AMERICAN EXPRESS CO (AXP) Stock Fundamental Analysis
USA - NYSE:AXP - US0258161092 - Common Stock
361.03 USD
-0.64 (-0.18%)
360.95 USD
-0.08 (-0.02%)
AXP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 55 industry peers in the Consumer Finance industry. There are concerns on the financial health of AXP while its profitability can be described as average. While showing a medium growth rate, AXP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AXP was profitable.
AXP had a positive operating cash flow in the past year.
AXP had positive earnings in each of the past 5 years.
AXP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AXP's Return On Assets of 3.50% is fine compared to the rest of the industry. AXP outperforms 67.27% of its industry peers.
AXP's Return On Equity of 32.12% is amongst the best of the industry. AXP outperforms 94.55% of its industry peers.
With a Return On Invested Capital value of 3.77%, AXP perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AXP is significantly below the industry average of 10.97%.
The 3 year average ROIC (3.64%) for AXP 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
With a Profit Margin value of 13.72%, AXP perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
AXP's Profit Margin has been stable in the last couple of years.
The Operating Margin of AXP (17.76%) is better than 65.45% of its industry peers.
In the last couple of years the Operating Margin of AXP has remained more or less at the same level.
AXP's Gross Margin of 61.93% is fine compared to the rest of the industry. AXP outperforms 61.82% of its industry peers.
In the last couple of years the Gross Margin of AXP has remained more or less at the same level.
| 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
AXP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AXP has less shares outstanding
AXP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AXP is higher compared to a year ago.
2.2 Solvency
AXP has an Altman-Z score of 0.87. This is a bad value and indicates that AXP is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.87, AXP is in line with its industry, outperforming 58.18% of the companies in the same industry.
The Debt to FCF ratio of AXP is 11.04, which is on the high side as it means it would take AXP, 11.04 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 11.04, AXP perfoms like the industry average, outperforming 50.91% of the companies in the same industry.
AXP has a Debt/Equity ratio of 6.45. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 6.45, AXP is not doing good in the industry: 76.36% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.39
WACC9.69%
2.3 Liquidity
AXP has a Current Ratio of 0.68. This is a bad value and indicates that AXP is not financially healthy enough and could expect problems in meeting its short term obligations.
AXP's Current ratio of 0.68 is in line compared to the rest of the industry. AXP outperforms 41.82% of its industry peers.
A Quick Ratio of 0.68 indicates that AXP may have some problems paying its short term obligations.
The Quick ratio of AXP (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
AXP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.24%, which is quite good.
AXP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.27% yearly.
AXP shows a small growth in Revenue. In the last year, the Revenue has grown by 4.37%.
The Revenue has been growing by 8.79% on average over the past years. This is quite good.
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, AXP will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.40% on average per year.
AXP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.38% yearly.
EPS Next Y16.57%
EPS Next 2Y14.7%
EPS Next 3Y14.22%
EPS Next 5Y10.4%
Revenue Next Year9.03%
Revenue Next 2Y8.8%
Revenue Next 3Y8.67%
Revenue Next 5Y7.38%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.23, AXP is valued on the expensive side.
Based on the Price/Earnings ratio, AXP is valued a bit more expensive than 74.55% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.83, AXP is valued at the same level.
With a Price/Forward Earnings ratio of 20.55, AXP is valued on the expensive side.
65.45% of the companies in the same industry are cheaper than AXP, based on the Price/Forward Earnings ratio.
AXP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.23 | ||
| Fwd PE | 20.55 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AXP.
AXP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.13 | ||
| EV/EBITDA | 16.74 |
4.3 Compensation for Growth
AXP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AXP may justify a higher PE ratio.
AXP's earnings are expected to grow with 14.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.46
PEG (5Y)2.36
EPS Next 2Y14.7%
EPS Next 3Y14.22%
5. Dividend
5.1 Amount
AXP has a yearly dividend return of 0.92%, which is pretty low.
Compared to an average industry Dividend Yield of 4.52, AXP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, AXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
On average, the dividend of AXP grows each year by 10.33%, which is quite nice.
AXP has paid a dividend for at least 10 years, which is a reliable track record.
AXP has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.33%
Div Incr Years3
Div Non Decr Years20
5.3 Sustainability
21.11% of the earnings are spent on dividend by AXP. This is a low number and sustainable payout ratio.
