American Express
Market Cap
US$98.9b
Last Updated
2019/11/11 23:31 UTC
Data Sources
Company Financials +
Executive Summary
American Express Company, together with its subsidiaries, provides charge and credit payment card products, and travel-related services to consumers and businesses worldwide.
Snowflake
Fundamentals
Average dividend payer with acceptable track record.
Similar Companies
Share Price & News
How has American Express's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AXP has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.1%
AXP
0.9%
US Consumer Finance
0.3%
US Market
1 Year Return
13.5%
AXP
11.5%
US Consumer Finance
12.5%
US Market
Return vs Industry: AXP exceeded the US Consumer Finance industry which returned 11.5% over the past year.
Return vs Market: AXP exceeded the US Market which returned 12.5% over the past year.
Shareholder returns
| AXP | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.1% | 0.9% | 0.3% |
| 30 Day | 3.9% | 5.5% | 4.1% |
| 90 Day | -4.3% | 0.4% | 5.6% |
| 1 Year | 15.2%13.5% | 13.5%11.5% | 15.0%12.5% |
| 3 Year | 74.6%66.9% | 44.7%37.8% | 49.1%39.4% |
| 5 Year | 45.0%34.1% | 37.9%27.8% | 62.8%44.7% |
Price Volatility Vs. Market
How volatile is American Express's share price compared to the market and industry in the last 5 years?
Simply Wall St News
15 hours ago | Simply Wall St
Here's Why We Think American Express (NYSE:AXP) Is Well Worth Watching2 weeks ago | Simply Wall St
Should You Be Tempted To Sell American Express Company (NYSE:AXP) Because Of Its P/E Ratio?4 weeks ago | Simply Wall St
If You Had Bought American Express (NYSE:AXP) Stock Three Years Ago, You Could Pocket A 94% Gain TodayValuation
Is American Express undervalued compared to its fair value and its price relative to the market?
13.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AXP ($120.9) is trading below our estimate of fair value ($139.99)
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 (14.6x) compared to the Consumer Finance industry average (8.5x).
PE vs Market: AXP is good value based on its PE Ratio (14.6x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: AXP is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: AXP is overvalued based on its PB Ratio (4.3x) compared to the US Consumer Finance industry average (1.2x).
Next Steps
Future Growth
How is American Express forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
6.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AXP's forecast earnings growth (6.7% per year) is above the savings rate (2.7%).
Earnings vs Market: AXP's earnings (6.7% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: AXP's earnings are forecast to grow, but not significantly.
Revenue vs Market: AXP's revenue (7.5% per year) is forecast to grow faster than the US market (7.2% per year).
High Growth Revenue: AXP's revenue (7.5% 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 (30.4%)
Next Steps
Past Performance
How has American Express performed over the past 5 years?
-0.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AXP has a high level of non-cash earnings.
Growing Profit Margin: AXP's current net profit margins (17.7%) are higher than last year (10%).
Past Earnings Growth Analysis
Earnings Trend: AXP's earnings have declined by -0.5% per year over the past 5 years.
Accelerating Growth: AXP's earnings growth over the past year (93.1%) exceeds its 5-year average (-0.5% per year).
Earnings vs Industry: AXP earnings growth over the past year (93.1%) exceeded the Consumer Finance industry 17.1%.
Return on Equity
High ROE: Whilst AXP's Return on Equity (30.73%) is high, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is American Express's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: AXP has a low level of unsold assets or inventory.
Debt Coverage by Assets: AXP's debt is covered by short term assets (assets are 2.8x debt).
Financial Institutions Analysis
Asset Level: AXP's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if AXP has a sufficient allowance for bad loans.
Low Risk Liabilities: AXP reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if AXP has an acceptable proportion of non-loan assets held.
Low Risk Deposits: AXP has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if AXP has an appropriate level of bad loans.
Next Steps
Dividend
What is American Express's current dividend yield, its reliability and sustainability?
1.42%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: AXP's dividend (1.42%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).
High Dividend: AXP's dividend (1.42%) is low compared to the top 25% of dividend payers in the US market (3.67%).
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 (19.3%), 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 well covered by earnings (19.1% payout ratio).
Next Steps
Management
What is the CEO of American Express's salary, the management and board of directors tenure and is there insider trading?
