AMERICAN EXPRESS CO (AXP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXP - US0258161092 - Common Stock
370.35 USD
-0.8 (-0.22%)
370.74 USD
+0.39 (+0.11%)
AXP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 55 industry peers in the Consumer Finance industry. While AXP is still in line with the averages on profitability rating, there are concerns on its financial health. AXP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AXP was profitable.
AXP had a positive operating cash flow in the past year.
In the past 5 years AXP has always been profitable.
Each year in the past 5 years AXP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.50%, AXP is in the better half of the industry, outperforming 65.45% of the companies in the same industry.
AXP has a Return On Equity of 32.12%. This is amongst the best in the industry. AXP outperforms 92.73% of its industry peers.
AXP has a Return On Invested Capital (3.77%) which is in line with its industry peers.
AXP had an Average Return On Invested Capital over the past 3 years of 3.64%. This is significantly below the industry average of 11.33%.
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.
AXP has a Operating Margin of 17.76%. This is in the better half of the industry: AXP outperforms 65.45% of its industry peers.
AXP's Operating Margin has been stable in the last couple of years.
AXP's Gross Margin of 61.93% is in line compared to the rest of the industry. AXP outperforms 60.00% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AXP is destroying value.
The number of shares outstanding for AXP has been reduced compared to 1 year ago.
Compared to 5 years ago, AXP has less shares outstanding
AXP has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.88, we must say that AXP is in the distress zone and has some risk of bankruptcy.
AXP has a Altman-Z score of 0.88. This is comparable to the rest of the industry: AXP outperforms 54.55% of its industry peers.
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 58.18% of the companies in the same industry.
A Debt/Equity ratio of 6.45 is on the high side and indicates that AXP has dependencies on debt financing.
With a Debt to Equity ratio value of 6.45, AXP is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.42
WACC9.08%
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 has a worse Current ratio (0.68) than 60.00% of its industry peers.
A Quick Ratio of 0.68 indicates that AXP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.68, AXP is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.24% over the past year.
Measured over the past years, AXP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.27% on average per year.
The Revenue has been growing slightly by 4.37% in the past year.
AXP 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 10.40% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.38% on average over the next years.
EPS Next Y16.89%
EPS Next 2Y14.8%
EPS Next 3Y14.62%
EPS Next 5Y10.4%
Revenue Next Year9.39%
Revenue Next 2Y9.13%
Revenue Next 3Y8.92%
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.
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
With a Price/Earnings ratio of 24.86, AXP is valued on the expensive side.
Based on the Price/Earnings ratio, AXP is valued a bit more expensive than 70.91% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, AXP is valued at the same level.
The Price/Forward Earnings ratio is 21.05, which indicates a rather expensive current valuation of AXP.
Based on the Price/Forward Earnings ratio, AXP is valued a bit more expensive than the industry average as 65.45% of the companies are valued more cheaply.
AXP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.86 | ||
| Fwd PE | 21.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AXP is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AXP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.47 | ||
| EV/EBITDA | 17.16 |
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 14.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.47
PEG (5Y)2.42
EPS Next 2Y14.8%
EPS Next 3Y14.62%
5. Dividend
5.1 Amount
AXP has a yearly dividend return of 0.88%, which is pretty low.
Compared to an average industry Dividend Yield of 5.10, AXP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, AXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
The dividend of AXP is nicely growing with an annual growth rate of 10.33%!
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
AXP pays out 21.11% of its income as dividend. This is a 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 2Y14.8%
EPS Next 3Y14.62%
370.35
-0.8 (-0.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.15%
Inst Owner Change-0.89%
Ins Owners0.07%
Ins Owner Change-1.08%
Market Cap255.12B
Revenue(TTM)75.91B
Net Income(TTM)10.41B
Analysts68.89
Price Target357.54 (-3.46%)
Short Float %1.92%
Short Ratio4.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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)9.15%
PT rev (3m)10.34%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-0.96%
EPS NY rev (1m)0.27%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.86 | ||
| Fwd PE | 21.05 | ||
| P/S | 3.36 | ||
| P/FCF | 13.47 | ||
| P/OCF | 12.07 | ||
| P/B | 7.87 | ||
| P/tB | 7.87 | ||
| EV/EBITDA | 17.16 |
EPS(TTM)14.9
EY4.02%
EPS(NY)17.59
Fwd EY4.75%
FCF(TTM)27.5
FCFY7.42%
OCF(TTM)30.69
OCFY8.29%
SpS110.19
BVpS47.06
TBVpS47.06
PEG (NY)1.47
PEG (5Y)2.42
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 | 0.88 |
F-Score6
WACC9.08%
ROIC/WACC0.42
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 Y16.89%
EPS Next 2Y14.8%
EPS Next 3Y14.62%
EPS Next 5Y10.4%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%10.76%
Revenue Next Year9.39%
Revenue Next 2Y9.13%
Revenue Next 3Y8.92%
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 3 / 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 24.86 and the Price/Book (PB) ratio is 7.87.
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 16.89% in the next year.