Loading...

American Express

LSE:0R3C
Snowflake Description

Average dividend payer with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
0R3C
LSE
$94B
Market Cap
  1. Home
  2. GB
  3. Diversified Financials
Company description

American Express Company, together with its subsidiaries, provides charge and credit payment card products, and travel-related services to consumers and businesses worldwide. The last earnings update was 5 days ago. More info.


Add to Portfolio Compare Print
0R3C Share Price and Events
7 Day Returns
2.5%
LSE:0R3C
0.8%
GB Consumer Finance
0.5%
GB Market
1 Year Returns
12.1%
LSE:0R3C
-24.1%
GB Consumer Finance
0.8%
GB Market
0R3C Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
American Express (0R3C) 2.5% 0.6% 13% 12.1% - -
GB Consumer Finance 0.8% 7.2% -1.8% -24.1% -69.5% -61.6%
GB Market 0.5% 3.6% 7.6% 0.8% 15.9% 6.2%
1 Year Return vs Industry and Market
  • 0R3C outperformed the Consumer Finance industry which returned -24.1% over the past year.
  • 0R3C outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 0.8% over the past year.
Price Volatility
0R3C
Industry
5yr Volatility vs Market
Related Companies

0R3C Value

 Is American Express undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of American Express to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for American Express.

LSE:0R3C Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 15 analysts.
= Stable Book Value * Return on Equity
= $30.58 * 31%
$9.47
Book Value of Equity per Share Weighted future Book Value estimates from 12 analysts. $30.58
Discount Rate (Cost of Equity) See below 7.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:0R3C
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.692 (1 + (1- 21%) (63.82%))
1.028
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.028 * 5.96%)
7.35%

Discounted Cash Flow Calculation for LSE:0R3C using Excess Returns Model Model

The calculations below outline how an intrinsic value for American Express is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:0R3C Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (31% – 7.35%) * $30.58)
$7.22
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $7.22 / (7.35% - 1.23%)
$117.82
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $30.58 + $117.82
$148.4
LSE:0R3C Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in LSE:0R3C represents 1.00427x of NYSE:AXP
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00427x
Value per Share
(Listing Adjusted, USD)
= Value per Share (USD) x Listing Adjustment Factor
= $ 148.40 x 1.00427
$149.03
Value per share (USD) From above. $149.03
Current discount Discount to share price of $112.81
= -1 x ($112.81 - $149.03) / $149.03
24.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price American Express is available for.
Intrinsic value
24%
Share price is $112.81 vs Future cash flow value of $149.03
Current Discount Checks
For American Express to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • American Express's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • American Express's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for American Express's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are American Express's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:0R3C PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $7.87
NYSE:AXP Share Price ** NYSE (2019-04-23) in USD $112.33
United Kingdom of Great Britain and Northern Ireland Consumer Finance Industry PE Ratio Median Figure of 12 Publicly-Listed Consumer Finance Companies 12.42x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of American Express.

LSE:0R3C PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:AXP Share Price ÷ EPS (both in USD)

= 112.33 ÷ 7.87

14.27x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • American Express is overvalued based on earnings compared to the GB Consumer Finance industry average.
  • American Express is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does American Express's expected growth come at a high price?
Raw Data
LSE:0R3C PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.27x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts
7.1%per year
United Kingdom of Great Britain and Northern Ireland Consumer Finance Industry PEG Ratio Median Figure of 7 Publicly-Listed Consumer Finance Companies 0.66x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:0R3C PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.27x ÷ 7.1%

2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • American Express is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on American Express's assets?
Raw Data
LSE:0R3C PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $26.28
NYSE:AXP Share Price * NYSE (2019-04-23) in USD $112.33
United Kingdom of Great Britain and Northern Ireland Consumer Finance Industry PB Ratio Median Figure of 14 Publicly-Listed Consumer Finance Companies 1.71x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.51x
LSE:0R3C PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:AXP Share Price ÷ Book Value per Share (both in USD)

= 112.33 ÷ 26.28

4.27x

* Primary Listing of American Express.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • American Express is overvalued based on assets compared to the GB Consumer Finance industry average.
X
Value checks
We assess American Express's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. American Express has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

