AMERICAN EXPRESS CO (AEC1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AEC1 - US0258161092 - Common Stock
306.2 EUR
-6.45 (-2.06%)
Taking everything into account, AEC1 scores 5 out of 10 in our fundamental rating. AEC1 was compared to 8 industry peers in the Consumer Finance industry. AEC1 has an excellent profitability rating, but there are concerns on its financial health. AEC1 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 AEC1 was profitable.
- AEC1 had a positive operating cash flow in the past year.
- AEC1 had positive earnings in each of the past 5 years.
- In the past 5 years AEC1 always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of AEC1 (3.50%) is better than 90.00% of its industry peers.
- AEC1 has a better Return On Equity (32.12%) than 100.00% of its industry peers.
- With a decent Return On Invested Capital value of 3.77%, AEC1 is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for AEC1 is in line with the industry average of 4.67%.
- The 3 year average ROIC (3.64%) for AEC1 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
- The Profit Margin of AEC1 (13.72%) is better than 70.00% of its industry peers.
- AEC1's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 17.76%, AEC1 belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
- AEC1's Operating Margin has been stable in the last couple of years.
- AEC1's Gross Margin of 61.93% is in line compared to the rest of the industry. AEC1 outperforms 60.00% of its industry peers.
- AEC1's Gross Margin has been stable in the last couple of years.
| 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), AEC1 is destroying value.
- AEC1 has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for AEC1 has been reduced compared to 5 years ago.
- The debt/assets ratio for AEC1 is higher compared to a year ago.
2.2 Solvency
- AEC1 has an Altman-Z score of 0.87. This is a bad value and indicates that AEC1 is not financially healthy and even has some risk of bankruptcy.
- AEC1 has a better Altman-Z score (0.87) than 70.00% of its industry peers.
- AEC1 has a debt to FCF ratio of 11.04. This is a negative value and a sign of low solvency as AEC1 would need 11.04 years to pay back of all of its debts.
- AEC1 has a Debt to FCF ratio (11.04) which is in line with its industry peers.
- AEC1 has a Debt/Equity ratio of 6.45. This is a high value indicating a heavy dependency on external financing.
- AEC1 has a Debt to Equity ratio of 6.45. This is amonst the worse of the industry: AEC1 underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.52
WACC7.2%
2.3 Liquidity
- AEC1 has a Current Ratio of 0.68. This is a bad value and indicates that AEC1 is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of AEC1 (0.68) is comparable to the rest of the industry.
- AEC1 has a Quick Ratio of 0.68. This is a bad value and indicates that AEC1 is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.68, AEC1 perfoms like the industry average, outperforming 50.00% 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.
- AEC1 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.27% yearly.
- Looking at the last year, AEC1 shows a small growth in Revenue. The Revenue has grown by 4.37% in the last year.
- AEC1 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, AEC1 will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.41% on average per year.
- AEC1 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.50% yearly.
EPS Next Y16.7%
EPS Next 2Y14.82%
EPS Next 3Y14.74%
EPS Next 5Y13.41%
Revenue Next Year9.39%
Revenue Next 2Y9.18%
Revenue Next 3Y9.05%
Revenue Next 5Y7.5%
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 accelerating.
- 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
- A Price/Earnings ratio of 24.13 indicates a rather expensive valuation of AEC1.
- The rest of the industry has a similar Price/Earnings ratio as AEC1.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, AEC1 is valued at the same level.
- Based on the Price/Forward Earnings ratio of 20.43, the valuation of AEC1 can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, AEC1 is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. AEC1 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.13 | ||
| Fwd PE | 20.43 |
4.2 Price Multiples
- AEC1's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AEC1 is cheaper than 80.00% of the companies in the same industry.
- AEC1's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.08 | ||
| EV/EBITDA | 16.64 |
4.3 Compensation for Growth
- AEC1's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- AEC1 has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as AEC1's earnings are expected to grow with 14.74% in the coming years.
PEG (NY)1.44
PEG (5Y)2.35
EPS Next 2Y14.82%
EPS Next 3Y14.74%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.89%, AEC1 is not a good candidate for dividend investing.
- AEC1's Dividend Yield is comparable with the industry average which is at 1.75.
- With a Dividend Yield of 0.89, AEC1 pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
- The dividend of AEC1 is nicely growing with an annual growth rate of 10.33%!
Dividend Growth(5Y)10.33%
Div Incr Years3
Div Non Decr Years6
5.3 Sustainability
- 21.11% of the earnings are spent on dividend by AEC1. This is a low number and sustainable payout ratio.
- AEC1's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.11%
EPS Next 2Y14.82%
EPS Next 3Y14.74%
AMERICAN EXPRESS CO / AEC1.DE FAQ
What is the fundamental rating for AEC1 stock?
ChartMill assigns a fundamental rating of 5 / 10 to AEC1.DE.
Can you provide the valuation status for AMERICAN EXPRESS CO?
ChartMill assigns a valuation rating of 3 / 10 to AMERICAN EXPRESS CO (AEC1.DE). This can be considered as Overvalued.
Can you provide the profitability details for AMERICAN EXPRESS CO?
AMERICAN EXPRESS CO (AEC1.DE) has a profitability rating of 7 / 10.
What is the financial health of AMERICAN EXPRESS CO (AEC1.DE) stock?
The financial health rating of AMERICAN EXPRESS CO (AEC1.DE) is 2 / 10.
How sustainable is the dividend of AMERICAN EXPRESS CO (AEC1.DE) stock?
The dividend rating of AMERICAN EXPRESS CO (AEC1.DE) is 4 / 10 and the dividend payout ratio is 21.11%.