AMERICAN EXPRESS CO (AXP)
US0258161092 - Common Stock
AXP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 52 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. AXP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AXP was profitable.
AXP had a positive operating cash flow in the past year.
AXP had positive earnings in each of the past 5 years.
Each year in the past 5 years AXP had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.56%, AXP is doing good in the industry, outperforming 76.92% of the companies in the same industry.
The Return On Equity of AXP (32.85%) is better than 92.31% of its industry peers.
AXP's Return On Invested Capital of 3.70% is fine compared to the rest of the industry. AXP outperforms 61.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AXP is below the industry average of 7.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 32.85% | ||
| ROIC | 3.7% |
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
AXP has a Profit Margin of 14.10%. This is in the better half of the industry: AXP outperforms 69.23% of its industry peers.
In the last couple of years the Profit Margin of AXP has declined.
AXP's Operating Margin of 17.64% is fine compared to the rest of the industry. AXP outperforms 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 (62.91%) 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 | 17.64% | ||
| PM (TTM) | 14.1% | ||
| GM | 62.91% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AXP is destroying value.
Compared to 1 year ago, AXP has less shares outstanding
AXP has less shares outstanding than it did 5 years ago.
AXP has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.77, we must say that AXP is in the distress zone and has some risk of bankruptcy.
AXP's Altman-Z score of 0.77 is in line compared to the rest of the industry. AXP outperforms 57.69% of its industry peers.
The Debt to FCF ratio of AXP is 8.02, which is on the high side as it means it would take AXP, 8.02 years of fcf income to pay off all of its debts.
AXP has a Debt to FCF ratio (8.02) which is in line with its industry peers.
AXP has a Debt/Equity ratio of 6.33. This is a high value indicating a heavy dependency on external financing.
AXP's Debt to Equity ratio of 6.33 is on the low side compared to the rest of the industry. AXP is outperformed by 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.33 | ||
| Debt/FCF | 8.02 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.58
WACC6.39%
2.3 Liquidity
A Current Ratio of 0.75 indicates that AXP may have some problems paying its short term obligations.
The Current ratio of AXP (0.75) is comparable to the rest of the industry.
AXP has a Quick Ratio of 0.75. This is a bad value and indicates that AXP is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.75, AXP perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.60% over the past year.
AXP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.90% yearly.
AXP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.83%.
The Revenue has been growing by 9.45% on average over the past years. This is quite good.
EPS 1Y (TTM)29.6%
EPS 3Y43.93%
EPS 5Y8.9%
EPS Q2Q%20.76%
Revenue 1Y (TTM)13.83%
Revenue growth 3Y20.86%
Revenue growth 5Y9.45%
Sales Q2Q%8.5%
3.2 Future
AXP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.95% yearly.
Based on estimates for the next years, AXP will show a small growth in Revenue. The Revenue will grow by 7.63% on average per year.
EPS Next Y16.95%
EPS Next 2Y15.82%
EPS Next 3Y15.04%
EPS Next 5Y7.95%
Revenue Next Year9.44%
Revenue Next 2Y8.94%
Revenue Next 3Y8.6%
Revenue Next 5Y7.63%
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
Based on the Price/Earnings ratio of 19.26, the valuation of AXP can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as AXP.
The average S&P500 Price/Earnings ratio is at 24.29. AXP is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.32, which indicates a correct valuation of AXP.
61.54% of the companies in the same industry are cheaper than AXP, based on the Price/Forward Earnings ratio.
AXP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.26 | ||
| Fwd PE | 16.32 |
4.2 Price Multiples
AXP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AXP is cheaper than 71.15% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AXP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.57 | ||
| EV/EBITDA | 12.46 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AXP may justify a higher PE ratio.
A more expensive valuation may be justified as AXP's earnings are expected to grow with 15.04% in the coming years.
PEG (NY)1.14
PEG (5Y)2.16
EPS Next 2Y15.82%
EPS Next 3Y15.04%
5. Dividend
5.1 Amount
AXP has a Yearly Dividend Yield of 1.16%.
Compared to an average industry Dividend Yield of 4.29, AXP has a dividend in line with its industry peers.
With a Dividend Yield of 1.16, AXP pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
The dividend of AXP is nicely growing with an annual growth rate of 9.36%!
AXP has been paying a dividend for at least 10 years, so it has a reliable track record.
AXP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.36%
Div Incr Years2
Div Non Decr Years19
5.3 Sustainability
19.44% of the earnings are spent on dividend by AXP. This is a low number and sustainable payout ratio.
The dividend of AXP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.44%
EPS Next 2Y15.82%
EPS Next 3Y15.04%
AMERICAN EXPRESS CO
NYSE:AXP (7/26/2024, 1:51:59 PM)
245.37
+5.19 (+2.16%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap176.49B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.26 | ||
| Fwd PE | 16.32 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.14
PEG (5Y)2.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 32.85% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.64% | ||
| PM (TTM) | 14.1% | ||
| GM | 62.91% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)29.6%
EPS 3Y43.93%
EPS 5Y
EPS Q2Q%
EPS Next Y16.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.83%
Revenue growth 3Y20.86%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y