AMERICAN EXPRESS CO (AXP) Fundamental Analysis & Valuation

NYSE:AXP • US0258161092

Current stock price

299.96 USD
-1.93 (-0.64%)
At close:
299.861 USD
-0.1 (-0.03%)
After Hours:

This AXP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. AXP Profitability Analysis

1.1 Basic Checks

  • AXP had positive earnings in the past year.
  • AXP had a positive operating cash flow in the past year.
  • In the past 5 years AXP has always been profitable.
  • Each year in the past 5 years AXP had a positive operating cash flow.
AXP Yearly Net Income VS EBIT VS OCF VS FCFAXP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

1.2 Ratios

  • AXP has a Return On Assets of 3.57%. This is comparable to the rest of the industry: AXP outperforms 57.41% of its industry peers.
  • AXP has a better Return On Equity (31.97%) than 90.74% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 3.79%, AXP is in line with its industry, outperforming 55.56% of the companies in the same industry.
  • 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 (3.68%) for AXP is below the current ROIC(3.79%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.57%
ROE 31.97%
ROIC 3.79%
ROA(3y)3.47%
ROA(5y)3.57%
ROE(3y)31.47%
ROE(5y)32.01%
ROIC(3y)3.68%
ROIC(5y)3.82%
AXP Yearly ROA, ROE, ROICAXP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • AXP has a Profit Margin of 13.65%. This is comparable to the rest of the industry: AXP outperforms 53.70% of its industry peers.
  • In the last couple of years the Profit Margin of AXP has grown nicely.
  • AXP has a better Operating Margin (17.56%) than 61.11% of its industry peers.
  • In the last couple of years the Operating Margin of AXP has grown nicely.
  • The Gross Margin of AXP (60.91%) is comparable to the rest of the industry.
  • AXP's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 17.56%
PM (TTM) 13.65%
GM 60.91%
OM growth 3Y-0.05%
OM growth 5Y9.58%
PM growth 3Y1.18%
PM growth 5Y11.63%
GM growth 3Y-1.59%
GM growth 5Y-2.62%
AXP Yearly Profit, Operating, Gross MarginsAXP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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2

2. AXP Health Analysis

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.
  • 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.
  • Compared to 1 year ago, AXP has about the same debt to assets ratio.
AXP Yearly Shares OutstandingAXP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
AXP Yearly Total Debt VS Total AssetsAXP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B

2.2 Solvency

  • 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.
  • AXP has a Altman-Z score (0.76) which is comparable to the rest of the industry.
  • AXP has a debt to FCF ratio of 13.14. This is a negative value and a sign of low solvency as AXP would need 13.14 years to pay back of all of its debts.
  • AXP's Debt to FCF ratio of 13.14 is in line compared to the rest of the industry. AXP outperforms 50.00% of its industry peers.
  • AXP has a Debt/Equity ratio of 6.28. This is a high value indicating a heavy dependency on external financing.
  • AXP has a worse Debt to Equity ratio (6.28) than 70.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 6.28
Debt/FCF 13.14
Altman-Z 0.76
ROIC/WACC0.58
WACC6.57%
AXP Yearly LT Debt VS Equity VS FCFAXP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.3 Liquidity

  • A Current Ratio of 0.65 indicates that AXP may have some problems paying its short term obligations.
  • With a Current ratio value of 0.65, AXP perfoms like the industry average, outperforming 40.74% of the companies in the same industry.
  • A Quick Ratio of 0.65 indicates that AXP may have some problems paying its short term obligations.
  • AXP has a Quick ratio (0.65) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 0.65
Quick Ratio 0.65
AXP Yearly Current Assets VS Current LiabilitesAXP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. AXP Growth Analysis

