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About The Company

CEO

Mr. Stephen Joseph Squeri

Market Cap

166.49 Billion USD

Sector

Financial Services

Website

https://www.americanexpress.com

Last Update

3/29/2024, 10:24:41 AM

Description

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

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Overview

Value

70

Growth

67

Health

78

Management

57

Analyst Opinion

97

Total

74

All Scores Out Of 100

Best Features

  • Very strong cashflow and earnings growth
  • Earnings growth has improved recently
  • Has a history of share buybacks
  • Has strong financial health
  • Has a margin-of-safety above fair value
  • Liked by analysts
  • Has strong dividend growth
  • Low preportion of income is paid as dividend
  • Very safe dividend

Risk Factors

  • Has a high level of debt
  • Disliked by Twitter users
  • Price-to-earnings ratio of 20.3 is higher than the market average (19.6x)

Market Peers

AXP

Key Figures

PE Ratio (TTM)

20.28

Margin Of Safety (DCF)

161.59%

Revenue Growth (5 Year Average)

16.00%

Ratings Consensus

Strong Buy

Share Buybacks

2.23%

Dividend Yeild (TTM)

1.08%

Valuation

Value Score

70

  • Free-cashflow-yeild of 10.31% is better than the market average (4.7%)
  • Margin-of-safety of 161.59% is better than the market average (17.95%)
  • Estimated intrinsic-value of 595.61 USD is higher than current price ( 231.46 USD)
  • Price-to-earnings ratio of 20.3 is higher than the market average (19.6x)

Desired Margin Of Safety

0%

Tip: Set your desired Margin Of Safety

Free Cash Flow Type

Annual Cashflow Growth

0%

Discount Rate

0%

Buy Target: < 247 USD

Current Price: 227.7 USD

How Does This Work?

Show Advanced Options

This calculator helps investors estimate the Intrinsic Value of a company based on the current value of future cash flows. To use the tool, simply input a desired Margin Of Safety, which is an additional discount applied to the present value of the expected future cash flows. The tool calculates the present value using a discount rate that reflects the risk and time value of money, and provides an estimated target price for the company based on the selected margin of safety. The calculator defaults to using 5 Year Free Cash Flow Growth % and a discount rate based on the US 10-year treasury bond coupon rate. Use our performance analyser to get a feel the impact this has on longterm investment returns and discover a margin of safety you are comfortable with. This can be a useful tool for investors looking to make informed decisions about whether to buy or sell shares of a particular company.

Price/Earnings

20.28x

Free Cashflow Yeild

10.31%

PE/Earnings Growth

N/A

Price/Book

5.87x

Growth

Growth Score

67

  • 5 Year Average Revenue growth of 16.00% is higher than the market average (10.97%)
  • Earnings growth has improved this year
  • 5 Year Average Cashflow growth of 23.97% is higher than the market average (12.35%)
  • Revenue growth has slowed this year
  • 5 Year Average Earnings growth of 12.89% is lower than the market average (14.48%)
  • Free Cashflow growth has slowed this year

Revenue Growth

16.00%

Earnings Growth

12.89%

Cashflow Growth

23.97%

Health

Health Score

78

  • Assets cover liabilities
  • Debt repayments do not significantly impact cashflow
  • Has a high level of debt
  • Requires debt for normal operation to be sustainable

Altman Z Score

1.05

Piostroski Score

6.00

Debt/Equity

1.76x

Current Assets/Liabilities

34.00x

Free Cashflow/Total Debt

0.48x

Debt/Capital

1.29x

Dividend

Secure Dividend Score

81

  • Very safe
  • Long term dividend payout ratio of 28.62% is considered good
  • Payout ratio (TTM) of 21.26% is lower than the average (40%)
  • Dividends have shown growth over the last 5 years
  • Dividend growth has been accelerating recently
  • Spending a lower percentage of their income on dividends than last 5 years
  • Dividend yeild of 1.08% is less than the market average (1.85%)

Dividend Yeild

1.08%

Dividend Growth

8.08%

Payout Ratio (Earnings)

21.26%

Payout Ratio (Cashflow)

10.47%

Management

Management Score

57

  • Has repurchased shares when value is good
  • Has a history of returning value to shareholders through stock buybacks
  • Has returned higher dividends when earnings have risen
  • Return-on-equity of 27.56% is higher than the market average (15%)
  • Return-on-capital-employed of 5.42% is lower than the market average (10%)

Average Buybacks/Dilution

2.23%

Recent Buybacks/Dilution

-8.25%

5 Year Price Volitility

22.80%

Return On Assets

3.02%

Return On Capital Employed

5.42%

Return On Equity

27.56%

Return On Free Cashflow

N/A

Return On Investments

N/A

Social Sentiment

Social Sentiment Score

0

Twitter Sentiment

N/A

Stocktwits Sentiment

N/A

Analysts

Analyst Opinion

97

  • Ratings consensus is Strong Buy

SEC Filings

Find yearly (10-K), quaterly (10-Q) and disclosure (8-K) report here, on the Securities and Exchange Commission's EDGAR database. If reading through reports isn't your cup of tea, don't worry. We've made it easy for you by summarizing all the important bits.

Other Information

Company Name

American Express Company

Currency

USD

Beta

1.191256

Vol Avg

3017895

Ceo

Mr. Stephen Joseph Squeri

Cik

0000004962

Cusip

025816109

Exchange

New York Stock Exchange

Full Time Employees

77300

Industry

Credit Services

Sector

Financial Services

Ipo Date

1972-06-01

Address

200 Vesey Street

City

New York

State

NY

Country

US

Zip

10285

Phone

212 640 2000

Analysis Last Updated

3/29/2024, 10:24:41 AM

All financial data provided by FMP

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