American Express' gross profit margin for the second quarter of its fiscal year 2012 has increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not.
During the same period, stockholders' equity ("net worth") has increased by 5.83% from the same quarter last year.
This stock's P/E ratio indicates a premium compared to an average of 11.89 for the Consumer Finance industry and a discount compared to the S&P 500 average of 16.49. For additional comparison, its price-to-book ratio of 3.49 indicates a premium versus the S&P 500 average of 2.28 and a premium versus the industry average of 2.50. 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 proves to trade at a premium to investment alternatives within the industry.