American Express Co

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AXP : NYSE : Financial
$85.35 -0.58 | -0.68%
Today's Range: 84.53 - 85.45
Avg. Daily Volume: 3315700.0
07/20/17 - 4:00 PM 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 1.39% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)8829.08671.0
EBITDA ($mil)0.02628.0
EBIT ($mil)2176.02353.0
Net Income ($mil)1340.02015.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)30000.033767.0
Total Assets ($mil)167000.0159642.0
Total Debt ($mil)55000.052992.0
Equity ($mil)21000.020712.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin24.6530.31
EBITDA Margin0.030.3
Operating Margin24.6527.14
Sales Turnover0.20.22
Return on Assets2.723.51
Return on Equity21.2526.67
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 / share23.7322.39
Institutional Own % n/a n/a
Avg Daily Volume3475023.04049225.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 15.05 for the Consumer Finance industry and a discount compared to the S&P 500 average of 24.67. For additional comparison, its price-to-book ratio of 3.62 indicates a premium versus the S&P 500 average of 3.07 and a premium versus the industry average of 2.27. 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 17.57 Peers 15.05   AXP NA Peers 4.72

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.

 

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

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AXP 13.60 Peers 14.21   AXP 19.97 Peers 10.77

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 3.62 Peers 2.27   AXP -13.91 Peers -39.01

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 2.25 Peers 1.93   AXP -2.22 Peers 5.53

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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