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American Express Co AXP

Morningstar Rating
$218.91 −0.75 (0.34%)
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Company Report

Strong New Card Acquisitions and Loan Growth Will More Than Offset Rising Credit Costs in 2024

American Express has enjoyed several years of accelerated growth as the company's payment volume benefited from a recovery in travel and entertainment spending while growing momentum with younger demographics drove record new card acquisitions. American Express' shift toward a younger cardholder base has also supported significant loan growth, with net interest income increasing more than 69% from 2021 to 2023. That said, American Express still generates nearly 80% of its revenue through noninterest income, with its largest source of revenue being the discount rate charged to merchants when they accept payments. This means that the level of consumer spending has a direct impact on the company's revenue.

Price vs Fair Value

AXP is trading at a 15% premium.
Price
$218.91
Fair Value
$981.00
Uncertainty
Medium
1-Star Price
$317.20
5-Star Price
$263.00
Economic Moat
Xfl
Capital Allocation
Lbfbbrtp

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

Trading Information

Previous Close Price
$219.66
Day Range
$217.24219.58
52-Week Range
$140.91220.38
Bid/Ask
$216.70 / $219.18
Market Cap
$158.46 Bil
Volume/Avg
665 / 3.2 Mil

Key Statistics

Price/Earnings (Normalized)
19.53
Price/Sales
2.67
Dividend Yield (Trailing)
1.10%
Dividend Yield (Forward)
1.10%
Total Yield
3.38%

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

Competitors

Valuation

Metric
AXP
COF
DFS
Price/Earnings (Normalized)
19.5310.8610.67
Price/Book Value
5.640.892.18
Price/Sales
2.671.421.92
Price/Cash Flow
10.932.863.60
Price/Earnings
AXP
COF
DFS

Financial Strength

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

Profitability

Metric
AXP
COF
DFS
Return on Assets (Normalized)
3.64%1.02%2.12%
Return on Equity (Normalized)
33.42%8.78%22.27%
Return on Invested Capital (Normalized)
Return on Assets
AXP
COF
DFS
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Credit Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
V
Visa Inc Class AYsvh$576.2 Bil
MA
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PYPL
PayPal Holdings IncStrrc$64.3 Bil
COF
Capital One Financial CorpNvcflh$51.7 Bil
DFS
Discover Financial ServicesTrpszt$30.1 Bil
SYF
Synchrony FinancialMzynd$16.5 Bil
ALLY
Ally Financial IncYkjq$11.2 Bil
SOFI
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WU
The Western Union CoVcclw$4.7 Bil

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