The dividend of AXP is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP21.11%
EPS Next 2Y14.7%
EPS Next 3Y14.22%
361.03
-0.64 (-0.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.31%
Inst Owner Change-0.01%
Ins Owners0.09%
Ins Owner Change-1.55%
Market Cap248.70B
Revenue(TTM)75.91B
Net Income(TTM)10.41B
Analysts67.22
Price Target327.57 (-9.27%)
Short Float %1.63%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend2.81
Dividend Growth(5Y)10.33%
DP21.11%
Div Incr Years3
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.22%
Min EPS beat(2)2.58%
Max EPS beat(2)3.86%
EPS beat(4)3
Avg EPS beat(4)2.4%
Min EPS beat(4)-0.95%
Max EPS beat(4)4.09%
EPS beat(8)6
Avg EPS beat(8)3.9%
EPS beat(12)8
Avg EPS beat(12)2.15%
EPS beat(16)12
Avg EPS beat(16)3.7%
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-0.18%
Max Revenue beat(2)1.09%
Revenue beat(4)1
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)1.09%
Revenue beat(8)1
Avg Revenue beat(8)-0.95%
Revenue beat(12)3
Avg Revenue beat(12)0.48%
Revenue beat(16)7
Avg Revenue beat(16)1.9%
PT rev (1m)0.19%
PT rev (3m)2.98%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)-0.71%
EPS NY rev (1m)0.57%
EPS NY rev (3m)1.16%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.23 | ||
| Fwd PE | 20.55 | ||
| P/S | 3.28 | ||
| P/FCF | 13.13 | ||
| P/OCF | 11.76 | ||
| P/B | 7.67 | ||
| P/tB | 7.67 | ||
| EV/EBITDA | 16.74 |
EPS(TTM)14.9
EY4.13%
EPS(NY)17.56
Fwd EY4.87%
FCF(TTM)27.5
FCFY7.62%
OCF(TTM)30.69
OCFY8.5%
SpS110.19
BVpS47.06
TBVpS47.06
PEG (NY)1.46
PEG (5Y)2.36
Graham Number125.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 32.12% | ||
| ROCE | 10.25% | ||
| ROIC | 3.77% | ||
| ROICexc | 4.62% | ||
| ROICexgc | 5.14% | ||
| OM | 17.76% | ||
| PM (TTM) | 13.72% | ||
| GM | 61.93% | ||
| FCFM | 24.95% |
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%
ROICexgc growth 3Y-4.54%
ROICexgc growth 5Y1.68%
ROICexc growth 3Y-3.59%
ROICexc growth 5Y1.93%
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%
F-Score6
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Debt/EBITDA | 13.73 | ||
| Cap/Depr | 126.1% | ||
| Cap/Sales | 2.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 138.84% | ||
| Profit Quality | 181.93% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 0.87 |
F-Score6
WACC9.69%
ROIC/WACC0.39
Cap/Depr(3y)107.59%
Cap/Depr(5y)102%
Cap/Sales(3y)2.77%
Cap/Sales(5y)3.15%
Profit Quality(3y)195.73%
Profit Quality(5y)177.62%
High Growth Momentum
Growth
EPS 1Y (TTM)15.24%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%18.62%
EPS Next Y16.57%
EPS Next 2Y14.7%
EPS Next 3Y14.22%
EPS Next 5Y10.4%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%10.76%
Revenue Next Year9.03%
Revenue Next 2Y8.8%
Revenue Next 3Y8.67%
Revenue Next 5Y7.38%
EBIT growth 1Y10.4%
EBIT growth 3Y7.6%
EBIT growth 5Y8.16%
EBIT Next Year45.1%
EBIT Next 3Y10%
EBIT Next 5YN/A
FCF growth 1Y1.99%
FCF growth 3Y-2.5%
FCF growth 5Y0.25%
OCF growth 1Y4.53%
OCF growth 3Y-1.37%
OCF growth 5Y0.61%
AMERICAN EXPRESS CO / AXP FAQ
Can you provide the ChartMill fundamental rating for AMERICAN EXPRESS CO?
ChartMill assigns a fundamental rating of 4 / 10 to AXP.
What is the valuation status of AMERICAN EXPRESS CO (AXP) stock?
ChartMill assigns a valuation rating of 2 / 10 to AMERICAN EXPRESS CO (AXP). This can be considered as Overvalued.
Can you provide the profitability details for AMERICAN EXPRESS CO?
AMERICAN EXPRESS CO (AXP) has a profitability rating of 6 / 10.
What is the valuation of AMERICAN EXPRESS CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AMERICAN EXPRESS CO (AXP) is 24.23 and the Price/Book (PB) ratio is 7.67.
What is the expected EPS growth for AMERICAN EXPRESS CO (AXP) stock?
The Earnings per Share (EPS) of AMERICAN EXPRESS CO (AXP) is expected to grow by 16.57% in the next year.