AMERICAN EXPRESS CO (AEC1.DE) Stock Fundamental Analysis
FRA:AEC1 - Deutsche Boerse Ag - US0258161092 - Common Stock - Currency: EUR
Overall AEC1 gets a fundamental rating of 4 out of 10. We evaluated AEC1 against 8 industry peers in the Consumer Finance industry. AEC1 has an excellent profitability rating, but there are concerns on its financial health. AEC1 has a correct valuation and a medium 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.
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
Looking at the Return On Assets, with a value of 3.68%, AEC1 is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
AEC1's Return On Equity of 33.03% is amongst the best of the industry. AEC1 outperforms 87.50% of its industry peers.
AEC1's Return On Invested Capital of 3.80% is fine compared to the rest of the industry. AEC1 outperforms 62.50% of its industry peers.
AEC1 had an Average Return On Invested Capital over the past 3 years of 3.64%. This is in line with the industry average of 5.61%.
The 3 year average ROIC (3.64%) for AEC1 is below the current ROIC(3.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 33.03% | ||
| ROIC | 3.8% |
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
Looking at the Profit Margin, with a value of 13.95%, AEC1 belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Profit Margin of AEC1 has remained more or less at the same level.
AEC1 has a Operating Margin of 17.29%. This is in the better half of the industry: AEC1 outperforms 75.00% of its industry peers.
AEC1's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 62.21%, AEC1 is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Gross Margin of AEC1 has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.29% | ||
| PM (TTM) | 13.95% | ||
| GM | 62.21% |
OM growth 3Y-9.36%
OM growth 5Y-1.39%
PM growth 3Y-8.95%
PM growth 5Y-1.04%
GM growth 3Y-3.2%
GM growth 5Y-1.9%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
Compared to 1 year ago, AEC1 has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.75, we must say that AEC1 is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.75, AEC1 is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of AEC1 is 15.69, which is on the high side as it means it would take AEC1, 15.69 years of fcf income to pay off all of its debts.
AEC1's Debt to FCF ratio of 15.69 is on the low side compared to the rest of the industry. AEC1 is outperformed by 75.00% of its industry peers.
AEC1 has a Debt/Equity ratio of 6.29. This is a high value indicating a heavy dependency on external financing.
AEC1 has a Debt to Equity ratio of 6.29. This is in the lower half of the industry: AEC1 underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.29 | ||
| Debt/FCF | 15.69 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.53
WACC7.23%
2.3 Liquidity
A Current Ratio of 0.64 indicates that AEC1 may have some problems paying its short term obligations.
AEC1's Current ratio of 0.64 is on the low side compared to the rest of the industry. AEC1 is outperformed by 62.50% of its industry peers.
A Quick Ratio of 0.64 indicates that AEC1 may have some problems paying its short term obligations.
AEC1 has a worse Quick ratio (0.64) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
AEC1 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.52%, which is quite good.
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.
AEC1 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.00%.
AEC1 shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.69% yearly.
EPS 1Y (TTM)12.52%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%9.31%
Revenue 1Y (TTM)8%
Revenue growth 3Y18.7%
Revenue growth 5Y9.69%
Sales Q2Q%7.38%
3.2 Future
The Earnings Per Share is expected to grow by 9.87% 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 7.69% on average per year.
EPS Next Y15.35%
EPS Next 2Y14.82%
EPS Next 3Y14.54%
EPS Next 5Y9.87%
Revenue Next Year8.3%
Revenue Next 2Y8.24%
Revenue Next 3Y8.01%
Revenue Next 5Y7.69%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.42, which indicates a rather expensive current valuation of AEC1.
AEC1's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.79, AEC1 is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.08, AEC1 is valued correctly.
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.
The average S&P500 Price/Forward Earnings ratio is at 21.38. AEC1 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.42 | ||
| Fwd PE | 15.08 |
4.2 Price Multiples
62.50% 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 | 15.33 | ||
| EV/EBITDA | 13.92 |
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 decent profitability rating of AEC1 may justify a higher PE ratio.
AEC1's earnings are expected to grow with 14.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)1.89
EPS Next 2Y14.82%
EPS Next 3Y14.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.31%, AEC1 has a reasonable but not impressive dividend return.
