AMERICAN EXPRESS CO (1AXP.MI) Stock Fundamental Analysis
BIT:1AXP - Euronext Milan - US0258161092 - Common Stock - Currency: EUR
Overall 1AXP gets a fundamental rating of 5 out of 10. We evaluated 1AXP against 8 industry peers in the Consumer Finance industry. 1AXP scores excellent on profitability, but there are concerns on its financial health. 1AXP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1AXP was profitable.
1AXP had a positive operating cash flow in the past year.
1AXP had positive earnings in each of the past 5 years.
1AXP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 3.68%, 1AXP belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
The Return On Equity of 1AXP (33.03%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.80%, 1AXP is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1AXP is in line with the industry average of 5.61%.
The 3 year average ROIC (3.64%) for 1AXP is below the current ROIC(3.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 33.03% | ||
| ROIC | 3.8% |
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
Looking at the Profit Margin, with a value of 13.95%, 1AXP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of 1AXP has remained more or less at the same level.
1AXP has a Operating Margin of 17.29%. This is amongst the best in the industry. 1AXP outperforms 87.50% of its industry peers.
1AXP's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 62.21%, 1AXP is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
1AXP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.29% | ||
| PM (TTM) | 13.95% | ||
| GM | 62.21% |
OM growth 3Y-9.36%
OM growth 5Y-1.39%
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.
The number of shares outstanding for 1AXP has been reduced compared to 1 year ago.
1AXP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1AXP is higher compared to a year ago.
2.2 Solvency
1AXP has an Altman-Z score of 0.74. This is a bad value and indicates that 1AXP is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.74, 1AXP is doing good in the industry, outperforming 62.50% of the companies in the same industry.
The Debt to FCF ratio of 1AXP is 15.69, which is on the high side as it means it would take 1AXP, 15.69 years of fcf income to pay off all of its debts.
1AXP's Debt to FCF ratio of 15.69 is on the low side compared to the rest of the industry. 1AXP is outperformed by 62.50% of its industry peers.
A Debt/Equity ratio of 6.29 is on the high side and indicates that 1AXP has dependencies on debt financing.
1AXP has a Debt to Equity ratio of 6.29. This is in the lower half of the industry: 1AXP underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.29 | ||
| Debt/FCF | 15.69 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.53
WACC7.24%
2.3 Liquidity
1AXP has a Current Ratio of 0.64. 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 has a Current ratio (0.64) which is comparable to the rest of the industry.
A Quick Ratio of 0.64 indicates that 1AXP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.64, 1AXP is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.52% over the past year.
1AXP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.27% yearly.
The Revenue has grown by 8.00% in the past year. This is quite good.
The Revenue has been growing by 9.69% on average over the past years. This is quite good.
EPS 1Y (TTM)12.52%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%9.31%
Revenue 1Y (TTM)8%
Revenue growth 3Y18.7%
Revenue growth 5Y9.69%
Sales Q2Q%7.38%
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 9.87% yearly.
1AXP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.69% yearly.
EPS Next Y15.35%
EPS Next 2Y14.82%
EPS Next 3Y14.54%
EPS Next 5Y9.87%
Revenue Next Year8.3%
Revenue Next 2Y8.24%
Revenue Next 3Y8.01%
Revenue Next 5Y7.69%
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
1AXP is valuated rather expensively with a Price/Earnings ratio of 19.35.
62.50% of the companies in the same industry are more expensive than 1AXP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.79. 1AXP is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.03 indicates a correct valuation of 1AXP.
The rest of the industry has a similar Price/Forward Earnings ratio as 1AXP.
The average S&P500 Price/Forward Earnings ratio is at 21.38. 1AXP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.35 | ||
| Fwd PE | 15.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1AXP is valued a bit cheaper than 75.00% of the companies in the same industry.
1AXP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.27 | ||
| EV/EBITDA | 13.88 |
4.3 Compensation for Growth
1AXP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1AXP has an outstanding profitability rating, which may justify a higher PE ratio.
1AXP's earnings are expected to grow with 14.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)1.89
EPS Next 2Y14.82%
EPS Next 3Y14.54%
5. Dividend
5.1 Amount
1AXP has a Yearly Dividend Yield of 1.31%.
