AMERICAN EXPRESS CO (AXP) Stock Fundamental Analysis
USA - NYSE:AXP - US0258161092 - Common Stock
357.56 USD
+2.63 (+0.74%)
357.95 USD
+0.39 (+0.11%)
AXP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 55 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.
AXP had positive earnings in each of the past 5 years.
Each year in the past 5 years AXP had a positive operating cash flow.
1.2 Ratios
AXP's Return On Assets of 3.50% is fine compared to the rest of the industry. AXP outperforms 67.27% of its industry peers.
AXP's Return On Equity of 32.12% is amongst the best of the industry. AXP outperforms 94.55% of its industry peers.
AXP has a Return On Invested Capital (3.77%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for AXP is significantly below the industry average of 10.99%.
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 of 13.72%. This is comparable to the rest of the industry: AXP outperforms 60.00% of its industry peers.
In the last couple of years the Profit Margin of AXP has remained more or less at the same level.
Looking at the Operating Margin, with a value of 17.76%, AXP is in the better half of the industry, outperforming 65.45% of the companies in the same industry.
AXP's Operating Margin has been stable in the last couple of years.
The Gross Margin of AXP (61.93%) is better than 61.82% 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.
The number of shares outstanding for AXP has been reduced compared to 1 year ago.
AXP has less shares outstanding than it did 5 years ago.
AXP has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.86, we must say that AXP is in the distress zone and has some risk of bankruptcy.
AXP has a Altman-Z score (0.86) which is comparable to the rest of the industry.
AXP has a debt to FCF ratio of 11.04. This is a negative value and a sign of low solvency as AXP would need 11.04 years to pay back of all of its debts.
AXP has a Debt to FCF ratio (11.04) which is comparable to the rest of the industry.
AXP has a Debt/Equity ratio of 6.45. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 6.45, AXP is not doing good in the industry: 76.36% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.39
WACC9.71%
2.3 Liquidity
AXP has a Current Ratio of 0.68. 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 (0.68) 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 of 0.68. This is comparable to the rest of the industry: AXP outperforms 41.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.24% over the past year.
AXP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.27% yearly.
Looking at the last year, AXP shows a small growth in Revenue. The Revenue has grown by 4.37% in the last year.
The Revenue has been growing by 8.79% on average over the past years. This is quite good.
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
Based on estimates for the next years, AXP will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.40% on average per year.
The Revenue is expected to grow by 7.38% on average over the next years.
EPS Next Y16.57%
EPS Next 2Y14.7%
EPS Next 3Y14.22%
EPS Next 5Y10.4%
Revenue Next Year9.03%
Revenue Next 2Y8.8%
Revenue Next 3Y8.67%
Revenue Next 5Y7.38%
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 stable.
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
Based on the Price/Earnings ratio of 24.00, the valuation of AXP can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AXP indicates a slightly more expensive valuation: AXP is more expensive than 72.73% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.89, AXP is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.36, the valuation of AXP can be described as rather expensive.
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 65.45% 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 (22.99), we can say AXP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24 | ||
| Fwd PE | 20.36 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13 | ||
| EV/EBITDA | 16.55 |
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 14.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.45
PEG (5Y)2.34
EPS Next 2Y14.7%
EPS Next 3Y14.22%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, AXP is not a good candidate for dividend investing.
AXP's Dividend Yield is comparable with the industry average which is at 4.70.
With a Dividend Yield of 0.92, AXP pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
On average, the dividend of AXP grows each year by 10.33%, 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 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
21.11% of the earnings are spent on dividend by AXP. This is a low number and 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.
DP21.11%
EPS Next 2Y14.7%
EPS Next 3Y14.22%
357.56
+2.63 (+0.74%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.31%
Inst Owner Change-0.01%
Ins Owners0.09%
Ins Owner Change-1.55%
Market Cap246.31B
Revenue(TTM)75.91B
Net Income(TTM)10.41B
Analysts67.22
Price Target327.57 (-8.39%)
Short Float %1.84%
Short Ratio3.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend2.81
Dividend Growth(5Y)10.33%
DP21.11%
Div Incr Years3
Div Non Decr Years20
Ex-Date
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)0.19%
PT rev (3m)2.98%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)-0.71%
EPS NY rev (1m)0.57%
EPS NY rev (3m)1.16%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24 | ||
| Fwd PE | 20.36 | ||
| P/S | 3.24 | ||
| P/FCF | 13 | ||
| P/OCF | 11.65 | ||
| P/B | 7.6 | ||
| P/tB | 7.6 | ||
| EV/EBITDA | 16.55 |
EPS(TTM)14.9
EY4.17%
EPS(NY)17.56
Fwd EY4.91%
FCF(TTM)27.5
FCFY7.69%
OCF(TTM)30.69
OCFY8.58%
SpS110.19
BVpS47.06
TBVpS47.06
PEG (NY)1.45
PEG (5Y)2.34
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
WACC9.71%
ROIC/WACC0.39
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 Y16.57%
EPS Next 2Y14.7%
EPS Next 3Y14.22%
EPS Next 5Y10.4%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%10.76%
Revenue Next Year9.03%
Revenue Next 2Y8.8%
Revenue Next 3Y8.67%
Revenue Next 5Y7.38%
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 4 / 10 to AXP.
What is the valuation status of AMERICAN EXPRESS CO (AXP) stock?
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 valuation of AMERICAN EXPRESS CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AMERICAN EXPRESS CO (AXP) is 24 and the Price/Book (PB) ratio is 7.6.
What is the expected EPS growth for AMERICAN EXPRESS CO (AXP) stock?
The Earnings per Share (EPS) of AMERICAN EXPRESS CO (AXP) is expected to grow by 16.57% in the next year.