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American Express Co
AXP : NYSE : Financial
$91.86 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 2,926,400
07/28/14 - 4:03 PM ET

Financial Analysis


AMERICAN EXPRESS CO's gross profit margin for the first quarter of its fiscal year 2014 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.56% from the same quarter last year.

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Income Statement Q1 FY14 Q1 FY13
Net Sales ($mil)8638.08400.0
EBITDA ($mil)2667.02396.0
EBIT ($mil)2418.02151.0
Net Income ($mil)1432.01280.0


Balance Sheet Q1 FY14 Q1 FY13
Cash & Equiv. ($mil)20740.027964.0
Total Assets ($mil)151497.0156855.0
Total Debt ($mil)56916.059725.0
Equity ($mil)19977.019290.0


Profitability Q1 FY14 Q1 FY13
Gross Profit Margin30.8828.52
EBITDA Margin30.8728.52
Operating Margin27.9925.61
Sales Turnover0.230.22
Return on Assets3.632.87
Return on Equity27.5823.35
Debt Q1 FY14 Q1 FY13
Current Ratio0.00.0
Debt/Capital0.740.76
Interest Expense210.0242.0
Interest Coverage11.518.89


Share Data Q1 FY14 Q1 FY13
Shares outstanding (mil)1059.01098.0
Div / share0.230.2
EPS1.331.15
Book value / share18.8617.57
Institutional Own % n/a n/a
Avg Daily Volume2927916.03849402.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 16.78 for the Consumer Finance industry and a value on par with the S&P 500 average of 19.71. For additional comparison, its price-to-book ratio of 4.94 indicates a significant premium versus the S&P 500 average of 2.73 and a significant premium versus the industry average of 3.28. The current price-to-sales ratio is well above the S&P 500 average and above 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AXP 18.41 Peers 16.78   AXP 21.86 Peers 18.10

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.

 

Premium. 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 premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AXP 15.42 Peers 14.08   AXP 1.47 Peers 1.92

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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AXP 4.94 Peers 3.28   AXP 28.10 Peers 5.91

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AXP 2.80 Peers 2.66   AXP 3.38 Peers 2.76

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

AXP has a sales growth rate that exceeds its peers.

 

 

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