AMERICAN EXPRESS CO (AEC1.DE) Stock Fundamental Analysis
Europe - FRA:AEC1 - US0258161092 - Common Stock
283.15 EUR
+9.15 (+3.34%)
Taking everything into account, AEC1 scores 4 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. While showing a medium growth rate, AEC1 is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AEC1 was profitable.
In the past year AEC1 had a positive cash flow from operations.
Each year in the past 5 years AEC1 has been profitable.
AEC1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AEC1 has a Return On Assets of 3.39%. This is amongst the best in the industry. AEC1 outperforms 87.50% of its industry peers.
The Return On Equity of AEC1 (31.00%) is better than 100.00% of its industry peers.
AEC1 has a Return On Invested Capital of 3.62%. This is in the better half of the industry: AEC1 outperforms 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AEC1 is in line with the industry average of 4.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 31% | ||
| ROIC | 3.62% |
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
AEC1 has a better Profit Margin (13.38%) than 87.50% of its industry peers.
AEC1's Profit Margin has been stable in the last couple of years.
AEC1 has a better Operating Margin (17.21%) than 87.50% of its industry peers.
AEC1's Operating Margin has been stable in the last couple of years.
AEC1 has a Gross Margin of 61.37%. This is in the better half of the industry: AEC1 outperforms 62.50% of its industry peers.
In the last couple of years the Gross Margin of AEC1 has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.21% | ||
| PM (TTM) | 13.38% | ||
| GM | 61.37% |
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
AEC1 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AEC1 has been reduced compared to 1 year ago.
The number of shares outstanding for AEC1 has been reduced compared to 5 years ago.
AEC1 has a worse debt/assets ratio than last year.
2.2 Solvency
AEC1 has an Altman-Z score of 0.83. This is a bad value and indicates that AEC1 is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.83, AEC1 belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
The Debt to FCF ratio of AEC1 is 18.84, which is on the high side as it means it would take AEC1, 18.84 years of fcf income to pay off all of its debts.
AEC1 has a Debt to FCF ratio of 18.84. This is in the lower half of the industry: AEC1 underperforms 62.50% of its industry peers.
AEC1 has a Debt/Equity ratio of 6.47. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 6.47, AEC1 is doing worse than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.47 | ||
| Debt/FCF | 18.84 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.37
WACC9.78%
2.3 Liquidity
AEC1 has a Current Ratio of 0.71. This is a bad value and indicates that AEC1 is not financially healthy enough and could expect problems in meeting its short term obligations.
AEC1 has a Current ratio of 0.71. This is comparable to the rest of the industry: AEC1 outperforms 50.00% of its industry peers.
A Quick Ratio of 0.71 indicates that AEC1 may have some problems paying its short term obligations.
The Quick ratio of AEC1 (0.71) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
AEC1 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.85%, which is quite good.
The Earnings Per Share has been growing by 10.27% on average over the past years. This is quite good.
AEC1 shows a small growth in Revenue. In the last year, the Revenue has grown by 5.28%.
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)11.85%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%16.91%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%9.32%
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 10.40% on average per year.
Based on estimates for the next years, AEC1 will show a small growth in Revenue. The Revenue will grow by 7.38% on average per year.
EPS Next Y15.84%
EPS Next 2Y14.28%
EPS Next 3Y13.77%
EPS Next 5Y10.4%
Revenue Next Year8.56%
Revenue Next 2Y8.44%
Revenue Next 3Y8.28%
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 23.46, which indicates a rather expensive current valuation of AEC1.
Compared to the rest of the industry, the Price/Earnings ratio of AEC1 indicates a somewhat cheap valuation: AEC1 is cheaper than 62.50% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AEC1 to the average of the S&P500 Index (27.20), we can say AEC1 is valued inline with the index average.
A Price/Forward Earnings ratio of 19.17 indicates a rather expensive valuation of AEC1.
