AMERICAN EXPRESS CO (AXP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXP - US0258161092 - Common Stock
363.25 USD
+5.88 (+1.65%)
Taking everything into account, AXP scores 5 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. AXP is valied quite expensively at the moment, while 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.
- In the past 5 years AXP always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.50%, AXP is in the better half of the industry, outperforming 62.26% of the companies in the same industry.
- The Return On Equity of AXP (32.12%) is better than 92.45% of its industry peers.
- AXP has a Return On Invested Capital (3.77%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for AXP is significantly below the industry average of 12.42%.
- The 3 year average ROIC (3.64%) for AXP is below the current ROIC(3.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 32.12% | ||
| ROIC | 3.77% |
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 has a Profit Margin (13.72%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of AXP has remained more or less at the same level.
- The Operating Margin of AXP (17.76%) is better than 62.26% of its industry peers.
- AXP's Operating Margin has been stable in the last couple of years.
- AXP's Gross Margin of 61.93% is fine compared to the rest of the industry. AXP outperforms 60.38% of its industry peers.
- In the last couple of years the Gross Margin of AXP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.76% | ||
| PM (TTM) | 13.72% | ||
| GM | 61.93% |
OM growth 3Y-8.78%
OM growth 5Y-0.57%
PM growth 3Y-8.37%
PM growth 5Y-0.22%
GM growth 3Y-2.58%
GM growth 5Y-1.09%
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.
- AXP has less shares outstanding than it did 1 year ago.
- AXP has less shares outstanding than it did 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 0.86. This is a bad value and indicates that AXP is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of AXP (0.86) is comparable to the rest of the industry.
- The Debt to FCF ratio of AXP is 11.04, which is on the high side as it means it would take AXP, 11.04 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of AXP (11.04) is better than 60.38% of its industry peers.
- AXP has a Debt/Equity ratio of 6.45. This is a high value indicating a heavy dependency on external financing.
- AXP has a Debt to Equity ratio of 6.45. This is in the lower half of the industry: AXP underperforms 69.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.53
WACC7.11%
2.3 Liquidity
- A Current Ratio of 0.68 indicates that AXP may have some problems paying its short term obligations.
- The Current ratio of AXP (0.68) is comparable to the rest of the industry.
- A Quick Ratio of 0.68 indicates that AXP may have some problems paying its short term obligations.
- AXP has a Quick ratio (0.68) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
- AXP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.24%, which is quite good.
- The Earnings Per Share has been growing by 10.27% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 4.37% in the past year.
- Measured over the past years, AXP shows a quite strong growth in Revenue. The Revenue has been growing by 8.79% on average per year.
EPS 1Y (TTM)15.24%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%18.62%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%10.76%
3.2 Future
- AXP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.41% yearly.
- The Revenue is expected to grow by 7.50% on average over the next years.
EPS Next Y17.04%
EPS Next 2Y15.03%
EPS Next 3Y14.81%
EPS Next 5Y13.41%
Revenue Next Year9.36%
Revenue Next 2Y9.13%
Revenue Next 3Y8.91%
Revenue Next 5Y7.5%
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 accelerating.
- 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
- With a Price/Earnings ratio of 24.38, AXP is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of AXP indicates a slightly more expensive valuation: AXP is more expensive than 73.58% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.54. AXP is around the same levels.
- With a Price/Forward Earnings ratio of 20.56, AXP is valued on the expensive side.
- 69.81% of the companies in the same industry are cheaper than AXP, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.31, AXP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.38 | ||
| Fwd PE | 20.56 |
4.2 Price Multiples
- AXP's Enterprise Value to EBITDA ratio is in line with the industry average.
- 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 | 13.21 | ||
| EV/EBITDA | 16.54 |
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 14.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.43
PEG (5Y)2.37
EPS Next 2Y15.03%
EPS Next 3Y14.81%
5. Dividend
5.1 Amount
- AXP has a yearly dividend return of 0.86%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.60, AXP has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.92, AXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
- On average, the dividend of AXP grows each year by 10.33%, which is quite nice.
- 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)10.33%
Div Incr Years3
Div Non Decr Years20
5.3 Sustainability
- AXP pays out 21.11% of its income as dividend. This is a sustainable payout ratio.
