Fact based stock research
American Express (NYSE:AXP)

US0258161092

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

American Express stock research in summary

americanexpress.com

ANALYSIS: With an Obermatt Combined Rank of 36 (worse than 64% compared with investment alternatives), American Express (Consumer Finance, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of American Express are low in value (priced high) with a consolidated Value Rank of 17 (worse than 83% of alternatives), and are riskily financed (Safety Rank of 44, which means above-average debt burdens) but show above-average growth (Growth Rank of 79). ...read more

RECOMMENDATION: A Combined Rank of 36, is a hold recommendation based on American Express's financial characteristics. As the company American Express shows low value with an Obermatt Value Rank of 17 (83% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 79% of comparable companies (Obermatt Growth Rank is 79). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 44 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for American Express, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	17
Growth Rank	79
Safety Rank	44
Combined Rank	36

Country	USA
Industry	Consumer Finance
Index	Dow Jones, Diversity USA, Renewables Users, S&P 500
Size class	XX-Large

This stock has achievements: Top 10 Stock.

27-Feb-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: American Express

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	23	26	17	17
GROWTH
GROWTH	79	69	77	79
SAFETY
SAFETY	59	50	47	44
SENTIMENT
SENTIMENT	81	88	95	^new
360° VIEW
360° VIEW	85	74	85	^new

Most recent update of the stock research: 27-Feb-2025. Financial reporting date used for calculating ranks: 31-Dec-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better American Express is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	23	26	17	17
GROWTH
GROWTH	79	69	77	79
SAFETY
SAFETY	59	50	47	44
COMBINED
COMBINED	57	45	47	36

Last update of combined financial performance: 27-Feb-2025. Stock analysis on combined financial performance: The higher the rank of American Express the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 17 (worse than 83% compared with alternatives), American Express shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for American Express. Price-to-Sales is 35 which means that the stock price compared with what market professionals expect for future profits is higher than 65% of comparable companies, indicating a low value concerning American Express's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 12, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of American Express. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 25 and Dividend Yield, which is lower than 57% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 17, is a sell recommendation based on American Express's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for American Express? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as American Express? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. American Express may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	48	55	31	35
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	19	34	23	25
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	13	10	12	12
DIVIDEND YIELD
DIVIDEND YIELD	51	49	43	43
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	23	26	17	17

Last update of Value Rank: 27-Feb-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of American Express; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 79 (better than 79% compared with alternatives) for 2025, American Express shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for American Express. Sales Growth has a rank of 59 which means that currently, professionals expect the company to grow more than 59% of its competitors. Capital Growth is also above 49% of competitors with a rank of 90, and Stock Returns with the rank of 65 is also an outperformance. Only Profit Growth is low with a rank of 49 which means that currently, professionals expect the company to grow its profits less than 51% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 79, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, American Express is a good growth stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	75	57	59	59
PROFIT GROWTH
PROFIT GROWTH	85	63	47	49
CAPITAL GROWTH
CAPITAL GROWTH	6	77	90	90
STOCK RETURNS
STOCK RETURNS	69	51	69	65
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	79	69	77	79

Last update of Growth Rank: 27-Feb-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of American Express.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 44 (better than 44% compared with alternatives), the company American Express has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of American Express is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for American Express and the other two below average. Refinancing is at 85, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 85% of its competitors. But Leverage is high with a rank of 17, meaning the company has an above-average debt-to-equity ratio. It has more debt than 83% of its competitors. Liquidity is also on the riskier side with a rank of 29, meaning the company generates less profit to service its debt than 71% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 44 (worse than 56% compared with alternatives), American Express has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for American Express are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with American Express and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	21	10	17	17
REFINANCING
REFINANCING	75	79	85	85
LIQUIDITY
LIQUIDITY	30	42	26	29
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	59	50	47	44

Last update of Safety Rank: 27-Feb-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of American Express and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	58	32	^new
OPINIONS CHANGE
OPINIONS CHANGE	69	72	77	^new
PRO HOLDINGS
PRO HOLDINGS	37	65	94	^new
MARKET PULSE
MARKET PULSE	86	73	80	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	81	88	95	^new

Last update of Sentiment Rank: 27-Feb-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for American Express.
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