AMERICAN EXPRESS CO (AEC1.DE) Stock Fundamental Analysis
FRA:AEC1 - Deutsche Boerse Ag - US0258161092 - Common Stock - Currency: EUR
AEC1 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 8 industry peers in the Consumer Finance industry. While AEC1 belongs to the best of the industry regarding profitability, 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.
Each year in the past 5 years AEC1 has been profitable.
Each year in the past 5 years AEC1 had a positive operating cash flow.
1.2 Ratios
AEC1 has a Return On Assets of 3.59%. This is amongst the best in the industry. AEC1 outperforms 87.50% of its industry peers.
With an excellent Return On Equity value of 32.50%, AEC1 belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
AEC1's Return On Invested Capital of 3.70% 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 4.72%.
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 has a better Profit Margin (13.95%) than 100.00% 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 17.29% is amongst the best of the industry. AEC1 outperforms 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.
The Gross Margin of AEC1 (61.84%) is better than 62.50% of its industry peers.
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
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
The number of shares outstanding for AEC1 has been reduced compared to 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 0.79, we must say that AEC1 is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.79, AEC1 is doing good in the industry, outperforming 75.00% of the companies in the same industry.
AEC1 has a debt to FCF ratio of 17.60. This is a negative value and a sign of low solvency as AEC1 would need 17.60 years to pay back of all of its debts.
AEC1's Debt to FCF ratio of 17.60 is in line compared to the rest of the industry. AEC1 outperforms 50.00% of its industry peers.
AEC1 has a Debt/Equity ratio of 6.38. This is a high value indicating a heavy dependency on external financing.
AEC1 has a Debt to Equity ratio of 6.38. This is in the lower half of the industry: AEC1 underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.38 | ||
| Debt/FCF | 17.6 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.49
WACC7.49%
2.3 Liquidity
AEC1 has a Current 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.
With a Current ratio value of 0.68, AEC1 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
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 of 0.68. This is comparable to the rest of the industry: AEC1 outperforms 50.00% of 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.
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 quite strong growth in Revenue. The Revenue has grown by 8.00% in the last year.
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
AEC1 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.87% yearly.
The Revenue is expected to grow by 7.69% on average over the next years.
EPS Next Y14.89%
EPS Next 2Y14.58%
EPS Next 3Y14.62%
EPS Next 5Y9.87%
Revenue Next Year8.16%
Revenue Next 2Y8.08%
Revenue Next 3Y7.94%
Revenue Next 5Y7.69%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.73, the valuation of AEC1 can be described as rather expensive.
62.50% of the companies in the same industry are more expensive than AEC1, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AEC1 to the average of the S&P500 Index (26.29), we can say AEC1 is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 16.93, the valuation of AEC1 can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as AEC1.
AEC1's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.17.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.73 | ||
| Fwd PE | 16.93 |
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 more expensive than AEC1, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.37 | ||
| EV/EBITDA | 14.3 |
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)1.46
PEG (5Y)2.12
EPS Next 2Y14.58%
EPS Next 3Y14.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.11%, AEC1 has a reasonable but not impressive dividend return.
AEC1's Dividend Yield is comparable with the industry average which is at 3.22.
With a Dividend Yield of 1.11, AEC1 pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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
AEC1 pays out 20.27% of its income as dividend. This is a sustainable payout ratio.
The dividend of AEC1 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP20.27%
EPS Next 2Y14.58%
EPS Next 3Y14.62%
FRA:AEC1 (6/3/2025, 4:29:23 PM)
259.9
+3.35 (+1.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.26%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap182.08B
Analysts70.29
Price Target261.22 (0.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend2.47
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)2.65%
PT rev (3m)-13.43%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.73 | ||
| Fwd PE | 16.93 | ||
| P/S | 2.86 | ||
| P/FCF | 18.37 | ||
| P/OCF | 15.68 | ||
| P/B | 6.66 | ||
| P/tB | 6.66 | ||
| EV/EBITDA | 14.3 |
EPS(TTM)11.96
EY4.6%
EPS(NY)15.35
Fwd EY5.91%
FCF(TTM)14.15
FCFY5.44%
OCF(TTM)16.58
OCFY6.38%
SpS90.9
BVpS39
TBVpS39
PEG (NY)1.46
PEG (5Y)2.12
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 | 0.79 |
F-Score6
WACC7.49%
ROIC/WACC0.49
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 Y14.89%
EPS Next 2Y14.58%
EPS Next 3Y14.62%
EPS Next 5Y9.87%
Revenue 1Y (TTM)8%
Revenue growth 3Y18.7%
Revenue growth 5Y9.69%
Sales Q2Q%7.38%
Revenue Next Year8.16%
Revenue Next 2Y8.08%
Revenue Next 3Y7.94%
Revenue Next 5Y7.69%
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%