- The dividend of AXP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.11%
EPS Next 2Y15.03%
EPS Next 3Y14.81%
NYSE:AXP (1/16/2026, 10:56:03 AM)
363.25
+5.88 (+1.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)10-17 2025-10-17/bmo
Earnings (Next)01-30 2026-01-30/amc
Inst Owners65.15%
Inst Owner Change0.17%
Ins Owners0.07%
Ins Owner Change-1.14%
Market Cap250.22B
Revenue(TTM)75.91B
Net Income(TTM)10.41B
Analysts68.89
Price Target369.05 (1.6%)
Short Float %1.82%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend2.81
Dividend Growth(5Y)10.33%
DP21.11%
Div Incr Years3
Div Non Decr Years20
Ex-Date01-02 2026-01-02 (0.82)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.22%
Min EPS beat(2)2.58%
Max EPS beat(2)3.86%
EPS beat(4)3
Avg EPS beat(4)2.4%
Min EPS beat(4)-0.95%
Max EPS beat(4)4.09%
EPS beat(8)6
Avg EPS beat(8)3.9%
EPS beat(12)8
Avg EPS beat(12)2.15%
EPS beat(16)12
Avg EPS beat(16)3.7%
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-0.18%
Max Revenue beat(2)1.09%
Revenue beat(4)1
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)1.09%
Revenue beat(8)1
Avg Revenue beat(8)-0.95%
Revenue beat(12)3
Avg Revenue beat(12)0.48%
Revenue beat(16)7
Avg Revenue beat(16)1.9%
PT rev (1m)3.22%
PT rev (3m)12.66%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-1.48%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.98%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.38 | ||
| Fwd PE | 20.56 | ||
| P/S | 3.3 | ||
| P/FCF | 13.21 | ||
| P/OCF | 11.84 | ||
| P/B | 7.72 | ||
| P/tB | 7.72 | ||
| EV/EBITDA | 16.54 |
EPS(TTM)14.9
EY4.1%
EPS(NY)17.66
Fwd EY4.86%
FCF(TTM)27.5
FCFY7.57%
OCF(TTM)30.69
OCFY8.45%
SpS110.19
BVpS47.06
TBVpS47.06
PEG (NY)1.43
PEG (5Y)2.37
Graham Number125.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 32.12% | ||
| ROCE | 10.25% | ||
| ROIC | 3.77% | ||
| ROICexc | 4.62% | ||
| ROICexgc | 5.14% | ||
| OM | 17.76% | ||
| PM (TTM) | 13.72% | ||
| GM | 61.93% | ||
| FCFM | 24.95% |
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%
ROICexgc growth 3Y-4.54%
ROICexgc growth 5Y1.68%
ROICexc growth 3Y-3.59%
ROICexc growth 5Y1.93%
OM growth 3Y-8.78%
OM growth 5Y-0.57%
PM growth 3Y-8.37%
PM growth 5Y-0.22%
GM growth 3Y-2.58%
GM growth 5Y-1.09%
F-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Debt/EBITDA | 13.73 | ||
| Cap/Depr | 126.1% | ||
| Cap/Sales | 2.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 138.84% | ||
| Profit Quality | 181.93% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 0.86 |
F-Score6
WACC7.11%
ROIC/WACC0.53
Cap/Depr(3y)107.59%
Cap/Depr(5y)102%
Cap/Sales(3y)2.77%
Cap/Sales(5y)3.15%
Profit Quality(3y)195.73%
Profit Quality(5y)177.62%
High Growth Momentum
Growth
EPS 1Y (TTM)15.24%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%18.62%
EPS Next Y17.04%
EPS Next 2Y15.03%
EPS Next 3Y14.81%
EPS Next 5Y13.41%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%10.76%
Revenue Next Year9.36%
Revenue Next 2Y9.13%
Revenue Next 3Y8.91%
Revenue Next 5Y7.5%
EBIT growth 1Y10.4%
EBIT growth 3Y7.6%
EBIT growth 5Y8.16%
EBIT Next Year45.1%
EBIT Next 3Y10%
EBIT Next 5YN/A
FCF growth 1Y1.99%
FCF growth 3Y-2.5%
FCF growth 5Y0.25%
OCF growth 1Y4.53%
OCF growth 3Y-1.37%
OCF growth 5Y0.61%
AMERICAN EXPRESS CO / AXP FAQ
Can you provide the ChartMill fundamental rating for AMERICAN EXPRESS CO?
ChartMill assigns a fundamental rating of 5 / 10 to AXP.
Can you provide the valuation status for AMERICAN EXPRESS CO?
ChartMill assigns a valuation rating of 2 / 10 to AMERICAN EXPRESS CO (AXP). This can be considered as Overvalued.
Can you provide the profitability details for AMERICAN EXPRESS CO?
AMERICAN EXPRESS CO (AXP) has a profitability rating of 6 / 10.
What is the financial health of AMERICAN EXPRESS CO (AXP) stock?
The financial health rating of AMERICAN EXPRESS CO (AXP) is 3 / 10.
Is the dividend of AMERICAN EXPRESS CO sustainable?
The dividend rating of AMERICAN EXPRESS CO (AXP) is 6 / 10 and the dividend payout ratio is 21.11%.