AMERICAN EXPRESS CO (1AXP.MI) Stock Fundamental Analysis
Europe - BIT:1AXP - US0258161092 - Common Stock
296.45 EUR
-23 (-7.2%)
Taking everything into account, 1AXP scores 5 out of 10 in our fundamental rating. 1AXP was compared to 10 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.
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
1AXP has a better Return On Assets (3.50%) than 80.00% of its industry peers.
1AXP's Return On Equity of 32.12% is amongst the best of the industry. 1AXP outperforms 90.00% of its industry peers.
With a decent Return On Invested Capital value of 3.77%, 1AXP is doing good in the industry, outperforming 70.00% 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 4.43%.
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
1AXP's Profit Margin of 13.72% is fine compared to the rest of the industry. 1AXP outperforms 70.00% 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 Operating Margin of 17.76%. This is in the better half of the industry: 1AXP outperforms 80.00% of its industry peers.
1AXP's Operating Margin has been stable in the last couple of years.
1AXP has a Gross Margin of 61.93%. This is comparable to the rest of the industry: 1AXP outperforms 50.00% 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
1AXP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, 1AXP has less shares outstanding
The number of shares outstanding for 1AXP has been reduced compared to 5 years ago.
1AXP has a worse debt/assets ratio than last year.
2.2 Solvency
1AXP has an Altman-Z score of 0.88. This is a bad value and indicates that 1AXP is not financially healthy and even has some risk of bankruptcy.
1AXP's Altman-Z score of 0.88 is fine compared to the rest of the industry. 1AXP outperforms 80.00% 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 in line compared to the rest of the industry. 1AXP outperforms 50.00% 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.
With a Debt to Equity ratio value of 6.45, 1AXP is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.4
WACC9.49%
2.3 Liquidity
A Current Ratio of 0.68 indicates that 1AXP may have some problems paying its short term obligations.
1AXP's Current ratio of 0.68 is on the low side compared to the rest of the industry. 1AXP is outperformed by 60.00% 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 worse Quick ratio (0.68) than 60.00% of its industry peers.
| 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.
The Earnings Per Share has been growing by 10.27% on average over the past years. This is quite good.
Looking at the last year, 1AXP shows a small growth in Revenue. The Revenue has grown by 4.37% in the last 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
The Earnings Per Share is expected to grow by 10.40% on average over the next years. This is quite good.
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
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.
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
The Price/Earnings ratio is 23.05, which indicates a rather expensive current valuation of 1AXP.
Compared to the rest of the industry, the Price/Earnings ratio of 1AXP is on the same level as its industry peers.
1AXP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.46.
A Price/Forward Earnings ratio of 19.53 indicates a rather expensive valuation of 1AXP.
1AXP's Price/Forward Earnings 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.
When comparing the Price/Forward Earnings ratio of 1AXP to the average of the S&P500 Index (35.39), we can say 1AXP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.05 | ||
| Fwd PE | 19.53 |
4.2 Price Multiples
70.00% of the companies in the same industry are more expensive than 1AXP, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1AXP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.5 | ||
| EV/EBITDA | 17.12 |
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 a very decent profitability rating, which may justify a higher PE ratio.
1AXP's earnings are expected to grow with 14.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.36
PEG (5Y)2.25
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 2.85, 1AXP pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.90, 1AXP pays less dividend than the S&P500 average, which is at 2.44.
| 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
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 2Y14.8%
EPS Next 3Y14.62%
BIT:1AXP (11/19/2025, 7:00:00 PM)
296.45
-23 (-7.2%)
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 Cap204.21B
Revenue(TTM)75.91B
Net Income(TTM)10.41B
Analysts68.89
Price Target304.61 (2.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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)10.02%
PT rev (3m)9.17%
EPS NQ rev (1m)-0.89%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)0.85%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)0.86%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)0.76%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.05 | ||
| Fwd PE | 19.53 | ||
| P/S | 3.12 | ||
| P/FCF | 12.5 | ||
| P/OCF | 11.2 | ||
| P/B | 7.3 | ||
| P/tB | 7.3 | ||
| EV/EBITDA | 17.12 |
EPS(TTM)12.86
EY4.34%
EPS(NY)15.18
Fwd EY5.12%
FCF(TTM)23.72
FCFY8%
OCF(TTM)26.48
OCFY8.93%
SpS95.08
BVpS40.6
TBVpS40.6
PEG (NY)1.36
PEG (5Y)2.25
Graham Number108.39
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
WACC9.49%
ROIC/WACC0.4
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 4 / 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 7 / 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 23.05 and the Price/Book (PB) ratio is 7.3.
Can you provide the financial health for 1AXP stock?
The financial health rating of AMERICAN EXPRESS CO (1AXP.MI) is 2 / 10.