Explain this page
Arphra AIPlain-English read on American Express Company’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Quality composite
BSolid
A snapshot of the latest fiscal year’s margins, returns on capital, balance-sheet strength and efficiency, computed from the income statement, balance sheet and cash-flow rows. Source income / balance / cash_flow.
Profitability
Gross margin83.2%
Operating margin17.1%
Net margin13.5%
ROE32.4%
ROA3.6%
ROIC24.9%
Liquidity & leverage
Current ratio0.28×
Quick ratio0.28×
Debt / equity1.73×
Net debt / EBITDA0.65×
Interest coverage2×
Efficiency & per-share
Asset turnover0.27×
Inventory days0
Days sales out.0
FCF / share$22.99
Book value / share$48.09
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | $211.61B | $257.12B | — | — | — | — |
| Enterprise value | — | — | — | $222.15B | $267.17B | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | 2.99 | 3.32 | — | — | — | — |
| EV / FCF | — | — | — | 18.30 | 16.69 | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | +4.79% | +4.21% | — | — | — | — |
| Free cash flow yield | — | — | — | +5.74% | +6.22% | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +100.31% | +91.11% | +82.52% | +81.89% | +83.23% | +80.81% | +81.20% | +83.35% | +81.43% |
| Operating margin | +24.06% | +17.23% | +15.61% | +17.38% | +17.14% | +16.47% | +17.03% | +16.52% | +17.21% |
| EBITDA margin | +27.87% | +20.15% | +18.06% | +19.64% | +19.35% | +19.00% | +18.90% | +19.47% | +19.36% |
| EBIT margin | +24.06% | +17.23% | +15.61% | +17.38% | +17.14% | +16.79% | +17.08% | +16.41% | +16.58% |
| Pre-tax margin | +24.06% | +17.23% | +15.61% | +17.38% | +17.14% | +16.22% | +16.94% | +16.35% | +16.73% |
| Net margin | +18.14% | +13.51% | +12.43% | +13.65% | +13.46% | +12.89% | +12.81% | +12.85% | +12.85% |
| Cost structure | |||||||||
| Cost of revenue / sales | -0.31% | +8.89% | +17.48% | +18.11% | +16.77% | +17.42% | +17.57% | +17.29% | +17.03% |
| R&D intensity | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| SG&A intensity | +25.95% | +22.85% | +19.71% | +19.19% | +18.97% | +19.53% | +18.72% | +18.77% | +19.67% |
| Effective tax rate | +24.60% | +21.61% | +20.35% | +21.45% | +21.47% | +21.50% | +20.25% | +22.02% | +21.61% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +36.34% | +30.41% | +29.85% | +33.47% | +32.36% | +31.89% | +31.26% | +31.94% | +31.91% |
| Return on assets (ROA) | +4.27% | +3.29% | +3.21% | +3.73% | +3.61% | +3.53% | +3.32% | +3.41% | +3.32% |
| Return on capital (ROC) | +16.94% | +13.97% | +13.62% | +15.85% | +15.12% | +14.69% | +15.45% | +14.56% | +15.16% |
| Return on invested capital (ROIC) | +12.77% | +10.95% | +10.84% | +12.45% | +11.87% | +11.49% | +11.62% | +11.33% | +11.32% |
| Asset turnover | +23.56% | +24.36% | +25.80% | +27.33% | +26.82% | +27.37% | +25.91% | +26.55% | +25.87% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +18.14% | +13.51% | +12.43% | +13.65% | +13.46% | +12.89% | +12.81% | +12.85% | +12.85% |
| Asset turnover (× revenue / assets) | +23.56% | +24.36% | +25.80% | +27.33% | +26.82% | +27.37% | +25.91% | +26.55% | +25.87% |
| Equity multiplier (× assets / equity) | +850.20% | +924.10% | +930.63% | +896.98% | +896.37% | +904.20% | +941.96% | +936.34% | +960.40% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 0.24 | 0.24 | 0.26 | 0.27 | 0.27 | 0.27 | 0.26 | 0.27 | 0.26 |
| Fixed-asset turnover | 8.91 | 10.67 | 11.40 | 12.02 | 11.31 | — | — | — | — |
| Inventory turnover | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 16.46 | — | — | — | — | — | — | — | — |
| Payables turnover | -0.01 | 0.41 | 0.90 | 0.97 | 0.92 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 22.18 | — | — | — | — | — | — | — | — |
| Days inventory outstanding (DIO) | — | — | — | — | — | — | — | — | — |
| Days payables outstanding (DPO) | -28378.75 | 895.56 | 406.45 | 377.14 | 397.74 | — | — | — | — |
| Cash conversion cycle | 28400.93 | -895.56 | -406.45 | -377.14 | -397.74 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 1.82 | 2.81 | 2.22 | 1.39 | 1.70 | 1.75 | 1.76 | 1.77 | 1.77 |
| FCF / Net income | 1.62 | 2.56 | 2.03 | 1.20 | 1.48 | 1.60 | 1.60 | 1.64 | 1.56 |
| FCF margin | +29.47% | +34.56% | +25.23% | +16.36% | +19.89% | +20.66% | +20.43% | +21.01% | +19.99% |
