AMERICAN EXPRESS CO (AEC1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AEC1 - US0258161092 - Common Stock
304.1 EUR
-2.1 (-0.69%)
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 has a decent growth rate and is not valued too expensively.
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
- With an excellent Return On Assets value of 3.50%, AEC1 belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- AEC1's Return On Equity of 32.12% is amongst the best of the industry. AEC1 outperforms 100.00% of its industry peers.
- The Return On Invested Capital of AEC1 (3.77%) is better than 75.00% 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 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
- AEC1's Profit Margin of 13.72% is fine compared to the rest of the industry. AEC1 outperforms 62.50% of its industry peers.
- AEC1's Profit Margin has been stable in the last couple of years.
- The Operating Margin of AEC1 (17.76%) is better than 87.50% of its industry peers.
- In the last couple of years the Operating Margin of AEC1 has remained more or less at the same level.
- AEC1's Gross Margin of 61.93% is fine compared to the rest of the industry. AEC1 outperforms 62.50% 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.
- Compared to 5 years ago, AEC1 has less shares outstanding
- The debt/assets ratio for AEC1 is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.87, we must say that AEC1 is in the distress zone and has some risk of bankruptcy.
- AEC1's Altman-Z score of 0.87 is amongst the best of the industry. AEC1 outperforms 87.50% 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 comparable to the rest of the industry.
- A Debt/Equity ratio of 6.45 is on the high side and indicates that AEC1 has dependencies on debt financing.
- The Debt to Equity ratio of AEC1 (6.45) is worse than 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 (0.68) which is in line with 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.
- The Quick ratio of AEC1 (0.68) 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.
- The Revenue has been growing slightly by 4.37% in the past 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
- 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 23.96 indicates a rather expensive valuation of AEC1.
- AEC1's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, AEC1 is valued at the same level.
- Based on the Price/Forward Earnings ratio of 20.29, the valuation of AEC1 can be described as rather expensive.
- 62.50% of the companies in the same industry are cheaper than AEC1, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, AEC1 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.96 | ||
| Fwd PE | 20.29 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AEC1 is valued a bit cheaper than 75.00% of the companies in the same industry.
- AEC1's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.99 | ||
| EV/EBITDA | 16.64 |
4.3 Compensation for Growth
- The 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)1.43
PEG (5Y)2.33
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 a higher than 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 1.82.
| 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.
- 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 4 / 10 to AMERICAN EXPRESS CO (AEC1.DE). This can be considered as Fairly Valued.
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%.