Based on the Price/Forward Earnings ratio, AEC1 is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
AEC1's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.46 | ||
| Fwd PE | 19.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AEC1 indicates a somewhat cheap valuation: AEC1 is cheaper than 75.00% of the companies listed in the same industry.
AEC1's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AEC1 is more expensive than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.97 | ||
| EV/EBITDA | 15.45 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AEC1 may justify a higher PE ratio.
AEC1's earnings are expected to grow with 13.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.48
PEG (5Y)2.29
EPS Next 2Y14.28%
EPS Next 3Y13.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.01%, AEC1 has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.00, AEC1 pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, AEC1's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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
AEC1 pays out 21.24% of its income as dividend. This is a sustainable payout ratio.
AEC1's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP21.24%
EPS Next 2Y14.28%
EPS Next 3Y13.77%
FRA:AEC1 (9/17/2025, 7:00:00 PM)
283.15
+9.15 (+3.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.51%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap197.04B
Analysts68
Price Target275.14 (-2.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend2.39
Dividend Growth(5Y)10.33%
DP21.24%
Div Incr Years3
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.98%
Min EPS beat(2)3.86%
Max EPS beat(2)4.09%
EPS beat(4)3
Avg EPS beat(4)3.06%
Min EPS beat(4)-0.95%
Max EPS beat(4)5.25%
EPS beat(8)6
Avg EPS beat(8)4.96%
EPS beat(12)8
Avg EPS beat(12)2.05%
EPS beat(16)12
Avg EPS beat(16)5.08%
Revenue beat(2)0
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-0.81%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)-0.18%
Revenue beat(8)0
Avg Revenue beat(8)-1.2%
Revenue beat(12)3
Avg Revenue beat(12)0.83%
Revenue beat(16)7
Avg Revenue beat(16)2.19%
PT rev (1m)-1.52%
PT rev (3m)4.49%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-1.04%
EPS NY rev (1m)0.52%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.46 | ||
| Fwd PE | 19.17 | ||
| P/S | 3.11 | ||
| P/FCF | 20.97 | ||
| P/OCF | 17.77 | ||
| P/B | 7.2 | ||
| P/tB | 7.2 | ||
| EV/EBITDA | 15.45 |
EPS(TTM)12.07
EY4.26%
EPS(NY)14.77
Fwd EY5.22%
FCF(TTM)13.5
FCFY4.77%
OCF(TTM)15.94
OCFY5.63%
SpS91.15
BVpS39.33
TBVpS39.33
PEG (NY)1.48
PEG (5Y)2.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 31% | ||
| ROCE | 9.87% | ||
| ROIC | 3.62% | ||
| ROICexc | 4.55% | ||
| ROICexgc | 5.06% | ||
| OM | 17.21% | ||
| PM (TTM) | 13.38% | ||
| GM | 61.37% | ||
| FCFM | 14.82% |
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%
ROICexcg growth 3Y-4.54%
ROICexcg 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-Score5
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.47 | ||
| Debt/FCF | 18.84 | ||
| Debt/EBITDA | 14.31 | ||
| Cap/Depr | 115.88% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.62% | ||
| Profit Quality | 110.76% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 0.83 |
F-Score5
WACC9.78%
ROIC/WACC0.37
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)11.85%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%16.91%
EPS Next Y15.84%
EPS Next 2Y14.28%
EPS Next 3Y13.77%
EPS Next 5Y10.4%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%9.32%
Revenue Next Year8.56%
Revenue Next 2Y8.44%
Revenue Next 3Y8.28%
Revenue Next 5Y7.38%
EBIT growth 1Y6.08%
EBIT growth 3Y7.6%
EBIT growth 5Y8.16%
EBIT Next Year45.1%
EBIT Next 3Y9.75%
EBIT Next 5YN/A
FCF growth 1Y-25%
FCF growth 3Y-2.5%
FCF growth 5Y0.25%
OCF growth 1Y-20.57%
OCF growth 3Y-1.37%
OCF growth 5Y0.61%