AMERICAN EXPRESS CO (AXP) Stock Fundamental Analysis
USA - NYSE:AXP - US0258161092 - Common Stock
325.31 USD
-4.01 (-1.22%)
326 USD
+0.69 (+0.21%)
Taking everything into account, AXP scores 4 out of 10 in our fundamental rating. AXP was compared to 54 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.
Each year in the past 5 years AXP had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.39%, AXP is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With an excellent Return On Equity value of 31.00%, AXP belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
AXP has a Return On Invested Capital (3.62%) 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 11.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 31% | ||
| ROIC | 3.62% |
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
With a Profit Margin value of 13.38%, AXP perfoms like the industry average, outperforming 59.26% of the companies in the same industry.
AXP's Profit Margin has been stable in the last couple of years.
AXP has a better Operating Margin (17.21%) than 64.81% of its industry peers.
In the last couple of years the Operating Margin of AXP has remained more or less at the same level.
AXP has a Gross Margin of 61.37%. This is in the better half of the industry: AXP outperforms 61.11% 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 | 17.21% | ||
| PM (TTM) | 13.38% | ||
| GM | 61.37% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AXP is destroying value.
Compared to 1 year ago, AXP has less shares outstanding
AXP has less shares outstanding than it did 5 years ago.
AXP has a worse debt/assets ratio than last year.
2.2 Solvency
AXP has an Altman-Z score of 0.83. This is a bad value and indicates that AXP is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.83, AXP is in line with its industry, outperforming 55.56% of the companies in the same industry.
The Debt to FCF ratio of AXP is 18.84, which is on the high side as it means it would take AXP, 18.84 years of fcf income to pay off all of its debts.
AXP has a Debt to FCF ratio (18.84) which is in line with its industry peers.
AXP has a Debt/Equity ratio of 6.47. This is a high value indicating a heavy dependency on external financing.
AXP's Debt to Equity ratio of 6.47 is on the low side compared to the rest of the industry. AXP is outperformed by 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.47 | ||
| Debt/FCF | 18.84 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.36
WACC9.97%
2.3 Liquidity
AXP has a Current Ratio of 0.71. 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 Current ratio, with a value of 0.71, AXP is in line with its industry, outperforming 42.59% of the companies in the same industry.
A Quick Ratio of 0.71 indicates that AXP may have some problems paying its short term obligations.
AXP has a Quick ratio (0.71) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.85% over the past year.
The Earnings Per Share has been growing by 10.27% on average over the past years. This is quite good.
AXP shows a small growth in Revenue. In the last year, the Revenue has grown by 5.28%.
AXP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.79% yearly.
EPS 1Y (TTM)11.85%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%16.91%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%9.32%
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 10.40% yearly.
The Revenue is expected to grow by 7.38% on average over the next years.
EPS Next Y15.84%
EPS Next 2Y14.28%
EPS Next 3Y13.77%
EPS Next 5Y10.4%
Revenue Next Year8.56%
Revenue Next 2Y8.44%
Revenue Next 3Y8.28%
Revenue Next 5Y7.38%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.83, the valuation of AXP can be described as rather expensive.
Based on the Price/Earnings ratio, AXP is valued a bit more expensive than 72.22% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, AXP is valued at the same level.
Based on the Price/Forward Earnings ratio of 18.66, the valuation of AXP can be described as rather expensive.
Based on the Price/Forward Earnings ratio, AXP is valued a bit more expensive than the industry average as 68.52% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, AXP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 18.66 |
4.2 Price Multiples
AXP's Enterprise Value to EBITDA ratio is in line with the industry average.
AXP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.4 | ||
| EV/EBITDA | 15.54 |
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.
AXP's earnings are expected to grow with 13.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.44
PEG (5Y)2.22
EPS Next 2Y14.28%
EPS Next 3Y13.77%
5. Dividend
5.1 Amount
AXP has a Yearly Dividend Yield of 1.01%. Purely for dividend investing, there may be better candidates out there.
AXP's Dividend Yield is comparable with the industry average which is at 4.46.
Compared to an average S&P500 Dividend Yield of 2.38, AXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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 21.24% of its income as dividend. This is a sustainable payout ratio.
The dividend of AXP is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP21.24%
EPS Next 2Y14.28%
EPS Next 3Y13.77%
325.31
-4.01 (-1.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.51%
Inst Owner Change-1.75%
Ins Owners0.1%
Ins Owner Change-1.64%
Market Cap226.38B
Analysts68
Price Target326.93 (0.5%)
Short Float %1.75%
Short Ratio3.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend2.81
Dividend Growth(5Y)10.33%
DP21.24%
Div Incr Years3
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.98%
Min EPS beat(2)3.86%
Max EPS beat(2)4.09%
EPS beat(4)3
Avg EPS beat(4)3.06%
Min EPS beat(4)-0.95%
Max EPS beat(4)5.25%
EPS beat(8)6
Avg EPS beat(8)4.96%
EPS beat(12)8
Avg EPS beat(12)2.05%
EPS beat(16)12
Avg EPS beat(16)5.08%
Revenue beat(2)0
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-0.81%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)-0.18%
Revenue beat(8)0
Avg Revenue beat(8)-1.2%
Revenue beat(12)3
Avg Revenue beat(12)0.83%
Revenue beat(16)7
Avg Revenue beat(16)2.19%
PT rev (1m)0.89%
PT rev (3m)9.44%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-1.04%
EPS NY rev (1m)0.52%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 18.66 | ||
| P/S | 3.02 | ||
| P/FCF | 20.4 | ||
| P/OCF | 17.29 | ||
| P/B | 7.01 | ||
| P/tB | 7.01 | ||
| EV/EBITDA | 15.54 |
EPS(TTM)14.25
EY4.38%
EPS(NY)17.44
Fwd EY5.36%
FCF(TTM)15.94
FCFY4.9%
OCF(TTM)18.82
OCFY5.78%
SpS107.62
BVpS46.43
TBVpS46.43
PEG (NY)1.44
PEG (5Y)2.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 31% | ||
| ROCE | 9.87% | ||
| ROIC | 3.62% | ||
| ROICexc | 4.55% | ||
| ROICexgc | 5.06% | ||
| OM | 17.21% | ||
| PM (TTM) | 13.38% | ||
| GM | 61.37% | ||
| FCFM | 14.82% |
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-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-Score5
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.47 | ||
| Debt/FCF | 18.84 | ||
| Debt/EBITDA | 14.31 | ||
| Cap/Depr | 115.88% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.62% | ||
| Profit Quality | 110.76% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 0.83 |
F-Score5
WACC9.97%
ROIC/WACC0.36
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)11.85%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%16.91%
EPS Next Y15.84%
EPS Next 2Y14.28%
EPS Next 3Y13.77%
EPS Next 5Y10.4%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%9.32%
Revenue Next Year8.56%
Revenue Next 2Y8.44%
Revenue Next 3Y8.28%
Revenue Next 5Y7.38%
EBIT growth 1Y6.08%
EBIT growth 3Y7.6%
EBIT growth 5Y8.16%
EBIT Next Year45.1%
EBIT Next 3Y9.75%
EBIT Next 5YN/A
FCF growth 1Y-25%
FCF growth 3Y-2.5%
FCF growth 5Y0.25%
OCF growth 1Y-20.57%
OCF growth 3Y-1.37%
OCF growth 5Y0.61%