AMERICAN EXPRESS CO (AXP) Stock Fundamental Analysis
NYSE:AXP - New York Stock Exchange, Inc. - US0258161092 - Common Stock
Taking everything into account, AXP scores 4 out of 10 in our fundamental rating. AXP was compared to 53 industry peers in the Consumer Finance industry. While AXP is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, AXP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
AXP had positive earnings in the past year.
In the past year AXP had a positive cash flow from operations.
AXP had positive earnings in each of the past 5 years.
AXP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AXP has a Return On Assets of 3.60%. This is in the better half of the industry: AXP outperforms 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 32.85%, AXP belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
With a Return On Invested Capital value of 3.74%, AXP perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AXP is below the industry average of 7.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 32.85% | ||
| ROIC | 3.74% |
ROA(3y)3.53%
ROA(5y)3.11%
ROE(3y)31.69%
ROE(5y)27.4%
ROIC(3y)3.85%
ROIC(5y)3.4%
1.3 Margins
The Profit Margin of AXP (13.89%) is better than 67.31% of its industry peers.
In the last couple of years the Profit Margin of AXP has declined.
The Operating Margin of AXP (17.38%) is better than 67.31% of its industry peers.
In the last couple of years the Operating Margin of AXP has declined.
AXP has a better Gross Margin (62.61%) than 65.38% of its industry peers.
In the last couple of years the Gross Margin of AXP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.38% | ||
| PM (TTM) | 13.89% | ||
| GM | 62.61% |
OM growth 3Y12.37%
OM growth 5Y-3.17%
PM growth 3Y15.47%
PM growth 5Y-4.99%
GM growth 3Y-4.54%
GM growth 5Y-1.9%
2. Health
2.1 Basic Checks
AXP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AXP has been reduced compared to 1 year ago.
Compared to 5 years ago, AXP has less shares outstanding
Compared to 1 year ago, AXP has a worse debt to assets ratio.
2.2 Solvency
AXP has an Altman-Z score of 0.89. This is a bad value and indicates that AXP is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.89, AXP perfoms like the industry average, outperforming 55.77% of the companies in the same industry.
AXP has a debt to FCF ratio of 14.43. This is a negative value and a sign of low solvency as AXP would need 14.43 years to pay back of all of its debts.
AXP's Debt to FCF ratio of 14.43 is in line compared to the rest of the industry. AXP outperforms 40.38% of its industry peers.
AXP has a Debt/Equity ratio of 6.41. This is a high value indicating a heavy dependency on external financing.
AXP has a Debt to Equity ratio of 6.41. This is amonst the worse of the industry: AXP underperforms 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.41 | ||
| Debt/FCF | 14.43 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.52
WACC7.26%
2.3 Liquidity
AXP has a Current Ratio of 0.71. This is a bad value and indicates that AXP is not financially healthy enough and could expect problems in meeting its short term obligations.
AXP's Current ratio of 0.71 is in line compared to the rest of the industry. AXP outperforms 42.31% of its industry peers.
A Quick Ratio of 0.71 indicates that AXP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.71, AXP is in line with its industry, outperforming 42.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.29% over the past year.
The Earnings Per Share has been growing by 8.90% on average over the past years. This is quite good.
AXP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.25%.
The Revenue has been growing by 9.45% on average over the past years. This is quite good.
EPS 1Y (TTM)21.29%
EPS 3Y43.93%
EPS 5Y8.9%
EPS Q2Q%5.76%
Revenue 1Y (TTM)11.25%
Revenue growth 3Y20.86%
Revenue growth 5Y9.45%
Sales Q2Q%8.16%
3.2 Future
The Earnings Per Share is expected to grow by 10.37% on average over the next years. This is quite good.
AXP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.85% yearly.
EPS Next Y20.19%
EPS Next 2Y16.78%
EPS Next 3Y15.81%
EPS Next 5Y10.37%
Revenue Next Year8.55%
Revenue Next 2Y8.3%
Revenue Next 3Y8.2%
Revenue Next 5Y7.85%
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
AXP is valuated quite expensively with a Price/Earnings ratio of 25.07.
Compared to the rest of the industry, the Price/Earnings ratio of AXP indicates a slightly more expensive valuation: AXP is more expensive than 67.31% of the companies listed in the same industry.
AXP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.19.
The Price/Forward Earnings ratio is 21.20, which indicates a rather expensive current valuation of AXP.
AXP's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AXP is more expensive than 65.38% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AXP to the average of the S&P500 Index (24.37), we can say AXP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.07 | ||
| Fwd PE | 21.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AXP indicates a somewhat cheap valuation: AXP is cheaper than 65.38% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AXP is valued a bit more expensive than 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.3 | ||
| EV/EBITDA | 16.8 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AXP's earnings are expected to grow with 15.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.24
PEG (5Y)2.82
EPS Next 2Y16.78%
EPS Next 3Y15.81%
5. Dividend
5.1 Amount
AXP has a yearly dividend return of 0.90%, which is pretty low.
AXP's Dividend Yield is comparable with the industry average which is at 4.39.
