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AXP

American Express NYSE:AXP Stock Report

Last Price

US$153.24

Market Cap

US$115.4b

7D

-3.5%

1Y

-2.3%

Updated

21 May, 2022

Data

Company Financials +
AXP fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance5/6
Financial Health4/6
Dividends4/6

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

Summary of all time highs, changes and price drops for American Express
Historical stock prices
Current Share PriceUS$153.24
52 Week HighUS$199.55
52 Week LowUS$149.71
Beta1.08
1 Month Change-17.50%
3 Month Change-21.37%
1 Year Change-2.31%
3 Year Change28.22%
5 Year Change97.83%
Change since IPO1,218.19%

Recent News & Updates

May 06

American Express: Unusual Insider And Institutional Activity

The financial sector is poised to be volatile, with investors pricing in rate hikes from the Fed before year end. American Express has unique exposure to this volatility with many of its products tied to federal interest rates/the prime rate. That said, Q1 2022 earnings beat expectations and company financials are strong. The stock has seen a lot of unusual volume from corporate insiders, institutions, and hedge funds.

Shareholder Returns

AXPUS Consumer FinanceUS Market
7D-3.5%-1.6%-2.7%
1Y-2.3%-22.8%-12.9%

Return vs Industry: AXP exceeded the US Consumer Finance industry which returned -22.8% over the past year.

Return vs Market: AXP exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is AXP's price volatile compared to industry and market?
AXP volatility
AXP Average Weekly Movement5.8%
Consumer Finance Industry Average Movement9.0%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: AXP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AXP's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
185064,000Steve Squerihttps://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

How do American Express's earnings and revenue compare to its market cap?
AXP fundamental statistics
Market CapUS$115.40b
Earnings (TTM)US$7.78b
Revenue (TTM)US$45.83b

14.8x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AXP income statement (TTM)
RevenueUS$45.83b
Cost of RevenueUS$14.18b
Gross ProfitUS$31.65b
Other ExpensesUS$23.87b
EarningsUS$7.78b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)10.33
Gross Margin69.06%
Net Profit Margin16.98%
Debt/Equity Ratio181.4%

How did AXP perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

18%

Payout Ratio

Does AXP pay a reliable dividends?

See AXP dividend history and benchmarks
When do you need to buy AXP by to receive an upcoming dividend?
American Express dividend dates
Ex Dividend DateJun 30 2022
Dividend Pay DateAug 10 2022
Days until Ex dividend38 days
Days until Dividend pay date79 days

Does AXP pay a reliable dividends?

See AXP dividend history and benchmarks

Valuation

Is American Express undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


40.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AXP ($153.24) is trading below our estimate of fair value ($258.17)

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 (14.8x) compared to the US Consumer Finance industry average (6.3x).

PE vs Market: AXP is good value based on its PE Ratio (14.8x) compared to the US market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: AXP is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: AXP is overvalued based on its PB Ratio (5.2x) compared to the US Consumer Finance industry average (1.1x).


Future Growth

How is American Express forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AXP's forecast earnings growth (9.1% per year) is above the savings rate (1.9%).

Earnings vs Market: AXP's earnings (9.1% per year) are forecast to grow slower than the US market (12.5% per year).

High Growth Earnings: AXP's earnings are forecast to grow, but not significantly.

Revenue vs Market: AXP's revenue (11% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: AXP's revenue (11% 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%)


Past Performance

How has American Express performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


10.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AXP has high quality earnings.

Growing Profit Margin: AXP's current net profit margins (17%) are higher than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: AXP's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: AXP's earnings growth over the past year (58.5%) exceeds its 5-year average (10.7% per year).

Earnings vs Industry: AXP earnings growth over the past year (58.5%) exceeded the Consumer Finance industry 29%.


Return on Equity

High ROE: Whilst AXP's Return on Equity (35.4%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is American Express's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: AXP's short term assets ($170.1B) exceed its short term liabilities ($104.4B).

Long Term Liabilities: AXP's short term assets ($170.1B) exceed its long term liabilities ($69.1B).


Debt to Equity History and Analysis

Debt Level: AXP's net debt to equity ratio (66.5%) is considered high.

Reducing Debt: AXP's debt to equity ratio has reduced from 265.3% to 181.4% over the past 5 years.

Debt Coverage: AXP's debt is well covered by operating cash flow (40%).

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?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.36%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 22 2022Ex Dividend DateJun 30 2022Dividend Pay DateAug 10 202241 days from Ex DividendBuy in the next 38 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: AXP's dividend (1.36%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: AXP's dividend (1.36%) is low compared to the top 25% of dividend payers in the US market (4.11%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (18.1%), AXP's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (10.8%), AXP's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Steve Squeri (61 yo)

4.25yrs

Tenure

US$25,513,922

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 ($USD25.51M) is above average for companies of similar size in the US market ($USD13.34M).

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 (4.3 years average tenure).


Board Members

Experienced Board: AXP's board of directors are considered experienced (6 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$115.399b
  • Shares outstanding: 753.06m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/21 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.