21. AEC1 is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.22 | ||
| Fwd PE | 16.44 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than AEC1, based on the Enterprise Value to EBITDA ratio.
62.50% of the companies in the same industry are cheaper than AEC1, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.08 | ||
| EV/EBITDA | 13.78 |
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 14.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.33
PEG (5Y)1.97
EPS Next 2Y14.6%
EPS Next 3Y14.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.10%, AEC1 has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.12, AEC1 pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, AEC1's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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.
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 2Y14.6%
EPS Next 3Y14.46%
FRA:AEC1 (8/1/2025, 7:00:00 PM)
252.8
-10.95 (-4.15%)
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 Cap175.92B
Analysts70.29
Price Target277.14 (9.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend2.46
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)6.45%
PT rev (3m)8.91%
EPS NQ rev (1m)-1.75%
EPS NQ rev (3m)-2.97%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.22 | ||
| Fwd PE | 16.44 | ||
| P/S | 2.68 | ||
| P/FCF | 18.08 | ||
| P/OCF | 15.32 | ||
| P/B | 6.21 | ||
| P/tB | 6.21 | ||
| EV/EBITDA | 13.78 |
EPS(TTM)12.5
EY4.94%
EPS(NY)15.37
Fwd EY6.08%
FCF(TTM)13.98
FCFY5.53%
OCF(TTM)16.5
OCFY6.53%
SpS94.37
BVpS40.72
TBVpS40.72
PEG (NY)1.33
PEG (5Y)1.97
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 | 0.77 |
F-Score5
WACC6.54%
ROIC/WACC0.55
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 Y15.24%
EPS Next 2Y14.6%
EPS Next 3Y14.46%
EPS Next 5Y10.4%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%9.32%
Revenue Next Year8.58%
Revenue Next 2Y8.48%
Revenue Next 3Y8.37%
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%