American Express CompanyAXP
NYSE•Financial Services•Credit Services
American Express Company, together with its subsidiaries, operates as an integrated payments company in the United States, Europe, the Middle East and Africa, the Asia Pacific, Australia, New Zealand, Latin America, Canada, the Caribbean, and internationally. It operates through four segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services. The company offers credit and charge cards and complementary products and services, including travel, dining, and lifestyle and expense management products and services; and banking and other payment and financing products and services, including deposits and non-card lending. It also provides merchant acquisition and processing, servicing and settlement, fraud prevention, and point-of-sale marketing and information products and services, as well as network services. The company offers its products and services to consumers, small businesses, mid-sized companies, and large corporations through mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, in-house sales teams, direct mail, telephone, and direct response advertising. American Express Company was founded in 1850 and is headquartered in New York, New York.
as of March 2026
Are revenues and earnings expanding?
$74.17B in TTM revenue grew 10.5% YoY, reaching $18.91B last quarter. TTM EBITDA of $14.24B on operating income of $3.78B shows growth is flowing through. Net income of $11.22B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.
Is revenue turning into profit effectively?
Op. margin of 20.0% is up 0.4% YoY — cost efficiency is improving. Net margin at 15.7%. ROE of 33.0% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 20.8x P/E, the stock trades in line with market averages — fairly valued. P/S of 3.1x and P/B of 6.9x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.
Is the company financially stable?
With $308.89B in assets and $58.75B in long-term debt, the D/E of 1.7 reflects moderate leverage — debt is manageable but worth monitoring.
Is the business self-funding?
FCF of $2.65B on $3.80B in operating cash flow. The FCF / Net Income ratio of 0.2x indicates partial cash conversion — earnings quality needs attention. Cash reserves of $53.56B provide financial flexibility. Shares outstanding declined 2.3% YoY — buybacks are returning capital to shareholders.
Competitive analysis based on 65 quarters of fundamental data
Operating margins are stable at ~19.4%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 32.8% suggests a durable competitive advantage and efficient capital allocation.
Data-driven red flags and warnings across 65 quarters
Margins are stable or improving at ~19.2% — no sign of cost or pricing stress.
FCF covers net income by 1.2x on average — earnings are well-supported by cash generation.
D/E ratio is 1.7 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 4.3% — net buybacks are reducing shares outstanding and boosting per-share value.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~17.1% growth over the period. Strong demand durability.