AMERICAN EXPRESS CO (AXP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AXP - US0258161092 - Common Stock
361.56 USD
+5.63 (+1.58%)
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. 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.
In the past year AXP had a positive cash flow from operations.
Each year in the past 5 years AXP has been profitable.
AXP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AXP's Return On Assets of 3.50% is fine compared to the rest of the industry. AXP outperforms 65.45% of its industry peers.
AXP has a Return On Equity of 32.12%. This is amongst the best in the industry. AXP outperforms 92.73% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for AXP 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
The Profit Margin of AXP (13.72%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of AXP has remained more or less at the same level.
AXP's Operating Margin of 17.76% is fine compared to the rest of the industry. AXP outperforms 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.
AXP has a Gross Margin of 61.93%. This is comparable to the rest of the industry: AXP outperforms 60.00% of its industry peers.
AXP's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for AXP has been reduced compared to 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 0.86. This is a bad value and indicates that AXP is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AXP (0.86) is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 11.04, AXP is in line with its industry, outperforming 58.18% of the companies in the same industry.
AXP has a Debt/Equity ratio of 6.45. This is a high value indicating a heavy dependency on external 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 | 0.86 |
ROIC/WACC0.4
WACC9.47%
2.3 Liquidity
A Current Ratio of 0.68 indicates that AXP may have some problems paying 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.
AXP has a worse Quick ratio (0.68) than 60.00% of its industry peers.
| 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.
AXP shows a small growth in Revenue. In the last year, the Revenue has grown by 4.37%.
Measured over the past years, AXP shows a quite strong growth in Revenue. The Revenue has been growing by 8.79% on average per year.
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.
The Revenue is expected to grow by 7.38% on average over the next years.
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
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
Based on the Price/Earnings ratio of 24.27, the valuation of AXP can be described as rather expensive.
Based on the Price/Earnings ratio, AXP is valued a bit more expensive than 70.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of AXP to the average of the S&P500 Index (25.65), we can say AXP is valued inline with the index average.
With a Price/Forward Earnings ratio of 20.55, AXP is valued on the expensive side.
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 67.27% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, AXP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.27 | ||
| Fwd PE | 20.55 |
4.2 Price Multiples
AXP's Enterprise Value to EBITDA is on the same level as 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 | 13.15 | ||
| EV/EBITDA | 16.48 |
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 14.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.44
PEG (5Y)2.36
EPS Next 2Y14.8%
EPS Next 3Y14.62%
5. Dividend
5.1 Amount
AXP has a yearly dividend return of 0.95%, which is pretty low.
AXP's Dividend Yield is comparable with the industry average which is at 5.23.
Compared to an average S&P500 Dividend Yield of 2.41, AXP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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 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
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 2Y14.8%
EPS Next 3Y14.62%
NYSE:AXP (11/25/2025, 2:43:07 PM)
361.56
+5.63 (+1.58%)
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 Cap249.06B
Revenue(TTM)75.91B
Net Income(TTM)10.41B
Analysts68.89
Price Target357.54 (-1.11%)
Short Float %1.89%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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)-1.11%
EPS NQ rev (3m)-0.91%
EPS NY rev (1m)0.27%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.27 | ||
| Fwd PE | 20.55 | ||
| P/S | 3.28 | ||
| P/FCF | 13.15 | ||
| P/OCF | 11.78 | ||
| P/B | 7.68 | ||
| P/tB | 7.68 | ||
| EV/EBITDA | 16.48 |
EPS(TTM)14.9
EY4.12%
EPS(NY)17.59
Fwd EY4.87%
FCF(TTM)27.5
FCFY7.6%
OCF(TTM)30.69
OCFY8.49%
SpS110.19
BVpS47.06
TBVpS47.06
PEG (NY)1.44
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 | 0.86 |
F-Score6
WACC9.47%
ROIC/WACC0.4
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 24.27 and the Price/Book (PB) ratio is 7.68.
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.