American Express Co

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AXP : NYSE : Financial
$79.71 | %
Today's Range: 78.9 - 79.78
Avg. Daily Volume: 4155200.0
02/17/17 - 4:02 PM ET

Financial Analysis


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

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.58% from the same quarter last year.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)8435.08791.0
EBITDA ($mil)0.02247.0
EBIT ($mil)1393.01984.0
Net Income ($mil)825.0899.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)0.023102.0
Total Assets ($mil)159000.0161184.0
Total Debt ($mil)53000.052873.0
Equity ($mil)21000.020673.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin16.5125.56
EBITDA Margin0.025.56
Operating Margin16.5122.57
Sales Turnover0.210.21
Return on Assets3.43.2
Return on Equity25.3724.67
Debt Q4 FY16 Q4 FY15
Current Ratio0.00.0
Debt/Capital0.720.72
Interest Expense182.0172.0
Interest Coverage7.6511.53


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)904.0969.0
Div / share0.320.29
EPS0.880.89
Book value / share23.2321.33
Institutional Own % n/a n/a
Avg Daily Volume4169626.04918243.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 13.68 for the Consumer Finance industry and a significant discount compared to the S&P 500 average of 26.35. For additional comparison, its price-to-book ratio of 3.42 indicates a premium versus the S&P 500 average of 2.94 and a premium versus the industry average of 2.21. 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 14.12 Peers 13.68   AXP NA Peers 7.49

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.

 

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 12.72 Peers 13.44   AXP 1.11 Peers 1.01

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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AXP 3.42 Peers 2.21   AXP 11.92 Peers -1.98

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 2.13 Peers 2.02   AXP -1.80 Peers 6.33

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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