American Express Co

Find Ratings Reports
AXP : NYSE : Financial
$74.77 | %
Today's Range: 74.29 - 74.91
Avg. Daily Volume: 4959000.0
12/09/16 - 4:01 PM ET

Financial Analysis


AMERICAN EXPRESS CO's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.49% from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)8204.08592.0
EBITDA ($mil)2265.02316.0
EBIT ($mil)1991.02050.0
Net Income ($mil)1142.01266.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)26520.019938.0
Total Assets ($mil)153377.0154216.0
Total Debt ($mil)47755.051813.0
Equity ($mil)21017.021335.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin27.6126.96
EBITDA Margin27.626.95
Operating Margin24.2723.86
Sales Turnover0.220.22
Return on Assets3.573.7
Return on Equity25.6926.57
Debt Q3 FY16 Q3 FY15
Current Ratio0.00.0
Debt/Capital0.690.71
Interest Expense212.0176.0
Interest Coverage9.3911.65


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)917.0985.0
Div / share0.00.0
EPS1.21.24
Book value / share22.9221.66
Institutional Own % n/a n/a
Avg Daily Volume4933769.04448456.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 12.63 for the Consumer Finance industry and a significant discount compared to the S&P 500 average of 25.22. For additional comparison, its price-to-book ratio of 3.14 indicates a premium versus the S&P 500 average of 2.79 and a premium versus the industry average of 2.05. The current price-to-sales ratio is similar to the S&P 500 average, but it is 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 12.74 Peers 12.63   AXP 8.50 Peers 7.36

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 12.83 Peers 12.05   AXP 0.93 Peers 4.79

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.

 

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AXP 3.14 Peers 2.05   AXP 1.98 Peers -10.40

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 1.93 Peers 1.93   AXP -0.70 Peers 5.98

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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