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American Express (AXP) Stock Analysis

Here is a fundamental analysis of American Express (AXP), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

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.

Performance at a Glance

American Express (AXP) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AXPIndustry group median
1-Year Return10.36%0.76%

Risk

Drawdown

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.

Risk at a Glance

American Express (AXP) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AXPIndustry group median
1-Year Volatility26.51%33.82%
Beta1.051.05

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 Capitalization222.06 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJune 1, 1972
Security TypeCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

American Express (AXP) trades at P/E ratio of 20.33, 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

20.33

Group distribution
Max
47.33
Q3
25.83
AXP
20.33
Median
14.56
Q1
9.03
Min
0.60
Largest peers
MA
28.32
V
28.08
AXP
20.33
GS
19.42
MS
19.39
BRK.B
14.56
BRK.A
14.52
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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.

Price-to-Sales Ratio (TTM)

American Express (AXP) trades at 3.23 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

3.23

Group distribution
Max
9.45
Q3
4.84
AXP
3.23
Median
2.86
Q1
1.48
Min
-1.12
Largest peers
V
14.25
MA
12.76
GS
5.10
MS
4.61
AXP
3.23
BRK.B
2.81
BRK.A
2.80
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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.

Price-to-Book Ratio (MRQ)

American Express (AXP) trades at 6.53 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

6.53

Group distribution
Max
7.24
AXP
6.53
Q3
3.50
Median
1.63
Q1
0.92
Min
0.00
Largest peers
MA
64.68
V
17.29
AXP
6.53
MS
3.23
GS
2.98
BRK.A
1.45
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 at a Glance

American Express (AXP) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AXPIndustry group median
Price-to-Earnings Ratio (TTM)20.3314.56
Price-to-Sales Ratio (TTM)3.232.86
Price-to-Book Ratio (MRQ)6.531.63
Free Cash Flow Yield----

Profitability

Return on Equity (TTM)

American Express (AXP) posts ROE of 34.42%, 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

34.42%

Group distribution
Max
42.17%
AXP
34.42%
Q3
21.40%
Median
12.18%
Q1
5.01%
Min
-18.74%
Largest peers
MA
232.08%
V
60.35%
AXP
34.42%
MS
16.39%
GS
14.55%
BRK.B
10.50%
BRK.A
10.50%
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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 Profit Margin (TTM)

American Express (AXP) keeps 16.31% 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

16.31%

Group distribution
Max
66.55%
Q3
30.41%
Median
16.58%
AXP
16.31%
Q1
4.49%
Min
-26.88%
Largest peers
V
51.68%
MA
45.88%
GS
29.36%
MS
24.75%
BRK.B
19.31%
BRK.A
19.31%
AXP
16.31%
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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 Profit Margin (TTM)

American Express (AXP) turns 21.25% 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

21.25%

Group distribution
Max
95.95%
Q3
50.01%
Median
27.45%
AXP
21.25%
Q1
12.28%
Min
-36.26%
Largest peers
V
67.35%
MA
60.84%
MS
40.62%
GS
38.60%
AXP
21.25%
BRK.B
14.35%
BRK.A
14.35%
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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 at a Glance

American Express (AXP) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AXPIndustry group median
Return on Equity (TTM)34.42%12.18%
Return on Assets (TTM)3.80%3.03%
Net Profit Margin (TTM)16.31%16.58%
Operating Profit Margin (TTM)21.25%27.45%
Gross Profit Margin (TTM)----

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-to-Equity Ratio (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 at a Glance

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

Dividends

Dividend Yield (TTM)

American Express (AXP) has dividend yield of 1.17%, 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

1.17%

Group distribution
Max
18.40%
Q3
7.73%
Median
1.93%
AXP
1.17%
Q1
0.00%
Min
0.00%
Largest peers
MS
1.87%
GS
1.69%
AXP
1.17%
V
0.83%
MA
0.71%
BRK.B
0.00%
BRK.A
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 21.29%, 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

21.29%

Group distribution
Max
228.57%
Q3
95.72%
Median
25.56%
AXP
21.29%
Q1
0.00%
Min
0.00%
Largest peers
MS
35.55%
GS
28.31%
V
21.97%
AXP
21.29%
MA
18.23%
BRK.B
0.00%
BRK.A
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.

Dividends at a Glance

American Express (AXP) metric values compared with Financial Services industry-group medians
MetricCurrent stock: AXPIndustry group median
Dividend Yield (TTM)1.17%1.93%
Dividend Payout Ratio (TTM)21.29%25.56%