AMERICAN EXPRESS CO (AEC1.DE) Stock Fundamental Analysis
FRA:AEC1 - Deutsche Boerse Ag - US0258161092 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to AEC1. AEC1 was compared to 7 industry peers in the Consumer Finance industry. AEC1 scores excellent on profitability, but there are concerns on its financial health. AEC1 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AEC1 had positive earnings in the past year.
AEC1 had a positive operating cash flow in the past year.
Each year in the past 5 years AEC1 has been profitable.
AEC1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AEC1 has a better Return On Assets (3.59%) than 85.71% of its industry peers.
Looking at the Return On Equity, with a value of 32.50%, AEC1 belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
AEC1 has a Return On Invested Capital of 3.70%. This is in the better half of the industry: AEC1 outperforms 71.43% 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 4.95%.
The 3 year average ROIC (3.64%) for AEC1 is below the current ROIC(3.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 32.5% | ||
| ROIC | 3.7% |
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 (13.95%) 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.
AEC1 has a Operating Margin of 17.29%. This is amongst the best in the industry. AEC1 outperforms 85.71% of its industry peers.
AEC1's Operating Margin has been stable in the last couple of years.
AEC1 has a Gross Margin (61.84%) which is comparable to the rest of the industry.
AEC1's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.29% | ||
| PM (TTM) | 13.95% | ||
| GM | 61.84% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AEC1 is destroying value.
Compared to 1 year ago, AEC1 has less shares outstanding
AEC1 has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AEC1 is higher compared to a year ago.
2.2 Solvency
AEC1 has an Altman-Z score of 0.85. This is a bad value and indicates that AEC1 is not financially healthy and even has some risk of bankruptcy.
AEC1's Altman-Z score of 0.85 is amongst the best of the industry. AEC1 outperforms 85.71% of its industry peers.
The Debt to FCF ratio of AEC1 is 17.60, which is on the high side as it means it would take AEC1, 17.60 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AEC1 (17.60) is worse than 71.43% of its industry peers.
A Debt/Equity ratio of 6.38 is on the high side and indicates that AEC1 has dependencies on debt financing.
AEC1 has a worse Debt to Equity ratio (6.38) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.38 | ||
| Debt/FCF | 17.6 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.49
WACC7.58%
2.3 Liquidity
A Current Ratio of 0.68 indicates that AEC1 may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.68, AEC1 is in line with its industry, outperforming 42.86% of the companies in the same industry.
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 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 12.52%, which is quite good.
The Earnings Per Share has been growing by 10.27% on average over the past years. This is quite good.
AEC1 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.00%.
The Revenue has been growing by 9.69% on average over the past years. This is quite good.
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
Based on estimates for the next years, AEC1 will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.40% on average per year.
AEC1 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.38% yearly.
EPS Next Y15.15%
EPS Next 2Y14.66%
EPS Next 3Y14.55%
EPS Next 5Y10.4%
Revenue Next Year8.12%
Revenue Next 2Y8.07%
Revenue Next 3Y7.91%
Revenue Next 5Y7.38%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.05, the valuation of AEC1 can be described as rather expensive.
AEC1's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.45, AEC1 is valued at the same level.
AEC1 is valuated rather expensively with a Price/Forward Earnings ratio of 18.71.
The rest of the industry has a similar Price/Forward Earnings ratio as AEC1.
AEC1's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.05 | ||
| Fwd PE | 18.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AEC1 is valued a bit cheaper than 71.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AEC1 is valued a bit more expensive than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.33 | ||
| EV/EBITDA | 16.04 |
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 14.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.59
PEG (5Y)2.34
EPS Next 2Y14.66%
EPS Next 3Y14.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.05%, AEC1 has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.28, AEC1 has a dividend in line with its industry peers.
With a Dividend Yield of 1.05, AEC1 pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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 20.27% of its income as dividend. This is a sustainable payout ratio.
The dividend of AEC1 is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP20.27%
EPS Next 2Y14.66%
EPS Next 3Y14.55%
FRA:AEC1 (7/3/2025, 7:00:00 PM)
278.75
+3.3 (+1.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.1%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap195.29B
Analysts70.29
Price Target260.36 (-6.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend2.4
Dividend Growth(5Y)10.33%
DP20.27%
Div Incr Years3
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.57%
Min EPS beat(2)-0.95%
Max EPS beat(2)4.09%
EPS beat(4)3
Avg EPS beat(4)3.73%
Min EPS beat(4)-0.95%
Max EPS beat(4)6.52%
EPS beat(8)6
Avg EPS beat(8)4.72%
EPS beat(12)8
Avg EPS beat(12)2.19%
EPS beat(16)12
Avg EPS beat(16)8.98%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)-0.81%
Revenue beat(4)0
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)-0.81%
Revenue beat(8)0
Avg Revenue beat(8)-1.64%
Revenue beat(12)4
Avg Revenue beat(12)0.75%
Revenue beat(16)8
Avg Revenue beat(16)1.65%
PT rev (1m)-0.33%
PT rev (3m)-10.79%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)-0.81%
EPS NY rev (1m)0.22%
EPS NY rev (3m)-0.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.05 | ||
| Fwd PE | 18.71 | ||
| P/S | 3.16 | ||
| P/FCF | 20.33 | ||
| P/OCF | 17.35 | ||
| P/B | 7.37 | ||
| P/tB | 7.37 | ||
| EV/EBITDA | 16.04 |
EPS(TTM)11.59
EY4.16%
EPS(NY)14.9
Fwd EY5.34%
FCF(TTM)13.71
FCFY4.92%
OCF(TTM)16.07
OCFY5.76%
SpS88.1
BVpS37.8
TBVpS37.8
PEG (NY)1.59
PEG (5Y)2.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.59% | ||
| ROE | 32.5% | ||
| ROCE | 10.41% | ||
| ROIC | 3.7% | ||
| ROICexc | 4.59% | ||
| ROICexgc | 5.09% | ||
| OM | 17.29% | ||
| PM (TTM) | 13.95% | ||
| GM | 61.84% | ||
| FCFM | 15.56% |
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-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.38 | ||
| Debt/FCF | 17.6 | ||
| Debt/EBITDA | 13.94 | ||
| Cap/Depr | 113.15% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.81% | ||
| Profit Quality | 111.59% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 0.85 |
F-Score6
WACC7.58%
ROIC/WACC0.49
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 Y15.15%
EPS Next 2Y14.66%
EPS Next 3Y14.55%
EPS Next 5Y10.4%
Revenue 1Y (TTM)8%
Revenue growth 3Y18.7%
Revenue growth 5Y9.69%
Sales Q2Q%7.38%
Revenue Next Year8.12%
Revenue Next 2Y8.07%
Revenue Next 3Y7.91%
Revenue Next 5Y7.38%
EBIT growth 1Y8.05%
EBIT growth 3Y7.6%
EBIT growth 5Y8.16%
EBIT Next Year45.1%
EBIT Next 3Y9.75%
EBIT Next 5YN/A
FCF growth 1Y-24.82%
FCF growth 3Y-2.5%
FCF growth 5Y0.25%
OCF growth 1Y-21.16%
OCF growth 3Y-1.37%
OCF growth 5Y0.61%