American Express CompanyAXP
NYSE • Financial Services
$316.45
P/E
20.33
PEG
0.02
FCF Yield
—
Rev Growth YoY
+557.0% YoY
Gross Margin
6151.0%
Health Score
5/10
D/E Ratio
6.28
Confidence
LOW
Business Snapshot
American Express is a globally recognised financial services company offering charge cards, credit cards, and travel-related services to consumers, small businesses, and corporations. It generates revenue through card fees, merchant discount rates, and net interest income, competing in the premium end of the payments and lending market. Based on the available valuation ratios and price data, AXP sits firmly in the large-cap tier.
Financial Health
**Score: 5/10** American Express shows eye-catching profitability metrics — a gross margin of 6,151% and a net margin of 1,395% reflect the accounting treatment typical of financial services firms, where revenue is reported net of funding costs, making these figures structurally distinct from industrial margins. However, the balance sheet raises concern: a debt/equity ratio of 6.28x signals a highly leveraged capital structure, which is common in financial services but still represents meaningful risk in a rising rate environment...
Risk Assessment
- **DEBT:** Debt/equity of 6.28x reflects a highly leveraged balance sheet, elevating sensitivity to interest rate movements and credit cycle deterioration. - **LIQUIDITY:** Current ratio of 0.64x means short-term liabilities exceed short-term assets, which could constrain operational flexibility in a stress scenario. - **DATA INTEGRITY:** Revenue growth of 557% YoY and net margins of 1,395% are statistically anomalous and likely reflect base-effect distortions, reducing the reliability of growth and margin signals. - **TECHNICAL TREND:** A confirmed death cross pattern — with price below both the 50-day and 200-day moving averages and a bearish MACD signal — points to deteriorating near-term price momentum. - **PRICE POSITION:** At $316.45, AXP sits 18.4% below its 52-week high of $387.49, suggesting the stock remains in a downtrend from recent peak levels. ---...