AMERICAN EXPRESS CO (1AXP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AXP - US0258161092 - Common Stock
319.6 EUR
+0.8 (+0.25%)
Overall 1AXP gets a fundamental rating of 5 out of 10. We evaluated 1AXP against 10 industry peers in the Consumer Finance industry. 1AXP scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, 1AXP is valued expensive at the moment.
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.
1AXP had positive earnings in each of the past 5 years.
In the past 5 years 1AXP always reported a positive cash flow from operatings.
1.2 Ratios
1AXP's Return On Assets of 3.50% is amongst the best of the industry. 1AXP outperforms 90.00% of its industry peers.
With an excellent Return On Equity value of 32.12%, 1AXP belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of 1AXP (3.77%) is better than 80.00% of its industry peers.
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 70.00% 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 90.00% of its industry peers.
In the last couple of years the Operating Margin of 1AXP has remained more or less at the same level.
With a decent Gross Margin value of 61.93%, 1AXP is doing good in the industry, outperforming 70.00% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 0.89, we must say that 1AXP is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.89, 1AXP is in the better half of 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.
A Debt/Equity ratio of 6.45 is on the high side and indicates that 1AXP has dependencies on debt financing.
1AXP has a worse Debt to Equity ratio (6.45) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.42
WACC8.92%
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.
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.
Looking at the Quick ratio, with a value of 0.68, 1AXP is in line with its industry, outperforming 60.00% 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
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.
1AXP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.38% yearly.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.95, the valuation of 1AXP can be described as rather expensive.
1AXP's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.76. 1AXP is around the same levels.
With a Price/Forward Earnings ratio of 21.07, 1AXP is valued on the expensive side.
Based on the Price/Forward Earnings ratio, 1AXP is valued a bit more expensive than 60.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.96, 1AXP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.95 | ||
| Fwd PE | 21.07 |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than 1AXP, based on the Enterprise Value to EBITDA ratio.
1AXP's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1AXP is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.52 | ||
| EV/EBITDA | 17.2 |
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 an outstanding profitability rating, which 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)1.46
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 comparable with the industry average which is at 2.75.
Compared to an average S&P500 Dividend Yield of 2.31, 1AXP's dividend is way lower than the S&P500 average.
| 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
1AXP pays out 21.11% of its income as dividend. This is a 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 (12/10/2025, 7:00:00 PM)
319.6
+0.8 (+0.25%)
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 Cap220.16B
Revenue(TTM)75.91B
Net Income(TTM)10.41B
Analysts68.89
Price Target307.5 (-3.79%)
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 | 21.07 | ||
| P/S | 3.37 | ||
| P/FCF | 13.52 | ||
| P/OCF | 12.12 | ||
| P/B | 7.9 | ||
| P/tB | 7.9 | ||
| EV/EBITDA | 17.2 |
EPS(TTM)12.81
EY4.01%
EPS(NY)15.17
Fwd EY4.75%
FCF(TTM)23.63
FCFY7.4%
OCF(TTM)26.38
OCFY8.25%
SpS94.72
BVpS40.45
TBVpS40.45
PEG (NY)1.46
PEG (5Y)2.43
Graham Number107.98
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
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.