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American Express (AXP) Stock Analysis

This is a peer-relative look at American Express (AXP): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Financial Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for American Express (AXP)
Profile ItemAXP
NameAmerican Express Company
Country/RegionUnited States
GICS SectorFinancials
GICS Industry GroupFinancial Services
GICS IndustryConsumer Finance
GICS Sub-IndustryConsumer Finance
Market Capitalization219.27 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJune 1, 1972
Security TypeCommon Stock

Price Performance

Cumulative Growth

AXP
GSPC
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American Express (AXP) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for American Express (AXP) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for American Express (AXP) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

American Express (AXP) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AXPIndustry group median
Total Return (1Y)-0.35%-2.64%
Total Return (3Y, Annualized)28.67%11.52%
Total Return (5Y, Annualized)16.80%4.78%

Risk Profile

Drawdown History

AXP
GSPC
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American Express (AXP) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for American Express (AXP) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

American Express (AXP) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AXPIndustry group median
Volatility (1Y, Annualized)26.67%34.81%
Beta (5Y)1.081.02
Max Drawdown (5Y)-31.55%-49.51%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. AXP is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

American Express (AXP) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AXPIndustry group median
Sharpe Ratio (1Y)-0.17-0.22
Sortino Ratio (1Y)-0.23-0.31

Profitability

ROE (TTM)

American Express (AXP) posts ROE of 34.38%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

AXP

Financial Services industry group

34.38%

Group distribution
Max
48.53%
AXP
34.38%
Q3
22.22%
Median
12.75%
Q1
4.29%
Min
-22.61%
Largest peers
MA
241.20%
V
61.19%
AXP
34.38%
MS
17.97%
GS
16.90%
BRK.A
12.12%
BRK.B
12.12%
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Where American Express (AXP) stands on ROE within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

American Express (AXP) keeps 16.14% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

AXP

Financial Services industry group

16.14%

Group distribution
Max
66.61%
Q3
29.45%
AXP
16.14%
Median
16.12%
Q1
4.50%
Min
-30.67%
Largest peers
V
50.78%
MA
46.34%
GS
31.04%
MS
25.90%
BRK.A
22.30%
BRK.B
22.30%
AXP
16.14%
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Where American Express (AXP) stands on net margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

American Express (AXP) turns 20.32% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

AXP

Financial Services industry group

20.32%

Group distribution
Max
96.23%
Q3
52.57%
Median
28.28%
AXP
20.32%
Q1
11.11%
Min
-46.55%
Largest peers
V
66.13%
MA
61.11%
GS
42.18%
MS
41.57%
BRK.A
32.56%
BRK.B
32.56%
AXP
20.32%
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Where American Express (AXP) stands on operating margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

American Express (AXP) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AXPIndustry group median
ROE (TTM)34.38%12.75%
ROA (TTM)3.79%3.12%
Net Margin (TTM)16.14%16.12%
Operating Margin (TTM)20.32%28.28%
Gross Margin (TTM)----

Growth

Revenue Growth

American Express (AXP) grew revenue 9.52%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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American Express (AXP): Revenue Growth across different time periods, set against Financial Services industry-group medians.

EPS Growth

American Express (AXP) grew earnings per share 9.78%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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American Express (AXP): EPS Growth across different time periods, set against Financial Services industry-group medians.

Growth Metrics

American Express (AXP) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AXPIndustry group median
Revenue Growth (YoY)9.52%9.38%
Revenue Growth (3Y CAGR)10.97%10.50%
EPS Growth (YoY)9.78%7.06%
EPS Growth (3Y CAGR)16.01%13.04%

Financial Strength

Current Ratio (MRQ)

current ratio is set aside for American Express (AXP) in Financial Services: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for American Express (AXP) in Financial Services: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.

Financial Strength Metrics

American Express (AXP) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AXPIndustry group median
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

American Express (AXP) has dividend yield of 1.10%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

AXP

Financial Services industry group

1.10%

Group distribution
Max
16.74%
Q3
6.71%
Median
1.45%
AXP
1.10%
Q1
0.00%
Min
0.00%
Largest peers
MS
1.95%
GS
1.67%
AXP
1.10%
V
0.73%
MA
0.60%
BRK.A
0.00%
BRK.B
0.00%
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Where American Express (AXP) stands on dividend yield within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

American Express (AXP) has payout ratio of 21.48%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

AXP

Financial Services industry group

21.48%

Group distribution
Max
201.06%
Q3
87.25%
Median
25.10%
AXP
21.48%
Q1
0.00%
Min
0.00%
Largest peers
MS
32.31%
GS
26.25%
V
22.13%
AXP
21.48%
MA
17.93%
BRK.A
0.00%
BRK.B
0.00%
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Where American Express (AXP) stands on payout ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

American Express (AXP) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AXPIndustry group median
Dividend Yield (TTM)1.10%1.45%
Dividend Payout Ratio (TTM)21.48%25.10%

Valuation

P/E Ratio (TTM)

American Express (AXP) trades at P/E ratio of 19.69, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

AXP

Financial Services industry group

19.69

Group distribution
Max
45.90
Q3
24.91
AXP
19.69
Median
15.90
Q1
10.02
Min
1.94
Largest peers
V
31.55
MA
31.34
AXP
19.69
MS
17.33
GS
15.90
BRK.B
12.84
BRK.A
12.76
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Where American Express (AXP) stands on P/E ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

American Express (AXP) trades at 3.09 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

AXP

Financial Services industry group

3.09

Group distribution
Max
10.08
Q3
5.03
AXP
3.09
Median
2.85
Q1
1.49
Min
-0.63
Largest peers
V
15.55
MA
14.21
GS
4.43
MS
4.33
AXP
3.09
BRK.A
2.84
BRK.B
2.84
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Where American Express (AXP) stands on P/S ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

American Express (AXP) trades at 6.39 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

AXP

Financial Services industry group

6.39

Group distribution
Max
7.92
AXP
6.39
Q3
3.69
Median
1.64
Q1
0.87
Min
-1.25
Largest peers
MA
88.99
V
19.63
AXP
6.39
MS
3.16
GS
2.84
BRK.A
1.47
BRK.B
0.00
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Where American Express (AXP) stands on P/B ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

American Express (AXP) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AXPIndustry group median
P/E Ratio (TTM)19.6915.90
P/S Ratio (TTM)3.092.85
P/B Ratio (MRQ)6.391.64
Free Cash Flow Yield (TTM)----