American Express Company
American Express Company Fundamental Analysis
American Express Company (AEC1.DE) shows strong financial fundamentals with a PE ratio of 16.16, profit margin of 13.44%, and ROE of 33.43%. The company generates $94.5B in annual revenue with strong year-over-year growth of 10.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AEC1.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakAEC1.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateAEC1.DE shows balanced valuation metrics.
Growth Score
ExcellentAEC1.DE delivers strong and consistent growth momentum.
Financial Health Score
ModerateAEC1.DE shows balanced financial health with some risks.
Profitability Score
ModerateAEC1.DE maintains healthy but balanced margins.
Key Financial Metrics
Is AEC1.DE Expensive or Cheap?
P/E Ratio
AEC1.DE trades at 16.16 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AEC1.DE's PEG of 4.18 indicates potential overvaluation.
Price to Book
The market values American Express Company at 5.22 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.53 times EBITDA. This signals the market has high growth expectations.
How Well Does AEC1.DE Make Money?
Net Profit Margin
For every $100 in sales, American Express Company keeps $13.44 as profit after all expenses.
Operating Margin
Core operations generate 18.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $33.43 in profit for every $100 of shareholder equity.
ROA
American Express Company generates $3.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
American Express Company produces operating cash flow of $21.63B, showing steady but balanced cash generation.
Free Cash Flow
American Express Company generates strong free cash flow of $18.79B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $27.36 in free cash annually.
FCF Yield
AEC1.DE converts 7.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.73
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.33
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How AEC1.DE Stacks Against Its Sector Peers
| Metric | AEC1.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.16 | 18.66 | Better (Cheaper) |
| ROE | 33.43% | 806.00% | Weak |
| Net Margin | 13.44% | -451.00% (disorted) | Strong |
| Debt/Equity | 1.73 | 1.00 | Weak (High Leverage) |
| Current Ratio | 6.48 | 662.02 | Strong Liquidity |
| ROA | 3.60% | -24409.00% (disorted) | Weak |
AEC1.DE outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews American Express Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
82.96%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
74.03%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
19.69%
Industry Style: Value, Dividend, Cyclical
High Growth