3.1 Past

  • AXP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.28%, which is quite good.
  • Measured over the past years, AXP shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.56% on average per year.
  • Looking at the last year, AXP shows a small growth in Revenue. The Revenue has grown by 6.60% in the last year.
  • The Revenue has been growing by 15.25% on average over the past years. This is quite good.
EPS 1Y (TTM)15.28%
EPS 3Y16.08%
EPS 5Y32.56%
EPS Q2Q%16.12%
Revenue 1Y (TTM)6.6%
Revenue growth 3Y11.76%
Revenue growth 5Y15.25%
Sales Q2Q%10.48%

3.2 Future

  • Based on estimates for the next years, AXP will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.95% on average per year.
  • The Revenue is expected to grow by 8.10% on average over the next years. This is quite good.
EPS Next Y15.31%
EPS Next 2Y14.88%
EPS Next 3Y14.39%
EPS Next 5Y12.95%
Revenue Next Year9.61%
Revenue Next 2Y9.21%
Revenue Next 3Y8.8%
Revenue Next 5Y8.1%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
AXP Yearly Revenue VS EstimatesAXP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20B 40B 60B 80B 100B
AXP Yearly EPS VS EstimatesAXP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10 15 20 25

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4

4. AXP Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 19.49, which indicates a rather expensive current valuation of AXP.
  • 77.78% 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 25.70, AXP is valued a bit cheaper.
  • AXP is valuated correctly with a Price/Forward Earnings ratio of 16.90.
  • 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 62.96% 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 (23.84), we can say AXP is valued slightly cheaper.
Industry RankSector Rank
PE 19.49
Fwd PE 16.9
AXP Price Earnings VS Forward Price EarningsAXP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • AXP's Enterprise Value to EBITDA is on the same level as 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 RankSector Rank
P/FCF 12.87
EV/EBITDA 13.94
AXP Per share dataAXP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

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 14.39% in the coming years.
PEG (NY)1.27
PEG (5Y)0.6
EPS Next 2Y14.88%
EPS Next 3Y14.39%

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6

5. AXP Dividend Analysis

5.1 Amount

  • AXP has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
  • The stock price of AXP dropped by -21.59% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • Compared to an average industry Dividend Yield of 2.83, AXP has a dividend in line with its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.82, AXP is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.24%

5.2 History

  • On average, the dividend of AXP grows each year by 12.38%, which is quite nice.
  • AXP has been paying a dividend for at least 10 years, so it has 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)12.38%
Div Incr Years3
Div Non Decr Years20
AXP Yearly Dividends per shareAXP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • AXP pays out 21.22% of its income as dividend. This is a sustainable payout ratio.
  • AXP's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP21.22%
EPS Next 2Y14.88%
EPS Next 3Y14.39%
AXP Yearly Income VS Free CF VS DividendAXP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B
AXP Dividend Payout.AXP Dividend Payout, showing the Payout Ratio.AXP Dividend Payout.PayoutRetained Earnings

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AXP Fundamentals: All Metrics, Ratios and Statistics

AMERICAN EXPRESS CO

NYSE:AXP (3/13/2026, 8:10:51 PM)

After market: 299.861 -0.1 (-0.03%)

