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American Express Co
AXP : NYSE : Financial
$65.84 -0.39 | -0.59%
Today's Range: 65.56 - 66.49
Avg. Daily Volume: 6,267,000
04/28/16 - 4:00 PM ET

Financial Analysis


Even though sales increased, the net income has decreased, representing a decrease to the bottom line.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.80% from the same quarter last year.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)8513.08360.0
EBITDA ($mil)0.02767.0
EBIT ($mil)0.02516.0
Net Income ($mil)1426.01525.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)0.023572.0
Total Assets ($mil)159000.0154684.0
Total Debt ($mil)50000.057073.0
Equity ($mil)21000.021830.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin0.033.1
EBITDA Margin0.033.09
Operating Margin0.030.1
Sales Turnover0.220.23
Return on Assets3.183.86
Return on Equity23.7127.38
Debt Q1 FY16 Q1 FY15
Current Ratio0.00.0
Debt/Capital0.70.72
Interest Expense0.0200.0
Interest Coverage0.012.58


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)951.01016.0
Div / share0.290.52
EPS1.451.48
Book value / share22.0821.49
Institutional Own % n/a n/a
Avg Daily Volume7617289.06920664.0

Valuation


HOLD. The current P/E ratio indicates a premium compared to an average of 11.69 for the Consumer Finance industry and a significant discount compared to the S&P 500 average of 24.17. For additional comparison, its price-to-book ratio of 2.97 indicates valuation on par with the S&P 500 average of 2.76 and a premium versus the industry average of 1.99. The current price-to-sales ratio is similar to the S&P 500 average, but it is below the industry average, indicating a discount. After reviewing these and other key valuation criteria, AMERICAN EXPRESS CO proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AXP 13.12 Peers 11.69   AXP NA Peers 5.26

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

AXP is trading at a premium to its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AXP 11.63 Peers 10.70   AXP 1.28 Peers 1.29

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

AXP is trading at a premium to its peers.

 

Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

AXP trades at a valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AXP 2.97 Peers 1.99   AXP -12.29 Peers -7.26

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AXP is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, AXP is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AXP 1.80 Peers 1.83   AXP -0.95 Peers 8.32

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AXP is trading at a valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AXP significantly trails its peers on the basis of sales growth

 

 

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