American Express (AXP)

Financials · $217B market cap · SEC CIK 0000004962

Next reports on Jan 28, 2027, after the close, with analysts expecting $4.33 in earnings per share.

52-week range $290.97 to $387.49. 17% below its 52-week high and 11% above its low.

The case for AXP

• Earns 36% back on shareholder equity.
• Revenue growing 9.0% year over year.
• Reasonably priced for its growth: 17.7× earnings, where 10%+ a year of growth plus a 1.5% dividend would justify about 25×.
• Has compounded revenue at 16.0% a year over five years.
• Gross margin of 60% absorbs cost shocks.
• Pays a modest 1.5% dividend.

The case against

• The price trend is weak (34/100): −12.2% over a year, −5.8% over three months, 17% below its 52-week high.
• Trailed the S&P 500 by 22 points over the past year.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
• Each factor except momentum is half fixed thresholds, half rank among the 76 Financials companies.

The financials

The financials, five years deep

Pulled from American Express's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What American Express says it does

Overview American Express is a global payments and premium lifestyle brand powered by technology. Founded in 1850 and headquartered in New York, American Express’ card-issuing, merchant-acquiring and card network businesses offer products and services to a broad range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Our range of products and services includes: • Credit and charge cards and complementary products and services, including travel, dining, lifestyle and expense management products and services • Banking and other payment and financing products and services, including deposits and non-card lending • Merchant acquisition and processing, servicing and settlement, fraud prevention, and point-of-sale marketing and information products and services • Network services These products and services are offered through various channels, including mobile and online…

Risk factors AXP lists in its 10-K

• Macroeconomic conditions are a major driver of our results of operations and changes in the business and economic environment may materially adversely affect our business
• Our business is subject to the effects of geopolitical conditions, weather, natural disasters and other catastrophic events
• Our operating results may materially suffer because of substantial and increasingly intense competition worldwide in the payments industry
• We face intense competition for partner relationships, which could result in a loss or renegotiation of these arrangements that could have a material adverse impact on our business and results of operations
• Our business is subject to evolving and comprehensive government regulation and supervision, which could materially adversely affect our results of operations and financial condition
• Surcharging, steering or other differential acceptance practices by merchants could materially adversely affect our business and results of operations
• Our brand and reputation are key assets of our Company, and our business may be materially affected by how we are perceived in the marketplace
• If we are not able to successfully invest in, and compete with respect to, technological developments and new products and services across all our businesses, our revenue and profitability could be materially adversely affected
• We may not be successful in realizing the benefits associated with our acquisitions, strategic alliances, joint ventures and investment activity, and our business and reputation could be materially adversely affected
• We may not be able to effectively manage the operational and compliance risks to which we are exposed
• A major information or cybersecurity incident could lead to reputational damage to our brand and material legal, regulatory and financial exposure, and could reduce the use and acceptance of our products and services
• The uninterrupted operation of our information systems is critical to our success and a significant disruption could have a material adverse effect on our business and results of operations
• Fraudulent activity associated with our products and services could have a material adverse effect on our business and results of operations
• Our use of models, including the data that underlie them, to manage risk and make business decisions may not be effective
• Our success is dependent on maintaining a culture that adheres to our values and upon our executive officers and other key personnel, and misconduct by or loss of personnel could materially adversely affect our business
• If we are not able to protect our intellectual property rights, or successfully defend against any infringement or misappropriation assertions brought against us, our revenue and profitability could be negatively affected
• Our operations, business, customers and partners could be adversely affected by climate-related risks
• We are exposed to credit risk and trends that affect Card Member spending and the ability of customers and partners to pay us, which could have a material adverse effect on our results of operations and financial condition
• Interest rate changes could materially adversely affect our earnings
• We are subject to capital adequacy and liquidity rules, and if we fail to meet our capital and liquidity requirements, our business would be materially adversely affected
• Adverse market conditions may significantly affect our access to, and cost of, capital and ability to meet liquidity needs
• Any reduction in our credit ratings could increase the cost of our funding from, and restrict our access to, the capital markets and have a material adverse effect on our results of operations and financial condition
• Adverse currency fluctuations and foreign exchange controls could decrease earnings we receive from our international operations
• An inability to attract or maintain deposits could materially adversely affect our liquidity position and our ability to fund our business
• The value of our investments may be adversely impacted by economic, political or market conditions

Filings

Other Financials companies