AMERICAN EXPRESS CO (AXP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXP - US0258161092 - Common Stock
375.57 USD
+11.66 (+3.2%)
375.58 USD
0.01 (0%)
AXP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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
AXP had positive earnings in the past year.
In the past year AXP had a positive cash flow from operations.
Each year in the past 5 years AXP has been profitable.
Each year in the past 5 years AXP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AXP (3.50%) is better than 65.45% 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 92.73% of the companies in the same industry.
With a Return On Invested Capital value of 3.77%, AXP perfoms like the industry average, outperforming 58.18% 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 12.59%.
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
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.
AXP's Operating Margin of 17.76% is fine compared to the rest 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AXP is destroying value.
Compared to 1 year ago, AXP has less shares outstanding
AXP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AXP has a worse debt to assets ratio.
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.
AXP has a Altman-Z score of 0.87. This is comparable to the rest of the industry: AXP outperforms 56.36% of its industry peers.
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.
AXP has a Debt to FCF ratio (11.04) which is in line with its industry peers.
A Debt/Equity ratio of 6.45 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 6.45, AXP is doing worse than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.45 | ||
| Debt/FCF | 11.04 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.42
WACC9.03%
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's Current ratio of 0.68 is in line compared to the rest of the industry. AXP outperforms 41.82% 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.
With a Quick ratio value of 0.68, AXP perfoms like the industry average, outperforming 41.82% 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.
The Earnings Per Share has been growing by 10.27% on average over the past years. This is quite good.
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
Based on estimates for the next years, AXP will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.40% on average per year.
The Revenue is expected to grow by 7.38% on average over the next years.
EPS Next Y17.08%
EPS Next 2Y14.97%
EPS Next 3Y14.7%
EPS Next 5Y10.4%
Revenue Next Year9.33%
Revenue Next 2Y9.09%
Revenue Next 3Y8.86%
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.
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
AXP is valuated quite expensively with a Price/Earnings ratio of 25.21.
Compared to the rest of the industry, the Price/Earnings ratio of AXP indicates a slightly more expensive valuation: AXP is more expensive than 72.73% of the companies listed in the same industry.
AXP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.28 indicates a rather expensive valuation of AXP.
Based on the Price/Forward Earnings ratio, AXP is valued a bit more expensive than 69.09% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AXP to the average of the S&P500 Index (23.80), we can say AXP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 21.28 |
4.2 Price Multiples
AXP's Enterprise Value to EBITDA is on the same level as the industry average.
AXP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.66 | ||
| EV/EBITDA | 16.84 |
4.3 Compensation for Growth
The 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 14.70% in the coming years.
PEG (NY)1.48
PEG (5Y)2.46
EPS Next 2Y14.97%
EPS Next 3Y14.7%
5. Dividend
5.1 Amount
AXP has a yearly dividend return of 0.88%, which is pretty low.
AXP's Dividend Yield is comparable with the industry average which is at 5.09.
With a Dividend Yield of 0.88, AXP pays less dividend than the S&P500 average, which is at 2.31.
| 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 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
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 2Y14.97%
EPS Next 3Y14.7%
375.57
+11.66 (+3.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.15%
Inst Owner Change-0.87%
Ins Owners0.07%
Ins Owner Change-1.08%
Market Cap258.71B
Revenue(TTM)75.91B
Net Income(TTM)10.41B
Analysts68.89
Price Target357.54 (-4.8%)
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)0.64%
PT rev (3m)10.3%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.96%
EPS NY rev (1m)0.16%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 21.28 | ||
| P/S | 3.41 | ||
| P/FCF | 13.66 | ||
| P/OCF | 12.24 | ||
| P/B | 7.98 | ||
| P/tB | 7.98 | ||
| EV/EBITDA | 16.84 |
EPS(TTM)14.9
EY3.97%
EPS(NY)17.65
Fwd EY4.7%
FCF(TTM)27.5
FCFY7.32%
OCF(TTM)30.69
OCFY8.17%
SpS110.19
BVpS47.06
TBVpS47.06
PEG (NY)1.48
PEG (5Y)2.46
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
WACC9.03%
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 Y17.08%
EPS Next 2Y14.97%
EPS Next 3Y14.7%
EPS Next 5Y10.4%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y17.95%
Revenue growth 5Y8.79%
Sales Q2Q%10.76%
Revenue Next Year9.33%
Revenue Next 2Y9.09%
Revenue Next 3Y8.86%
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 25.21 and the Price/Book (PB) ratio is 7.98.
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 17.08% in the next year.