American Express Co (AXP) stock analysis

P/E below its 5-year median

American Express's P/E of 18.1 is below its own 5-year median of 19.1.

P/E above the industry

American Express's P/E of 18.1 is above the Finance services median of 11.8.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B above the industry

American Express's price-to-book of 6.05 is above the Finance services median of 0.83.

Trading above fair value

The share price of $323.11 is above our fair value estimate of $258.26.

Margin of safety under 20%

The price is 25.1% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 6.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 16.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 16.3% over the last twelve months, against a 5-year average of 28.1% a year.

Growing slower than the industry

Revenue grew 8.9% over the last twelve months; the Finance services median is 9.8%.

Guidance raised

American Express raised its full-year revenue growth outlook on Jul 24, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 35.9% over the last twelve months and averaged 33.6% over five years.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

American Express's return on equity of 35.9% is above the Finance services median of -33.5%.

Earnings grew over 5 years

Net income grew 28.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 27.9% over the last twelve months, against a 5-year average of 25.2%.

Net margin above the industry

American Express's net margin of 27.9% is above the Finance services median of -64.5%.

Low debt

Debt is 4.0% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 8.2% five years ago to 4.0%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 1246% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Elevated bankruptcy risk

The Altman Z-score is 0.74; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

American Express paid dividends worth 1.1% of the share price over the last twelve months.

Yield below Treasuries

The 1.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; American Express yields 1.1%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 20.4% of net income.

Covered by free cash flow

Dividends take 18.0% of free cash flow.