Does American Express have money to sustain growth?
 | By Rifka Kats | Macroaxis Story |
Inspite very weak forward-looking indicators, American Express displayed solid returns over the last few months and may actually be approaching a breakup point. Macroaxis considers American Express not too risky given 1 month investment horizon. American Express secures Sharpe Ratio (or Efficiency) of 0.3166 which signifies that the organization had 0.3166% of return per unit of standard deviation over the last 1 month. Our philosophy in foreseeing volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for American Express Company which you can use to evaluate future volatility of the firm. Please makes use of American Express Risk Adjusted Performance of 0.4092 and Mean Deviation of 0.882 to double-check if our risk estimates are consistent with your expectations.
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Reviewed by Vlad Skutelnik
The company has 62.55B in debt with debt to equity (D/E) ratio of 280.6 . This implies that the company may be unable to create cash to meet all of its financial commitments. American Express has Current Ratio of 1.78 which is typical for the industry and considered as normal. This firm dividends can provide a clue to current valuation of the stock. American Express one year expected dividend income is about $0.69 per share. Lets now check American Express Cash per Share. In accordance with recently published financial statements American Express Company has Cash per Share of 33.01 times. This is much higher than that of the Financial Services sector, and significantly higher than that of Credit Services industry, The Cash per Share for all stocks is notably lower than the entity.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include American Express income statement, its balance sheet, and the statement of cash flows. Potential American Express investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although American Express investors may use each financial statement separately, they are all related. The changes in American Express's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on American Express's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of American Express fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of American Express performance into the future periods or doing a reasonable stock valuation. The intrinsic value of American Express shares is the value that is considered the true value of the share. If the intrinsic value of American is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares American Express. Please read more on our fundamental analysis page. How effective is American Express in utilizing its assets?
American Express reports assets on its Balance Sheet. It represents the amount of American resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, American Express aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Consumer Finance space. To get a better handle on how balance sheet or income statements item affect American volatility, please check the breakdown of all its fundamentals.Are American Express Earnings Expected to grow?
The future earnings power of American Express involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of American Express factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. American Express stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of American expected earnings.
And What about dividends?
A dividend is the distribution of a portion of American Express earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. American Express dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. American one year expected dividend income is about USD1.69 per share.
As of 04/25/2024, Dividends Paid is likely to grow to about 1.9 B. Also, Dividend Yield is likely to grow to 0.02. | Last Reported | Projected for Next Year | ||
| Dividends Paid | 1.8 B | 1.9 B | |
| Dividend Yield | 0.01 | 0.02 | |
| Dividend Payout Ratio | 0.21 | 0.37 | |
| Dividend Paid And Capex Coverage Ratio | 85.53 | 89.80 |
Investing in dividend-paying stocks, such as American Express is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in American Express must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for American Express. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.American Express Gross Profit
American Express Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing American Express previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show American Express Gross Profit growth over the last 10 years. Please check American Express' gross profit and other fundamental indicators for more details.
Details
The entity has beta of 1.08. American Express returns are very sensitive to returns on the market. As market goes up or down, American Express is expected to follow. The latest increase in of American Express short term price appreciation could raise concerns from investors as the firm closed today at a share price of 106.86 on 2256445.000 in volume. The company directors and management have been quite successful with maneuvering the fund at opportune times to take advantage of all market conditions in January. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.0251. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. American Express preserves 6.62m of number of shares shorted. American Express is selling for 107.44. This is 0.48 percent up. Day Low was 106.86. American Express EBITDA Margin is increasing over the last 5 years. The recent value of American Express EBITDA Margin is 0.25. American Express Earnings Before Interest Taxes and Depreciation Amortization EBITDA is very stable at the moment. Additionally, American Express Total Liabilities is increasing over the last 5 years. All in all, our analysis show that American Express Moves indifferently to market moves. The corporate body is overvalued and projects chance of distress below average for the next 2 years. Our concluding buy vs hold vs sell advice on the corporate body is Strong Hold.
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