| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 3/6 |
| Past Performance | 5/6 |
| Financial Health | 5/6 |
| Dividends | 4/6 |
AXP Stock Overview
American Express Company, together with its subsidiaries, provides charge and credit payment card products, and travel-related services worldwide.
American Express Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$168.40 |
| 52 Week High | US$189.03 |
| 52 Week Low | US$112.10 |
| Beta | 1.24 |
| 1 Month Change | 5.24% |
| 3 Month Change | -5.03% |
| 1 Year Change | 37.86% |
| 3 Year Change | 67.60% |
| 5 Year Change | 121.67% |
| Change since IPO | 1,348.60% |
Recent News & Updates
American Express (NYSE:AXP) Has Affirmed Its Dividend Of US$0.43
The board of American Express Company ( NYSE:AXP ) has announced that it will pay a dividend of US$0.43 per share on...
American Express: Volume Recovering But Costs Rising Faster In Q3
AXP stock rose 5.4% on Friday after Q3 2021 results, but we see evidence of structural issues beneath the strong headlines. Even with volumes now exceeding 2019 levels, pre-provision pre-tax income remained 28% below, and fell 3% from Q2 2021. Lower profits were due to structurally higher costs, mainly in customer engagement costs and marketing, the result of rising competition. Net Interest Income can stay weak due to lower loan balance and yield, and Buy Now Pay Later is a threat to AXP. AXP stock is now trading at more than 20x 2022 EPS, and the post-2022 EPS outlook may be cut to allow more investments. Avoid.
Shareholder Returns
| AXP | US Consumer Finance | US Market | |
|---|---|---|---|
| 7D | -3.1% | -0.7% | -0.5% |
| 1Y | 37.9% | 18.5% | 13.7% |
Return vs Industry: AXP exceeded the US Consumer Finance industry which returned 18.5% over the past year.
Return vs Market: AXP exceeded the US Market which returned 13.7% over the past year.
Price Volatility
| AXP volatility | |
|---|---|
| AXP Average Weekly Movement | 4.6% |
| Consumer Finance Industry Average Movement | 7.7% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: AXP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: AXP's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1850 | 63,700 | Steve Squeri | https://www.americanexpress.com |
American Express Company, together with its subsidiaries, provides charge and credit payment card products, and travel-related services worldwide. The company operates through three segments: Global Consumer Services Group, Global Commercial Services, and Global Merchant and Network Services. Its products and services include payment and financing products; network services; accounts payable expense management products and services; and travel and lifestyle services.
American Express Fundamentals Summary
| AXP fundamental statistics | |
|---|---|
| Market Cap | US$130.44b |
| Earnings (TTM) | US$7.65b |
| Revenue (TTM) | US$41.17b |
17.0x
P/E Ratio3.2x
P/S RatioIs AXP overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| AXP income statement (TTM) | |
|---|---|
| Revenue | US$41.17b |
| Cost of Revenue | US$11.91b |
| Gross Profit | US$29.26b |
| Expenses | US$21.61b |
| Earnings | US$7.65b |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jan 25, 2022
| Earnings per share (EPS) | 9.88 |
| Gross Margin | 71.08% |
| Net Profit Margin | 18.59% |
| Debt/Equity Ratio | 150.6% |
How did AXP perform over the long term?
See historical performance and comparisonDividends
1.0%
Current Dividend Yield18%
Payout RatioValuation
Is American Express undervalued compared to its fair value and its price relative to the market?
16.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AXP ($168.4) is trading below our estimate of fair value ($201.18)
Significantly Below Fair Value: AXP is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: AXP is poor value based on its PE Ratio (17x) compared to the US Consumer Finance industry average (7.2x).
PE vs Market: AXP is good value based on its PE Ratio (17x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: AXP is poor value based on its PEG Ratio (5.1x)
Price to Book Ratio
PB vs Industry: AXP is overvalued based on its PB Ratio (5.3x) compared to the US Consumer Finance industry average (1.4x).
Future Growth
How is American Express forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
3.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AXP's forecast earnings growth (3.3% per year) is above the savings rate (2%).
Earnings vs Market: AXP's earnings (3.3% per year) are forecast to grow slower than the US market (13% per year).
High Growth Earnings: AXP's earnings are forecast to grow, but not significantly.
Revenue vs Market: AXP's revenue (9.8% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: AXP's revenue (9.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AXP's Return on Equity is forecast to be high in 3 years time (37.4%)
Past Performance
How has American Express performed over the past 5 years?
5.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AXP has high quality earnings.
Growing Profit Margin: AXP's current net profit margins (18.6%) are higher than last year (10.2%).
Past Earnings Growth Analysis
Earnings Trend: AXP's earnings have grown by 5.2% per year over the past 5 years.
Accelerating Growth: AXP's earnings growth over the past year (133.1%) exceeds its 5-year average (5.2% per year).
Earnings vs Industry: AXP earnings growth over the past year (133.1%) exceeded the Consumer Finance industry 122.5%.
Return on Equity
High ROE: Whilst AXP's Return on Equity (31.85%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is American Express's financial position?
Financial Position Analysis
Short Term Liabilities: AXP's short term assets ($152.7B) exceed its short term liabilities ($96.3B).
Long Term Liabilities: AXP's short term assets ($152.7B) exceed its long term liabilities ($63.6B).
Debt to Equity History and Analysis
Debt Level: AXP's net debt to equity ratio (37.6%) is considered satisfactory.
Reducing Debt: AXP's debt to equity ratio has reduced from 228.2% to 150.6% over the past 5 years.
Debt Coverage: AXP's debt is well covered by operating cash flow (35.7%).
Interest Coverage: Insufficient data to determine if AXP's interest payments on its debt are well covered by EBIT.
Balance Sheet
Dividend
What is American Express's current dividend yield, its reliability and sustainability?
1.02%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AXP's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: AXP's dividend (1.02%) is low compared to the top 25% of dividend payers in the US market (3.44%).
Stability and Growth of Payments
Stable Dividend: AXP's dividends per share have been stable in the past 10 years.
Growing Dividend: AXP's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (17.9%), AXP's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AXP's dividends in 3 years are forecast to be thoroughly covered by earnings (14.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average management tenure
CEO
Steve Squeri (61 yo)
3.92yrs
Tenure
US$24,221,319
Compensation
Mr. Stephen Joseph Squeri, also known as Steve, has been Chairman and Chief Executive Officer at American Express Co. since February 2018. Mr. Squeri was Vice Chairman of American Express Company since Jul...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD24.22M) is above average for companies of similar size in the US market ($USD11.18M).
Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: AXP's management team is considered experienced (3.9 years average tenure).
Board Members
Experienced Board: AXP's board of directors are considered experienced (6.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AXP insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
American Express Company's employee growth, exchange listings and data sources
Key Information
- Name: American Express Company
- Ticker: AXP
- Exchange: NYSE
- Founded: 1850
- Industry: Consumer Finance
- Sector: Diversified Financials
- Implied Market Cap: US$130.435b
- Shares outstanding: 774.56m
- Website: https://www.americanexpress.com
Number of Employees
Location
- American Express Company
- 200 Vesey Street
- New York
- New York
- 10285
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/17 23:16 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.