The stock price of AEC1 dropped by -22.33% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
AEC1's Dividend Yield is a higher than the industry average which is at 3.83.
Compared to an average S&P500 Dividend Yield of 2.51, AEC1's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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
20.00% 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 the earnings are growing slower. This means the dividend growth is not sustainable.
DP20%
EPS Next 2Y14.82%
EPS Next 3Y14.54%
FRA:AEC1 (4/25/2025, 7:00:00 PM)
233.25
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.26%
Inst Owner ChangeN/A
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap163.53B
Analysts68.82
Price Target289.7 (24.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend2.47
Dividend Growth(5Y)10.33%
DP20%
Div Incr Years3
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.15%
Min EPS beat(2)-0.95%
Max EPS beat(2)5.25%
EPS beat(4)3
Avg EPS beat(4)5.6%
Min EPS beat(4)-0.95%
Max EPS beat(4)11.56%
EPS beat(8)5
Avg EPS beat(8)2.9%
EPS beat(12)8
Avg EPS beat(12)2.75%
EPS beat(16)12
Avg EPS beat(16)13%
Revenue beat(2)0
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)-0.88%
Revenue beat(8)1
Avg Revenue beat(8)-0.57%
Revenue beat(12)5
Avg Revenue beat(12)0.9%
Revenue beat(16)8
Avg Revenue beat(16)1.65%
PT rev (1m)-6.21%
PT rev (3m)0.95%
EPS NQ rev (1m)-2.42%
EPS NQ rev (3m)-1.62%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.42 | ||
| Fwd PE | 15.08 | ||
| P/S | 2.6 | ||
| P/FCF | 15.33 | ||
| P/OCF | 13.24 | ||
| P/B | 6.15 | ||
| P/tB | 6.15 | ||
| EV/EBITDA | 13.92 |
EPS(TTM)12.01
EY5.15%
EPS(NY)15.47
Fwd EY6.63%
FCF(TTM)15.22
FCFY6.53%
OCF(TTM)17.62
OCFY7.55%
SpS89.83
BVpS37.94
TBVpS37.94
PEG (NY)1.27
PEG (5Y)1.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 33.03% | ||
| ROCE | 10.6% | ||
| ROIC | 3.8% | ||
| ROICexc | 4.5% | ||
| ROICexgc | 4.99% | ||
| OM | 17.29% | ||
| PM (TTM) | 13.95% | ||
| GM | 62.21% | ||
| FCFM | 16.94% |
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-9.36%
OM growth 5Y-1.39%
PM growth 3Y-8.95%
PM growth 5Y-1.04%
GM growth 3Y-3.2%
GM growth 5Y-1.9%
F-Score7
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.29 | ||
| Debt/FCF | 15.69 | ||
| Debt/EBITDA | 13.55 | ||
| Cap/Depr | 114.02% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 1.51 | ||
| Cash Conversion | 99.92% | ||
| Profit Quality | 121.45% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.75 |
F-Score7
WACC7.23%
ROIC/WACC0.53
Cap/Depr(3y)107.59%
Cap/Depr(5y)102%
Cap/Sales(3y)2.82%
Cap/Sales(5y)3.22%
Profit Quality(3y)195.73%
Profit Quality(5y)177.62%
High Growth Momentum
Growth
EPS 1Y (TTM)12.52%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%9.31%
EPS Next Y15.35%
EPS Next 2Y14.82%
EPS Next 3Y14.54%
EPS Next 5Y9.87%
Revenue 1Y (TTM)8%
Revenue growth 3Y18.7%
Revenue growth 5Y9.69%
Sales Q2Q%7.38%
Revenue Next Year8.3%
Revenue Next 2Y8.24%
Revenue Next 3Y8.01%
Revenue Next 5Y7.69%
EBIT growth 1Y15.08%
EBIT growth 3Y7.6%
EBIT growth 5Y8.16%
EBIT Next Year45.1%
EBIT Next 3Y22.83%
EBIT Next 5YN/A
FCF growth 1Y-28.58%
FCF growth 3Y-2.5%
FCF growth 5Y0.25%
OCF growth 1Y-24.3%
OCF growth 3Y-1.37%
OCF growth 5Y0.61%