American Express
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 27 days ago. More info.
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AXP Share Price and Events
7 Day Returns
1 Year Returns
AXP Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| American Express (AXP) | 2.7% | 4.8% | 11.8% | 16.7% | 87.2% | 34.1% |
| US Consumer Finance | -0.6% | 2.1% | 7.7% | 1.9% | 56.8% | 30.2% |
| US Market | -0.7% | -2% | 2.4% | 3% | 39.2% | 42% |
1 Year Return vs Industry and Market
- AXP outperformed the Consumer Finance industry which returned 1.9% over the past year.
- AXP outperformed the Market in United States of America which returned 3% over the past year.
Value
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for American Express.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | Excess Returns Model | |
| Stable EPS |
Weighted future Return on Equity estimates from 16 analysts.
= Stable Book Value * Return on Equity = $30.63 * 30.7% |
$9.41 |
| Book Value of Equity per Share | Weighted future Book Value estimates from 13 analysts. | $30.63 |
| Discount Rate (Cost of Equity) | See below | 9% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Consumer Finance Unlevered Beta | Simply Wall St/ S&P Global | 0.72 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.719 (1 + (1- 21%) (61.72%)) |
1.046 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.05 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.046 * 5.96%) |
8.97% |
Discounted Cash Flow Calculation for NYSE:AXP 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.
| Calculation | Result | |
|---|---|---|
| Excess Returns |
= (Stable Return on equity – Cost of equity) (Book Value of
Equity per share)
= (30.7% – 8.97%) * $30.63) |
$6.67 |
| Terminal Value of Excess Returns |
= Excess Returns / (Cost of Equity -
Expected Growth Rate)
= $6.67 / (8.97% - 2.73%) |
$106.88 |
| Value of Equity |
= Book Value per share + Terminal Value of
Excess Returns
= $30.63 + $106.88 |
$137.52 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $137.52 |
| Current discount | Discount to share price of
$119.07
= -1 x ($119.07 - $137.52) / $137.52 |
13.4% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- American Express's share price is below the future cash flow value, but not 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?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $7.87 |
| NYSE:AXP Share Price ** | NYSE (2019-05-17) in USD | $119.07 |
| United States of America Consumer Finance Industry PE Ratio | Median Figure of 29 Publicly-Listed Consumer Finance Companies | 8.77x |
| United States of America Market PE Ratio | Median Figure of 3,088 Publicly-Listed Companies | 17.89x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of American Express.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:AXP Share Price ÷ EPS (both in USD) = 119.07 ÷ 7.87 |
15.12x |
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 US Consumer Finance industry average.
- American Express is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
American Express's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 15.12x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts |
6.6%per year |
| United States of America Consumer Finance Industry PEG Ratio | Median Figure of 23 Publicly-Listed Consumer Finance Companies | 0.73x |
| United States of America Market PEG Ratio | Median Figure of 2,117 Publicly-Listed Companies | 1.56x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 15.12x ÷ 6.6% |
2.29x |
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?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $26.54 |
| NYSE:AXP Share Price * | NYSE (2019-05-17) in USD | $119.07 |
| United States of America Consumer Finance Industry PB Ratio | Median Figure of 39 Publicly-Listed Consumer Finance Companies | 1.6x |
| United States of America Market PB Ratio | Median Figure of 5,195 Publicly-Listed Companies | 1.83x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:AXP Share Price ÷ Book Value per Share (both in USD) = 119.07 ÷ 26.54 |
4.49x |
* 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 US Consumer Finance industry average.
Value checks
We assess American Express's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check) American Express has a total score of 1/6, 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.
Future Performance
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!
Earnings growth vs Low Risk Savings
- American Express's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- American Express's earnings growth is positive but not above the United States of America market average.
