AMERICAN EXPRESS CO (AXP) Stock Fundamental Analysis
NYSE:AXP - New York Stock Exchange, Inc. - US0258161092 - Common Stock
AXP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 53 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. While showing a medium growth rate, AXP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
AXP had positive earnings in the past year.
In the past year AXP had a positive cash flow from operations.
In the past 5 years AXP has always been profitable.
AXP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AXP's Return On Assets of 3.60% is fine compared to the rest of the industry. AXP outperforms 75.00% of its industry peers.
AXP has a Return On Equity of 32.85%. This is amongst the best in the industry. AXP outperforms 96.15% of its industry peers.
With a Return On Invested Capital value of 3.74%, AXP perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AXP is below the industry average of 7.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 32.85% | ||
| ROIC | 3.74% |
ROA(3y)3.53%
ROA(5y)3.11%
ROE(3y)31.69%
ROE(5y)27.4%
ROIC(3y)3.85%
ROIC(5y)3.4%
1.3 Margins
AXP's Profit Margin of 13.89% is fine compared to the rest of the industry. AXP outperforms 67.31% of its industry peers.
AXP's Profit Margin has declined in the last couple of years.
The Operating Margin of AXP (17.38%) is better than 67.31% of its industry peers.
In the last couple of years the Operating Margin of AXP has declined.
The Gross Margin of AXP (62.61%) is better than 65.38% of its industry peers.
AXP'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 3Y12.37%
OM growth 5Y-3.17%
PM growth 3Y15.47%
PM growth 5Y-4.99%
GM growth 3Y-4.54%
GM growth 5Y-1.9%
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
Compared to 5 years ago, AXP has less shares outstanding
Compared to 1 year ago, AXP has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.87, we must say that AXP is in the distress zone and 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 55.77% of the companies in the same industry.
AXP has a debt to FCF ratio of 14.43. This is a negative value and a sign of low solvency as AXP would need 14.43 years to pay back of all of its debts.
AXP's Debt to FCF ratio of 14.43 is in line compared to the rest of the industry. AXP outperforms 40.38% of its industry peers.
A Debt/Equity ratio of 6.41 is on the high side and indicates that AXP has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 6.41, AXP is doing worse than 80.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.41 | ||
| Debt/FCF | 14.43 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.52
WACC7.25%
2.3 Liquidity
A Current Ratio of 0.71 indicates that AXP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.71, AXP is in line with its industry, outperforming 42.31% of the companies in the same industry.
AXP has a Quick Ratio of 0.71. This is a bad value and indicates that AXP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.71, AXP is in line with its industry, outperforming 42.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
AXP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.29%, which is quite impressive.
AXP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.90% yearly.
Looking at the last year, AXP shows a quite strong growth in Revenue. The Revenue has grown by 11.25% in the last year.
Measured over the past years, AXP shows a quite strong growth in Revenue. The Revenue has been growing by 9.45% on average per year.
EPS 1Y (TTM)21.29%
EPS 3Y43.93%
EPS 5Y8.9%
EPS Q2Q%5.76%
Revenue 1Y (TTM)11.25%
Revenue growth 3Y20.86%
Revenue growth 5Y9.45%
Sales Q2Q%8.16%
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 10.37% on average per year.
AXP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.85% yearly.
EPS Next Y20.19%
EPS Next 2Y16.78%
EPS Next 3Y15.81%
EPS Next 5Y10.37%
Revenue Next Year8.55%
Revenue Next 2Y8.3%
Revenue Next 3Y8.2%
Revenue Next 5Y7.85%
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
AXP is valuated rather expensively with a Price/Earnings ratio of 24.59.
67.31% of the companies in the same industry are cheaper than AXP, based on the Price/Earnings ratio.
AXP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 20.80, the valuation of AXP can be described as rather expensive.
Based on the Price/Forward Earnings ratio, AXP is valued a bit more expensive than 65.38% of the companies in the same industry.
AXP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.59 | ||
| Fwd PE | 20.8 |
4.2 Price Multiples
65.38% of the companies in the same industry are more expensive than AXP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AXP is valued a bit more expensive than the industry average as 65.38% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.97 | ||
| EV/EBITDA | 16.31 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AXP's earnings are expected to grow with 15.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.22
PEG (5Y)2.76
EPS Next 2Y16.78%
EPS Next 3Y15.81%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, AXP is not a good candidate for dividend investing.
