AMERICAN EXPRESS CO (1AXP.MI) Stock Fundamental Analysis
BIT:1AXP - Euronext Milan - US0258161092 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1AXP. 1AXP was compared to 7 industry peers in the Consumer Finance industry. 1AXP has an excellent profitability rating, but there are concerns on its financial health. 1AXP has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years 1AXP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.59%, 1AXP belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
1AXP's Return On Equity of 32.50% is amongst the best of the industry. 1AXP outperforms 100.00% of its industry peers.
With a decent Return On Invested Capital value of 3.70%, 1AXP is doing good in the industry, outperforming 77.78% 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 4.95%.
The last Return On Invested Capital (3.70%) for 1AXP is above the 3 year average (3.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 32.5% | ||
| ROIC | 3.7% |
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
With an excellent Profit Margin value of 13.95%, 1AXP belongs to the best of the industry, outperforming 88.89% 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.
The Operating Margin of 1AXP (17.29%) is better than 88.89% of its industry peers.
In the last couple of years the Operating Margin of 1AXP has remained more or less at the same level.
1AXP has a better Gross Margin (61.84%) than 66.67% of its industry peers.
In the last couple of years the Gross Margin of 1AXP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.29% | ||
| PM (TTM) | 13.95% | ||
| GM | 61.84% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1AXP is destroying value.
1AXP has less shares outstanding than it did 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 0.81. 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 (0.81) than 77.78% of its industry peers.
The Debt to FCF ratio of 1AXP is 17.60, which is on the high side as it means it would take 1AXP, 17.60 years of fcf income to pay off all of its debts.
1AXP has a Debt to FCF ratio (17.60) which is in line with its industry peers.
A Debt/Equity ratio of 6.38 is on the high side and indicates that 1AXP has dependencies on debt financing.
1AXP has a Debt to Equity ratio of 6.38. This is in the lower half of the industry: 1AXP underperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.38 | ||
| Debt/FCF | 17.6 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.49
WACC7.56%
2.3 Liquidity
A Current Ratio of 0.68 indicates that 1AXP may have some problems paying its short term obligations.
1AXP has a Current ratio of 0.68. This is comparable to the rest of the industry: 1AXP outperforms 55.56% of its industry peers.
1AXP has a Quick 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.
1AXP's Quick ratio of 0.68 is in line compared to the rest of the industry. 1AXP outperforms 55.56% 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 12.52% 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.
Looking at the last year, 1AXP shows a quite strong growth in Revenue. The Revenue has grown by 8.00% in the last year.
Measured over the past years, 1AXP shows a quite strong growth in Revenue. The Revenue has been growing by 9.69% on average per year.
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
Based on estimates for the next years, 1AXP will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.40% on average per year.
The Revenue is expected to grow by 7.38% on average over the next years.
EPS Next Y15.15%
EPS Next 2Y14.66%
EPS Next 3Y14.55%
EPS Next 5Y10.4%
Revenue Next Year8.12%
Revenue Next 2Y8.07%
Revenue Next 3Y7.91%
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 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 22.24.
Based on the Price/Earnings ratio, 1AXP is valued a bit cheaper than 66.67% of the companies in the same industry.
1AXP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 17.31 indicates a rather expensive valuation of 1AXP.
1AXP's Price/Forward Earnings is on the same level as the industry average.
1AXP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.24 | ||
| Fwd PE | 17.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1AXP is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1AXP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.81 | ||
| EV/EBITDA | 14.84 |
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.
A more expensive valuation may be justified as 1AXP's earnings are expected to grow with 14.55% in the coming years.
PEG (NY)1.47
PEG (5Y)2.17
EPS Next 2Y14.66%
EPS Next 3Y14.55%
5. Dividend
5.1 Amount
1AXP has a Yearly Dividend Yield of 1.05%.
1AXP's Dividend Yield is comparable with the industry average which is at 3.05.
Compared to an average S&P500 Dividend Yield of 2.35, 1AXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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
20.27% 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.
DP20.27%
EPS Next 2Y14.66%
EPS Next 3Y14.55%
BIT:1AXP (6/20/2025, 7:00:00 PM)
259.55
+4.35 (+1.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.1%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap181.84B
Analysts70.29
Price Target261.32 (0.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend2.4
Dividend Growth(5Y)10.33%
DP20.27%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.57%
Min EPS beat(2)-0.95%
Max EPS beat(2)4.09%
EPS beat(4)3
Avg EPS beat(4)3.73%
Min EPS beat(4)-0.95%
Max EPS beat(4)6.52%
EPS beat(8)6
Avg EPS beat(8)4.72%
EPS beat(12)8
Avg EPS beat(12)2.19%
EPS beat(16)12
Avg EPS beat(16)8.98%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)-0.81%
Revenue beat(4)0
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)-0.81%
Revenue beat(8)0
Avg Revenue beat(8)-1.64%
Revenue beat(12)4
Avg Revenue beat(12)0.75%
Revenue beat(16)8
Avg Revenue beat(16)1.65%
PT rev (1m)0.16%
PT rev (3m)-11.62%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)-0.81%
EPS NY rev (1m)0.22%
EPS NY rev (3m)-0.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.24 | ||
| Fwd PE | 17.31 | ||
| P/S | 2.93 | ||
| P/FCF | 18.81 | ||
| P/OCF | 16.05 | ||
| P/B | 6.82 | ||
| P/tB | 6.82 | ||
| EV/EBITDA | 14.84 |
EPS(TTM)11.67
EY4.5%
EPS(NY)15
Fwd EY5.78%
FCF(TTM)13.8
FCFY5.32%
OCF(TTM)16.17
OCFY6.23%
SpS88.69
BVpS38.05
TBVpS38.05
PEG (NY)1.47
PEG (5Y)2.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 32.5% | ||
| ROCE | 10.41% | ||
| ROIC | 3.7% | ||
| ROICexc | 4.59% | ||
| ROICexgc | 5.09% | ||
| OM | 17.29% | ||
| PM (TTM) | 13.95% | ||
| GM | 61.84% | ||
| FCFM | 15.56% |
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-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.38 | ||
| Debt/FCF | 17.6 | ||
| Debt/EBITDA | 13.94 | ||
| Cap/Depr | 113.15% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.81% | ||
| Profit Quality | 111.59% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 0.81 |
F-Score6
WACC7.56%
ROIC/WACC0.49
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 Y15.15%
EPS Next 2Y14.66%
EPS Next 3Y14.55%
EPS Next 5Y10.4%
Revenue 1Y (TTM)8%
Revenue growth 3Y18.7%
Revenue growth 5Y9.69%
Sales Q2Q%7.38%
Revenue Next Year8.12%
Revenue Next 2Y8.07%
Revenue Next 3Y7.91%
Revenue Next 5Y7.38%
EBIT growth 1Y8.05%
EBIT growth 3Y7.6%
EBIT growth 5Y8.16%
EBIT Next Year45.1%
EBIT Next 3Y9.75%
EBIT Next 5YN/A
FCF growth 1Y-24.82%
FCF growth 3Y-2.5%
FCF growth 5Y0.25%
OCF growth 1Y-21.16%
OCF growth 3Y-1.37%
OCF growth 5Y0.61%