NYSE:AXP

Stock Analysis Report

Executive Summary

American Express Company, together with its subsidiaries, provides charge and credit payment card products, and travel-related services worldwide.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-13.2%

AXP

-11.1%

US Consumer Finance

-7.6%

US Market


1 Year Return

10.0%

AXP

0.7%

US Consumer Finance

10.2%

US Market

Return vs Industry: AXP exceeded the US Consumer Finance industry which returned 0.7% over the past year.

Return vs Market: AXP matched the US Market which returned 10.2% over the past year.


Shareholder returns

AXPIndustryMarket
7 Day-13.2%-11.1%-7.6%
30 Day-10.5%-9.0%-4.5%
90 Day-1.3%-7.2%-0.6%
1 Year11.5%10.0%2.4%0.7%12.5%10.2%
3 Year54.6%47.9%25.6%19.4%37.1%28.3%
5 Year58.0%46.0%31.0%21.4%60.8%43.2%

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

Valuation

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

29.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AXP ($118.5) is trading below our estimate of fair value ($168.9)

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 Consumer Finance industry average (7.9x).

PE vs Market: AXP is good value based on its PE Ratio (14.8x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: AXP is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: AXP is overvalued based on its PB Ratio (4.2x) compared to the US Consumer Finance industry average (1x).


Next Steps

Future Growth

How is American Express forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AXP's forecast earnings growth (6.9% per year) is above the savings rate (1.7%).

Earnings vs Market: AXP's earnings (6.9% per year) are forecast to grow slower than the US market (13.2% per year).

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

Revenue vs Market: AXP's revenue (10.5% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: AXP's revenue (10.5% 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 (35.5%)


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?

1.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AXP's dividend (1.45%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: AXP's dividend (1.45%) is low compared to the top 25% of dividend payers in the US market (3.96%).


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 (19.7% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Steve Squeri (59yo)

2yrs

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 ($USD17.34M) is above average for companies of similar size in the US market ($USD10.78M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Squeri
Chairman & CEO2yrsUS$17.34m0.025% $24.4m
Jeffrey Campbell
Chief Financial Officer6.5yrsUS$11.86m0.0086% $8.2m
Anré Williams
Group President of Global Merchant & Network Services2yrsUS$8.54m0.0079% $7.5m
Douglas Buckminster
Group President of Global Consumer Services4.3yrsUS$10.33m0.013% $12.2m
Anna Marrs
President of Global Commercial Services1.4yrsUS$9.43mno data
Jessica Lieberman Quinn
Executive VP0yrsno data0.00017% $162.8k
Marc Gordon
Chief Information Officer7.4yrsno data0.0047% $4.5m
Rosie Perez
Senior VP & Head of Investor Relations0.8yrsno datano data
Laureen Seeger
Chief Legal Officer5.6yrsUS$8.98m0.0044% $4.3m
Raymond Joabar
Chief Risk Officer and President of the Global Risk0.4yrsno data0.0011% $1.0m

2.0yrs

Average Tenure

57.5yo

Average Age

Experienced Management: AXP's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Squeri
Chairman & CEO2yrsUS$17.34m0.025% $24.4m
Theodore Leonsis
Independent Director9.6yrsUS$342.04k0.00050% $478.8k
Peter Chernin
Independent Director14.1yrsUS$380.01k0.0023% $2.2m
Ronald Williams
Lead Independent Director1.9yrsUS$502.23k0.0073% $7.0m
Daniel Vasella
Independent Director7.6yrsUS$384.78kno data
Vernon Jordan
Advisor to the Board0yrsUS$156.69kno data
Anne L. Marie Lauvergeon
Independent Director6.9yrsUS$337.78kno data
Charlene Barshefsky
Independent Director19.1yrsUS$420.00k0.0025% $2.4m
John Brennan
Independent Director3.1yrsUS$356.79k0.00050% $478.8k
Michael Leavitt
Independent Director4.8yrsUS$352.99kno data

6.9yrs

Average Tenure

67yo

Average Age

Experienced Board: AXP's board of directors are considered experienced (6.9 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$95.753b
  • Shares outstanding: 808.04m
  • Website: https://www.americanexpress.com

Number of Employees


Location

  • American Express Company
  • 200 Vesey Street
  • New York
  • New York
  • 10285
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AXPNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1969
0R3CLSE (London Stock Exchange)YesCommon SharesGBUSDJan 1969
AXP *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1969
AEC1DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1969
AXPSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJan 1969
AEC1XTRA (XETRA Trading Platform)YesCommon SharesDEEURJan 1969
AXPSNSE (Santiago Stock Exchange)YesCommon SharesCLUSDJan 1969
AXPWBAG (Wiener Boerse AG)YesCommon SharesATEURJan 1969
AXPETLX (Eurotlx)YesCommon SharesITEURJan 1969
AXPBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 1/5 ORD USD0.20ARARSOct 2003
AXPB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REPR 1 COM SHSBRBRLDec 2011
AEC3DB (Deutsche Boerse AG)4.9%-FRN SUB PERP USD 'C'DEUSDFeb 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 00:45
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.