AMERICAN EXPRESS CO (AEC1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AEC1 - US0258161092 - Common Stock
306.2 EUR
-6.45 (-2.06%)
Overall AEC1 gets a fundamental rating of 5 out of 10. We evaluated AEC1 against 8 industry peers in the Consumer Finance industry. While AEC1 has a great profitability rating, there are quite some concerns on its financial health. AEC1 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year AEC1 was profitable.
- AEC1 had a positive operating cash flow in the past year.
- 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 Return On Assets of 3.50%. This is amongst the best in the industry. AEC1 outperforms 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.
- AEC1's Return On Invested Capital of 3.77% is fine compared to the rest of the industry. AEC1 outperforms 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 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
- The Profit Margin of AEC1 (13.72%) is better than 62.50% of its industry peers.
- AEC1's Profit Margin has been stable in the last couple of years.
- AEC1 has a Operating Margin of 17.76%. This is amongst the best in the industry. AEC1 outperforms 87.50% 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 better than 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.
- 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 0.87, 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 of 11.04. This is comparable 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 has a worse Debt to Equity ratio (6.45) 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 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's Quick ratio of 0.68 is in line compared to the rest of the industry. AEC1 outperforms 50.00% of its industry peers.
| 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.
- 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 a small growth in Revenue. In the last year, the Revenue has grown by 4.37%.
- 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)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 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
- The Price/Earnings ratio is 24.13, which indicates a rather expensive current 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 27.21, AEC1 is valued at the same level.
- The Price/Forward Earnings ratio is 20.43, which indicates a rather expensive current 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 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.13 | ||
| Fwd PE | 20.43 |
4.2 Price Multiples
- AEC1's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AEC1 is cheaper than 75.00% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AEC1 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.08 | ||
| 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.
- AEC1 has an outstanding 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 14.74% in the coming years.
PEG (NY)1.44
PEG (5Y)2.35
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 1.81.
| 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
- AEC1 pays out 21.11% of its income as dividend. This is a 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 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%.