US0258161092 - Common Stock

Overall **AXP** gets a fundamental rating of **5** out of 10. We evaluated **AXP** against 51 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** has a correct valuation and a medium growth rate.

In the past year **AXP** was profitable.

In the past year **AXP** had a positive cash flow from operations.

Measured over the past 3 years, the **Average Return On Invested Capital** for **AXP** is below the industry average of **6.49%**.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 3.29% | ||

ROE | 30.83% | ||

ROIC | 3.54% |

ROA(3y)3.53%

ROA(5y)3.11%

ROE(3y)31.69%

ROE(5y)27.4%

ROIC(3y)3.85%

ROIC(5y)3.4%

With a decent **Gross Margin** value of **63.13%**, **AXP** is doing good in the industry, outperforming **64.71%** of the companies in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

OM | 17.01% | ||

PM (TTM) | 13.17% | ||

GM | 63.13% |

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%

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so **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.

Based on the Altman-Z score of **0.76**, we must say that **AXP** is in the distress zone and has some risk of bankruptcy.

The Debt to FCF ratio of **AXP** is **8.08**, which is on the high side as it means it would take **AXP**, **8.08** years of fcf income to pay off all of its debts.

With a **Debt to FCF ratio** value of **8.08**, **AXP** perfoms like the industry average, outperforming **54.90%** of the companies in the same industry.

With a **Debt to Equity ratio** value of **6.43**, **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 | 6.43 | ||

Debt/FCF | 8.08 | ||

Altman-Z | 0.76 |

ROIC/WACC0.51

WACC6.9%

A Current Ratio of **0.76** indicates that **AXP** may have some problems paying its short term obligations.

The **Current ratio** of **AXP** (**0.76**) is comparable to the rest of the industry.

A Quick Ratio of **0.76** indicates that **AXP** may have some problems paying its short term obligations.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 0.76 | ||

Quick Ratio | 0.76 |

The **Earnings Per Share** has grown by an impressive **27.66%** over the past year.

The **Earnings Per Share** has been growing by **8.90%** on average over the past years. This is quite good.

Measured over the past years, **AXP** shows a quite strong growth in **Revenue**. The Revenue has been growing by **9.45%** on average per year.

EPS 1Y (TTM)27.66%

EPS 3Y43.93%

EPS 5Y8.9%

EPS Q2Q%38.75%

Revenue 1Y (TTM)16.48%

Revenue growth 3Y20.86%

Revenue growth 5Y9.45%

Sales Q2Q%3.44%

The **Earnings Per Share** is expected to grow by **7.95%** on average over the next years.

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 Y17.02%

EPS Next 2Y15.94%

EPS Next 3Y15.07%

EPS Next 5Y7.95%

Revenue Next Year9.47%

Revenue Next 2Y8.98%

Revenue Next 3Y8.62%

Revenue Next 5Y7.63%

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 stable: in the next years the growth will be about the same than in the last years.

With a **Price/Earnings** ratio of **19.54**, **AXP** is valued on the expensive side.

Based on the **Price/Earnings** ratio, **AXP** is valued a bit more expensive than the industry average as 60.78% of the companies are valued more cheaply.

Compared to an average S&P500 **Price/Earnings** ratio of **28.20**, **AXP** is valued a bit cheaper.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 19.54 | ||

Fwd PE | 15.74 |

Compared to the rest of the industry, the **Enterprise Value to EBITDA** ratio of **AXP** indicates a somewhat cheap valuation: **AXP** is cheaper than 78.43% 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 | 7.45 | ||

EV/EBITDA | 12.67 |

The decent profitability rating of **AXP** may justify a higher PE ratio.

PEG (NY)1.15

PEG (5Y)2.2

EPS Next 2Y15.94%

EPS Next 3Y15.07%

With a **Yearly Dividend Yield** of **1.19%**, **AXP** has a reasonable but not impressive dividend return.

With a **Dividend Yield** of **1.19**, **AXP** pays less dividend than the S&P500 average, which is at **2.37**.

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | 1.19% |

The dividend of **AXP** is nicely growing with an annual growth rate of **9.36%**!

Dividend Growth(5Y)9.36%

Div Incr Years2

Div Non Decr Years17

The dividend of **AXP** is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.

DP20.6%

EPS Next 2Y15.94%

EPS Next 3Y15.07%

**AMERICAN EXPRESS CO**

NYSE:AXP (5/29/2024, 1:23:09 PM)

**237.18**

**-0.07 (-0.03%) **

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupFinancial Services

GICS IndustryConsumer Finance

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

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Market Cap170.60B

Analysts

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Dividend

Industry Rank | Sector Rank | ||
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Dividend Yield | 1.19% |

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Valuation

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 19.54 | ||

Fwd PE | 15.74 | ||

P/S | |||

P/FCF | |||

P/OCF | |||

P/B | |||

P/tB | |||

EV/EBITDA |

EPS(TTM)

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PEG (NY)1.15

PEG (5Y)2.2

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 3.29% | ||

ROE | 30.83% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 17.01% | ||

PM (TTM) | 13.17% | ||

GM | 63.13% | ||

FCFM |

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

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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 | 6.43 | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 0.76 | ||

Quick Ratio | 0.76 | ||

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)27.66%

EPS 3Y43.93%

EPS 5Y

EPS Q2Q%

EPS Next Y17.02%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)16.48%

Revenue growth 3Y20.86%

Revenue growth 5Y

Sales Q2Q%

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Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

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EBIT growth 3Y

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