1.17%
7.47%
18.09%
26.05%
58.89%
77.37%
145.59%
AI Spotlight on AXP
Company Description
American Express Company, together with its subsidiaries, provides charge and credit payment card products, and travel-related services worldwide.The company operates through three segments: Global Consumer Services Group, Global Commercial Services, and Global Merchant and Network Services.Its products and services include payment and financing products; network services; accounts payable expense management products and services; and travel and lifestyle services.
The company's products and services also comprise merchant acquisition and processing, servicing and settlement, point-of-sale marketing, and information products and services for merchants; and fraud prevention services, as well as the design and operation of customer loyalty programs.It sells its products and services to consumers, small businesses, mid-sized companies, and large corporations through mobile and online applications, third-party vendors and business partners, direct mail, telephone, in-house sales teams, and direct response advertising.American Express Company was founded in 1850 and is headquartered in New York, New York.
Market Data
| Last Price | 318.95 |
| Change Percentage | 1.17% |
| Open | 317 |
| Previous Close | 315.25 |
| Market Cap ( Millions) | 224683 |
| Volume | 1921393 |
| Year High | 326.27 |
| Year Low | 199.88 |
| M A 50 | 302.41 |
| M A 200 | 262.42 |
Financial Ratios
| FCF Yield | 5.87% |
| Dividend Yield | 0.88% |
| ROE | 34.09% |
| Debt / Equity | 185.15% |
| Net Debt / EBIDTA | 44.18% |
| Price To Book | 7.6 |
| Price Earnings Ratio | 22.83 |
| Price To FCF | 17.03 |
| Price To sales | 3.27 |
| EV / EBITDA | 14.26 |
News
- Jan -30 - 4 GARP Stocks That Investors Can Scoop Up for Maximum Returns
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- Jan -29 - VIRT or AXP: Which Is the Better Value Stock Right Now?
- Jan -28 - American Express Keeps The Premium Charges Going With Gen Z
- Jan -28 - 3 Consumer Stocks Call Option Traders Are Betting Big On
- Jan -27 - American Express Analysts Expect Gains From Strong Card Spending
- Jan -27 - American Express Analysts Increase Their Forecasts After Q4 Results
- Jan -25 - 3 Warren Buffett Dividend Growth Stocks That Just Hit All-Time Highs but Could Have More Room to Run in 2025
- Jan -25 - Warren Buffett Could Make Over $3 Billion in Dividend Income in 2025 From These 5 Stocks
- Jan -24 - Stock Market Today: Stocks Slip as Inflation Worries Rise
- Jan -24 - AmEx Q4 Earnings Beat Estimates on Strong Billed Business
- Jan -24 - What American Express earnings reveal about US consumer spending and economic trends
- Jan -24 - American Express CFO says spending picked up at year-end, thanks to millennials and Gen Z
- Jan -24 - Amex Has a First-Class Problem: Can Consumer Spending Really Keep Up?
- Jan -24 - Amex: Card Spending by Millennials and Gen Z Up 16%
- Jan -24 - American Express Company (AXP) Q4 2024 Earnings Call Transcript
- Jan -24 - Markets Await Existing Home Sales Data
- Jan -24 - Why American Express Stock Is Falling Today
- Jan -24 - Here's What Key Metrics Tell Us About American Express (AXP) Q4 Earnings
- Jan -24 - BA's $3.5B Loss, NVO Weight Loss Drug Trial, AXP Down on Strong Earnings
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> United States Consumer Services
Expected Growth : 10 %
What the company do ?
United States Consumer Services from American Express Company provides credit card and travel-related services to individual consumers in the United States.
Why we expect these perspectives ?
The 10% growth in United States Consumer Services from American Express Company is driven by increasing consumer spending, rising credit card adoption, and a growing e-commerce market. Additionally, Amex's rewards program, digital payment solutions, and strategic partnerships with merchants and fintech companies contribute to the segment's growth.
Segment n°2 -> Commercial Services
Expected Growth : 12 %
What the company do ?
American Express Commercial Services provide payment and expense management solutions to businesses, enabling them to streamline operations and optimize financial performance.
Why we expect these perspectives ?
