American Express
Market Cap
US$72.7b
Last Updated
2020/03/31 00:20 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 worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Average dividend payer and fair value.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
7.4%
AXP
10.3%
US Consumer Finance
7.2%
US Market
1 Year Return
-18.7%
AXP
-33.3%
US Consumer Finance
-10.4%
US Market
Return vs Industry: AXP exceeded the US Consumer Finance industry which returned -33.3% over the past year.
Return vs Market: AXP underperformed the US Market which returned -10.4% over the past year.
Shareholder returns
| AXP | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.4% | 10.3% | 7.2% |
| 30 Day | -17.9% | -29.0% | -12.6% |
| 90 Day | -27.5% | -38.2% | -19.4% |
| 1 Year | -17.5%-18.7% | -32.1%-33.3% | -8.5%-10.4% |
| 3 Year | 20.6%15.3% | -11.6%-15.9% | 15.8%8.3% |
| 5 Year | 24.2%15.2% | -11.1%-17.5% | 35.8%21.0% |
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
3 days ago | Simply Wall St
What Kind Of Shareholders Own American Express Company (NYSE:AXP)?2 weeks ago | Simply Wall St
What Is American Express's (NYSE:AXP) P/E Ratio After Its Share Price Tanked?Valuation
Is American Express undervalued compared to its fair value and its price relative to the market?
41.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AXP ($90.27) is trading below our estimate of fair value ($152.93)
Significantly Below Fair Value: AXP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AXP is poor value based on its PE Ratio (11.3x) compared to the Consumer Finance industry average (5x).
PE vs Market: AXP is good value based on its PE Ratio (11.3x) compared to the US market (13.1x).
Price to Earnings Growth Ratio
PEG Ratio: AXP is poor value based on its PEG Ratio (3.2x)
Price to Book Ratio
PB vs Industry: AXP is overvalued based on its PB Ratio (3.2x) compared to the US Consumer Finance industry average (0.7x).
Next Steps
Future Growth
How is American Express forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
3.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AXP's forecast earnings growth (3.5% per year) is above the savings rate (1.7%).
Earnings vs Market: AXP's earnings (3.5% per year) are forecast to grow slower than the US market (12.2% per year).
High Growth Earnings: AXP's earnings are forecast to grow, but not significantly.
Revenue vs Market: AXP's revenue (8.6% per year) is forecast to grow faster than the US market (7.2% per year).
High Growth Revenue: AXP's revenue (8.6% 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 (30.1%)
Next Steps
Past Performance
How has American Express performed over the past 5 years?
1.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AXP has high quality earnings.
Growing Profit Margin: AXP's current net profit margins (16.6%) are lower than last year (18.4%).
Past Earnings Growth Analysis
Earnings Trend: AXP's earnings have grown by 1.5% per year over the past 5 years.
Accelerating Growth: AXP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AXP had negative earnings growth (-2.3%) over the past year, making it difficult to compare to the Consumer Finance industry average (8.6%).
Return on Equity
High ROE: Whilst AXP's Return on Equity (29.3%) is high, this metric is skewed due to their high level of debt.
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 2.6x 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?
1.91%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: AXP's dividend (1.91%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.95%).
High Dividend: AXP's dividend (1.91%) is low compared to the top 25% of dividend payers in the US market (5.4%).
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 (20.5%), 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 (19.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.2yrs
Average management tenure
CEO
Steve Squeri (59yo)
2s
Tenure
US$23,796,002
Compensation
Mr. Stephen Joseph Squeri, also known as Steve, has been Chairman and Chief Executive Officer at American Express Co. since February 2018. Mr. Squeri was Vice Chairman of American Express Company since Ju ...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD23.80M) is above average for companies of similar size in the US market ($USD11.74M).
Compensation vs Earnings: Steve's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 2yrs | US$23.80m | 0.026% $18.6m | |
| Chief Financial Officer | 6.58yrs | US$13.75m | 0.0086% $6.3m | |
| Chief Legal Officer | 5.67yrs | US$8.51m | 0.0045% $3.2m | |
| Group President of Global Merchant & Network Services | 2yrs | US$11.53m | 0.0079% $5.7m | |
| Group President of Global Consumer Services | 4.42yrs | US$13.67m | 0.013% $9.3m | |
| Executive VP | no data | no data | 0.00017% $123.7k | |
| Chief Information Officer | 7.42yrs | no data | 0.0047% $3.5m | |
| Senior VP & Head of Investor Relations | 0.83yr | no data | no data | |
| Chief Risk Officer and President of the Global Risk | 0.42yr | no data | 0.0011% $778.3k | |
| Vice President of Public Affairs and Communications – Corporate | no data | no data | no data |
3.2yrs
Average Tenure
58yo
Average Age
Experienced Management: AXP's management team is considered experienced (3.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 2yrs | US$23.80m | 0.026% $18.6m | |
| Independent Director | 9.67yrs | US$346.16k | 0.00050% $363.7k | |
| Independent Director | 14.17yrs | US$389.85k | 0.0023% $1.7m | |
| Lead Independent Director | 2yrs | US$535.74k | 0.0073% $5.3m | |
| Independent Director | 7.67yrs | US$393.24k | no data | |
| Advisor to the Board | no data | US$156.69k | no data | |
| Independent Director | 7yrs | US$348.82k | no data | |
| Independent Director | 19.17yrs | US$425.05k | 0.0025% $1.8m | |
| Independent Director | 3.17yrs | US$369.05k | 0.00050% $363.7k | |
| Independent Director | 4.83yrs | US$354.68k | no data |
7.0yrs
Average Tenure
67yo
Average Age
Experienced Board: AXP's board of directors are considered experienced (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 sold more shares than they have bought 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 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$72.738b
- Shares outstanding: 805.78m
- Website: https://www.americanexpress.com
Number of Employees
Location
- American Express Company
- 200 Vesey Street
- 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 | ETLX (Eurotlx) | Yes | Common Shares | IT | 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 | |
| AEC3 | DB (Deutsche Boerse AG) | 4.9%-FRN SUB PERP USD 'C' | DE | USD | Feb 2015 |
Biography
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; expense management products and services; and lifestyle services. The company’s 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. It sells its products and services to consumers, small businesses, mid-sized companies, and large corporations through mobile and online applications, third-party vendors and business partners, direct mail, telephone, in-house sales teams, and direct response advertising. American Express Company was founded in 1850 and is headquartered in New York, New York.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 00:20 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.