AXPAXP
US • —
$338.25
P/E
20.86
PEG
1.77
FCF Yield
—
Rev Growth YoY
+9.4% YoY
Gross Margin
61.0%
Health Score
6/10
D/E Ratio
6.28
Confidence
LOW
Business Snapshot
American Express (AXP) operates as a payments and financial services company, generating revenue primarily through discount revenue from merchant processing, card member fees, and net card member lending interest. The company operates in the highly competitive global payments industry, holding a strong position as a premium-branded network with a closed-loop model that integrates both merchant acceptance and card issuance. With a revenue growth rate of 9.4% year-over-year, American Express demonstrates solid financial scale as a large-cap company. The defining characteristic that sets American Express apart is its closed-loop network, which provides a data advantage and fosters stronger customer relationships compared to open-loop competitors.
Financial Health
Gross margin stands at a robust 61.0%, though a year-over-year comparison is not available to assess margin trends. Net margin of 14.1% indicates the company retains a reasonable portion of revenue as profit...
Risk Assessment
- DEBT / LIQUIDITY — Debt/equity of 6.28x indicates a highly leveraged capital structure, while the current ratio of 0.64x suggests potential difficulty in meeting short-term obligations.
- INSIDER — Insiders have been net selling over the last 90 days, with 0 buys and 1 sell, which is a cautionary signal about their view of the stock's value.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- EARNINGS QUALITY — Out of 4 recent quarters, the company beat estimates in 3, which is not a risk in itself, but the 1 miss does not provide a perfect track record....
Gross margin stands at a robust 61.0%, though a year-over-year comparison is not available to assess margin trends. Net margin of 14.1% indicates the company retains a reasonable portion of revenue as profit. The balance sheet is a point of concern, with a high Debt/Equity ratio of 6.28x, indicating significant leverage, and a Current Ratio of 0.64x, suggesting potential liquidity risk in covering short-term obligations. Return on equity is exceptional at 34.0%, reflecting the company's ability to generate substantial profit from shareholder equity. Free cash flow data is unavailable, preventing an assessment of organic cash generation and its capacity for dividends or reinvestment.
- DEBT / LIQUIDITY — Debt/equity of 6.28x indicates a highly leveraged capital structure, while the current ratio of 0.64x suggests potential difficulty in meeting short-term obligations. - INSIDER — Insiders have been net selling over the last 90 days, with 0 buys and 1 sell, which is a cautionary signal about their view of the stock's value. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - EARNINGS QUALITY — Out of 4 recent quarters, the company beat estimates in 3, which is not a risk in itself, but the 1 miss does not provide a perfect track record.
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