American Express Co

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AXP : NYSE : Financial
$89.09 up 0.09 | 0.1%
Today's Range: 88.58 - 89.3787
Avg. Daily Volume: 3271400.0
09/20/17 - 11:10 AM ET

Financial Analysis


AMERICAN EXPRESS CO's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.23% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)8829.08671.0
EBITDA ($mil)2495.02628.0
EBIT ($mil)2176.02353.0
Net Income ($mil)1340.02015.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)30442.033767.0
Total Assets ($mil)166997.0159642.0
Total Debt ($mil)55371.052992.0
Equity ($mil)21175.020712.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin28.2630.31
EBITDA Margin28.2530.3
Operating Margin24.6527.14
Sales Turnover0.20.22
Return on Assets2.723.51
Return on Equity21.0826.67
Debt Q2 FY17 Q2 FY16
Current Ratio0.00.0
Debt/Capital0.720.72
Interest Expense227.0196.0
Interest Coverage9.5912.01


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)885.0925.0
Div / share0.320.58
EPS1.472.1
Book value / share23.9322.39
Institutional Own % n/a n/a
Avg Daily Volume3219331.03662068.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 14.70 for the Consumer Finance industry and a discount compared to the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 3.60 indicates a premium versus the S&P 500 average of 3.10 and a premium versus the industry average of 2.22. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AXP 17.63 Peers 14.70   AXP 8.17 Peers 7.16

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.

 

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 13.57 Peers 14.09   AXP 10.02 Peers 5.57

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AXP 3.60 Peers 2.22   AXP -13.91 Peers 42.05

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 2.26 Peers 1.88   AXP -2.22 Peers 6.07

Premium. 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 premium to 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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