American Express Co

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AXP : NYSE : Financial
$64.79 | %
Today's Range: 64.52 - 65.49
Avg. Daily Volume: 4,488,900
08/26/16 - 4:00 PM ET

Financial Analysis


AMERICAN EXPRESS CO's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased.

During the same period, stockholders' equity ("net worth") has decreased by 5.35% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)8671.08698.0
EBITDA ($mil)2628.02686.0
EBIT ($mil)2353.02423.0
Net Income ($mil)2015.01473.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)33767.021071.0
Total Assets ($mil)159642.0157152.0
Total Debt ($mil)52992.057226.0
Equity ($mil)20712.021885.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin30.3130.88
EBITDA Margin30.330.88
Operating Margin27.1427.86
Sales Turnover0.220.22
Return on Assets3.513.76
Return on Equity26.6726.96
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.720.72
Interest Expense196.0193.0
Interest Coverage12.0112.55


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)925.01002.0
Div / share0.580.29
EPS2.11.42
Book value / share22.3921.84
Institutional Own % n/a n/a
Avg Daily Volume4475848.05179219.0

Valuation


HOLD. The current P/E ratio indicates a premium compared to an average of 10.84 for the Consumer Finance industry and a significant discount compared to the S&P 500 average of 25.13. For additional comparison, its price-to-book ratio of 2.90 indicates valuation on par with the S&P 500 average of 2.82 and a premium versus the industry average of 1.89. The current price-to-sales ratio is below the S&P 500 average, but above the industry average. 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 11.44 Peers 10.84   AXP 6.24 Peers 5.19

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 11.61 Peers 10.48   AXP 1.30 Peers 2.01

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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AXP 2.90 Peers 1.89   AXP -0.18 Peers -15.73

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 1.74 Peers 1.69   AXP 0.05 Peers 5.83

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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