American Express (AXP) AI Stock Analysis

• Market Cap: $206.43B
• Dividend Yield: 1.03%
• Average Volume (3M): 2.63M
• Price to Earnings (P/E): 20.8
• Beta (1Y): 1.25
• Revenue Growth: 8.03%
• EPS Growth: 6.26%
• Country: US
• Employees: 75,100
• Sector: Financial
• Sector Strength: 67
• Industry: Financial - Credit Services
• EPS (TTM): 4.08
• Shares Outstanding: 695,882,200
• 10 Day Avg. Volume: 2,294,859
• 30 Day Avg. Volume: 2,625,476
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 2.92
• Enterprise Value/Gross Profit: 3.54
• Enterprise Value/Ebitda: 15.43
• 1Y Price Target: $328.31
• Price Target Upside: 11.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 21

• Rating: 73 Outperform
• Price Target: $330.00 ▲(11.97% Upside)

American Express's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The company's robust revenue growth, high profitability, and strategic focus on premium products and international expansion are key strengths. However, technical analysis indicates bearish momentum, and the valuation is not particularly attractive, which tempers the overall score.

Positive Factors

Customer Growth

American Express acquired 3.1 million proprietary cards in the quarter, with a significant majority on fee-paying products.

Earnings

AXP reported 2Q EPS of $4.08, above our estimate of $3.92 and consensus of $3.89.

Negative Factors

Market Competition

Competition is expected to increase with JP Morgan, Citi, and Cap One boosting their premium card offerings.

Operating Expenses

Operating expenses were higher than expected, driven by increased salaries and professional fees.

American Express Business Overview & Revenue Model

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.

How the Company Makes Money

American Express generates revenue through several key streams: card fees, interest on outstanding balances, merchant discount revenues, and travel-related services. A significant portion of its income comes from the annual fees charged for its premium credit and charge cards. The company also earns interest income from cardholders who carry a balance on their credit cards. Merchant discount revenue is another substantial source of income, where American Express charges merchants a fee for processing transactions made with its cards. Additionally, the company offers a range of travel-related services, earning fees from travel bookings and related activities. Strategic partnerships with businesses and merchants further enhance fee-based income, supporting the company's robust financial performance.

American Express Financial Statement Overview

Summary

American Express presents a strong financial position with consistent revenue and profit growth, high profitability margins, and efficient cash flow management. The low debt levels and high ROE are significant strengths. However, the company should monitor high liabilities and investing cash outflows to maintain financial stability.

Income Statement

The company has demonstrated strong revenue growth over the years, with a TTM revenue of $70.6 billion, up from $55.6 billion in 2022. The gross profit margin remains high at approximately 82.9%, indicating a healthy profitability level. Net profit margin is solid at 14.3% TTM, showcasing efficient cost management. However, the EBITDA margin decreased slightly, signaling potential cost pressures.

Balance Sheet

The balance sheet reflects a solid equity position with a debt-to-equity ratio of 0.046, indicating low leverage. ROE is impressive at 31.4%, showing strong returns on equity. The equity ratio stands at 10.9%, suggesting a balanced asset financing strategy. However, the high total liabilities may pose a risk if growth slows down.

Cash Flow

The company exhibits robust cash flow generation, with a TTM free cash flow of $18.7 billion. Free cash flow has grown steadily, supported by strong operating cash flow to net income ratio of 1.94. The free cash flow to net income ratio of 1.85 indicates efficient cash conversion. Nonetheless, investing cash outflows remain high, which could impact future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	76.86B	74.20B	67.36B	55.63B	44.43B	38.34B
Gross Profit	63.44B	60.76B	55.59B	50.68B	44.57B	31.51B
EBITDA	14.56B	14.57B	12.16B	11.21B	12.38B	5.84B
Net Income	10.15B	10.13B	8.37B	7.51B	8.06B	3.13B
Balance Sheet
Total Assets	295.56B	271.46B	261.11B	228.35B	188.55B	191.37B
Cash, Cash Equivalents and Short-Term Investments	58.82B	41.51B	48.65B	38.39B	24.50B	54.47B
Total Debt	59.70B	51.09B	49.16B	43.92B	40.92B	44.83B
Total Liabilities	263.25B	241.20B	233.05B	203.64B	166.37B	168.38B
Stockholders Equity	32.31B	30.26B	28.06B	24.71B	22.18B	22.98B
Cash Flow
Free Cash Flow	11.10B	12.14B	17.00B	19.22B	13.10B	4.11B
Operating Cash Flow	13.09B	14.05B	18.56B	21.08B	14.64B	5.59B
Investing Cash Flow	-22.11B	-24.40B	-24.43B	-33.69B	-10.53B	11.63B
Financing Cash Flow	13.90B	4.44B	18.38B	24.51B	-14.93B	-9.07B

American Express Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 294.73
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXP, the sentiment is Negative. The current price of 294.73 is below the 20-day moving average (MA) of 306.18, below the 50-day MA of 305.30, and above the 200-day MA of 290.57, indicating a neutral trend. The MACD of -3.37 indicates Positive momentum. The RSI at 38.53 is Neutral, neither overbought nor oversold. The STOCH value of 28.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AXP.

