AMERICAN EXPRESS CO (1AXP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AXP - US0258161092 - Common Stock
318.8 EUR
+5.15 (+1.64%)
1AXP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 9 industry peers in the Consumer Finance industry. 1AXP scores excellent on profitability, 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
In the past year 1AXP was profitable.
In the past year 1AXP had a positive cash flow from operations.
In the past 5 years 1AXP has always 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 3.50%, 1AXP belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
The Return On Equity of 1AXP (32.12%) is better than 100.00% 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 77.78% of the companies in the same industry.
1AXP had an Average Return On Invested Capital over the past 3 years of 3.64%. This is in line with the industry average of 4.39%.
The 3 year average ROIC (3.64%) for 1AXP is below the current ROIC(3.77%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 13.72%, 1AXP is doing good in the industry, outperforming 77.78% of the companies in the same industry.
1AXP's Profit Margin has been stable in the last couple of years.
1AXP's Operating Margin of 17.76% is amongst the best of the industry. 1AXP outperforms 88.89% of its industry peers.
1AXP's Operating Margin has been stable in the last couple of years.
The Gross Margin of 1AXP (61.93%) is better than 66.67% of its industry peers.
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
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.
The number of shares outstanding for 1AXP has been reduced compared to 5 years ago.
Compared to 1 year ago, 1AXP has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that 1AXP is in the distress zone and has some risk of bankruptcy.
1AXP has a Altman-Z score of 0.89. This is amongst the best in the industry. 1AXP outperforms 88.89% of its industry peers.
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.
With a Debt to FCF ratio value of 11.04, 1AXP perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
A Debt/Equity ratio of 6.45 is on the high side and indicates that 1AXP has dependencies on debt financing.
1AXP has a Debt to Equity ratio of 6.45. This is in the lower half of the industry: 1AXP underperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.42
WACC9%
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 (0.68) which is comparable to the rest of the industry.
A Quick Ratio of 0.68 indicates that 1AXP may have some problems paying its short term obligations.
With a Quick ratio value of 0.68, 1AXP perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
| 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.
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 4.37%.
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)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 Y16.89%
EPS Next 2Y14.8%
EPS Next 3Y14.62%
EPS Next 5Y10.4%
Revenue Next Year9.39%
Revenue Next 2Y9.13%
Revenue Next 3Y8.92%
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 24.96, 1AXP is valued on the expensive side.
1AXP's Price/Earnings is on the same level as the industry average.
1AXP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.14 indicates a rather expensive valuation of 1AXP.
1AXP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, 1AXP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.96 | ||
| Fwd PE | 21.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1AXP is valued a bit cheaper than 66.67% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1AXP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.53 | ||
| EV/EBITDA | 17.2 |
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 14.62% in the coming years.
PEG (NY)1.48
PEG (5Y)2.43
EPS Next 2Y14.8%
EPS Next 3Y14.62%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, 1AXP is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.75, 1AXP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, 1AXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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
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 2Y14.8%
EPS Next 3Y14.62%
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 Owners65.31%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap219.61B
Revenue(TTM)75.91B
Net Income(TTM)10.41B
Analysts68.89
Price Target309.66 (-2.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend2.43
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)10.85%
PT rev (3m)11.78%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-0.96%
EPS NY rev (1m)0.27%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.96 | ||
| Fwd PE | 21.14 | ||
| P/S | 3.38 | ||
| P/FCF | 13.53 | ||
| P/OCF | 12.12 | ||
| P/B | 7.9 | ||
| P/tB | 7.9 | ||
| EV/EBITDA | 17.2 |
EPS(TTM)12.77
EY4.01%
EPS(NY)15.08
Fwd EY4.73%
FCF(TTM)23.57
FCFY7.39%
OCF(TTM)26.31
OCFY8.25%
SpS94.46
BVpS40.34
TBVpS40.34
PEG (NY)1.48
PEG (5Y)2.43
Graham Number107.66
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 | 0.89 |
F-Score6
WACC9%
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 Y16.89%
EPS Next 2Y14.8%
EPS Next 3Y14.62%
EPS Next 5Y10.4%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%10.76%
Revenue Next Year9.39%
Revenue Next 2Y9.13%
Revenue Next 3Y8.92%
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 4 / 10 to AMERICAN EXPRESS CO (1AXP.MI). This can be considered as Fairly Valued.
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 24.96 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 3 / 10.