AMERICAN EXPRESS CO (AXP) Stock Fundamental Analysis
USA - NYSE:AXP - US0258161092 - Common Stock
341.83 USD
+0.16 (+0.05%)
Overall AXP gets a fundamental rating of 4 out of 10. We evaluated AXP against 54 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
AXP had positive earnings in the past year.
AXP had a positive operating cash flow in the past year.
In the past 5 years AXP has always been profitable.
In the past 5 years AXP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.39%, AXP is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
AXP's Return On Equity of 31.00% is amongst the best of the industry. AXP outperforms 92.59% of its industry peers.
With a Return On Invested Capital value of 3.62%, AXP perfoms like the industry average, outperforming 51.85% of the companies in the same industry.
AXP had an Average Return On Invested Capital over the past 3 years of 3.64%. This is significantly below the industry average of 11.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 31% | ||
| ROIC | 3.62% |
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
AXP has a Profit Margin (13.38%) which is comparable to the rest of the industry.
AXP's Profit Margin has been stable in the last couple of years.
AXP has a better Operating Margin (17.21%) than 64.81% of its industry peers.
AXP's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 61.37%, AXP is doing good in the industry, outperforming 61.11% of the companies in the same industry.
AXP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.21% | ||
| PM (TTM) | 13.38% | ||
| GM | 61.37% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AXP is destroying value.
AXP has less shares outstanding than it did 1 year ago.
AXP has less shares outstanding than it did 5 years ago.
AXP has a worse debt/assets ratio than last year.
2.2 Solvency
AXP has an Altman-Z score of 0.86. This is a bad value and indicates that AXP is not financially healthy and even has some risk of bankruptcy.
AXP has a Altman-Z score of 0.86. This is comparable to the rest of the industry: AXP outperforms 55.56% of its industry peers.
The Debt to FCF ratio of AXP is 18.84, which is on the high side as it means it would take AXP, 18.84 years of fcf income to pay off all of its debts.
AXP has a Debt to FCF ratio of 18.84. This is comparable to the rest of the industry: AXP outperforms 44.44% of its industry peers.
A Debt/Equity ratio of 6.47 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 6.47, AXP is doing worse than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.47 | ||
| Debt/FCF | 18.84 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.36
WACC10.01%
2.3 Liquidity
A Current Ratio of 0.71 indicates that AXP may have some problems paying its short term obligations.
The Current ratio of AXP (0.71) is comparable to the rest of the industry.
A Quick Ratio of 0.71 indicates that AXP may have some problems paying its short term obligations.
The Quick ratio of AXP (0.71) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.85% 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.
Looking at the last year, AXP shows a small growth in Revenue. The Revenue has grown by 5.28% in the last year.
Measured over the past years, AXP shows a quite strong growth in Revenue. The Revenue has been growing by 8.79% on average per year.
EPS 1Y (TTM)11.85%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%16.91%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%9.32%
3.2 Future
The Earnings Per Share is expected to grow by 10.40% on average over the next years. This is quite good.
AXP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.38% yearly.
EPS Next Y15.84%
EPS Next 2Y14.28%
EPS Next 3Y13.77%
EPS Next 5Y10.4%
Revenue Next Year8.56%
Revenue Next 2Y8.44%
Revenue Next 3Y8.28%
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.
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
A Price/Earnings ratio of 24.00 indicates a rather expensive valuation of AXP.
72.22% of the companies in the same industry are cheaper than AXP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AXP to the average of the S&P500 Index (27.41), we can say AXP is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.61, AXP is valued on the expensive side.
AXP's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AXP is more expensive than 68.52% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AXP to the average of the S&P500 Index (22.88), we can say AXP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 19.61 |
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.
AXP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.44 | ||
| EV/EBITDA | 16.32 |
4.3 Compensation for Growth
AXP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AXP has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AXP's earnings are expected to grow with 13.77% in the coming years.
PEG (NY)1.51
PEG (5Y)2.34
EPS Next 2Y14.28%
EPS Next 3Y13.77%
5. Dividend
5.1 Amount
AXP has a Yearly Dividend Yield of 1.01%. Purely for dividend investing, there may be better candidates out there.
AXP's Dividend Yield is comparable with the industry average which is at 4.46.
Compared to an average S&P500 Dividend Yield of 2.38, AXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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
21.24% 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.
DP21.24%
EPS Next 2Y14.28%
EPS Next 3Y13.77%
NYSE:AXP (9/19/2025, 10:56:53 AM)
341.83
+0.16 (+0.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.51%
Inst Owner Change-1.75%
Ins Owners0.1%
Ins Owner Change-1.64%
Market Cap237.87B
Analysts68
Price Target326.93 (-4.36%)
Short Float %1.95%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend2.81
Dividend Growth(5Y)10.33%
DP21.24%
Div Incr Years3
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.98%
Min EPS beat(2)3.86%
Max EPS beat(2)4.09%
EPS beat(4)3
Avg EPS beat(4)3.06%
Min EPS beat(4)-0.95%
Max EPS beat(4)5.25%
EPS beat(8)6
Avg EPS beat(8)4.96%
EPS beat(12)8
Avg EPS beat(12)2.05%
EPS beat(16)12
Avg EPS beat(16)5.08%
Revenue beat(2)0
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-0.81%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)-0.18%
Revenue beat(8)0
Avg Revenue beat(8)-1.2%
Revenue beat(12)3
Avg Revenue beat(12)0.83%
Revenue beat(16)7
Avg Revenue beat(16)2.19%
PT rev (1m)0.89%
PT rev (3m)9.44%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-1.04%
EPS NY rev (1m)0.52%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 19.61 | ||
| P/S | 3.18 | ||
| P/FCF | 21.44 | ||
| P/OCF | 18.17 | ||
| P/B | 7.36 | ||
| P/tB | 7.36 | ||
| EV/EBITDA | 16.32 |
EPS(TTM)14.25
EY4.17%
EPS(NY)17.44
Fwd EY5.1%
FCF(TTM)15.94
FCFY4.66%
OCF(TTM)18.82
OCFY5.5%
SpS107.62
BVpS46.43
TBVpS46.43
PEG (NY)1.51
PEG (5Y)2.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 31% | ||
| ROCE | 9.87% | ||
| ROIC | 3.62% | ||
| ROICexc | 4.55% | ||
| ROICexgc | 5.06% | ||
| OM | 17.21% | ||
| PM (TTM) | 13.38% | ||
| GM | 61.37% | ||
| FCFM | 14.82% |
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-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-Score5
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.47 | ||
| Debt/FCF | 18.84 | ||
| Debt/EBITDA | 14.31 | ||
| Cap/Depr | 115.88% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.62% | ||
| Profit Quality | 110.76% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 0.86 |
F-Score5
WACC10.01%
ROIC/WACC0.36
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)11.85%
EPS 3Y10.15%
EPS 5Y10.27%
EPS Q2Q%16.91%
EPS Next Y15.84%
EPS Next 2Y14.28%
EPS Next 3Y13.77%
EPS Next 5Y10.4%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%9.32%
Revenue Next Year8.56%
Revenue Next 2Y8.44%
Revenue Next 3Y8.28%
Revenue Next 5Y7.38%
EBIT growth 1Y6.08%
EBIT growth 3Y7.6%
EBIT growth 5Y8.16%
EBIT Next Year45.1%
EBIT Next 3Y9.75%
EBIT Next 5YN/A
FCF growth 1Y-25%
FCF growth 3Y-2.5%
FCF growth 5Y0.25%
OCF growth 1Y-20.57%
OCF growth 3Y-1.37%
OCF growth 5Y0.61%