With a Dividend Yield of 0.90, AXP pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
The dividend of AXP is nicely growing with an annual growth rate of 9.36%!
AXP has paid a dividend for at least 10 years, which is a reliable track record.
AXP has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.36%
Div Incr Years3
Div Non Decr Years20
5.3 Sustainability
AXP pays out 19.91% of its income as dividend. This is a sustainable payout ratio.
The dividend of AXP is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP19.91%
EPS Next 2Y16.78%
EPS Next 3Y15.81%
AMERICAN EXPRESS CO
NYSE:AXP (1/23/2025, 9:33:03 AM)
324.2
+1.95 (+0.61%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.26%
Inst Owner Change-0.3%
Ins Owners0.1%
Ins Owner Change0.96%
Market Cap228.38B
Analysts68.24
Price Target297.11 (-8.36%)
Short Float %1.55%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend2.43
Dividend Growth(5Y)9.36%
DP19.91%
Div Incr Years3
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.88%
Min EPS beat(2)5.25%
Max EPS beat(2)6.52%
EPS beat(4)3
Avg EPS beat(4)5.41%
Min EPS beat(4)-1.69%
Max EPS beat(4)11.56%
EPS beat(8)5
Avg EPS beat(8)2.03%
EPS beat(12)9
Avg EPS beat(12)4.13%
EPS beat(16)13
Avg EPS beat(16)15.15%
Revenue beat(2)0
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)-1.19%
Revenue beat(4)0
Avg Revenue beat(4)-1.71%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)-0.9%
Revenue beat(8)2
Avg Revenue beat(8)0.06%
Revenue beat(12)6
Avg Revenue beat(12)1.43%
Revenue beat(16)9
Avg Revenue beat(16)1.75%
PT rev (1m)3.23%
PT rev (3m)14.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.05%
EPS NY rev (1m)0%
EPS NY rev (3m)1.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.07 | ||
| Fwd PE | 21.2 | ||
| P/S | 3.25 | ||
| P/FCF | 17.3 | ||
| P/OCF | 15.18 | ||
| P/B | 7.69 | ||
| P/tB | 7.69 | ||
| EV/EBITDA | 16.8 |
EPS(TTM)12.93
EY3.99%
EPS(NY)15.29
Fwd EY4.72%
FCF(TTM)18.74
FCFY5.78%
OCF(TTM)21.35
OCFY6.59%
SpS99.73
BVpS42.17
TBVpS42.17
PEG (NY)1.24
PEG (5Y)2.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 32.85% | ||
| ROCE | 10.1% | ||
| ROIC | 3.74% | ||
| ROICexc | 4.59% | ||
| ROICexgc | 5.08% | ||
| OM | 17.38% | ||
| PM (TTM) | 13.89% | ||
| GM | 62.61% | ||
| FCFM | 18.79% |
ROA(3y)3.53%
ROA(5y)3.11%
ROE(3y)31.69%
ROE(5y)27.4%
ROIC(3y)3.85%
ROIC(5y)3.4%
ROICexc(3y)4.53%
ROICexc(5y)4%
ROICexgc(3y)4.9%
ROICexgc(5y)4.33%
ROCE(3y)9.97%
ROCE(5y)8.51%
ROICexcg growth 3Y21.64%
ROICexcg growth 5Y0.34%
ROICexc growth 3Y22.89%
ROICexc growth 5Y-0.15%
OM growth 3Y12.37%
OM growth 5Y-3.17%
PM growth 3Y15.47%
PM growth 5Y-4.99%
GM growth 3Y-4.54%
GM growth 5Y-1.9%
F-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.41 | ||
| Debt/FCF | 14.43 | ||
| Debt/EBITDA | 13.72 | ||
| Cap/Depr | 110.3% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.34% | ||
| Profit Quality | 135.24% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 0.89 |
F-Score6
WACC7.26%
ROIC/WACC0.52
Cap/Depr(3y)100.07%
Cap/Depr(5y)106.89%
Cap/Sales(3y)3.14%
Cap/Sales(5y)3.41%
Profit Quality(3y)210.38%
Profit Quality(5y)189.48%
High Growth Momentum
Growth
EPS 1Y (TTM)21.29%
EPS 3Y43.93%
EPS 5Y8.9%
EPS Q2Q%5.76%
EPS Next Y20.19%
EPS Next 2Y16.78%
EPS Next 3Y15.81%
EPS Next 5Y10.37%
Revenue 1Y (TTM)11.25%
Revenue growth 3Y20.86%
Revenue growth 5Y9.45%
Sales Q2Q%8.16%
Revenue Next Year8.55%
Revenue Next 2Y8.3%
Revenue Next 3Y8.2%
Revenue Next 5Y7.85%
EBIT growth 1Y20.01%
EBIT growth 3Y35.81%
EBIT growth 5Y5.98%
EBIT Next Year50.59%
EBIT Next 3Y5.98%
EBIT Next 5YN/A
FCF growth 1Y-16.68%
FCF growth 3Y60.47%
FCF growth 5Y17.4%
OCF growth 1Y-14.81%
OCF growth 3Y49.17%
OCF growth 5Y15.76%