NYSE · Financial Services

American Express Company

AXP · Credit Services

$338.00

▼ -2.54 (-0.75%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

B⤢

Net Income Margin 15.7%

Fin. Health

F⤢

Years to Pay Off Debt 20.3 yrs

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 6.78x

Cash Flow

B⤢

Free Cash Flow $2.7B

CapEx % of Net Income 38.7%

Owner Earnings $4.6B

Cash Flow

Free Cash Flow $2.7B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 38.7%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $4.6B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About American Express Company

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.

Metric Explanations

What each dimension measures and where the thresholds come from.

Market Data

Market Cap $230.6B

Enterprise Value $239.1B

P/E (TTM) 21.11

Dividend Yield 1.00%

Exchange NYSE

Key Margins

Gross Profit N/A

Operating Margin N/A

Net Margin 15.7%

Company Info

Sector Financial Services

Industry Credit Services

Employees 76800

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering American Express Company at $338.00.

The business passes only 2 of 6 of Graham's defensive criteria — well below his required standard.

At $338.00, the stock trades at a 388% premium to its Graham Number of $69.27. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	N/A•	N/A•	N/A
Operating Margin %	N/A•	N/A•	N/A
Net Income %	15.7%▲	13.0%•	N/A
Diluted EPS	4.28▲	3.53•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$308.9B	$300.1B	N/A
Total Debt	$60.4B▲	$57.8B•	N/A
Working Capital	N/A•	N/A•	N/A
Years to Pay Debt	20.34	23.46	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$2.7B▲	$2.3B•	N/A
Owner Earnings	$4.6B	$3.6B	N/A
CapEx % of Net Income	38.7%	29.3%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	0	-19,511
Tax Rate For Calcs	0	0
Total Unusual Items		-96,000	-123,000
Total Unusual Items Excluding Goodwill		-96,000	-123,000
Net Income From Continuing Operation Net Minority Interest	2,971,000	2,462,000
Reconciled Depreciation	468,000	462,000
Net Interest Income	4,692,000	4,522,000
Interest Expense	1,973,000	2,060,000
Interest Income	6,665,000	6,582,000
Normalized Income	2,971,000	2,538,489
Net Income From Continuing And Discontinued Operation	2,971,000	2,462,000
Diluted Average Shares	686,000	688,000
Basic Average Shares	685,000	687,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	2,938,000	2,429,000
Net Income Common Stockholders	2,938,000	2,429,000
Otherunder Preferred Stock Dividend	19,000	18,000
Preferred Stock Dividends	14,000	15,000
Net Income	2,971,000	2,462,000
Net Income Including Noncontrolling Interests	2,971,000	2,462,000
Net Income Continuous Operations	2,971,000	2,462,000
Tax Provision	807,000	628,000
Pretax Income	3,778,000	3,090,000
Special Income Charges		-96,000	-123,000
Selling General And Administration	3,962,000	4,117,000
Selling And Marketing Expense	1,480,000	1,612,000
General And Administrative Expense	2,482,000	2,505,000
Salaries And Wages	2,482,000	2,505,000
Total Revenue	18,908,000	18,981,000
Operating Revenue	18,908,000	18,981,000
Occupancy And Equipment	767,000	810,000
Professional Expense And Contract Services Expense	545,000	669,000
Other Non Interest Expense	8,604,000	8,784,000

