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American Express Co
AXP : NYSE : Financial
$71.85 | %
Today's Range: 71.42 - 72.00
Avg. Daily Volume: 5,436,300
11/27/15 - 1:00 PM ET

Financial Analysis

AMERICAN EXPRESS CO's gross profit margin for the third quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not.

During the same period, stockholders' equity ("net worth") has increased by 5.53% from the same quarter last year.

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Income Statement Q3 FY15 Q3 FY14
Net Sales ($mil)8592.08723.0
EBITDA ($mil)2376.02670.0
EBIT ($mil)2110.02421.0
Net Income ($mil)1266.01477.0

Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)19938.021264.0
Total Assets ($mil)154216.0153862.0
Total Debt ($mil)51813.059094.0
Equity ($mil)21335.020216.0

Profitability Q3 FY15 Q3 FY14
Gross Profit Margin27.6530.61
EBITDA Margin27.6530.6
Operating Margin24.5627.75
Sales Turnover0.220.23
Return on Assets3.73.73
Return on Equity26.5728.42
Debt Q3 FY15 Q3 FY14
Current Ratio0.00.0
Interest Expense172.0190.0
Interest Coverage12.2712.74

Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)985.01035.0
Div / share0.00.26
Book value / share21.6619.53
Institutional Own % n/a n/a
Avg Daily Volume5726102.06233576.0


BUY. This stock's P/E ratio indicates a premium compared to an average of 11.96 for the Consumer Finance industry and a discount compared to the S&P 500 average of 21.93. For additional comparison, its price-to-book ratio of 3.36 indicates a premium versus the S&P 500 average of 2.77 and a premium versus the industry average of 2.23. The current price-to-sales ratio is above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, AMERICAN EXPRESS CO proves to trade at a premium to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AXP 13.15 Peers 11.96   AXP 6.83 Peers 7.20

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.


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

AXP is trading at a valuation on par to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
AXP 13.42 Peers 14.03   AXP NM Peers 1.03

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

AXP is trading at a valuation on par with its peers.


Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AXP 3.36 Peers 2.23   AXP 2.97 Peers 17.11

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AXP 2.08 Peers 2.08   AXP -2.76 Peers 18.29

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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