AMERICAN EXPRESS CO (AXP) Stock Fundamental Analysis
NYSE:AXP - New York Stock Exchange, Inc. - US0258161092 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to AXP. AXP was compared to 52 industry peers in the Consumer Finance industry. AXP has a medium profitability rating, but doesn't score so well on its financial health evaluation. AXP is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years AXP has always been profitable.
AXP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.59%, AXP is doing good in the industry, outperforming 73.08% of the companies in the same industry.
The Return On Equity of AXP (32.50%) is better than 94.23% of its industry peers.
AXP has a Return On Invested Capital of 3.70%. This is in the better half of the industry: AXP outperforms 61.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AXP is significantly below the industry average of 8.74%.
The 3 year average ROIC (3.64%) for AXP 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
AXP's Profit Margin of 13.95% is in line compared to the rest of the industry. AXP outperforms 57.69% of its industry peers.
AXP's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 17.29%, AXP is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
AXP's Operating Margin has been stable in the last couple of years.
The Gross Margin of AXP (61.84%) is better than 65.38% of its industry peers.
AXP'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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AXP is destroying value.
The number of shares outstanding for AXP has been reduced compared to 1 year ago.
The number of shares outstanding for AXP has been reduced compared to 5 years ago.
The debt/assets ratio for AXP is higher compared to a year ago.
2.2 Solvency
AXP has an Altman-Z score of 0.75. This is a bad value and indicates that AXP is not financially healthy and even has some risk of bankruptcy.
AXP has a Altman-Z score (0.75) which is in line with its industry peers.
AXP has a debt to FCF ratio of 17.60. This is a negative value and a sign of low solvency as AXP would need 17.60 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.60, AXP is in line with its industry, outperforming 40.38% of the companies in the same industry.
A Debt/Equity ratio of 6.38 is on the high side and indicates that AXP has dependencies on debt financing.
With a Debt to Equity ratio value of 6.38, AXP is not doing good in the industry: 78.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.38 | ||
| Debt/FCF | 17.6 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.54
WACC6.91%
2.3 Liquidity
AXP has a Current Ratio of 0.68. 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 has a Current ratio of 0.68. This is comparable to the rest of the industry: AXP outperforms 42.31% of its industry peers.
AXP has a Quick Ratio of 0.68. This is a bad value and indicates that AXP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.68, AXP is in line with its industry, outperforming 42.31% of the companies in the same 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 12.52% over the past year.
Measured over the past years, AXP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.27% on average per year.
AXP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.00%.
Measured over the past years, AXP shows a quite strong growth in Revenue. The Revenue has been growing by 9.69% on average per year.
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
The Earnings Per Share is expected to grow by 9.87% on average over the next years. This is quite good.
Based on estimates for the next years, AXP will show a small growth in Revenue. The Revenue will grow by 7.69% on average per year.
EPS Next Y15.35%
EPS Next 2Y14.82%
EPS Next 3Y14.54%
EPS Next 5Y9.87%
Revenue Next Year8.19%
Revenue Next 2Y8.14%
Revenue Next 3Y7.94%
Revenue Next 5Y7.69%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.28 indicates a rather expensive valuation of AXP.
Compared to the rest of the industry, the Price/Earnings ratio of AXP indicates a slightly more expensive valuation: AXP is more expensive than 71.15% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AXP to the average of the S&P500 Index (27.75), we can say AXP is valued slightly cheaper.
AXP is valuated correctly with a Price/Forward Earnings ratio of 15.74.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AXP indicates a slightly more expensive valuation: AXP is more expensive than 61.54% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AXP to the average of the S&P500 Index (20.49), we can say AXP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.28 | ||
| Fwd PE | 15.74 |
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 indicates a slightly more expensive valuation: AXP is more expensive than 61.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.15 | ||
| EV/EBITDA | 13.11 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AXP has a very decent profitability rating, which may justify a higher PE ratio.
AXP's earnings are expected to grow with 14.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.32
PEG (5Y)1.98
EPS Next 2Y14.82%
EPS Next 3Y14.54%
5. Dividend
5.1 Amount
AXP has a Yearly Dividend Yield of 1.23%.
Compared to an average industry Dividend Yield of 4.45, AXP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, AXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
The dividend of AXP is nicely growing with an annual growth rate of 10.33%!
AXP has paid a dividend for at least 10 years, which is a reliable track record.
AXP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.33%
Div Incr Years3
Div Non Decr Years20
5.3 Sustainability
AXP pays out 20.27% of its income as dividend. This is a sustainable payout ratio.
The dividend of AXP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP20.27%
EPS Next 2Y14.82%
EPS Next 3Y14.54%
NYSE:AXP (5/2/2025, 1:54:08 PM)
277.03
+8.49 (+3.16%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.26%
Inst Owner Change0.32%
Ins Owners0.12%
Ins Owner Change2.67%
Market Cap194.08B
Analysts68.82
Price Target294.86 (6.44%)
Short Float %1.52%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend2.81
Dividend Growth(5Y)10.33%
DP20.27%
Div Incr Years3
Div Non Decr Years20
Ex-Date
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)-8.97%
PT rev (3m)-0.76%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)1.37%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)0.7%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.28 | ||
| Fwd PE | 15.74 | ||
| P/S | 2.67 | ||
| P/FCF | 17.15 | ||
| P/OCF | 14.63 | ||
| P/B | 6.22 | ||
| P/tB | 6.22 | ||
| EV/EBITDA | 13.11 |
EPS(TTM)13.66
EY4.93%
EPS(NY)17.6
Fwd EY6.35%
FCF(TTM)16.15
FCFY5.83%
OCF(TTM)18.93
OCFY6.83%
SpS103.8
BVpS44.54
TBVpS44.54
PEG (NY)1.32
PEG (5Y)1.98
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 | 0.75 |
F-Score6
WACC6.91%
ROIC/WACC0.54
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 Y15.35%
EPS Next 2Y14.82%
EPS Next 3Y14.54%
EPS Next 5Y9.87%
Revenue 1Y (TTM)8%
Revenue growth 3Y18.7%
Revenue growth 5Y9.69%
Sales Q2Q%7.38%
Revenue Next Year8.19%
Revenue Next 2Y8.14%
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 3Y22.83%
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%