Compared to an average industry Dividend Yield of 3.83, 1AXP has a dividend in line with its industry peers.
With a Dividend Yield of 1.31, 1AXP pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
The dividend of 1AXP is nicely growing with an annual growth rate of 10.33%!
Dividend Growth(5Y)10.33%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
20.00% of the earnings are spent on dividend by 1AXP. This is a low number and sustainable payout ratio.
1AXP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20%
EPS Next 2Y14.82%
EPS Next 3Y14.54%
BIT:1AXP (4/23/2025, 7:00:00 PM)
232.45
+9.05 (+4.05%)
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 Cap162.97B
Analysts68.82
Price Target284.98 (22.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend2.47
Dividend Growth(5Y)10.33%
DP20%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.15%
Min EPS beat(2)-0.95%
Max EPS beat(2)5.25%
EPS beat(4)3
Avg EPS beat(4)5.6%
Min EPS beat(4)-0.95%
Max EPS beat(4)11.56%
EPS beat(8)5
Avg EPS beat(8)2.9%
EPS beat(12)8
Avg EPS beat(12)2.75%
EPS beat(16)12
Avg EPS beat(16)13%
Revenue beat(2)0
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)-0.88%
Revenue beat(8)1
Avg Revenue beat(8)-0.57%
Revenue beat(12)5
Avg Revenue beat(12)0.9%
Revenue beat(16)8
Avg Revenue beat(16)1.65%
PT rev (1m)-7.86%
PT rev (3m)6.1%
EPS NQ rev (1m)-2.42%
EPS NQ rev (3m)-1.62%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.35 | ||
| Fwd PE | 15.03 | ||
| P/S | 2.59 | ||
| P/FCF | 15.27 | ||
| P/OCF | 13.2 | ||
| P/B | 6.13 | ||
| P/tB | 6.13 | ||
| EV/EBITDA | 13.88 |
EPS(TTM)12.01
EY5.17%
EPS(NY)15.47
Fwd EY6.66%
FCF(TTM)15.22
FCFY6.55%
OCF(TTM)17.62
OCFY7.58%
SpS89.83
BVpS37.94
TBVpS37.94
PEG (NY)1.26
PEG (5Y)1.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 33.03% | ||
| ROCE | 10.6% | ||
| ROIC | 3.8% | ||
| ROICexc | 4.5% | ||
| ROICexgc | 4.99% | ||
| OM | 17.29% | ||
| PM (TTM) | 13.95% | ||
| GM | 62.21% | ||
| FCFM | 16.94% |
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-9.36%
OM growth 5Y-1.39%
PM growth 3Y-8.95%
PM growth 5Y-1.04%
GM growth 3Y-3.2%
GM growth 5Y-1.9%
F-Score7
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.29 | ||
| Debt/FCF | 15.69 | ||
| Debt/EBITDA | 13.55 | ||
| Cap/Depr | 114.02% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 1.51 | ||
| Cash Conversion | 99.92% | ||
| Profit Quality | 121.45% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.74 |
F-Score7
WACC7.24%
ROIC/WACC0.53
Cap/Depr(3y)107.59%
Cap/Depr(5y)102%
Cap/Sales(3y)2.82%
Cap/Sales(5y)3.22%
Profit Quality(3y)195.73%
Profit Quality(5y)177.62%
High Growth Momentum
Growth
EPS 1Y (TTM)12.52%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%9.31%
EPS Next Y15.35%
EPS Next 2Y14.82%
EPS Next 3Y14.54%
EPS Next 5Y9.87%
Revenue 1Y (TTM)8%
Revenue growth 3Y18.7%
Revenue growth 5Y9.69%
Sales Q2Q%7.38%
Revenue Next Year8.3%
Revenue Next 2Y8.24%
Revenue Next 3Y8.01%
Revenue Next 5Y7.69%
EBIT growth 1Y15.08%
EBIT growth 3Y7.6%
EBIT growth 5Y8.16%
EBIT Next Year45.1%
EBIT Next 3Y22.83%
EBIT Next 5YN/A
FCF growth 1Y-28.58%
FCF growth 3Y-2.5%
FCF growth 5Y0.25%
OCF growth 1Y-24.3%
OCF growth 3Y-1.37%
OCF growth 5Y0.61%