0R3C Future Performance

 How is American Express expected to perform in the next 1 to 3 years based on estimates from 24 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is American Express expected to grow at an attractive rate?
  • American Express's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • American Express's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • American Express's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:0R3C Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:0R3C Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts 7.1%
LSE:0R3C Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 24 Analysts 7.8%
United Kingdom of Great Britain and Northern Ireland Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 23.8%
United Kingdom of Great Britain and Northern Ireland Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 13.2%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:0R3C Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 weeks ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:0R3C Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 50,193 7,633 6
2020-12-31 46,890 11,826 7,266 24
2019-12-31 43,569 14,235 6,624 24
LSE:0R3C Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 37,598 6,705
2018-12-31 36,986 8,930 6,787
2018-09-30 32,723 15,141 3,585
2018-06-30 31,880 14,352 3,291
2018-03-31 31,298 14,443 3,014
2017-12-31 33,872 13,540 2,646
2017-09-30 32,409 11,921 4,661
2017-06-30 31,162 9,375 4,446
2017-03-31 30,397 6,922 5,111
2016-12-31 33,227 8,291 5,252
2016-09-30 30,448 7,738 5,358
2016-06-30 30,825 9,576 5,480

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • American Express's earnings are expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).
  • American Express's revenue is expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:0R3C Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 weeks ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below

All data from American Express Company Filings, last reported 3 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0R3C Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 9.97 10.25 9.70 6.00
2020-12-31 9.03 9.67 8.60 21.00
2019-12-31 7.99 8.25 7.64 21.00
LSE:0R3C Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 7.87
2018-12-31 7.93
2018-09-30 4.17
2018-06-30 3.80
2018-03-31 3.45
2017-12-31 3.00
2017-09-30 5.21
2017-06-30 4.91
2017-03-31 5.57
2016-12-31 5.63
2016-09-30 5.65
2016-06-30 5.67

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • American Express is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess American Express's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
American Express has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

0R3C Past Performance

  How has American Express performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare American Express's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • American Express's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • American Express's 1-year earnings growth exceeds its 5-year average (122.5% vs -5.2%)
  • American Express's earnings growth has exceeded the GB Consumer Finance industry average in the past year (122.5% vs 19.9%).
Earnings and Revenue History
American Express's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from American Express Company Filings, last reported 3 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0R3C Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 37,598.00 6,705.00 12,234.00
2018-12-31 36,986.00 6,787.00 11,885.00
2018-09-30 32,723.00 3,585.00 9,189.00
2018-06-30 31,880.00 3,291.00 8,908.00
2018-03-31 31,298.00 3,014.00 8,714.00
2017-12-31 33,872.00 2,646.00 11,089.00
2017-09-30 32,409.00 4,661.00 10,285.00
2017-06-30 31,162.00 4,446.00 9,767.00
2017-03-31 30,397.00 5,111.00 9,257.00
2016-12-31 33,227.00 5,252.00 11,267.00
2016-09-30 30,448.00 5,358.00 8,818.00
2016-06-30 30,825.00 5,480.00 8,684.00
2016-03-31 30,859.00 4,943.00 8,456.00
2015-12-31 30,747.00 5,063.00 8,305.00
2015-09-30 31,358.00 5,626.00 8,332.00
2015-06-30 31,518.00 5,858.00 8,346.00
2015-03-31 31,849.00 5,933.00 8,952.00
2014-12-31 32,001.00 5,839.00 9,165.00
2014-09-30 31,728.00 5,700.00 9,403.00
2014-06-30 31,787.00 5,588.00 9,701.00
2014-03-31 31,365.00 5,463.00 9,413.00
2013-12-31 30,668.00 5,312.00 9,418.00
2013-09-30 30,568.00 4,645.00 9,494.00
2013-06-30 30,074.00 4,527.00 9,403.00
2013-03-31 29,855.00 4,460.00 9,383.00
2012-12-31 29,843.00 4,433.00 9,426.00
2012-09-30 29,395.00 4,981.00 9,311.00
2012-06-30 29,334.00 4,966.00 7,978.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst American Express has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • American Express used its assets less efficiently than the GB Consumer Finance industry average last year based on Return on Assets.
  • Unable to establish if American Express improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess American Express's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
American Express has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

0R3C Health

 How is American Express's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up American Express's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • American Express is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • American Express's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of American Express's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from American Express Company Filings, last reported 3 weeks ago.

