AMERICAN EXPRESS CO (1AXP.MI) Stock Fundamental Analysis
BIT:1AXP - Euronext Milan - US0258161092 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to 1AXP. 1AXP was compared to 8 industry peers in the Consumer Finance industry. There are concerns on the financial health of 1AXP while its profitability can be described as average. 1AXP is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1AXP had positive earnings in the past year.
1AXP had a positive operating cash flow in the past year.
Each year in the past 5 years 1AXP has been profitable.
1AXP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.60%, 1AXP is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
1AXP's Return On Equity of 32.85% is amongst the best of the industry. 1AXP outperforms 85.71% of its industry peers.
1AXP has a Return On Invested Capital (3.75%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 32.85% | ||
| ROIC | 3.75% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
1AXP's Profit Margin of 13.89% is amongst the best of the industry. 1AXP outperforms 85.71% of its industry peers.
In the last couple of years the Profit Margin of 1AXP has remained more or less at the same level.
1AXP's Operating Margin of 17.38% is fine compared to the rest of the industry. 1AXP outperforms 71.43% of its industry peers.
In the last couple of years the Operating Margin of 1AXP has remained more or less at the same level.
The Gross Margin of 1AXP (62.61%) is worse than 71.43% of its industry peers.
In the last couple of years the Gross Margin of 1AXP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.38% | ||
| PM (TTM) | 13.89% | ||
| GM | 62.61% |
OM growth 3Y-8.13%
OM growth 5Y-0.59%
PM growth 3Y-8.95%
PM growth 5Y-1.04%
GM growth 3Y-3.2%
GM growth 5Y-1.9%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1AXP is destroying value.
1AXP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 0.83, we must say that 1AXP is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.83, 1AXP is doing good in the industry, outperforming 71.43% of the companies in the same industry.
1AXP has a debt to FCF ratio of 14.43. This is a negative value and a sign of low solvency as 1AXP would need 14.43 years to pay back of all of its debts.
1AXP has a Debt to FCF ratio of 14.43. This is in the lower half of the industry: 1AXP underperforms 71.43% of its industry peers.
A Debt/Equity ratio of 6.41 is on the high side and indicates that 1AXP has dependencies on debt financing.
The Debt to Equity ratio of 1AXP (6.41) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.41 | ||
| Debt/FCF | 14.43 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.53
WACC7.12%
2.3 Liquidity
A Current Ratio of 0.71 indicates that 1AXP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.71, 1AXP is doing worse than 85.71% of the companies in the same industry.
1AXP has a Quick Ratio of 0.71. This is a bad value and indicates that 1AXP is not financially healthy enough and could expect problems in meeting its short term obligations.
1AXP's Quick ratio of 0.71 is on the low side compared to the rest of the industry. 1AXP is outperformed by 85.71% of 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 19.09% over the past year.
Measured over the past years, 1AXP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.27% on average per year.
1AXP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.58%.
1AXP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.69% yearly.
EPS 1Y (TTM)19.09%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%16.03%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y18.7%
Revenue growth 5Y9.69%
Sales Q2Q%8.73%
3.2 Future
1AXP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.30% yearly.
The Revenue is expected to grow by 7.66% on average over the next years.
EPS Next Y15.77%
EPS Next 2Y15.27%
EPS Next 3Y15.31%
EPS Next 5Y8.3%
Revenue Next Year8.55%
Revenue Next 2Y8.4%
Revenue Next 3Y8.08%
Revenue Next 5Y7.66%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.51, the valuation of 1AXP can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as 1AXP.
1AXP is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.58, the valuation of 1AXP can be described as rather expensive.
1AXP's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. 1AXP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.51 | ||
| Fwd PE | 18.58 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1AXP.
1AXP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.29 | ||
| EV/EBITDA | 14.98 |
4.3 Compensation for Growth
1AXP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as 1AXP's earnings are expected to grow with 15.31% in the coming years.
