AMERICAN EXPRESS CO (AEC1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AEC1 - US0258161092 - Common Stock
306.2 EUR
-6.45 (-2.06%)
AEC1 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 10 industry peers in the Consumer Finance industry. AEC1 has an excellent profitability rating, but there are concerns on its financial health. AEC1 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- AEC1 had positive earnings in the past year.
- In the past year AEC1 had a positive cash flow from operations.
- Each year in the past 5 years AEC1 has been profitable.
- Each year in the past 5 years AEC1 had a positive operating cash flow.
1.2 Ratios
- AEC1 has a better Return On Assets (3.50%) 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 4.52%.
- 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
- AEC1 has a Profit Margin of 13.72%. This is in the better half of the industry: AEC1 outperforms 70.00% of its industry peers.
- In the last couple of years the Profit Margin of AEC1 has remained more or less at the same level.
- AEC1's Operating Margin of 17.76% is amongst the best of the industry. AEC1 outperforms 90.00% of its industry peers.
- AEC1's Operating Margin has been stable in the last couple of years.
- The Gross Margin of AEC1 (61.93%) is comparable to the rest of the industry.
- 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 | 17.76% | ||
| 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.
- The number of shares outstanding for AEC1 has been reduced compared to 1 year ago.
- AEC1 has less shares outstanding than it did 5 years ago.
- AEC1 has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.88, we must say that AEC1 is in the distress zone and has some risk of bankruptcy.
- AEC1's Altman-Z score of 0.88 is fine compared to the rest of the industry. AEC1 outperforms 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.
- A Debt/Equity ratio of 6.45 is on the high side and indicates that AEC1 has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 6.45, AEC1 is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.52
WACC7.2%
2.3 Liquidity
- A Current Ratio of 0.68 indicates that AEC1 may have some problems paying 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.
- AEC1 has a Quick ratio (0.68) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
- AEC1 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, AEC1 shows a small growth in Revenue. The Revenue has grown by 4.37% in the last year.
- Measured over the past years, AEC1 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 13.41% on average over the next years. This is quite good.
- Based on estimates for the next years, AEC1 will show a small growth in Revenue. The Revenue will grow by 7.50% on average per year.
EPS Next Y17.04%
EPS Next 2Y15.03%
EPS Next 3Y14.81%
EPS Next 5Y13.41%
Revenue Next Year9.39%
Revenue Next 2Y9.17%
Revenue Next 3Y9.04%
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
- AEC1 is valuated rather expensively with a Price/Earnings ratio of 24.05.
- AEC1's Price/Earnings is on the same level as the industry average.
- AEC1 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 20.29, which indicates a rather expensive current valuation of AEC1.
- 60.00% of the companies in the same industry are cheaper than AEC1, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. AEC1 is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.05 | ||
| Fwd PE | 20.29 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AEC1 is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- The rest of the industry has a similar Price/Free Cash Flow ratio as AEC1.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.04 | ||
| EV/EBITDA | 16.93 |
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 14.81% in the coming years.
PEG (NY)1.41
PEG (5Y)2.34
EPS Next 2Y15.03%
EPS Next 3Y14.81%
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 1.48.
- Compared to an average S&P500 Dividend Yield of 1.81, AEC1's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
- On average, the dividend of AEC1 grows each year by 10.33%, which is quite nice.
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.
- The dividend of AEC1 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.11%
EPS Next 2Y15.03%
EPS Next 3Y14.81%
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%.