AXPNEUTRAL

AXP Return on Equity (ROE) Analysis

34.4%

Higher than 86% of Financial Services sector peers

Updated 201h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, so a 34.4% rate means AXP is earning $0.344 for every $1 of equity invested.

Sector Performance

86th percentile

AXP

34.4%

Sector Median

13.3%

Sector Avg

19.5%

Prior Period

32.4%(Apr 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, so a 34.4% rate means AXP is earning $0.344 for every $1 of equity invested.

That is well above the Financial Services sector median of 12.9%, placing AXP in the 88th percentile among its peers, which signals above-average profitability. The year-over-year change, quarter-over-quarter change, and 8-quarter trend are all N/A, and the only available historical value is the current 34.4%, so there is no directional data to assess momentum. The high ROE combined with a flat trend reduces near-term downside risk from profitability, but the lack of trend data leaves uncertainty about whether this level is sustainable. This performance level supports the overall NEUTRAL verdict: the strong profitability is a positive, yet without trend information, there is no basis to upgrade the stock to a more favorable stance. The metric confirms the neutral outlook rather than contradicting it.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about AXP?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does AXP's Return on Equity (ROE) compare to its sector?

AXP's Return on Equity (ROE) of 34.4% compares to a Financial Services sector median of 13.3%, placing it in the 86th percentile.

Who are AXP's closest peers by Return on Equity (ROE)?

The closest Financial Services peers by Return on Equity (ROE) include: PFG (12.9%), HDB (13.8%), AFL (12.4%), ARES (12.3%), RF (11.9%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.