Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of American Express Co

AXP · NYSE · Financial

Fundamental quality

EXCELLENT

93

out of 100

American Express Co fits the profile of a quality compounder: it pairs high return on capital (ROE 33.4%) with wide margins (net margin 26.6%) and a business that keeps growing (13% a year). On fundamental quality it scores 93 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

American Express is both the payments network and the issuing bank for its cards, focused on affluent customers and businesses. It earns from the fees it charges merchants and the annual fees on its premium cards, plus interest.

What will shape its future

  • Its customers' spending, which tends to hold up better in downturns given their affluent profile.
  • Its ability to attract younger customers with rewards cards.
  • Credit risk: since it also lends, it's hurt if customers stop paying.

Breakdown by area

I.Growth
86

EPS growth: 30.8% · Revenue growth: 13%

II.Profitability
95

Net margin: 26.6% · ROE: 33.4%

III.Financial health
95

FCF: 34.9%

Source: SEC EDGAR · TTM through 30/06/2026

The score includes +1 for dividend strength: 4 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 71 Financial companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 77%
ROEbeats 90%
Growthbeats 67%
Cash generationbeats 81%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

American Express Co strengths

  • Excellent free-cash-flow generation (FCF margin of 34.9%): profit turns into real cash.
  • Outstanding return on equity (ROE of 33.4%): it puts shareholder capital to good use.
  • Growing earnings per share (30.8% annualized).
  • Expanding margins: net margin has risen from 14% to 26% in recent years.

American Express Co risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

American Express Co historical evolution

YearRevenueNet incomeFree cash flowNet debt
202021,9743,1354,11311,865
202127,7168,06013,09519,415
202234,2197,51419,22410,551
202337,2188,37416,9962,563
202438,82510,12912,13910,449
202541,30410,83316,0039,966

Between 2020 and 2025, revenue went from $21,974M to $41,304M (+88%) and net income went from $3,135M to $10,833M (+246%). Meanwhile, its margins have widened (from 14% to 26%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+8.9%
  • Net income+11.2%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • FCF margin33.9%34.9%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$3.28

per share, yearly

21% of earnings

Payout

4 straight years raising it

Growth

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is American Express Co cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is American Express Co a good company to invest in?

In terms of business quality, American Express Co scores 93 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is American Express Co a profitable company?

Very. American Express Co shows a net margin of 26.6% and an ROE of 33.4%, typical of a highly profitable business.

Is American Express Co growing?

Its revenue has grown 13% annualized in recent years and its earnings per share 30.8%, and without interruption since 2020.

Does American Express Co generate cash?

Yes. It converts about 34.9% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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