AMERICAN EXPRESS CO (AXP)
US0258161092 - Common Stock
We assign a fundamental rating of 4 out of 10 to AXP. AXP was compared to 52 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
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
The Return On Assets of AXP (3.60%) is better than 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 32.85%, AXP belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
The Return On Invested Capital of AXP (3.74%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for AXP is below the industry average of 7.32%.
| 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
Looking at the Profit Margin, with a value of 13.89%, AXP is in the better half of the industry, outperforming 67.31% of the companies in the same industry.
AXP's Profit Margin has declined in the last couple of years.
AXP has a Operating Margin of 17.38%. This is in the better half of the industry: AXP outperforms 67.31% of its industry peers.
AXP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 62.61%, AXP is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
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.
AXP has less shares outstanding than it did 1 year ago.
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 0.84. 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 0.84. This is comparable to the rest of the industry: AXP outperforms 57.69% of its industry peers.
The Debt to FCF ratio of AXP is 14.43, which is on the high side as it means it would take AXP, 14.43 years of fcf income to pay off all of its debts.
AXP has a Debt to FCF ratio of 14.43. This is comparable to the rest of the industry: AXP outperforms 42.31% 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 78.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.41 | ||
| Debt/FCF | 14.43 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.51
WACC7.31%
2.3 Liquidity
A Current Ratio of 0.71 indicates that AXP may have some problems paying its short term obligations.
AXP has a Current ratio (0.71) which is in line with its industry peers.
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 impressive 21.29% 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 8.90% on average per year.
The Revenue has grown by 11.25% in the past year. This is quite good.
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 Y20.57%
EPS Next 2Y16.83%
EPS Next 3Y15.86%
EPS Next 5Y10.37%
Revenue Next Year8.54%
Revenue Next 2Y8.27%
Revenue Next 3Y8.23%
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.
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
With a Price/Earnings ratio of 23.10, AXP is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of AXP indicates a slightly more expensive valuation: AXP is more expensive than 65.38% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. AXP is around the same levels.
A Price/Forward Earnings ratio of 19.52 indicates a rather expensive valuation of AXP.
65.38% of the companies in the same industry are cheaper than AXP, based on the Price/Forward Earnings ratio.
AXP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.1 | ||
| Fwd PE | 19.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AXP is valued a bit cheaper than 65.38% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AXP indicates a slightly more expensive valuation: AXP is more expensive than 63.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.94 | ||
| EV/EBITDA | 15.32 |
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's earnings are expected to grow with 15.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.12
PEG (5Y)2.6
EPS Next 2Y16.83%
EPS Next 3Y15.86%
5. Dividend
5.1 Amount
AXP has a yearly dividend return of 0.96%, which is pretty low.
Compared to an average industry Dividend Yield of 4.38, AXP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, AXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
On average, the dividend of AXP grows each year by 9.36%, which is quite nice.
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)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 2Y16.83%
EPS Next 3Y15.86%
AMERICAN EXPRESS CO
NYSE:AXP (12/20/2024, 8:04:00 PM)
After market: 298.65 0 (0%)298.65
+5.57 (+1.9%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners65.26%
Inst Owner Change-2.32%
Ins Owners0.1%
Ins Owner Change0.96%
Market Cap210.38B
Analysts68.24
Price Target287.81 (-3.63%)
Short Float %1.56%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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)4.24%
PT rev (3m)11.03%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-3.05%
EPS NY rev (1m)0.32%
EPS NY rev (3m)2.02%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.1 | ||
| Fwd PE | 19.52 | ||
| P/S | 2.99 | ||
| P/FCF | 15.94 | ||
| P/OCF | 13.99 | ||
| P/B | 7.08 | ||
| P/tB | 7.08 | ||
| EV/EBITDA | 15.32 |
EPS(TTM)12.93
EY4.33%
EPS(NY)15.3
Fwd EY5.12%
FCF(TTM)18.74
FCFY6.27%
OCF(TTM)21.35
OCFY7.15%
SpS99.73
BVpS42.17
TBVpS42.17
PEG (NY)1.12
PEG (5Y)2.6
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 | 0.84 |
F-Score6
WACC7.31%
ROIC/WACC0.51
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 Y20.57%
EPS Next 2Y16.83%
EPS Next 3Y15.86%
EPS Next 5Y10.37%
Revenue 1Y (TTM)11.25%
Revenue growth 3Y20.86%
Revenue growth 5Y9.45%
Sales Q2Q%8.16%
Revenue Next Year8.54%
Revenue Next 2Y8.27%
Revenue Next 3Y8.23%
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%