- American Express's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:AXP Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts | 6.6% |
| NYSE:AXP Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 25 Analysts | 7.9% |
| United States of America Consumer Finance Industry Earnings Growth Rate | Market Cap Weighted Average | 5.4% |
| United States of America Consumer Finance Industry Revenue Growth Rate | Market Cap Weighted Average | 7.8% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.9% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.3% |
*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
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 25 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | ||||
| 2022-12-31 | ||||
| 2021-12-31 | 50,280 | 7,506 | 7 | |
| 2020-12-31 | 46,979 | 10,291 | 7,239 | 25 |
| 2019-12-31 | 43,603 | 17,063 | 6,603 | 25 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 37,598 | 15,414 | 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 | 34,679 | 14,443 | 3,026 |
| 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.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 25 Analyst Estimates (S&P Global) | See Below |
All data from American Express Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | ||||
| 2022-12-31 | ||||
| 2021-12-31 | 9.83 | 10.25 | 9.00 | 7.00 |
| 2020-12-31 | 9.01 | 9.67 | 8.50 | 22.00 |
| 2019-12-31 | 7.96 | 8.25 | 7.64 | 22.00 |
| 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 | 3.47 |
| 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.
Future performance checks
We assess American Express's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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.
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
Past Earnings growth analysis
- 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 (121.6% vs -5.2%)
- American Express's earnings growth has exceeded the US Consumer Finance industry average in the past year (121.6% vs 33.4%).
Earnings and Revenue History
All data from American Express Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 37,598.00 | 6,705.00 | 12,209.00 | |
| 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 | 34,679.00 | 3,026.00 | 11,211.00 | |
| 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 US 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.
Past performance checks
We assess American Express's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
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.
- 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
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 2.9x 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.
All data from American Express Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 22,218.00 | 61,368.00 | 33,281.00 |
| 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 (276.2%) 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 276.2% today).
- Debt is well covered by operating cash flow (25.1%, greater 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.
Financial health checks
We assess American Express's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) American Express has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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.
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
If you bought
$2,000 of
American Express
shares you are expected to receive
$26
in your first year as a dividend.
Dividend Amount
- American Express's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
- American Express's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Upcoming dividend payment
Purchase American Express before the 'Buy Limit' to receive their next dividend payment.
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.
| 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 25 Analyst Estimates (S&P Global) | See Below |
| United States of America Consumer Finance Industry Average Dividend Yield | Market Cap Weighted Average of 14 Stocks | 1.8% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2000 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | ||
| 2022-12-31 | ||
| 2021-12-31 | 1.85 | 5.00 |
| 2020-12-31 | 1.72 | 19.00 |
| 2019-12-31 | 1.61 | 18.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-05-08 | 1.560 | 1.324 |
| 2019-03-11 | 1.560 | 1.385 |
| 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 |
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).
- Dividends after 3 years are expected to be well covered by earnings (5.3x coverage).
Income/ dividend checks
We assess American Express's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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.
Management
CEO
| COMPENSATION | $17,476,805 |
| AGE | 58 |
| TENURE AS CEO | 1.3 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 States of America.
Management Team Tenure
Average tenure and age of the American Express management team in years:
- The average tenure for the American Express management team is less than 2 years, this suggests a new team.
Management Team
Steve Squeri
Chairman & CEO
$17M
58
1.3 yrs
Jeff Campbell
Chief Financial Officer
$12M
57
5.8 yrs
Anré Williams
Group President of Global Merchant & Network Services
$9M
52
1.3 yrs
Doug Buckminster
Group President of Global Consumer Services
$10M
57
3.6 yrs
Anna Marrs
President of Global Commercial Services
$9M
44
0.7 yrs
Rick Petrino
Executive VP
50
1.2 yrs
Marc Gordon
Chief Information Officer
57
6.7 yrs
Edmund Reese
Head of Investor Relations
1.1 yrs
Denise Pickett
President of Global Risk
52
1.3 yrs
Laureen Seeger
Chief Legal Officer
$9M
56
4.8 yrs
Board of Directors Tenure
Average tenure and age of the American Express board of directors in years:
- The tenure for the American Express board of directors is about average.