LSE:0R3C Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 22,000.00 60,000.00 33,000.00
2018-12-31 22,290.00 62,551.00 27,841.00
2018-09-30 21,460.00 57,692.00 30,414.00
2018-06-30 20,892.00 57,898.00 30,123.00
2018-03-31 19,613.00 54,513.00 31,158.00
2017-12-31 18,261.00 61,919.00 33,051.00
2017-09-30 21,085.00 51,341.00 26,294.00
2017-06-30 21,175.00 55,732.00 30,560.00
2017-03-31 20,935.00 55,565.00 29,472.00
2016-12-31 20,501.00 54,826.00 25,763.00
2016-09-30 21,017.00 47,897.00 26,885.00
2016-06-30 20,712.00 53,212.00 34,380.00
2016-03-31 20,727.00 50,243.00 25,225.00
2015-12-31 20,673.00 53,282.00 23,044.00
2015-09-30 21,335.00 51,901.00 20,423.00
2015-06-30 21,885.00 57,381.00 21,322.00
2015-03-31 21,830.00 57,163.00 24,098.00
2014-12-31 20,673.00 62,082.00 22,999.00
2014-09-30 20,216.00 59,187.00 21,835.00
2014-06-30 20,213.00 58,446.00 18,607.00
2014-03-31 19,977.00 57,097.00 20,991.00
2013-12-31 19,496.00 60,793.00 19,815.00
2013-09-30 19,216.00 56,010.00 22,541.00
2013-06-30 19,034.00 55,636.00 23,716.00
2013-03-31 19,290.00 59,725.00 28,367.00
2012-12-31 18,886.00 62,819.00 22,843.00
2012-09-30 19,478.00 60,298.00 25,533.00
2012-06-30 19,267.00 59,506.00 22,785.00
  • American Express's level of debt (272.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (285.9% vs 272.7% today).
  • Debt is not well covered by operating cash flow (14.9%, less than 20% of total debt).
  • Unable to confirm if the interest payments on American Express's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess American Express's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. American Express has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

0R3C Dividends

 What is American Express's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.39%
Current annual income from American Express dividends. Estimated to be 1.5% next year.
If you bought $2,000 of American Express shares you are expected to receive $28 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • American Express's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
  • American Express's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:0R3C Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 3%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:0R3C Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.86 4.00
2020-12-31 1.72 18.00
2019-12-31 1.61 17.00
LSE:0R3C Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-11 1.560 1.406
2018-11-27 1.560 1.515
2018-10-23 1.560 1.475
2018-10-18 1.560 1.491
2018-05-08 1.400 1.364
2018-03-13 1.400 1.469
2017-11-28 1.400 1.430
2017-09-26 1.400 1.504
2017-05-01 1.280 1.543
2017-03-27 1.280 1.635
2017-02-17 1.280 1.613
2017-01-19 1.280 1.648
2016-09-27 1.280 1.838
2016-05-03 1.160 1.815
2016-03-28 1.160 1.853
2015-12-01 1.160 1.912
2015-09-28 1.160 1.565
2015-05-12 1.160 1.486
2015-03-23 1.040 1.322
2015-03-11 1.040 1.278
2014-07-22 1.040 1.189
2014-05-13 1.040 1.119
2014-04-29 1.040 1.183
2014-04-16 1.040 1.194
2014-03-24 0.920 1.039
2013-11-19 0.920 1.046
2013-09-23 0.920 1.169
2013-04-30 0.920 1.236
2013-04-29 0.920 1.353
2013-04-17 0.920 1.377
2013-03-25 0.800 1.213
2013-02-22 0.800 1.243
2013-01-17 0.800 1.319
2012-09-24 0.800 1.400
2012-05-01 0.800 1.397
2012-03-26 0.800 1.375
2011-11-22 0.720 1.428
2011-09-21 0.720 1.513
2011-08-03 0.720 1.525
2011-07-20 0.720 1.418
2011-03-28 0.720 1.468
2010-11-22 0.720 1.621
2010-09-27 0.720 1.757
2010-08-05 0.720 1.737
2010-07-22 0.720 1.621
2010-03-22 0.720 1.710
2010-02-26 0.720 1.809
2010-01-21 0.720 1.876
2009-10-30 0.720 1.781
2009-10-22 0.720 2.035
2009-05-18 0.720 2.497
2009-05-01 0.720 2.791
2009-04-24 0.720 2.917