1.8yrs
Average management tenure
CEO
Steve Squeri (59yo)
1.8yrs
Tenure
US$17,341,442
Compensation
Mr. Stephen Joseph Squeri, also known as Steve, has been Chairman and Chief Executive Officer at American Express Co. since February 2018. Mr. Squeri was Vice Chairman of American Express Company since Ju ...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD17.34M) is above average for companies of similar size in the US market ($USD11.12M).
Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.
Management Age and Tenure
1.8yrs
Average Tenure
57.5yo
Average Age
Experienced Management: AXP's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Age and Tenure
6.7yrs
Average Tenure
67yo
Average Age
Experienced Board: AXP's board of directors are considered experienced (6.7 years average tenure).
Insider Trading
Insider Buying: AXP insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 2,400 |
| Max Price | US$118.39 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 8,420 |
| Max Price | US$116.44 |
| Entity | Individual |
| Role | Chief Accounting Officer Executive VP |
| Shares | 2,444 |
| Max Price | US$107.11 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Marc Gordon (58yo)
Chief Information Officer
- Tenure: 7.2yrs
Jeff Campbell (58yo)
Chief Financial Officer
- Tenure: 6.3yrs
- Compensation: US$11.86m
Anré Williams (53yo)
Group President of Global Merchant & Network Services
- Tenure: 1.8yrs
- Compensation: US$8.54m
Steve Squeri (59yo)
Chairman & CEO
- Tenure: 1.8yrs
- Compensation: US$17.34m
Laureen Seeger (57yo)
Chief Legal Officer
- Tenure: 5.3yrs
- Compensation: US$8.98m
Doug Buckminster (58yo)
Group President of Global Consumer Services
- Tenure: 4.1yrs
- Compensation: US$10.33m
Rick Petrino (51yo)
Executive VP
- Tenure: 1.7yrs
Anna Marrs (45yo)
President of Global Commercial Services
- Tenure: 1.2yrs
- Compensation: US$9.43m
Rosie Perez
Senior VP & Head of Investor Relations
- Tenure: 0.6yrs
Raymond Joabar
Chief Risk Officer and President of the Global Risk
- Tenure: 0.2yrs
Board Members
Ted Leonsis (63yo)
Independent Director
- Tenure: 9.3yrs
- Compensation: US$342.04k
Peter Chernin (68yo)
Independent Director
- Tenure: 13.8yrs
- Compensation: US$380.01k
Ron Williams (70yo)
Lead Independent Director
- Tenure: 1.7yrs
- Compensation: US$502.23k
Dan Vasella (66yo)
Independent Director
- Tenure: 7.3yrs
- Compensation: US$384.78k
Vernon Jordan (83yo)
Advisor to the Board
- Tenure: 0yrs
- Compensation: US$156.69k
Anne L. Marie Lauvergeon (60yo)
Independent Director
- Tenure: 6.7yrs
- Compensation: US$337.78k
Charlene Barshefsky (68yo)
Independent Director
- Tenure: 18.8yrs
- Compensation: US$420.00k
Jack Brennan (64yo)
Independent Director
- Tenure: 2.8yrs
- Compensation: US$356.79k
Steve Squeri (59yo)
Chairman & CEO
- Tenure: 1.8yrs
- Compensation: US$17.34m
Mike Leavitt (68yo)
Independent Director
- Tenure: 4.5yrs
- Compensation: US$352.99k
Company Information
American Express Company's company bio, 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
- Market Cap: US$98.929b
- Shares outstanding: 818.27m
- Website: https://www.americanexpress.com
Number of Employees
Location
- American Express Company
- 200 Vesey Street
- Lower Manhattan
- New York
- New York
- 10285
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AXP | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Jan 1969 |
| 0R3C | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Jan 1969 |
| AXP * | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Jan 1969 |
| AEC1 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1969 |
| AXP | SWX (SIX Swiss Exchange) | Yes | Common Shares | CH | CHF | Jan 1969 |
| AEC1 | XTRA (XETRA Trading Platform) | Yes | Common Shares | DE | EUR | Jan 1969 |
| AXP | SNSE (Santiago Stock Exchange) | Yes | Common Shares | CL | USD | Jan 1969 |
| AXP | WBAG (Wiener Boerse AG) | Yes | Common Shares | AT | EUR | Jan 1969 |
| AXP | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH REP 1/5 ORD USD0.20 | AR | ARS | Oct 2003 | |
| AXPB34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EA REPR 1 COM SHS | BR | BRL | Dec 2011 |
Biography
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 segm ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/11 23:31 |
| End of Day Share Price | 2019/11/11 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.