AMERICAN EXPRESS CO (1AXP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AXP - US0258161092 - Common Stock
324.25 EUR
+4.65 (+1.45%)
We assign a fundamental rating of 4 out of 10 to 1AXP. 1AXP was compared to 7 industry peers in the Consumer Finance industry. While 1AXP has a great profitability rating, there are quite some concerns on its financial health. 1AXP is valied quite expensively at the moment, while it does show a decent 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.
In the past 5 years 1AXP has always been profitable.
Each year in the past 5 years 1AXP had a positive operating cash flow.
1.2 Ratios
1AXP's Return On Assets of 3.50% is fine compared to the rest of the industry. 1AXP outperforms 80.00% of its industry peers.
1AXP has a Return On Equity of 32.12%. This is amongst the best in the industry. 1AXP outperforms 90.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.77%, 1AXP is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1AXP is in line with the industry average of 4.51%.
The last Return On Invested Capital (3.77%) for 1AXP is above the 3 year average (3.64%), which is a sign of increasing profitability.
| 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
1AXP has a better Profit Margin (13.72%) than 70.00% of its industry peers.
In the last couple of years the Profit Margin of 1AXP has remained more or less at the same level.
With a decent Operating Margin value of 17.76%, 1AXP is doing good in the industry, outperforming 80.00% of the companies in the same industry.
1AXP's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 61.93%, 1AXP perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
1AXP's Gross Margin has been stable in the last couple of years.
| 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
1AXP 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 1AXP has been reduced compared to 1 year ago.
1AXP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1AXP has a worse debt to assets ratio.
2.2 Solvency
1AXP has an Altman-Z score of 0.90. 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 0.90, 1AXP is doing good in the industry, outperforming 80.00% of the companies in the same industry.
The Debt to FCF ratio of 1AXP is 11.04, which is on the high side as it means it would take 1AXP, 11.04 years of fcf income to pay off all of its debts.
1AXP has a Debt to FCF ratio (11.04) which is comparable to the rest of the industry.
1AXP 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 1AXP (6.45) is worse than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.43
WACC8.82%
2.3 Liquidity
1AXP has a Current Ratio of 0.68. This is a bad value and indicates that 1AXP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of 1AXP (0.68) is worse than 60.00% of its industry peers.
A Quick Ratio of 0.68 indicates that 1AXP may have some problems paying its short term obligations.
1AXP 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.
1AXP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.27% yearly.
1AXP shows a small growth in Revenue. In the last year, the Revenue has grown by 4.37%.
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
The Earnings Per Share is expected to grow by 10.40% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.38% on average over the next years.
EPS Next Y17.08%
EPS Next 2Y14.97%
EPS Next 3Y14.7%
EPS Next 5Y10.4%
Revenue Next Year9.33%
Revenue Next 2Y9.09%
Revenue Next 3Y8.86%
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 25.49, the valuation of 1AXP can be described as expensive.
1AXP's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.92. 1AXP is around the same levels.
Based on the Price/Forward Earnings ratio of 21.52, the valuation of 1AXP can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AXP indicates a slightly more expensive valuation: 1AXP is more expensive than 70.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.46. 1AXP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.49 | ||
| Fwd PE | 21.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1AXP indicates a somewhat cheap valuation: 1AXP is cheaper than 70.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1AXP is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.81 | ||
| EV/EBITDA | 17.55 |
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 1AXP may justify a higher PE ratio.
1AXP's earnings are expected to grow with 14.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.49
PEG (5Y)2.48
EPS Next 2Y14.97%
EPS Next 3Y14.7%
5. Dividend
5.1 Amount
1AXP has a yearly dividend return of 0.87%, which is pretty low.
Compared to an average industry Dividend Yield of 1.97, 1AXP pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.87, 1AXP pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
On average, the dividend of 1AXP grows each year by 10.33%, which is quite nice.
Dividend Growth(5Y)10.33%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
21.11% of the earnings are spent on dividend by 1AXP. This is a low number and sustainable payout ratio.
The dividend of 1AXP is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP21.11%
EPS Next 2Y14.97%
EPS Next 3Y14.7%
BIT:1AXP (12/12/2025, 7:00:00 PM)
324.25
+4.65 (+1.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.15%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap223.36B
Revenue(TTM)75.91B
Net Income(TTM)10.41B
Analysts68.89
Price Target307.5 (-5.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend2.4
Dividend Growth(5Y)10.33%
DP21.11%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)0.95%
PT rev (3m)11.06%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.94%
EPS NY rev (1m)0.16%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.49 | ||
| Fwd PE | 21.52 | ||
| P/S | 3.45 | ||
| P/FCF | 13.81 | ||
| P/OCF | 12.38 | ||
| P/B | 8.07 | ||
| P/tB | 8.07 | ||
| EV/EBITDA | 17.55 |
EPS(TTM)12.72
EY3.92%
EPS(NY)15.07
Fwd EY4.65%
FCF(TTM)23.48
FCFY7.24%
OCF(TTM)26.2
OCFY8.08%
SpS94.09
BVpS40.18
TBVpS40.18
PEG (NY)1.49
PEG (5Y)2.48
Graham Number107.24
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 | 0.9 |
F-Score6
WACC8.82%
ROIC/WACC0.43
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 Y17.08%
EPS Next 2Y14.97%
EPS Next 3Y14.7%
EPS Next 5Y10.4%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%10.76%
Revenue Next Year9.33%
Revenue Next 2Y9.09%
Revenue Next 3Y8.86%
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 / 1AXP.MI FAQ
Can you provide the ChartMill fundamental rating for AMERICAN EXPRESS CO?
ChartMill assigns a fundamental rating of 4 / 10 to 1AXP.MI.
What is the valuation status for 1AXP stock?
ChartMill assigns a valuation rating of 2 / 10 to AMERICAN EXPRESS CO (1AXP.MI). This can be considered as Overvalued.
Can you provide the profitability details for AMERICAN EXPRESS CO?
AMERICAN EXPRESS CO (1AXP.MI) has a profitability rating of 7 / 10.
What are the PE and PB ratios of AMERICAN EXPRESS CO (1AXP.MI) stock?
The Price/Earnings (PE) ratio for AMERICAN EXPRESS CO (1AXP.MI) is 25.49 and the Price/Book (PB) ratio is 8.07.
Can you provide the financial health for 1AXP stock?
The financial health rating of AMERICAN EXPRESS CO (1AXP.MI) is 2 / 10.