AMERICAN EXPRESS CO (1AXP.MI) Stock Fundamental Analysis
Europe - BIT:1AXP - US0258161092 - Common Stock
287.8 EUR
+9.5 (+3.41%)
We assign a fundamental rating of 4 out of 10 to 1AXP. 1AXP was compared to 8 industry peers in the Consumer Finance industry. 1AXP has an excellent profitability rating, but there are 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.
In the past year 1AXP had a positive cash flow from operations.
Each year in the past 5 years 1AXP has been profitable.
1AXP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.39%, 1AXP is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
1AXP has a better Return On Equity (31.00%) than 87.50% of its industry peers.
The Return On Invested Capital of 1AXP (3.62%) is better than 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1AXP is in line with the industry average of 4.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 31% | ||
| ROIC | 3.62% |
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 (13.38%) than 87.50% 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 has a better Operating Margin (17.21%) than 75.00% of its industry peers.
1AXP's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 61.37%, 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 | 17.21% | ||
| PM (TTM) | 13.38% | ||
| GM | 61.37% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
1AXP has a worse debt/assets ratio than last year.
2.2 Solvency
1AXP has an Altman-Z score of 0.84. This is a bad value and indicates that 1AXP is not financially healthy and even has some risk of bankruptcy.
1AXP has a better Altman-Z score (0.84) than 87.50% of its industry peers.
The Debt to FCF ratio of 1AXP is 18.84, which is on the high side as it means it would take 1AXP, 18.84 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1AXP (18.84) is worse than 75.00% of its industry peers.
1AXP has a Debt/Equity ratio of 6.47. This is a high value indicating a heavy dependency on external financing.
1AXP's Debt to Equity ratio of 6.47 is on the low side compared to the rest of the industry. 1AXP is outperformed by 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.47 | ||
| Debt/FCF | 18.84 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.37
WACC9.78%
2.3 Liquidity
A Current Ratio of 0.71 indicates that 1AXP may have some problems paying its short term obligations.
1AXP has a worse Current ratio (0.71) than 62.50% of its industry peers.
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.
With a Quick ratio value of 0.71, 1AXP is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| 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 11.85% 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 a small growth in Revenue. In the last year, the Revenue has grown by 5.28%.
1AXP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.79% yearly.
EPS 1Y (TTM)11.85%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%16.91%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%9.32%
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 10.40% yearly.
The Revenue is expected to grow by 7.38% on average over the next years.
EPS Next Y15.84%
EPS Next 2Y14.28%
EPS Next 3Y13.77%
EPS Next 5Y10.4%
Revenue Next Year8.56%
Revenue Next 2Y8.44%
Revenue Next 3Y8.28%
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.
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
With a Price/Earnings ratio of 23.67, 1AXP is valued on the expensive side.
1AXP's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.38, 1AXP is valued at the same level.
With a Price/Forward Earnings ratio of 19.34, 1AXP is valued on the expensive side.
1AXP's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1AXP is more expensive than 75.00% of the companies in the same industry.
1AXP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.67 | ||
| Fwd PE | 19.34 |
4.2 Price Multiples
62.50% of the companies in the same industry are more expensive than 1AXP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1AXP is valued a bit more expensive than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.15 | ||
| EV/EBITDA | 15.82 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1AXP has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1AXP's earnings are expected to grow with 13.77% in the coming years.
PEG (NY)1.49
PEG (5Y)2.31
EPS Next 2Y14.28%
EPS Next 3Y13.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.01%, 1AXP has a reasonable but not impressive dividend return.
1AXP's Dividend Yield is a higher than the industry average which is at 4.00.
Compared to an average S&P500 Dividend Yield of 2.38, 1AXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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
1AXP pays out 21.24% of its income as dividend. This is a 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.
DP21.24%
EPS Next 2Y14.28%
EPS Next 3Y13.77%
BIT:1AXP (9/18/2025, 7:00:00 PM)
287.8
+9.5 (+3.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.51%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap200.27B
Analysts68
Price Target276.88 (-3.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend2.39
Dividend Growth(5Y)10.33%
DP21.24%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.98%
Min EPS beat(2)3.86%
Max EPS beat(2)4.09%
EPS beat(4)3
Avg EPS beat(4)3.06%
Min EPS beat(4)-0.95%
Max EPS beat(4)5.25%
EPS beat(8)6
Avg EPS beat(8)4.96%
EPS beat(12)8
Avg EPS beat(12)2.05%
EPS beat(16)12
Avg EPS beat(16)5.08%
Revenue beat(2)0
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-0.81%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)-0.18%
Revenue beat(8)0
Avg Revenue beat(8)-1.2%
Revenue beat(12)3
Avg Revenue beat(12)0.83%
Revenue beat(16)7
Avg Revenue beat(16)2.19%
PT rev (1m)5.96%
PT rev (3m)4.89%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-1.04%
EPS NY rev (1m)0.52%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.67 | ||
| Fwd PE | 19.34 | ||
| P/S | 3.13 | ||
| P/FCF | 21.15 | ||
| P/OCF | 17.92 | ||
| P/B | 7.26 | ||
| P/tB | 7.26 | ||
| EV/EBITDA | 15.82 |
EPS(TTM)12.16
EY4.23%
EPS(NY)14.88
Fwd EY5.17%
FCF(TTM)13.61
FCFY4.73%
OCF(TTM)16.06
OCFY5.58%
SpS91.84
BVpS39.62
TBVpS39.62
PEG (NY)1.49
PEG (5Y)2.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 31% | ||
| ROCE | 9.87% | ||
| ROIC | 3.62% | ||
| ROICexc | 4.55% | ||
| ROICexgc | 5.06% | ||
| OM | 17.21% | ||
| PM (TTM) | 13.38% | ||
| GM | 61.37% | ||
| FCFM | 14.82% |
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-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-Score5
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.47 | ||
| Debt/FCF | 18.84 | ||
| Debt/EBITDA | 14.31 | ||
| Cap/Depr | 115.88% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.62% | ||
| Profit Quality | 110.76% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 0.84 |
F-Score5
WACC9.78%
ROIC/WACC0.37
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)11.85%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%16.91%
EPS Next Y15.84%
EPS Next 2Y14.28%
EPS Next 3Y13.77%
EPS Next 5Y10.4%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%9.32%
Revenue Next Year8.56%
Revenue Next 2Y8.44%
Revenue Next 3Y8.28%
Revenue Next 5Y7.38%
EBIT growth 1Y6.08%
EBIT growth 3Y7.6%
EBIT growth 5Y8.16%
EBIT Next Year45.1%
EBIT Next 3Y9.75%
EBIT Next 5YN/A
FCF growth 1Y-25%
FCF growth 3Y-2.5%
FCF growth 5Y0.25%
OCF growth 1Y-20.57%
OCF growth 3Y-1.37%
OCF growth 5Y0.61%