| OCF margin | +32.96% | +37.89% | +27.55% | +18.94% | +22.90% | +22.53% | +22.57% | +22.70% | +22.77% |
| CapEx / Revenue | +3.49% | +3.33% | +2.32% | +2.58% | +3.01% | +2.57% | +2.56% | +2.57% | +2.57% |
| CapEx / D&A | 0.91 | 1.14 | 0.95 | 1.14 | 1.36 | — | — | — | — |
| Stock-based comp / Revenue | +0.74% | +0.67% | +0.67% | +0.68% | +0.68% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 10.02 | 9.84 | 11.21 | 14.02 | 15.38 | 17.68 | 20.15 | 23.01 | 26.48 |
| EPS · basic | 10.03 | 9.85 | 11.23 | 14.04 | 15.41 | 17.54 | 20.36 | 23.06 | 26.47 |
| Book value / share | 28.07 | 32.86 | 38.12 | 42.45 | 48.09 | 46.42 | 50.56 | 54.16 | 59.23 |
| Tangible BV / share | 23.00 | 27.63 | 32.76 | 36.40 | 40.96 | 46.42 | 50.56 | 54.16 | 59.23 |
| Sales / share | 56.24 | 73.97 | 91.53 | 104.07 | 115.61 | 114.88 | 123.39 | 134.63 | 147.14 |
| Operating CF / share | 18.54 | 28.03 | 25.22 | 19.71 | 26.48 | 25.88 | 27.85 | 30.56 | 33.50 |
| Free cash flow / share | 16.58 | 25.56 | 23.09 | 17.03 | 22.99 | 23.74 | 25.21 | 28.29 | 29.42 |
| Dividends / share | 1.83 | 2.08 | 2.42 | 2.80 | 3.26 | 3.09 | 3.29 | 3.75 | 4.08 |
| Payout ratio | +17.97% | +20.83% | +21.26% | +19.74% | +20.96% | +20.89% | +20.81% | +21.69% | +21.58% |
| Retention ratio | +82.03% | +79.17% | +78.74% | +80.26% | +79.04% | +79.11% | +79.19% | +78.31% | +78.42% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +25.20% | +21.10% | +10.15% | +8.44% | -1.29% | +8.84% | +8.22% | +10.10% | +11.08% |
| Gross profit · YoY | — | +13.72% | +9.69% | +9.30% | +10.22% | -4.16% | +9.36% | +11.08% | +7.56% | +8.22% |
| Profit | ||||||||||
| Operating income · YoY | — | -10.33% | +9.68% | +22.66% | +6.98% | -5.16% | +12.53% | +4.95% | +14.72% | +6.53% |
| EBITDA · YoY | — | -9.47% | +8.50% | +19.79% | +6.87% | -3.08% | +8.26% | +11.51% | +9.47% | +6.14% |
| Net income · YoY | — | -6.77% | +11.45% | +20.96% | +6.95% | -5.53% | +8.21% | +8.55% | +10.08% | +6.39% |
| Operating | ||||||||||
| EBIT · YoY | — | -10.33% | +9.68% | +22.66% | +6.98% | -3.31% | +10.69% | +3.98% | +11.22% | +6.03% |
| R&D · YoY | — | — | — | — | — | — | — | — | — | — |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | -1.80% | +13.92% | +25.07% | +9.70% | +14.95% | +13.99% | +14.19% | +15.08% | +12.92% |
| EPS · basic · YoY | — | -1.79% | +14.01% | +25.02% | +9.76% | +13.81% | +16.09% | +13.26% | +14.78% | +12.90% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $40.92B | $43.92B | $49.16B | $51.09B | $57.76B | $56.99B | $59.89B | $68.48B | $75.47B |
| Net debt | $19.4B | $10.38B | $2.63B | $10.54B | $10.05B | $7.74B | $7.27B | $10.93B | $13.48B |
| Net debt / EBITDA | 1.57 | 0.93 | 0.22 | 0.72 | 0.65 | 0.51 | 0.44 | 0.60 | 0.68 |
| Debt / equity | 1.85 | 1.78 | 1.75 | 1.69 | 1.73 | 1.78 | 1.69 | 1.82 | 1.82 |
| Debt / assets | +21.70% | +19.23% | +18.83% | +18.82% | +19.25% | +19.64% | +17.95% | +19.43% | +18.95% |
| Equity / assets | +11.76% | +10.82% | +10.75% | +11.15% | +11.16% | +11.06% | +10.62% | +10.68% | +10.41% |
| Coverage | |||||||||
| EBITDA / interest expense | 9.65 | 4.06 | 1.78 | 1.77 | 1.89 | 1.77 | 1.82 | 1.88 | 1.88 |
| Operating income / interest | 8.33 | 3.47 | 1.53 | 1.56 | 1.68 | 1.54 | 1.64 | 1.59 | 1.67 |
| Interest expense | $1.28B | $2.76B | $6.85B | $8.25B | $8.23B | $8.52B | $8.97B | $9.71B | $10.59B |
| Liquidity | |||||||||
| Current ratio | 0.27 | 0.31 | 0.33 | 0.27 | 0.28 | — | — | — | — |
| Quick ratio | 0.27 | 0.31 | 0.33 | 0.27 | 0.28 | — | — | — | — |
| Cash ratio | 0.22 | 0.27 | 0.32 | 0.26 | 0.28 | — | — | — | — |
| Working capital | -$71.81B | -$87.45B | -$96.96B | -$115.05B | -$122.27B | — | — | — | — |
| Working capital / revenue | -161.63% | -157.22% | -143.93% | -155.05% | -151.96% | — | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| P / E | — | — |
| P / B | — | — |
| EV / EBITDA | — | — |
| EV / Sales | 3.32x | 2.99x |
| Earnings yield | 4.2% | 4.8% |
| FCF yield | 6.2% | 5.7% |
Returns
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | — | — |
| ROE | 32.4% | 33.5% |
| ROA | 3.6% | 3.7% |
| ROIC | 8.3% | 8.7% |
Leverage & liquidity
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Debt / equity | — | — |
| Net debt / EBITDA | 0.65 | 0.72 |
| Interest coverage | — | — |
| Current ratio | 0.28x | 0.27x |
| Quick ratio | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).