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 a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
AEC1 had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
AEC1's Return On Assets of 3.60% is amongst the best of the industry. AEC1 outperforms 85.71% of its industry peers.
With an excellent Return On Equity value of 32.85%, AEC1 belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
AEC1 has a Return On Invested Capital of 3.75%. This is in the better half of the industry: AEC1 outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 32.85% | ||
| ROIC | 3.75% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of AEC1 (13.89%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of AEC1 has remained more or less at the same level.
The Operating Margin of AEC1 (17.38%) is better than 85.71% of its industry peers.
In the last couple of years the Operating Margin of AEC1 has remained more or less at the same level.
With a Gross Margin value of 62.61%, AEC1 perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
AEC1's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.38% | ||
| PM (TTM) | 13.89% | ||
| GM | 62.61% |
OM growth 3Y-8.13%
OM growth 5Y-0.59%
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.
AEC1 has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
AEC1 has an Altman-Z score of 0.79. This is a bad value and indicates that AEC1 is not financially healthy and even has some risk of bankruptcy.
AEC1 has a Altman-Z score of 0.79. This is comparable to the rest of the industry: AEC1 outperforms 57.14% of its industry peers.
AEC1 has a debt to FCF ratio of 14.43. This is a negative value and a sign of low solvency as AEC1 would need 14.43 years to pay back of all of its debts.
AEC1's Debt to FCF ratio of 14.43 is in line compared to the rest of the industry. AEC1 outperforms 42.86% of its industry peers.
A Debt/Equity ratio of 6.41 is on the high side and indicates that AEC1 has dependencies on debt financing.
AEC1's Debt to Equity ratio of 6.41 is on the low side compared to the rest of the industry. AEC1 is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.41 | ||
| Debt/FCF | 14.43 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.53
WACC7.08%
2.3 Liquidity
AEC1 has a Current Ratio of 0.71. This is a bad value and indicates that AEC1 is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.71, AEC1 is doing worse than 71.43% of the companies in the same industry.
A Quick Ratio of 0.71 indicates that AEC1 may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.71, AEC1 is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
AEC1 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.09%, which is quite good.
AEC1 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.27% yearly.
Looking at the last year, AEC1 shows a quite strong growth in Revenue. The Revenue has grown by 9.58% in the last year.
The Revenue has been growing by 9.69% on average over the past years. This is quite good.
EPS 1Y (TTM)19.09%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%16.03%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y18.7%
Revenue growth 5Y9.69%
Sales Q2Q%8.73%
3.2 Future
The Earnings Per Share is expected to grow by 8.30% 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 7.66% on average per year.
EPS Next Y15.77%
EPS Next 2Y15.27%
EPS Next 3Y15.31%
EPS Next 5Y8.3%
Revenue Next Year8.55%
Revenue Next 2Y8.4%
Revenue Next 3Y8.08%
Revenue Next 5Y7.66%
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 stable.
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 19.99, which indicates a rather expensive current valuation of AEC1.
71.43% of the companies in the same industry are more expensive than AEC1, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.35, AEC1 is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.27, AEC1 is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AEC1 is on the same level as its industry peers.
AEC1's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 17.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AEC1 indicates a somewhat cheap valuation: AEC1 is cheaper than 71.43% of the companies listed in the same industry.
AEC1's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.21 | ||
| EV/EBITDA | 13.96 |
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 a very decent profitability rating, which may justify a higher PE ratio.
AEC1's earnings are expected to grow with 15.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)1.95
EPS Next 2Y15.27%
EPS Next 3Y15.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.19%, AEC1 has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.24, AEC1 has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, AEC1's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
On average, the dividend of AEC1 grows each year by 9.36%, which is quite nice.
Dividend Growth(5Y)9.36%
Div Incr Years3
Div Non Decr Years6
5.3 Sustainability
19.91% 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.
DP19.91%
EPS Next 2Y15.27%
EPS Next 3Y15.31%
FRA:AEC1 (3/7/2025, 7:00:00 PM)
245.9
-13.05 (-5.04%)
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 Cap172.75B
Analysts67.65
Price Target308.87 (25.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend2.24
Dividend Growth(5Y)9.36%
DP19.91%
Div Incr Years3
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.88%
Min EPS beat(2)5.25%
Max EPS beat(2)6.52%
EPS beat(4)3
Avg EPS beat(4)5.41%
Min EPS beat(4)-1.69%
Max EPS beat(4)11.56%
EPS beat(8)5
Avg EPS beat(8)2.03%
EPS beat(12)9
Avg EPS beat(12)4.13%
EPS beat(16)13
Avg EPS beat(16)15.15%
Revenue beat(2)0
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)-1.19%
Revenue beat(4)0
Avg Revenue beat(4)-1.71%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)-0.9%
Revenue beat(8)2
Avg Revenue beat(8)0.06%
Revenue beat(12)6
Avg Revenue beat(12)1.43%
Revenue beat(16)9
Avg Revenue beat(16)1.75%
PT rev (1m)2.36%
PT rev (3m)12.69%
EPS NQ rev (1m)1.25%
EPS NQ rev (3m)1.25%
EPS NY rev (1m)0.05%
EPS NY rev (3m)1.01%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 17.27 | ||
| P/S | 2.67 | ||
| P/FCF | 14.21 | ||
| P/OCF | 12.47 | ||
| P/B | 6.31 | ||
| P/tB | 6.31 | ||
| EV/EBITDA | 13.96 |
EPS(TTM)12.3
EY5%
EPS(NY)14.24
Fwd EY5.79%
FCF(TTM)17.3
FCFY7.04%
OCF(TTM)19.72
OCFY8.02%
SpS92.11
BVpS38.95
TBVpS38.95
PEG (NY)1.27
PEG (5Y)1.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 32.85% | ||
| ROCE | 10.1% | ||
| ROIC | 3.75% | ||
| ROICexc | 4.59% | ||
| ROICexgc | 5.08% | ||
| OM | 17.38% | ||
| PM (TTM) | 13.89% | ||
| GM | 62.61% | ||
| FCFM | 18.79% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-8.13%
OM growth 5Y-0.59%
PM growth 3Y-8.95%
PM growth 5Y-1.04%
GM growth 3Y-3.2%
GM growth 5Y-1.9%
F-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.41 | ||
| Debt/FCF | 14.43 | ||
| Debt/EBITDA | 13.72 | ||
| Cap/Depr | 110.3% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.34% | ||
| Profit Quality | 135.24% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 0.79 |
F-Score6
WACC7.08%
ROIC/WACC0.53
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.09%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%16.03%
EPS Next Y15.77%
EPS Next 2Y15.27%
EPS Next 3Y15.31%
EPS Next 5Y8.3%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y18.7%
Revenue growth 5Y9.69%
Sales Q2Q%8.73%
Revenue Next Year8.55%
Revenue Next 2Y8.4%
Revenue Next 3Y8.08%
Revenue Next 5Y7.66%
EBIT growth 1Y20.01%
EBIT growth 3Y9.05%
EBIT growth 5Y9.04%
EBIT Next Year45.1%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-28.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-25.62%
OCF growth 3YN/A
OCF growth 5YN/A