AMERICAN EXPRESS CO (AXP) Stock Fundamental Analysis
USA - NYSE:AXP - US0258161092 - Common Stock
360.73 USD
+1.85 (+0.52%)
362 USD
+1.27 (+0.35%)
Overall AXP gets a fundamental rating of 4 out of 10. We evaluated AXP against 55 industry peers in the Consumer Finance industry. AXP has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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
AXP has a Return On Assets of 3.50%. This is in the better half of the industry: AXP outperforms 67.27% of its industry peers.
Looking at the Return On Equity, with a value of 32.12%, AXP belongs to the top of the industry, outperforming 94.55% of the companies in the same industry.
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 10.97%.
The last Return On Invested Capital (3.77%) for AXP is above the 3 year average (3.64%), which is a sign of increasing profitability.
| 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.
With a decent Operating Margin value of 17.76%, AXP is doing good in the industry, outperforming 65.45% of the companies in the same industry.
AXP's Operating Margin has been stable in the last couple of years.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AXP is destroying value.
Compared to 1 year ago, AXP has less shares outstanding
Compared to 5 years ago, AXP has less shares outstanding
AXP has a worse debt/assets ratio than last year.
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.
With a Altman-Z score value of 0.87, AXP perfoms like the industry average, outperforming 58.18% of the companies in the same industry.
AXP has a debt to FCF ratio of 11.04. This is a negative value and a sign of low solvency as AXP would need 11.04 years to pay back of all of its debts.
The Debt to FCF ratio of AXP (11.04) is comparable to the rest of the industry.
A Debt/Equity ratio of 6.45 is on the high side and indicates that AXP has dependencies on debt financing.
AXP has a Debt to Equity ratio of 6.45. This is in the lower half of the industry: AXP underperforms 76.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.39
WACC9.68%
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 (0.68) which is comparable to the rest of the industry.
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.
AXP has a Quick ratio (0.68) which 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.
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 4.37% in the last 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.
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 Y16.57%
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
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
The Price/Earnings ratio is 24.21, which indicates a rather expensive current valuation of AXP.
AXP's Price/Earnings ratio is a bit more expensive when compared to the industry. AXP is more expensive than 72.73% of the companies in the same industry.
AXP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.10.
With a Price/Forward Earnings ratio of 20.54, AXP is valued on the expensive side.
Based on the Price/Forward Earnings ratio, AXP is valued a bit more expensive than 67.27% of the companies in the same industry.
AXP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.21 | ||
| Fwd PE | 20.54 |
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 | 13.12 | ||
| EV/EBITDA | 16.61 |
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.
AXP's Dividend Yield is comparable with the industry average which is at 4.75.
Compared to an average S&P500 Dividend Yield of 2.35, AXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
The dividend of AXP is nicely growing with an annual growth rate of 10.33%!
AXP has been paying a dividend for at least 10 years, so it has a reliable track record.
AXP has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
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 2Y14.7%
EPS Next 3Y14.22%
360.73
+1.85 (+0.52%)
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 Cap248.49B
Revenue(TTM)75.91B
Net Income(TTM)10.41B
Analysts67.22
Price Target327.57 (-9.19%)
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 | 24.21 | ||
| Fwd PE | 20.54 | ||
| P/S | 3.27 | ||
| P/FCF | 13.12 | ||
| P/OCF | 11.75 | ||
| P/B | 7.67 | ||
| P/tB | 7.67 | ||
| EV/EBITDA | 16.61 |
EPS(TTM)14.9
EY4.13%
EPS(NY)17.56
Fwd EY4.87%
FCF(TTM)27.5
FCFY7.62%
OCF(TTM)30.69
OCFY8.51%
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
WACC9.68%
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 24.21 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.