AMERICAN EXPRESS CO (AXP)
US0258161092 - Common Stock
We assign a fundamental rating of 4 out of 10 to AXP. AXP was compared to 51 industry peers in the Consumer Finance industry. AXP has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, AXP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AXP was profitable.
AXP had a positive operating cash flow in the past year.
Each year in the past 5 years AXP has been profitable.
Each year in the past 5 years AXP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.16%, AXP is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
With an excellent Return On Equity value of 29.41%, AXP belongs to the best of the industry, outperforming 96.08% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.37%, AXP is in the better half of the industry, outperforming 64.71% 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 6.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 29.41% | ||
| ROIC | 3.37% |
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's Profit Margin of 12.62% is in line compared to the rest of the industry. AXP outperforms 58.82% of its industry peers.
In the last couple of years the Profit Margin of AXP has declined.
With a decent Operating Margin value of 16.19%, AXP is doing good in the industry, outperforming 68.63% of the companies in the same industry.
In the last couple of years the Operating Margin of AXP has declined.
AXP has a better Gross Margin (62.99%) than 64.71% of its industry peers.
AXP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.19% | ||
| PM (TTM) | 12.62% | ||
| GM | 62.99% |
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
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.
Compared to 5 years ago, AXP has less shares outstanding
The debt/assets ratio for AXP is higher compared to a year ago.
2.2 Solvency
AXP has an Altman-Z score of 0.72. This is a bad value and indicates that AXP is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.72, AXP is doing good in the industry, outperforming 60.78% of the companies in the same industry.
The Debt to FCF ratio of AXP is 10.49, which is on the high side as it means it would take AXP, 10.49 years of fcf income to pay off all of its debts.
AXP has a Debt to FCF ratio (10.49) which is comparable to the rest of the industry.
A Debt/Equity ratio of 6.36 is on the high side and indicates that AXP has dependencies on debt financing.
With a Debt to Equity ratio value of 6.36, AXP is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.36 | ||
| Debt/FCF | 10.49 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.47
WACC7.13%
2.3 Liquidity
AXP has a Current Ratio of 0.74. This is a bad value and indicates that AXP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of AXP (0.74) is comparable to the rest of the industry.
AXP has a Quick Ratio of 0.74. 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 0.74, AXP perfoms like the industry average, outperforming 43.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
AXP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.92%, which is quite good.
Measured over the past years, AXP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.90% on average per year.
Looking at the last year, AXP shows a very strong growth in Revenue. The Revenue has grown by 20.21%.
The Revenue has been growing by 9.45% on average over the past years. This is quite good.
EPS 1Y (TTM)13.92%
EPS 3Y43.93%
EPS 5Y8.9%
EPS growth Q2Q26.57%
Revenue 1Y (TTM)20.21%
Revenue growth 3Y20.86%
Revenue growth 5Y9.45%
Revenue growth Q2Q14.91%
3.2 Future
Based on estimates for the next years, AXP will show a small growth in Earnings Per Share. The EPS will grow by 6.97% on average per year.
The Revenue is expected to grow by 6.41% on average over the next years.
EPS Next Y15.47%
EPS Next 2Y15.3%
EPS Next 3Y14.53%
EPS Next 5Y6.97%
Revenue Next Year9%
Revenue Next 2Y8.68%
Revenue Next 3Y8.56%
Revenue Next 5Y6.41%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
AXP is valuated rather expensively with a Price/Earnings ratio of 19.91.
60.78% of the companies in the same industry are cheaper than AXP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.80, AXP is valued at the same level.
AXP is valuated rather expensively with a Price/Forward Earnings ratio of 17.25.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AXP is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of AXP to the average of the S&P500 Index (21.27), we can say AXP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.91 | ||
| Fwd PE | 17.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AXP indicates a rather cheap valuation: AXP is cheaper than 82.35% of the companies listed 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 | 9.51 | ||
| EV/EBITDA | 13.03 |
4.3 Compensation for Growth
AXP's 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 14.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.29
PEG (5Y)2.24
EPS Next 2Y15.3%
EPS Next 3Y14.53%
5. Dividend
5.1 Amount
AXP has a Yearly Dividend Yield of 1.28%.
AXP's Dividend Yield is comparable with the industry average which is at 4.20.
Compared to an average S&P500 Dividend Yield of 2.40, AXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
On average, the dividend of AXP grows each year by 9.36%, which is quite nice.
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)9.36%
Div Incr Years2
Div Non Decr Years17
5.3 Sustainability
21.57% of the earnings are spent on dividend by AXP. This is a low number and sustainable payout ratio.
AXP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP21.57%
EPS Next 2Y15.3%
EPS Next 3Y14.53%
AMERICAN EXPRESS CO
NYSE:AXP (4/19/2024, 8:34:10 AM)
223.23
+5.73 (+2.63%)
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 Cap161.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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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 | 19.91 | ||
| Fwd PE | 17.25 | ||
| 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)1.29
PEG (5Y)2.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 29.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.19% | ||
| PM (TTM) | 12.62% | ||
| GM | 62.99% | ||
| 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 | 6.36 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 | ||
| 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)
Growth
EPS 1Y (TTM)13.92%
EPS 3Y43.93%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.21%
Revenue growth 3Y20.86%
Revenue growth 5Y
Revenue growth 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