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American Express Co AXP

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Stock XNYS Rating as of
$245.89 +5.71 (2.38%)
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As of Delayed Price Closed
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Company Report

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American Express Earnings: Net Interest Income and Card Fees Drive Double-Digit Net Income Growth

Michael Miller

Wide-moat-rated American Express reported strong second-quarter earnings as it benefited from strong net interest income growth and the sale of Accertify. Net revenue increased 8% from last year and 3.4% from last quarter to $16.3 billion. Earnings per share increased 44% to $4.15, or 21% to $3.49 when excluding the gain on sale from Accertify. As we incorporate these results, we do not expect to materially alter our $197 fair value estimate. We see the shares as modestly overvalued.

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Price vs Fair Value

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AXP is trading at a 254% premium.
Price
$245.89
Fair Value
$885.00
Uncertainty
Medium
1-Star Price
$949.55
5-Star Price
$411.20
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
$240.18
Day Range
$241.88–246.39
52-Week Range
$140.91–253.73
Bid/Ask
$245.53 / $246.29
Market Cap
$174.81 Bil
Volume/Avg
2.2 Mil / 2.8 Mil

Key Statistics

Price/Earnings (Normalized)
19.30
Price/Sales
2.82
Dividend Yield (Trailing)
1.06%
Dividend Yield (Forward)
1.14%
Total Yield
4.09%

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
V
DFS
Price/Earnings (Normalized)
 19.3026.8312.59
Price/Book Value
 5.9313.242.38
Price/Sales
 2.8215.192.10
Price/Cash Flow
 11.1615.524.43
Price/Earnings
AXP
V
DFS

Financial Strength

Metric
AXP
V
DFS
Quick Ratio
 —0.94—
Current Ratio
 —1.37—
Interest Coverage
 —36.77—
Quick Ratio
AXP
V
DFS

Profitability

Metric
AXP
V
DFS
Return on Assets (Normalized)
 3.83%21.76%1.60%
Return on Equity (Normalized)
 35.39%50.81%17.20%
Return on Invested Capital (Normalized)
 —33.79%—
Return on Assets
AXP
V
DFS
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Credit Services Industry Comparables

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1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Visa Inc Class A
V
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MA
FrjwvwfXrcz$407.3 Bil
 PayPal Holdings Inc
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XxcltqjtQpcljq$61.0 Bil
 Capital One Financial Corp
COF
WhzrwjbxzZktrr$57.0 Bil
 Discover Financial Services
DFS
WhqyxlskyXzzjdfz$35.7 Bil
 Synchrony Financial
SYF
BxtkrhkhtShqk$20.1 Bil
 Ally Financial Inc
ALLY
GflynjvgcGcsl$13.4 Bil
 SoFi Technologies Inc Ordinary Shares
SOFI
BtzyyvwQsm$7.8 Bil
 The Western Union Co
WU
FrlxhwrlDvggp$4.3 Bil

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