AMERICAN EXPRESS CO (AXP)
US0258161092 - Common Stock
Taking everything into account, AXP scores 4 out of 10 in our fundamental rating. AXP was compared to 51 industry peers in the Consumer Finance industry. AXP has a medium profitability rating, but doesn't score so well on its financial health evaluation. AXP is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AXP was profitable.
AXP had a positive operating cash flow in the past year.
AXP had positive earnings in each of the past 5 years.
In the past 5 years AXP always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.60%, AXP is doing good in the industry, outperforming 76.47% of the companies in the same industry.
With an excellent Return On Equity value of 32.85%, AXP belongs to the best of the industry, outperforming 96.08% 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 7.49%.
| 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 68.63% of the companies in the same industry.
AXP's Profit Margin has declined in the last couple of years.
AXP's Operating Margin of 17.38% is fine compared to the rest of the industry. AXP outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of AXP has declined.
AXP has a Gross Margin of 62.61%. This is in the better half of the industry: AXP outperforms 64.71% of its industry peers.
In the last couple of years the Gross Margin of AXP has declined.
| 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
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.
The number of shares outstanding for AXP has been reduced compared to 5 years ago.
Compared to 1 year ago, AXP has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.83, we must say that AXP is in the distress zone and has some risk of bankruptcy.
AXP's Altman-Z score of 0.83 is in line compared to the rest of the industry. AXP outperforms 58.82% 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.
Looking at the Debt to FCF ratio, with a value of 14.43, AXP is in line with its industry, outperforming 41.18% of the companies in the same industry.
A Debt/Equity ratio of 6.41 is on the high side and indicates that AXP has dependencies on debt financing.
AXP's Debt to Equity ratio of 6.41 is on the low side compared to the rest of the industry. AXP is outperformed by 80.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.41 | ||
| Debt/FCF | 14.43 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.55
WACC6.82%
2.3 Liquidity
A Current Ratio of 0.71 indicates that AXP may have some problems paying its short term obligations.
AXP's Current ratio of 0.71 is in line compared to the rest of the industry. AXP outperforms 43.14% of its industry peers.
A Quick Ratio of 0.71 indicates that AXP may have some problems paying its short term obligations.
With a Quick ratio value of 0.71, AXP perfoms like the industry average, outperforming 43.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
AXP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.29%, which is quite impressive.
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 small growth in Earnings Per Share. The EPS will grow by 7.95% on average per year.
Based on estimates for the next years, AXP will show a small growth in Revenue. The Revenue will grow by 7.63% on average per year.
EPS Next Y20.19%
EPS Next 2Y16.71%
EPS Next 3Y15.73%
EPS Next 5Y7.95%
Revenue Next Year8.54%
Revenue Next 2Y8.26%
Revenue Next 3Y8.2%
Revenue Next 5Y7.63%
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.
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
With a Price/Earnings ratio of 22.14, AXP is valued on the expensive side.
Based on the Price/Earnings ratio, AXP is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 28.53, AXP is valued a bit cheaper.
With a Price/Forward Earnings ratio of 18.74, AXP is valued on the expensive side.
Based on the Price/Forward Earnings ratio, AXP is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
AXP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.14 | ||
| Fwd PE | 18.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AXP is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
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 | 15.28 | ||
| EV/EBITDA | 15 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as AXP's earnings are expected to grow with 15.72% in the coming years.
PEG (NY)1.1
PEG (5Y)2.49
EPS Next 2Y16.71%
EPS Next 3Y15.73%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, AXP is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.08, AXP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.22, AXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.36%
Div Incr Years2
Div Non Decr Years19
5.3 Sustainability
19.91% of the earnings are spent on dividend by AXP. This is a low number and sustainable payout ratio.
The dividend of AXP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.91%
EPS Next 2Y16.71%
EPS Next 3Y15.73%
AMERICAN EXPRESS CO
NYSE:AXP (11/18/2024, 11:32:08 AM)
286.215
-0.66 (-0.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap201.62B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (3m)
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Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.14 | ||
| Fwd PE | 18.74 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.1
PEG (5Y)2.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.6% | ||
| ROE | 32.85% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.38% | ||
| PM (TTM) | 13.89% | ||
| GM | 62.61% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.41 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)21.29%
EPS 3Y43.93%
EPS 5Y
EPS Q2Q%
EPS Next Y20.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.25%
Revenue growth 3Y20.86%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y