AMERICAN EXPRESS CO's gross profit margin for the third quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.07% from the same quarter last year.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||8749.0||8785.0|
|Net Income ($mil)||1477.0||1366.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||21000.0||22286.0|
|Total Assets ($mil)||154000.0||150103.0|
|Total Debt ($mil)||59000.0||55776.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||25.67||28.45|
|Return on Assets||3.73||3.12|
|Return on Equity||28.73||24.39|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||1035.0||1071.0|
|Div / share||0.26||0.23|
|Book value / share||19.32||17.94|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4222386.0||3000067.0|
BUY. This stock's P/E ratio indicates a premium compared to an average of 14.73 for the Consumer Finance industry and a discount compared to the S&P 500 average of 18.06. Conducting a second comparison, its price-to-book ratio of 4.15 indicates a significant premium versus the S&P 500 average of 2.49 and a premium versus the industry average of 2.73. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. After reviewing these and other key valuation criteria, AMERICAN EXPRESS CO proves to trade at a premium to investment alternatives within the industry.
|AXP 14.94||Peers 14.73||AXP NA||Peers 7.86|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
AXP is trading at a valuation on par with 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.
|AXP 13.24||Peers 12.32||AXP 1.12||Peers 1.52|
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.
Discount. 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 significant discount to its peers.
|AXP 4.15||Peers 2.73||AXP 26.95||Peers 13.31|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
AXP is expected to have an earnings growth rate that significantly exceeds its peers.
|AXP 2.34||Peers 2.35||AXP 2.57||Peers 15.15|
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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