AMERICAN EXPRESS CO (AXP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXP - US0258161092 - Common Stock
371.005 USD
+2.88 (+0.78%)
We assign a fundamental rating of 4 out of 10 to AXP. AXP was compared to 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.
In the past year AXP had a positive cash flow from operations.
AXP had positive earnings in each of the past 5 years.
Each year in the past 5 years AXP had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.50%, AXP is doing good in the industry, outperforming 65.45% of the companies in the same industry.
AXP's Return On Equity of 32.12% is amongst the best of the industry. AXP outperforms 92.73% of its industry peers.
The Return On Invested Capital of AXP (3.77%) is comparable to the rest of the 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 11.33%.
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
AXP has a Profit Margin (13.72%) which is comparable to the rest of the 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.
With a Gross Margin value of 61.93%, AXP perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
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.
AXP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AXP has less shares outstanding
The debt/assets ratio for AXP is higher compared to a year ago.
2.2 Solvency
AXP has an Altman-Z score of 0.88. 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 (0.88) which is in line with 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.
AXP has a Debt to FCF ratio of 11.04. This is comparable to the rest of the industry: AXP outperforms 58.18% of its industry peers.
AXP has a Debt/Equity ratio of 6.45. This is a high value indicating a heavy dependency on external financing.
AXP has a worse Debt to Equity ratio (6.45) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.42
WACC8.99%
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 Current ratio of 0.68. This is in the lower half of the industry: AXP underperforms 60.00% of its industry peers.
AXP has a Quick 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.
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
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%.
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
AXP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.40% yearly.
Based on estimates for the next years, AXP will show a small growth in Revenue. The Revenue will grow by 7.38% on average per year.
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
Based on the Price/Earnings ratio of 24.90, the valuation of AXP can be described as rather expensive.
70.91% of the companies in the same industry are cheaper than AXP, based on the Price/Earnings ratio.
AXP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.37, which is the current average of the S&P500 Index.
AXP is valuated rather expensively with a Price/Forward Earnings ratio of 21.09.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AXP indicates a slightly more expensive valuation: AXP is more expensive than 65.45% of the companies listed in the same industry.
AXP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.9 | ||
| Fwd PE | 21.09 |
4.2 Price Multiples
AXP's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 13.49 | ||
| EV/EBITDA | 17.03 |
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.
A more expensive valuation may be justified as AXP's earnings are expected to grow with 14.62% in the coming years.
PEG (NY)1.47
PEG (5Y)2.43
EPS Next 2Y14.8%
EPS Next 3Y14.62%
5. Dividend
5.1 Amount
AXP has a yearly dividend return of 0.90%, which is pretty low.
AXP's Dividend Yield is comparable with the industry average which is at 5.10.
With a Dividend Yield of 0.90, AXP pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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.
AXP's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP21.11%
EPS Next 2Y14.8%
EPS Next 3Y14.62%
NYSE:AXP (12/4/2025, 9:55:10 AM)
371.005
+2.88 (+0.78%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.31%
Inst Owner Change-0.89%
Ins Owners0.09%
Ins Owner Change-1.08%
Market Cap255.57B
Revenue(TTM)75.91B
Net Income(TTM)10.41B
Analysts68.89
Price Target357.54 (-3.63%)
Short Float %1.92%
Short Ratio4.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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 | 24.9 | ||
| Fwd PE | 21.09 | ||
| P/S | 3.37 | ||
| P/FCF | 13.49 | ||
| P/OCF | 12.09 | ||
| P/B | 7.88 | ||
| P/tB | 7.88 | ||
| EV/EBITDA | 17.03 |
EPS(TTM)14.9
EY4.02%
EPS(NY)17.59
Fwd EY4.74%
FCF(TTM)27.5
FCFY7.41%
OCF(TTM)30.69
OCFY8.27%
SpS110.19
BVpS47.06
TBVpS47.06
PEG (NY)1.47
PEG (5Y)2.43
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
WACC8.99%
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 24.9 and the Price/Book (PB) ratio is 7.88.
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.