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of American Express's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.3x coverage).
X
Income/ dividend checks
We assess American Express's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can American Express afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. American Express has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

0R3C Management

 What is the CEO of American Express's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Squeri
COMPENSATION $17,476,805
AGE 58
TENURE AS CEO 1.2 years
CEO Bio

Mr. Stephen Joseph Squeri, also known as Steve, has been Chairman and Chief Executive Officer at American Express Co. since February 2018. Mr. Squeri was Vice Chairman of American Express Company since July 2015. Mr. Squeri served as Group President of Global Corporate Services at American Express Company from November 2011 to July 2015. He served as the Group President of Global Services at American Express Company from October 2009 to November 2011 and served as its Chief Information Officer and Executive Vice President from May 2005 to October 2009. He served as an Executive Vice President of Corporate Development/Head of Corporate Development of American Express Company from July 2008 to September 2010 and oversaw mergers and acquisitions. He joined American Express as a manager in Travelers Cheque Group (TCG) in 1985 and held senior roles at TCG, orldwide Marketing and Establishment Services (ES). He served as President of the Global Commercial Card group from January 2002 to 2005, where he led the global division that markets American Express Corporate Card and American Express Corporate Purchasing Card to mid-sized and large companies. From 2000 to 2002, he served as the President of Establishment Services Canada and the United States where he oversaw American Express’ efforts to grow merchants’ businesses through innovative marketing and e-commerce programs and managed merchant acquisition efforts. From 1982 to 1985, he was a management consultant at Arthur Andersen and Company. He served as a Director of Madewell Inc. until 2018. He has been an Independent Director of The Guardian Life Insurance Company of America since 2009. He serves as a Member of the Board of Trustees of New York Downtown and Harlem Children's Zone. He serves as a Member of the Board of Governors Monsignor McClancy Memorial High School. He served as a Director of J. Crew Group, Inc. from September 2010 to March 2011 and again since June 2012 until February 2, 2018. Mr. Squeri holds an M.B.A. degree and a B.S. degree from Manhattan College.

CEO Compensation
  • Steve's compensation has been consistent with company performance over the past year.
  • Steve's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the American Express management team in years:

1.2
Average Tenure
56
Average Age
  • The average tenure for the American Express management team is less than 2 years, this suggests a new team.
Management Team

Steve Squeri

TITLE
Chairman & CEO
COMPENSATION
$17M
AGE
58
TENURE
1.2 yrs

Jeff Campbell

TITLE
Chief Financial Officer
COMPENSATION
$12M
AGE
57
TENURE
5.7 yrs

Anré Williams

TITLE
Group President of Global Merchant & Network Services
COMPENSATION
$9M
AGE
52
TENURE
1.2 yrs

Doug Buckminster

TITLE
Group President of Global Consumer Services
COMPENSATION
$10M
AGE
57
TENURE
3.5 yrs

Anna Marrs

TITLE
President of Global Commercial Services
COMPENSATION
$9M
AGE
44
TENURE
0.6 yrs

Rick Petrino

TITLE
Executive VP
AGE
50
TENURE
1.1 yrs

Marc Gordon

TITLE
Chief Information Officer
AGE
57
TENURE
6.6 yrs

Edmund Reese

TITLE
Head of Investor Relations
TENURE
1 yrs

Denise Pickett

TITLE
President of Global Risk
AGE
52
TENURE
1.2 yrs

Laureen Seeger

TITLE
Chief Legal Officer
COMPENSATION
$9M
AGE
56
TENURE
4.8 yrs
Board of Directors Tenure

Average tenure and age of the American Express board of directors in years:

6.8
Average Tenure
67
Average Age
  • The tenure for the American Express board of directors is about average.
Board of Directors