Board of Directors
Steve Squeri
Chairman & CEO
$17M
58
1.3 yrs
Charlene Barshefsky
Director
$420K
67
18.3 yrs
Peter Chernin
Director
$380K
67
13.3 yrs
Ron Williams
Lead Independent Director
$502K
69
1.2 yrs
Dan Vasella
Director
$385K
65
6.8 yrs
Mike Leavitt
Director
$353K
67
4 yrs
Jack Brennan
Independent Director
$357K
63
2.3 yrs
Vernon Jordan
Advisor to the Board
$157K
82
Ted Leonsis
Independent Director
$342K
62
8.8 yrs
Anne L. Marie Lauvergeon
Director
$338K
59
6.2 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | 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 | ||
Management checks
We assess American Express's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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.
News
Simply Wall St News
What Type Of Shareholder Owns American Express Company's (NYSE:AXP)?
The big shareholder groups in American Express Company (NYSE:AXP) have power over the company. … View our latest analysis for American Express NYSE:AXP Ownership Summary, May 16th 2019 What Does The Institutional Ownership Tell Us About American Express? … Insider Ownership Of American Express While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.
Simply Wall St - – Full articleAmerican Express Company (NYSE:AXP) Is An Attractive Dividend Stock - Here's Why
Today we'll take a closer look at American Express Company (NYSE:AXP) from a dividend investor's perspective. … Unfortunately, one common occurrence with dividend companies is for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. … While American Express's 1.3% dividend yield is not the highest, we think its lengthy payment history is quite interesting.
Simply Wall St - – Full articleDid American Express Company (NYSE:AXP) Insiders Sell Shares?
So we'll take a look at whether insiders have been buying or selling shares in American Express Company (NYSE:AXP). … That means that an insider was selling shares at slightly below the current price (US$111). … While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign.
Simply Wall St - – Full articleShould You Investigate American Express Company (NYSE:AXP) At US$114?
As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock … However, what if the stock is still a bargain?
Simply Wall St - – Full articleAmerican Express Company (NYSE:AXP): What Does The Future Look Like?
On 31 December 2018, American Express Company (NYSE:AXP) released its earnings update. … analyst consensus outlook appear cautiously optimistic, … the past 5-year average growth rate of -7.4%.
Simply Wall St - – Full articleWhy American Express Company (NYSE:AXP) Could Have A Place In Your Portfolio
Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on American Express Company (NYSE:AXP) due to its excellent fundamentals in more than one area. … dividend-paying company
Simply Wall St - – Full articleWhat Do Analysts Think About American Express Company's (NYSE:AXP) Growth?
American Express Company's (NYSE:AXP) most recent earnings announcement in December 2018a … confirmed
Simply Wall St - – Full articleShould You Be Tempted To Sell American Express Company (NYSE:AXP) Because Of Its P/E Ratio?
We'll look at American Express Company's (NYSE:AXP) P/E ratio and reflect on what it tells us about the company's share price. … How Do I Calculate American Express's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleAmerican Express Company (NYSE:AXP) Is Trading 22.1% Below Its True Value
This is because the rules they face are different to other companies, which can impact the way we forecast their cash flow. … For instance, these lenders must hold a certain level of cash reserves on the books as a safety precaution.
Simply Wall St - – Full articleDo Institutions Own Shares In American Express Company (NYSE:AXP)?
If you want to know who really controls American Express Company (NYSE:AXP), then you'll have to look at the makeup of its share registry. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … We'd expect to see both institutions and retail investors owning a portion of the company.
Simply Wall St - – Full articleCompany 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 |
| AXP | |
| Exchange: | NYSE |
| Founded: | 1850 |
| $99,433,039,897 | |
| 835,080,540 | |
| 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
Industry
| Consumer Finance | |
| Diversified Financials |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/05/20 01:27 |
| End of day share price update: | 2019/05/17 00:00 |
| Last estimates confirmation: | 2019/05/16 |
| Last earnings filing: | 2019/04/23 |
| 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.