American Express Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MA	80 Outperform	$511.71B	38.18	177.90%	0.52%	14.55%	13.25%
DFS	78 Outperform	$50.34B	10.69	28.29%	1.40%	9.42%	128.55%
PYPL	78 Outperform	$64.80B	14.86	22.92%	―	4.05%	13.85%
V	77 Outperform	$650.09B	33.31	51.18%	0.69%	11.38%	7.43%
AXP	73 Outperform	$206.43B	20.83	32.58%	1.03%	8.03%	6.26%
COF	68 Neutral	$135.58B	17.80	7.90%	1.16%	6.98%	-6.76%
Sector *	62 Neutral	C$15.26B	6.94	19.04%	5.60%	33.29%	-34.45%

American Express Corporate Events

American Express Issues $4 Billion in New Notes

On July 25, 2025, American Express issued $4 billion in aggregate principal amount of fixed-to-floating and floating rate notes, with maturities in 2029 and 2033. This issuance, under a senior indenture agreement with The Bank of New York Mellon, is part of the company’s strategic financial management, potentially impacting its capital structure and market positioning.

The most recent analyst rating on (AXP) stock is a Hold with a $290.00 price target. To see the full list of analyst forecasts on American Express stock, see the AXP Stock Forecast page.

American Express Expands Board with New Appointments

On July 23, 2025, American Express announced the election of Randal K. Quarles and Noel Wallace to its Board of Directors, increasing the board to 14 members. Mr. Quarles, with extensive experience in financial services and regulation, will join the Nominating, Governance, and Public Responsibility Committee and Risk Committee. Mr. Wallace, known for his leadership in global consumer brands, will join the Audit and Compliance Committee and Compensation and Benefits Committee. These appointments are expected to bring valuable perspectives and expertise to American Express, supporting its growth and strategic initiatives.

The most recent analyst rating on (AXP) stock is a Hold with a $290.00 price target. To see the full list of analyst forecasts on American Express stock, see the AXP Stock Forecast page.

American Express Reports Q2 2025 Financial Results

On July 18, 2025, American Express reported its financial results for the second quarter of 2025, highlighting a record revenue of $17.9 billion, a 9% increase year-over-year, and earnings per share of $4.08. Despite a slight decline in net income compared to the previous year, the company saw a 17% rise in adjusted EPS, excluding a prior year gain. The company reaffirmed its full-year guidance for revenue and EPS growth, driven by strong card member spending and demand for premium products. American Express also announced upcoming updates to its U.S. Consumer and Business Platinum Cards and the launch of the new Coinbase One Card on its network, indicating a strategic focus on maintaining its leadership in the premium card segment.

The most recent analyst rating on (AXP) stock is a Buy with a $350.00 price target. To see the full list of analyst forecasts on American Express stock, see the AXP Stock Forecast page.

American Express Reclassifies $1.6B in Loans for Sale

In a recent update, American Express disclosed delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member loans for the months ending June 30, May 31, and April 30, 2025. The company reclassified $1.6 billion of loans related to its Amazon small business co-brand portfolio to loans held for sale, impacting the reported figures for June 2025. The statistics reveal stable delinquency rates and write-off rates for both consumer and small business loans, with slight variations over the three months. This reclassification and the reported credit performance provide insights into the company’s financial health and operational adjustments, which may influence stakeholders’ perspectives on its market positioning.

The most recent analyst rating on (AXP) stock is a Hold with a $290.00 price target. To see the full list of analyst forecasts on American Express stock, see the AXP Stock Forecast page.

American Express Maintains Strong Capital Position

On July 1, 2025, American Express announced that the Federal Reserve set its preliminary Stress Capital Buffer requirement at 2.5 percent, effective from October 1, 2025, to September 30, 2026. This requirement, consistent with the previous year’s buffer, reaffirms the company’s strong capital position and supports its strategy of sustainable growth and shareholder returns. The company had previously increased its quarterly dividend by 17 percent and returned $5.4 billion to shareholders through share repurchases in the 12 months ending March 31, 2025.

The most recent analyst rating on (AXP) stock is a Hold with a $290.00 price target. To see the full list of analyst forecasts on American Express stock, see the AXP Stock Forecast page.

American Express Reclassifies $1.6 Billion in Loans

In a recent announcement, American Express reported delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member loans for March, April, and May 2025. Notably, effective June 1, 2025, the company reclassified approximately $1.6 billion in loans related to its Amazon small business cobrand portfolio as held for sale, impacting how these loans are reported in future financial statements. This reclassification could influence the company’s financial metrics and stakeholder perceptions, as it adjusts its balance sheet and loan portfolio management strategies.

The most recent analyst rating on (AXP) stock is a Hold with a $290.00 price target. To see the full list of analyst forecasts on American Express stock, see the AXP Stock Forecast page.

American Express Issues €1 Billion in Notes

On May 20, 2025, American Express issued €1,000,000,000 in Fixed-to-Floating Rate Notes due in 2032, under a senior indenture with The Bank of New York Mellon as trustee. This issuance is part of the company’s strategic financial operations, potentially impacting its financial structure and market positioning.

The most recent analyst rating on (AXP) stock is a Hold with a $290.00 price target. To see the full list of analyst forecasts on American Express stock, see the AXP Stock Forecast page.

American Express Reports Stable Loan Delinquency Rates

In a recent update, American Express reported delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios for February, March, and April 2025. The statistics showed stable delinquency rates at 1.4% for consumer loans and 1.6% for small business loans over the three months, while net write-off rates slightly decreased for both segments. This data, which excludes loans held for sale, provides insights into the company’s credit performance and reflects the impact of various factors such as loan mix and seasonal variability.

The most recent analyst rating on (AXP) stock is a Hold with a $290.00 price target. To see the full list of analyst forecasts on American Express stock, see the AXP Stock Forecast page.