Steve Squeri

TITLE
Chairman & CEO
COMPENSATION
$17M
AGE
58
TENURE
1.2 yrs

Charlene Barshefsky

TITLE
Director
COMPENSATION
$420K
AGE
67
TENURE
18.3 yrs

Peter Chernin

TITLE
Director
COMPENSATION
$380K
AGE
67
TENURE
13.3 yrs

Ron Williams

TITLE
Lead Independent Director
COMPENSATION
$502K
AGE
69
TENURE
1.1 yrs

Dan Vasella

TITLE
Director
COMPENSATION
$385K
AGE
65
TENURE
6.8 yrs

Mike Leavitt

TITLE
Director
COMPENSATION
$353K
AGE
67
TENURE
3.9 yrs

Jack Brennan

TITLE
Independent Director
COMPENSATION
$357K
AGE
63
TENURE
2.3 yrs

Vernon Jordan

TITLE
Advisor to the Board
COMPENSATION
$157K
AGE
82

Rick Levin

TITLE
Director
COMPENSATION
$367K
AGE
70
TENURE
12.3 yrs

Ted Leonsis

TITLE
Independent Director
COMPENSATION
$342K
AGE
62
TENURE
8.8 yrs
Who owns this company?
Recent Insider Trading
  • American Express insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
19. Feb 19 Sell Richard Petrino Individual 14. Feb 19 14. Feb 19 -2,444 $107.11 $-261,777
01. Jun 18 Sell Douglas Buckminster Individual 30. May 18 30. May 18 -3,804 $99.03 $-376,710
24. May 18 Sell Richard Petrino Individual 22. May 18 22. May 18 -1,754 $102.90 $-180,487
X
Management checks
We assess American Express's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. American Express has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

0R3C News

Simply Wall St News

0R3C Company Info

Description

American Express Company, together with its subsidiaries, provides charge and credit payment card products, and travel-related services to consumers and businesses worldwide. It operates through three segments: Global Consumer Services Group, Global Commercial Services, and Global Merchant and Network Services. The company’s products and services include charge and credit card products, as well as other payment and financing products; network services; expense management products and services; travel-related services; and prepaid products. Its products and services also comprise merchant acquisition and processing, servicing and settlement, point-of-sale marketing, and information products and services for merchants; and fraud prevention services, as well as the design and operation of customer loyalty programs. The company sells its products and services to consumers, small businesses, mid-sized companies, and large corporations through online and mobile applications, third-party vendors and business partners, direct mail, telephone, in-house teams, and direct response advertising. American Express Company was founded in 1850 and is headquartered in New York, New York.

Details
Name: American Express Company
0R3C
Exchange: LSE
Founded: 1850
$94,020,210,000
837,000,000
Website: http://www.americanexpress.com
Address: American Express Company
200 Vesey Street,
Lower Manhattan,
New York,
New York, 10285,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE AXP Common Shares New York Stock Exchange US USD 02. Jan 1969
DB AEC1 Common Shares Deutsche Boerse AG DE EUR 02. Jan 1969
XTRA AEC1 Common Shares XETRA Trading Platform DE EUR 02. Jan 1969
LSE 0R3C Common Shares London Stock Exchange GB USD 02. Jan 1969
SWX AXP Common Shares SIX Swiss Exchange CH CHF 02. Jan 1969
WBAG AXP Common Shares Wiener Boerse AG AT EUR 02. Jan 1969
SNSE AXP Common Shares Santiago Stock Exchange CL USD 02. Jan 1969
BMV AXP * Common Shares Bolsa Mexicana de Valores MX MXN 02. Jan 1969
BOVESPA AXPB34 BDR EA REPR 1 COM SHS Bolsa de Valores de Sao Paulo BR BRL 29. Dec 2011
BASE AXP CEDEAR EACH REP 1/10 ORD USD0.20 Buenos Aires Stock Exchange AR ARS 16. Oct 2003
DB AEC3 4.9%-FRN SUB PERP USD Deutsche Boerse AG DE USD 27. Feb 2015
Number of employees
Current staff
Staff numbers
59,000
American Express employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 20:50
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/23
Last earnings filing: 2019/04/18
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.