AMERICAN EXPRESS CO (1AXP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AXP - US0258161092 - Common Stock
318.8 EUR
+5.15 (+1.64%)
Overall 1AXP gets a fundamental rating of 4 out of 10. We evaluated 1AXP against 10 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.
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
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.
The Return On Equity of 1AXP (32.12%) is better than 90.00% of its industry peers.
1AXP has a Return On Invested Capital of 3.77%. This is in the better half of the industry: 1AXP outperforms 70.00% 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 4.39%.
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 Profit Margin of 13.72%. This is comparable to the rest of the industry: 1AXP outperforms 60.00% of its industry peers.
1AXP's Profit Margin has been stable in the last couple of years.
1AXP's Operating Margin of 17.76% is fine compared to the rest of the industry. 1AXP outperforms 80.00% of its industry peers.
1AXP's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 61.93%, 1AXP perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Gross Margin of 1AXP has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1AXP is destroying value.
Compared to 1 year ago, 1AXP has less shares outstanding
Compared to 5 years ago, 1AXP has less shares outstanding
1AXP has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.88, we must say that 1AXP is in the distress zone and has some risk of bankruptcy.
1AXP's Altman-Z score of 0.88 is amongst the best of the industry. 1AXP outperforms 90.00% of its industry peers.
1AXP has a debt to FCF ratio of 11.04. This is a negative value and a sign of low solvency as 1AXP would need 11.04 years to pay back of all of its debts.
1AXP's Debt to FCF ratio of 11.04 is on the low side compared to the rest of the industry. 1AXP is outperformed by 60.00% of its industry peers.
A Debt/Equity ratio of 6.45 is on the high side and indicates that 1AXP has dependencies on debt financing.
1AXP's Debt to Equity ratio of 6.45 is on the low side compared to the rest of the industry. 1AXP is outperformed by 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.42
WACC8.92%
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.
1AXP's Current ratio of 0.68 is in line compared to the rest of the industry. 1AXP outperforms 50.00% 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 Quick ratio (0.68) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
1AXP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.24%, which is quite good.
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.
The Revenue has been growing slightly by 4.37% in the past year.
Measured over the past years, 1AXP shows a quite strong growth in Revenue. The Revenue has been growing by 8.79% on average per year.
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
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.
Based on estimates for the next years, 1AXP will show a small growth in Revenue. The Revenue will grow by 7.38% on average per year.
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
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 24.95, 1AXP is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of 1AXP indicates a slightly more expensive valuation: 1AXP is more expensive than 60.00% of the companies listed in the same industry.
1AXP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.34.
1AXP is valuated rather expensively with a Price/Forward Earnings ratio of 21.06.
1AXP's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1AXP is more expensive than 70.00% 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 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.95 | ||
| Fwd PE | 21.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1AXP is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
1AXP's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1AXP is more expensive than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.51 | ||
| EV/EBITDA | 17.18 |
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 14.70% in the coming years.
PEG (NY)1.46
PEG (5Y)2.43
EPS Next 2Y14.97%
EPS Next 3Y14.7%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, 1AXP is not a good candidate for dividend investing.
1AXP's Dividend Yield is a higher than the industry average which is at 2.75.
With a Dividend Yield of 0.88, 1AXP pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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.
1AXP's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP21.11%
EPS Next 2Y14.97%
EPS Next 3Y14.7%
BIT:1AXP (12/4/2025, 7:00:00 PM)
318.8
+5.15 (+1.64%)
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 Cap219.61B
Revenue(TTM)75.91B
Net Income(TTM)10.41B
Analysts68.89
Price Target307.5 (-3.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend2.41
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)0.37%
PT rev (3m)11%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.96%
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)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.95 | ||
| Fwd PE | 21.06 | ||
| P/S | 3.37 | ||
| P/FCF | 13.51 | ||
| P/OCF | 12.11 | ||
| P/B | 7.9 | ||
| P/tB | 7.9 | ||
| EV/EBITDA | 17.18 |
EPS(TTM)12.78
EY4.01%
EPS(NY)15.14
Fwd EY4.75%
FCF(TTM)23.59
FCFY7.4%
OCF(TTM)26.33
OCFY8.26%
SpS94.55
BVpS40.38
TBVpS40.38
PEG (NY)1.46
PEG (5Y)2.43
Graham Number107.75
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 | 0.88 |
F-Score6
WACC8.92%
ROIC/WACC0.42
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 5 / 10 to 1AXP.MI.
What is the valuation status for 1AXP stock?
ChartMill assigns a valuation rating of 3 / 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 8 / 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 24.95 and the Price/Book (PB) ratio is 7.9.
Can you provide the financial health for 1AXP stock?
The financial health rating of AMERICAN EXPRESS CO (1AXP.MI) is 2 / 10.