AXP's Dividend Yield is comparable with the industry average which is at 4.39.
With a Dividend Yield of 0.90, AXP pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
The dividend of AXP is nicely growing with an annual growth rate of 9.36%!
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)9.36%
Div Incr Years3
Div Non Decr Years20
5.3 Sustainability
AXP pays out 19.91% 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.
DP19.91%
EPS Next 2Y16.78%
EPS Next 3Y15.81%
AMERICAN EXPRESS CO
NYSE:AXP (1/21/2025, 8:04:00 PM)
After market: 318.44 +0.49 (+0.15%)317.95
+5.39 (+1.72%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.26%
Inst Owner Change-0.3%
Ins Owners0.1%
Ins Owner Change0.96%
Market Cap223.98B
Analysts68.24
Price Target297.11 (-6.55%)
Short Float %1.55%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend2.43
Dividend Growth(5Y)9.36%
DP19.91%
Div Incr Years3
Div Non Decr Years20
Ex-Date
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)3.23%
PT rev (3m)14.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.05%
EPS NY rev (1m)0%
EPS NY rev (3m)1.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.59 | ||
| Fwd PE | 20.8 | ||
| P/S | 3.19 | ||
| P/FCF | 16.97 | ||
| P/OCF | 14.89 | ||
| P/B | 7.54 | ||
| P/tB | 7.54 | ||
| EV/EBITDA | 16.31 |
EPS(TTM)12.93
EY4.07%
EPS(NY)15.29
Fwd EY4.81%
FCF(TTM)18.74
FCFY5.89%
OCF(TTM)21.35
OCFY6.72%
SpS99.73
BVpS42.17
TBVpS42.17
PEG (NY)1.22
PEG (5Y)2.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 32.85% | ||
| ROCE | 10.1% | ||
| ROIC | 3.74% | ||
| ROICexc | 4.59% | ||
| ROICexgc | 5.08% | ||
| OM | 17.38% | ||
| PM (TTM) | 13.89% | ||
| GM | 62.61% | ||
| FCFM | 18.79% |
ROA(3y)3.53%
ROA(5y)3.11%
ROE(3y)31.69%
ROE(5y)27.4%
ROIC(3y)3.85%
ROIC(5y)3.4%
ROICexc(3y)4.53%
ROICexc(5y)4%
ROICexgc(3y)4.9%
ROICexgc(5y)4.33%
ROCE(3y)9.97%
ROCE(5y)8.51%
ROICexcg growth 3Y21.64%
ROICexcg growth 5Y0.34%
ROICexc growth 3Y22.89%
ROICexc growth 5Y-0.15%
OM growth 3Y12.37%
OM growth 5Y-3.17%
PM growth 3Y15.47%
PM growth 5Y-4.99%
GM growth 3Y-4.54%
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 | 0.87 |
F-Score6
WACC7.25%
ROIC/WACC0.52
Cap/Depr(3y)100.07%
Cap/Depr(5y)106.89%
Cap/Sales(3y)3.14%
Cap/Sales(5y)3.41%
Profit Quality(3y)210.38%
Profit Quality(5y)189.48%
High Growth Momentum
Growth
EPS 1Y (TTM)21.29%
EPS 3Y43.93%
EPS 5Y8.9%
EPS Q2Q%5.76%
EPS Next Y20.19%
EPS Next 2Y16.78%
EPS Next 3Y15.81%
EPS Next 5Y10.37%
Revenue 1Y (TTM)11.25%
Revenue growth 3Y20.86%
Revenue growth 5Y9.45%
Sales Q2Q%8.16%
Revenue Next Year8.55%
Revenue Next 2Y8.3%
Revenue Next 3Y8.2%
Revenue Next 5Y7.85%
EBIT growth 1Y20.01%
EBIT growth 3Y35.81%
EBIT growth 5Y5.98%
EBIT Next Year50.59%
EBIT Next 3Y5.98%
EBIT Next 5YN/A
FCF growth 1Y-16.68%
FCF growth 3Y60.47%
FCF growth 5Y17.4%
OCF growth 1Y-14.81%
OCF growth 3Y49.17%
OCF growth 5Y15.76%