AMERICAN EXPRESS CO (AXP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXP - US0258161092 - Common Stock
352.89 USD
+9.09 (+2.64%)
352.89 USD
0 (0%)
AXP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 55 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.
AXP had a positive operating cash flow in the past year.
AXP had positive earnings in each of the past 5 years.
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 65.45% of the companies in the same industry.
AXP's Return On Equity of 32.12% is amongst the best of the industry. AXP outperforms 92.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.77%, AXP is in line with its industry, outperforming 58.18% 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 11.61%.
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's Profit Margin of 13.72% is in line compared to the rest of the industry. AXP outperforms 60.00% of its industry peers.
AXP's Profit Margin has been stable in the last couple of years.
The Operating Margin of AXP (17.76%) is better than 65.45% of its industry peers.
AXP's Operating Margin has been stable in the last couple of years.
AXP has a Gross Margin (61.93%) which is in line with 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.
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
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's Altman-Z score of 0.86 is in line compared to the rest of the industry. AXP outperforms 54.55% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 11.04, AXP is in line with its industry, outperforming 58.18% of the companies in the same industry.
AXP has a Debt/Equity ratio of 6.45. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of AXP (6.45) is worse than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.4
WACC9.5%
2.3 Liquidity
A Current Ratio of 0.68 indicates that AXP may have some problems paying its short term obligations.
With a Current ratio value of 0.68, AXP is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.68 indicates that AXP may have some problems paying its short term obligations.
AXP has a worse Quick ratio (0.68) than 60.00% 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
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.
AXP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.38% yearly.
EPS Next Y16.89%
EPS Next 2Y14.8%
EPS Next 3Y14.62%
EPS Next 5Y10.4%
Revenue Next Year9.39%
Revenue Next 2Y9.13%
Revenue Next 3Y8.92%
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
AXP is valuated rather expensively with a Price/Earnings ratio of 23.68.
Based on the Price/Earnings ratio, AXP is valued a bit more expensive than 70.91% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. AXP is around the same levels.
The Price/Forward Earnings ratio is 20.06, which indicates a rather expensive current valuation of AXP.
AXP's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AXP is more expensive than 67.27% of the companies in the same industry.
AXP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.68 | ||
| Fwd PE | 20.06 |
4.2 Price Multiples
AXP's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as AXP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.83 | ||
| EV/EBITDA | 16.34 |
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.
A more expensive valuation may be justified as AXP's earnings are expected to grow with 14.62% in the coming years.
PEG (NY)1.4
PEG (5Y)2.31
EPS Next 2Y14.8%
EPS Next 3Y14.62%
5. Dividend
5.1 Amount
AXP has a yearly dividend return of 0.95%, which is pretty low.
Compared to an average industry Dividend Yield of 5.07, AXP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, AXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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 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.
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.
DP21.11%
EPS Next 2Y14.8%
EPS Next 3Y14.62%
352.89
+9.09 (+2.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.31%
Inst Owner Change-84.35%
Ins Owners0.09%
Ins Owner Change-1.08%
Market Cap243.09B
Revenue(TTM)75.91B
Net Income(TTM)10.41B
Analysts68.89
Price Target357.54 (1.32%)
Short Float %1.89%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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)9.15%
PT rev (3m)10.34%
EPS NQ rev (1m)-1.11%
EPS NQ rev (3m)-0.91%
EPS NY rev (1m)0.27%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.68 | ||
| Fwd PE | 20.06 | ||
| P/S | 3.2 | ||
| P/FCF | 12.83 | ||
| P/OCF | 11.5 | ||
| P/B | 7.5 | ||
| P/tB | 7.5 | ||
| EV/EBITDA | 16.34 |
EPS(TTM)14.9
EY4.22%
EPS(NY)17.59
Fwd EY4.99%
FCF(TTM)27.5
FCFY7.79%
OCF(TTM)30.69
OCFY8.7%
SpS110.19
BVpS47.06
TBVpS47.06
PEG (NY)1.4
PEG (5Y)2.31
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
WACC9.5%
ROIC/WACC0.4
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 Y16.89%
EPS Next 2Y14.8%
EPS Next 3Y14.62%
EPS Next 5Y10.4%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%10.76%
Revenue Next Year9.39%
Revenue Next 2Y9.13%
Revenue Next 3Y8.92%
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 3 / 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 23.68 and the Price/Book (PB) ratio is 7.5.
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 16.89% in the next year.