American Express (AXP) AI Stock Analysis

• Market Cap: $216.19B
• Dividend Yield: 1.05%
• Average Volume (3M): 2.50M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 1.21
• Revenue Growth: 8.45%
• EPS Growth: 17.89%
• Country: US
• Employees: 75,100
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Credit Services
• EPS (TTM): 3.64
• Shares Outstanding: 700,588,870
• 10 Day Avg. Volume: 2,970,400
• 30 Day Avg. Volume: 2,496,336
• PEG Ratio: 9.80
• Price to Book (P/B): 6.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.09
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 3.49
• Enterprise Value/Ebitda: 3.74
• 1Y Price Target: $293.33
• Price Target Upside: -7.52% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 78 Outperform
• Price Target: $351.00 ▲(10.66%Upside)

American Express demonstrates solid financial performance and positive earnings call insights, which are the primary drivers of its overall score. While the technical analysis shows positive momentum, potential overbought signals suggest caution. The valuation is moderate, with some growth potential, but the relatively low dividend yield may not appeal to all investors.

Positive Factors

Card Refresh

AmEx's planned US Platinum refresh should refill the card fee revenue bucket for another 12-24 months of elevated growth.

Market Leadership

AmEx is expected to retain its leadership position in the premium and small-medium enterprise markets.

Negative Factors

Competition

Premium card competition appears to be increasing, with Chase entering the Super-premium business card space.

Rising Costs

Investors will have to watch for rising rewards cost as premium card competition intensifies.

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 exhibits strong financial performance with robust revenue and profit growth, efficient cash flow management, and stable leverage ratios. While operational margins can be improved, the company's profitability and prudent balance sheet management make it financially sound within the credit services industry.

Income Statement

American Express has demonstrated strong income statement metrics with a TTM Gross Profit Margin of 78.7% and a Net Profit Margin of 15.1%. The Revenue Growth Rate from the previous year was 34.7%, indicating robust revenue expansion. However, the EBIT margin of 14.0% suggests room for improvement in operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low Debt-to-Equity Ratio of 0.05, reflecting prudent leverage management. However, the Equity Ratio of 11.1% indicates a moderate level of equity financing. Return on Equity (ROE) is strong at 32.9%, showcasing effective use of shareholder funds.

Cash Flow

Cash flow metrics are positive, with a stable Free Cash Flow to Net Income Ratio of 1.14 and a solid Operating Cash Flow to Net Income Ratio of 1.29, indicating efficient cash conversion. Despite a slight decline in Free Cash Flow Growth Rate of -3.2% compared to the previous year, cash flows remain strong.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	75.33B	74.20B	67.36B	55.63B	44.43B	38.34B
Gross Profit	62.05B	60.76B	55.59B	50.68B	44.57B	31.51B
EBITDA	14.80B	14.57B	12.16B	11.21B	12.38B	5.84B
Net Income	10.28B	10.13B	8.37B	7.51B	8.06B	3.13B
Balance Sheet
Total Assets	282.24B	271.46B	261.11B	228.35B	188.55B	191.37B
Cash, Cash Equivalents and Short-Term Investments	52.41B	41.51B	48.65B	38.39B	24.50B	54.47B
Total Debt	52.80B	51.09B	49.16B	43.92B	40.92B	44.83B
Total Liabilities	251.04B	241.20B	233.05B	203.64B	166.37B	168.38B
Stockholders Equity	31.20B	30.26B	28.06B	24.71B	22.18B	22.98B
Cash Flow
Free Cash Flow	11.32B	12.14B	17.00B	19.22B	13.10B	4.11B
Operating Cash Flow	13.26B	14.05B	18.56B	21.08B	14.64B	5.59B
Investing Cash Flow	-20.81B	-24.40B	-24.43B	-33.69B	-10.53B	11.63B
Financing Cash Flow	5.90B	4.44B	18.38B	24.51B	-14.93B	-9.07B

American Express Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 317.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXP, the sentiment is Positive. The current price of 317.19 is above the 20-day moving average (MA) of 299.72, above the 50-day MA of 287.29, and above the 200-day MA of 285.01, indicating a bullish trend. The MACD of 5.88 indicates Negative momentum. The RSI at 71.69 is Negative, neither overbought nor oversold. The STOCH value of 92.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AXP.

American Express Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
V	82 Outperform	$669.51B	35.12	50.03%	0.68%	10.19%	12.45%
DFS	78 Outperform	$50.34B	10.69	28.29%	1.40%	9.42%	128.55%
AXP	78 Outperform	$216.19B	21.56	34.02%	1.05%	8.45%	17.89%
PYPL	76 Outperform	$71.16B	16.42	22.20%	―	4.50%	12.82%
COF	76 Outperform	$133.17B	17.47	7.90%	1.14%	6.98%	-6.76%
MA	70 Outperform	$499.15B	38.56	188.92%	0.56%	12.94%	13.22%
Sector *	67 Neutral	$16.66B	11.44	9.71%	3.92%	11.61%	-10.70%

American Express Corporate Events

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.

American Express Reports Strong Q1 2025 Financial Results

On April 17, 2025, American Express reported strong financial results for the first quarter of 2025, with a revenue increase of 7% to $17.0 billion, or 8% on an FX-adjusted basis, and earnings per share rising by 9% to $3.64. The company maintained its full-year guidance for revenue growth and EPS, driven by higher net interest income, increased Card Member spending, and strong card fee growth. Despite a slight decrease in provisions for credit losses, consolidated expenses rose by 10% due to higher customer engagement costs and increased operating expenses. American Express continues to focus on long-term growth, emphasizing customer support, disciplined expense management, and strategic investments.

American Express Reports Stable Delinquency Rates Q1 2025

In a recent release, American Express reported its delinquency and write-off statistics for U.S. Consumer and U.S. Small Business Card Member lending portfolios for the first quarter of 2025. The data indicates stable delinquency rates and slight variations in write-off rates, reflecting the company’s ongoing efforts to manage credit risk effectively. The reclassification of Lowe’s small business cobrand portfolio loans as held for sale, effective December 2024, is a notable change in their balance sheet reporting, potentially impacting future financial statements.