American Express' Commercial Services segment growth is driven by increasing adoption of digital payments, expansion of global commerce, and rising demand for payment solutions among businesses. Additionally, strategic partnerships, innovative products, and enhanced customer experiences contribute to the 12% growth rate.
Segment n°3 -> International Card Services
Expected Growth : 9 %
What the company do ?
International Card Services from American Express Company provides payment solutions for international transactions, enabling businesses to process cross-border payments efficiently.
Why we expect these perspectives ?
American Express' International Card Services segment growth is driven by increasing global travel, cross-border e-commerce, and digital payments adoption. Strong brand recognition, premium product offerings, and strategic partnerships also contribute to growth. Additionally, expansion into new markets, particularly in Asia and Latin America, and investments in digital capabilities further support the segment's 9% growth.
Segment n°4 -> Global Merchant and Network Services
Expected Growth : 11 %
What the company do ?
Global Merchant and Network Services from American Express Company provides payment processing solutions to merchants, enabling them to accept Amex cards and other payment methods.
Why we expect these perspectives ?
American Express' Global Merchant and Network Services segment growth is driven by increasing online transactions, expansion into new markets, and strategic partnerships. The company's digital payment capabilities, such as Amex Pay, and its acquisition of Accertify, a fraud prevention and detection company, have also contributed to its growth.
Segment n°5 -> Corporate & Other
Expected Growth : 8 %
What the company do ?
Corporate & Other from American Express Company refers to the segment that includes corporate payments, foreign exchange, and other miscellaneous services.
Why we expect these perspectives ?
American Express' Corporate & Other segment growth of 8% is driven by increased demand for digital payment solutions, expansion of its commercial payment network, and growth in its merchant services business. Additionally, the company's strategic partnerships and investments in fintech companies have contributed to the segment's growth.
American Express Company Products
| Product Range | What is it ? |
|---|---|
| Charge and Credit Cards | American Express offers a range of charge and credit cards that provide rewards, benefits, and financial flexibility to individuals and businesses. |
| Travel Services | American Express provides travel-related services, including booking and planning tools, travel insurance, and concierge services. |
| Merchant Services | American Express offers payment processing and merchant services to businesses, enabling them to accept American Express cards and other payment methods. |
| Corporate Payments | American Express provides corporate payment solutions, including virtual cards, payment processing, and expense management tools. |
| Digital Payments | American Express offers digital payment solutions, including mobile payments, online payments, and contactless payments. |
| Business Financing | American Express provides business financing solutions, including working capital, invoice financing, and equipment financing. |
| FX International Payments | American Express offers foreign exchange and international payment services, enabling businesses to make and receive international payments. |
American Express Company's Porter Forces
Threat Of Substitutes
American Express faces moderate threat from substitutes such as digital payment methods like PayPal, Apple Pay, and Google Wallet. However, its strong brand recognition and rewards program help to mitigate this threat.
Bargaining Power Of Customers
American Express customers have high bargaining power due to the availability of alternative payment methods and the ease of switching to competitors. This forces the company to focus on customer retention and loyalty programs.
Bargaining Power Of Suppliers
American Express has a strong negotiating position with its suppliers, including merchants and financial institutions. This allows the company to maintain favorable terms and minimize costs.
Threat Of New Entrants
The threat of new entrants is low due to the high barriers to entry in the payment processing industry, including regulatory hurdles and the need for significant capital investments.
Intensity Of Rivalry
The payment processing industry is highly competitive, with American Express competing against established players like Visa, Mastercard, and Discover. This intense rivalry drives innovation and pricing pressure.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 63.66% |
| Debt Cost | 9.96% |
| Equity Weight | 36.34% |
| Equity Cost | 9.96% |
| WACC | 9.96% |
| Leverage | 175.21% |
American Express Company : Quality Control
American Express Company passed 5 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| COF | Capital One Financial Corporation operates as the financial services holding company for the Capital One Bank (USA), National Association; and Capital One, National Association, which provides various financial products and … |
| V | Visa Inc. operates as a payments technology company worldwide. The company facilitates digital payments among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It operates VisaNet, a transaction … |
| DFS | Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment services in the United States. It operates in two segments, Digital Banking and Payment Services. The … |
| BBDC | Barings BDC, Inc. (NYSE: BBDC) is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of … |
| PYPL | PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Barings BDC
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Capital One
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Discover
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Amex
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Visa
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