299.96

-1.93 (-0.64%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)01-30
Earnings (Next)04-24
Inst Owners64.73%
Inst Owner Change-0.06%
Ins Owners0.09%
Ins Owner Change3.87%
Market Cap205.96B
Revenue(TTM)78.41B
Net Income(TTM)10.70B
Analysts70.29
Price Target387 (29.02%)
Short Float %1.61%
Short Ratio2.54
Dividend
Industry RankSector Rank
Dividend Yield 1.24%
Yearly Dividend3.27
Dividend Growth(5Y)12.38%
DP21.22%
Div Incr Years3
Div Non Decr Years20
Ex-Date01-02
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.67%
Min EPS beat(2)-1.23%
Max EPS beat(2)2.58%
EPS beat(4)3
Avg EPS beat(4)2.32%
Min EPS beat(4)-1.23%
Max EPS beat(4)4.09%
EPS beat(8)6
Avg EPS beat(8)3.96%
EPS beat(12)8
Avg EPS beat(12)2.71%
EPS beat(16)11
Avg EPS beat(16)2.65%
Revenue beat(2)1
Avg Revenue beat(2)0.2%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)1.09%
Revenue beat(4)1
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-0.81%
Max Revenue beat(4)1.09%
Revenue beat(8)1
Avg Revenue beat(8)-0.76%
Revenue beat(12)2
Avg Revenue beat(12)-0.17%
Revenue beat(16)6
Avg Revenue beat(16)1.41%
PT rev (1m)1.17%
PT rev (3m)8.24%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)0.31%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.76%
Valuation
Industry RankSector Rank
PE 19.49
Fwd PE 16.9
P/S 2.63
P/FCF 12.87
P/OCF 11.18
P/B 6.15
P/tB 6.15
EV/EBITDA 13.94
EPS(TTM)15.39
EY5.13%
EPS(NY)17.75
Fwd EY5.92%
FCF(TTM)23.31
FCFY7.77%
OCF(TTM)26.84
OCFY8.95%
SpS114.2
BVpS48.75
TBVpS48.75
PEG (NY)1.27
PEG (5Y)0.6
Graham Number129.93
Profitability
Industry RankSector Rank
ROA 3.57%
ROE 31.97%
ROCE 10.47%
ROIC 3.79%
ROICexc 4.54%
ROICexgc 5.05%
OM 17.56%
PM (TTM) 13.65%
GM 60.91%
FCFM 20.41%
ROA(3y)3.47%
ROA(5y)3.57%
ROE(3y)31.47%
ROE(5y)32.01%
ROIC(3y)3.68%
ROIC(5y)3.82%
ROICexc(3y)4.43%
ROICexc(5y)4.52%
ROICexgc(3y)4.73%
ROICexgc(5y)4.86%
ROCE(3y)10.22%
ROCE(5y)10.27%
ROICexgc growth 3Y2.16%
ROICexgc growth 5Y14.46%
ROICexc growth 3Y2.41%
ROICexc growth 5Y15.17%
OM growth 3Y-0.05%
OM growth 5Y9.58%
PM growth 3Y1.18%
PM growth 5Y11.63%
GM growth 3Y-1.59%
GM growth 5Y-2.62%
F-Score6
Asset Turnover0.26
Health
Industry RankSector Rank
Debt/Equity 6.28
Debt/FCF 13.14
Debt/EBITDA 13.52
Cap/Depr 136.47%
Cap/Sales 3.09%
Interest Coverage 1.72
Cash Conversion 118.53%
Profit Quality 149.55%
Current Ratio 0.65
Quick Ratio 0.65
Altman-Z 0.76
F-Score6
WACC6.57%
ROIC/WACC0.58
Cap/Depr(3y)115.05%
Cap/Depr(5y)110.14%
Cap/Sales(3y)2.7%
Cap/Sales(5y)3%
Profit Quality(3y)158.99%
Profit Quality(5y)180.43%
High Growth Momentum
Growth
EPS 1Y (TTM)15.28%
EPS 3Y16.08%
EPS 5Y32.56%
EPS Q2Q%16.12%
EPS Next Y15.31%
EPS Next 2Y14.88%
EPS Next 3Y14.39%
EPS Next 5Y12.95%
Revenue 1Y (TTM)6.6%
Revenue growth 3Y11.76%
Revenue growth 5Y15.25%
Sales Q2Q%10.48%
Revenue Next Year9.61%
Revenue Next 2Y9.21%
Revenue Next 3Y8.8%
Revenue Next 5Y8.1%
EBIT growth 1Y11.18%
EBIT growth 3Y11.71%
EBIT growth 5Y26.29%
EBIT Next Year-4.41%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y31.83%
FCF growth 3Y-5.93%
FCF growth 5Y31.22%
OCF growth 1Y31.16%
OCF growth 3Y-4.38%
OCF growth 5Y26.94%

AMERICAN EXPRESS CO / AXP Fundamental Analysis 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 4 / 10 to AMERICAN EXPRESS CO (AXP). This can be considered as Fairly Valued.


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 2 / 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 21.22%.