AMERICAN EXPRESS CO (AEC1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AEC1 - US0258161092 - Common Stock
301 EUR
-1.25 (-0.41%)
We assign a fundamental rating of 5 out of 10 to AEC1. 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 quite expensive at the moment. It does show a decent growth rate.
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.
- Each year in the past 5 years AEC1 had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of AEC1 (3.50%) is better than 87.50% of its industry peers.
- With an excellent Return On Equity value of 32.12%, AEC1 belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- With a decent Return On Invested Capital value of 3.77%, AEC1 is doing good in the industry, outperforming 75.00% 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 last Return On Invested Capital (3.77%) for AEC1 is above the 3 year average (3.64%), which is a sign of increasing profitability.
| 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 62.50% of its industry peers.
- AEC1's Profit Margin has been stable in the last couple of years.
- AEC1's Operating Margin of 17.76% is amongst the best of the industry. AEC1 outperforms 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 61.93%. 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 | 17.76% | ||
| 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
- 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.
- The Altman-Z score of AEC1 (0.87) is better than 87.50% of its industry peers.
- The Debt to FCF ratio of AEC1 is 11.04, which is on the high side as it means it would take AEC1, 11.04 years of fcf income to pay off all of its debts.
- AEC1's Debt to FCF ratio of 11.04 is in line compared to the rest of the industry. AEC1 outperforms 50.00% of its industry peers.
- A Debt/Equity ratio of 6.45 is on the high side and indicates that AEC1 has dependencies on debt financing.
- AEC1's Debt to Equity ratio of 6.45 is on the low side compared to the rest of the industry. AEC1 is outperformed by 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.53
WACC7.15%
2.3 Liquidity
- A Current Ratio of 0.68 indicates that AEC1 may have some problems paying its short term obligations.
- AEC1 has a Current ratio of 0.68. This is comparable to the rest of the industry: AEC1 outperforms 50.00% of its industry peers.
- 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 in line with its industry peers.
| 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, AEC1 shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.27% on average per year.
- The Revenue has been growing slightly by 4.37% in the past year.
- The Revenue has been growing by 8.79% on average over the past years. This is quite good.
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.
- 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 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- With a Price/Earnings ratio of 24.20, AEC1 is valued on the expensive side.
- 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 28.39, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 20.48, 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 62.50% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of AEC1 to the average of the S&P500 Index (25.72), we can say AEC1 is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.2 | ||
| Fwd PE | 20.48 |
4.2 Price Multiples
- 75.00% of the companies in the same industry are more expensive than AEC1, based on the Enterprise Value to EBITDA ratio.
- 62.50% of the companies in the same industry are cheaper than AEC1, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.11 | ||
| EV/EBITDA | 16.75 |
4.3 Compensation for Growth
- AEC1's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of AEC1 may justify a higher PE ratio.
- AEC1's earnings are expected to grow with 14.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.45
PEG (5Y)2.36
EPS Next 2Y14.82%
EPS Next 3Y14.74%
5. Dividend
5.1 Amount
- AEC1 has a yearly dividend return of 0.89%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.75, AEC1 pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, AEC1's dividend is way lower than the S&P500 average.
| 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.
- The dividend of AEC1 is growing, but earnings are growing more, so the dividend growth is 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 8 / 10.
What is the financial health of AMERICAN EXPRESS CO (AEC1.DE) stock?
The financial health rating of AMERICAN EXPRESS CO (AEC1.DE) is 3 / 10.
How sustainable is the dividend of AMERICAN EXPRESS CO (AEC1.DE) stock?
The dividend rating of AMERICAN EXPRESS CO (AEC1.DE) is 5 / 10 and the dividend payout ratio is 21.11%.