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American Express Co AXP

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Stock XNYS Rating as of
$239.12 +0.16 (0.07%)
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As of Delayed Price Closed
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Company Report

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American Express Earnings: Interest Income Drives Continued Rapid Earnings Growth

Michael Miller

Wide-moat American Express reported strong first-quarter earnings as it benefited from impressive net interest income growth and well-controlled expenses. Net revenue increased 11% from last year to $15.8 billion, while earnings per share increased 39% to $3.33. These results translate to a return on average equity of 33.4%. As we incorporate these results, we do not plan to materially alter our $190 fair value estimate.

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Price vs Fair Value

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AXP is trading at a 26% premium.
Price
$238.96
Fair Value
$549.00
Uncertainty
Medium
1-Star Price
$463.50
5-Star Price
$635.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

American Express operates as a closed-loop network for the cards that it issues. This allows it to capture more of the economic profit of a single credit card payment than other credit card issuers.

Bears

American Express operates with a narrower scope than many of its competitors, offering fewer deposit and lending products than other credit card issuers.

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News

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Trading Information

Previous Close Price
$238.96
Day Range
$237.97–240.55
52-Week Range
$140.91–240.55
Bid/Ask
$238.02 / $238.84
Market Cap
$172.00 Bil
Volume/Avg
4.4 Mil / 3.0 Mil

Key Statistics

Price/Earnings (Normalized)
19.70
Price/Sales
2.82
Dividend Yield (Trailing)
1.05%
Dividend Yield (Forward)
1.17%
Total Yield
3.46%

Company Profile

American Express is a global financial institution, operating in about 130 countries, that provides consumers and businesses charge and credit card payment products. The company also operates a highly profitable merchant payment network. Since 2018, it has operated in three segments: global consumer services, global commercial services, and global merchant and network services. In addition to payment products, the company's commercial business offers expense management tools, consulting services, and business loans.
Sector
Financial Services
Industry
Credit Services
Stock Style Box
Large Core
Total Number of Employees
74,600
Website
https://www.americanexpress.com

Competitors

Valuation

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Metric
AXP
DFS
COF
Price/Earnings (Normalized)
 19.7011.0511.76
Price/Book Value
 5.982.280.96
Price/Sales
 2.821.911.53
Price/Cash Flow
 11.313.723.09
Price/Earnings
AXP
DFS
COF

Financial Strength

Metric
AXP
DFS
COF
Quick Ratio
 ———
Current Ratio
 ———
Interest Coverage
 ———
Quick Ratio
No chart available

Profitability

Metric
AXP
DFS
COF
Return on Assets (Normalized)
 3.77%2.12%1.02%
Return on Equity (Normalized)
 34.77%22.27%8.78%
Return on Invested Capital (Normalized)
 ———
Return on Assets
AXP
DFS
COF
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