PEG (NY)1.36
PEG (5Y)2.1
EPS Next 2Y15.27%
EPS Next 3Y15.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.19%, 1AXP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.24, 1AXP has a dividend in line with its industry peers.
With a Dividend Yield of 1.19, 1AXP pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
The dividend of 1AXP is nicely growing with an annual growth rate of 9.36%!
Dividend Growth(5Y)9.36%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
19.91% of the earnings are spent on dividend by 1AXP. This is a low number and sustainable payout ratio.
The dividend of 1AXP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.91%
EPS Next 2Y15.27%
EPS Next 3Y15.31%
BIT:1AXP (3/4/2025, 7:00:00 PM)
264.55
-22.05 (-7.69%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.26%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap185.85B
Analysts67.65
Price Target309.3 (16.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend2.24
Dividend Growth(5Y)9.36%
DP19.91%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.88%
Min EPS beat(2)5.25%
Max EPS beat(2)6.52%
EPS beat(4)3
Avg EPS beat(4)5.41%
Min EPS beat(4)-1.69%
Max EPS beat(4)11.56%
EPS beat(8)5
Avg EPS beat(8)2.03%
EPS beat(12)9
Avg EPS beat(12)4.13%
EPS beat(16)13
Avg EPS beat(16)15.15%
Revenue beat(2)0
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)-1.19%
Revenue beat(4)0
Avg Revenue beat(4)-1.71%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)-0.9%
Revenue beat(8)2
Avg Revenue beat(8)0.06%
Revenue beat(12)6
Avg Revenue beat(12)1.43%
Revenue beat(16)9
Avg Revenue beat(16)1.75%
PT rev (1m)2.42%
PT rev (3m)15.16%
EPS NQ rev (1m)1.25%
EPS NQ rev (3m)1.25%
EPS NY rev (1m)0.05%
EPS NY rev (3m)1.01%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.51 | ||
| Fwd PE | 18.58 | ||
| P/S | 2.87 | ||
| P/FCF | 15.29 | ||
| P/OCF | 13.42 | ||
| P/B | 6.79 | ||
| P/tB | 6.79 | ||
| EV/EBITDA | 14.98 |
EPS(TTM)12.3
EY4.65%
EPS(NY)14.24
Fwd EY5.38%
FCF(TTM)17.3
FCFY6.54%
OCF(TTM)19.72
OCFY7.45%
SpS92.11
BVpS38.95
TBVpS38.95
PEG (NY)1.36
PEG (5Y)2.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 32.85% | ||
| ROCE | 10.1% | ||
| ROIC | 3.75% | ||
| ROICexc | 4.59% | ||
| ROICexgc | 5.08% | ||
| OM | 17.38% | ||
| PM (TTM) | 13.89% | ||
| GM | 62.61% | ||
| FCFM | 18.79% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-8.13%
OM growth 5Y-0.59%
PM growth 3Y-8.95%
PM growth 5Y-1.04%
GM growth 3Y-3.2%
GM growth 5Y-1.9%
F-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.41 | ||
| Debt/FCF | 14.43 | ||
| Debt/EBITDA | 13.72 | ||
| Cap/Depr | 110.3% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.34% | ||
| Profit Quality | 135.24% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 0.83 |
F-Score6
WACC7.12%
ROIC/WACC0.53
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.09%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%16.03%
EPS Next Y15.77%
EPS Next 2Y15.27%
EPS Next 3Y15.31%
EPS Next 5Y8.3%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y18.7%
Revenue growth 5Y9.69%
Sales Q2Q%8.73%
Revenue Next Year8.55%
Revenue Next 2Y8.4%
Revenue Next 3Y8.08%
Revenue Next 5Y7.66%
EBIT growth 1Y20.01%
EBIT growth 3Y9.05%
EBIT growth 5Y9.04%
EBIT Next Year45.1%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-28.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-25.62%
OCF growth 3YN/A
OCF growth 5YN/A