Balance Sheet

	2026	2025	2024
Preferred Shares Number	1,600	1,600
Ordinary Shares Number	682,000	686,000
Share Issued	682,000	686,000
Net Debt	6,795,000	10,051,000
Total Debt	60,442,000	57,759,000
Tangible Book Value	33,995,000	28,511,000
Invested Capital	94,437,000	91,233,000
Net Tangible Assets	33,995,000	28,511,000
Common Stock Equity	33,995,000	33,474,000
Total Capitalization	92,745,000	89,862,000
Total Equity Gross Minority Interest	33,995,000	33,474,000
Stockholders Equity	33,995,000	33,474,000
Gains Losses Not Affecting Retained Earnings	-3,311,000	-3,277,000
Foreign Currency Translation Adjustments	-2,805,000	-2,783,000
Minimum Pension Liabilities	-495,000	-490,000
Unrealized Gain Loss	-11,000	-4,000
Retained Earnings	26,088,000	25,487,000
Additional Paid In Capital	11,081,000	11,126,000
Capital Stock	137,000	138,000
Common Stock	137,000	138,000
Total Liabilities Net Minority Interest	274,899,000	266,578,000
Employee Benefits		3,091,000	2,676,000
Non Current Deferred Liabilities		4,655,000	4,042,000
Non Current Deferred Revenue		4,655,000	4,042,000
Long Term Debt And Capital Lease Obligation	58,750,000	56,388,000
Long Term Debt	58,750,000	56,388,000
Current Debt And Capital Lease Obligation	1,692,000	1,371,000
Current Debt	1,692,000	1,371,000
Other Current Borrowings	1,692,000	1,371,000
Payables And Accrued Expenses	14,635,000	18,348,000
Current Accrued Expenses		2,247,000	2,121,000
Payables	14,635,000	16,101,000
Total Tax Payable		1,401,000	1,386,000
Income Tax Payable		1,401,000	1,386,000
Accounts Payable	14,635,000	14,700,000
Total Assets	308,894,000	300,052,000
Investments And Advances	2,626,000	1,043,000
Available For Sale Securities	1,724,000	217,000
Goodwill And Other Intangible Assets		4,963,000	4,310,000
Other Intangible Assets		90,000	123,000
Goodwill		4,873,000	4,187,000
Net PPE	7,240,000	7,116,000
Accumulated Depreciation	-12,441,000	-12,039,000
Gross PPE	19,681,000	19,155,000
Other Properties		19,155,000	16,914,000
Other Short Term Investments	902,000	826,000	1,192,000
Cash And Cash Equivalents	53,647,000	47,708,000
Cash Equivalents	205,000	658,000
Cash Financial	3,180,000	3,559,000
Cash Cash Equivalents And Federal Funds Sold	53,757,000	47,792,000

Cash Flow

	2026	2025	2024
Free Cash Flow	2,655,000	2,346,000
Repurchase Of Capital Stock	-1,911,000	-899,000
Repayment Of Debt	-1,524,000	-3,261,000
Issuance Of Debt	3,612,000	2,001,000
Issuance Of Capital Stock	7,000	9,000
Capital Expenditure	-1,149,000	-721,000
End Cash Position	53,757,000	47,792,000
Beginning Cash Position	47,792,000	54,706,000
Effect Of Exchange Rate Changes	57,000	120,000
Changes In Cash	5,908,000	-7,034,000
Financing Cash Flow	4,976,000	-154,000
Cash Flow From Continuing Financing Activities	4,976,000	-154,000
Cash Dividends Paid	-583,000	-583,000
Common Stock Dividend Paid
Net Common Stock Issuance	-1,904,000	-890,000
Common Stock Payments	-1,911,000	-899,000
Common Stock Issuance	7,000	9,000
Net Issuance Payments Of Debt	2,088,000	-1,287,000
Net Short Term Debt Issuance	110,000	-28,000
Short Term Debt Issuance	110,000
Net Long Term Debt Issuance	1,978,000	-1,259,000
Long Term Debt Payments	-1,524,000	-3,261,000
Long Term Debt Issuance	3,502,000	2,002,000
Investing Cash Flow	-2,872,000	-9,947,000
Cash Flow From Continuing Investing Activities	-2,872,000	-9,947,000
Net Investment Purchase And Sale	-1,737,000	136,000
Sale Of Investment	241,000	582,000
Purchase Of Investment	-1,978,000	-446,000
Net Business Purchase And Sale	-498,000	0
Sale Of Business		0	0
Purchase Of Business		0	-364,000
Net PPE Purchase And Sale	-1,149,000	-722,000
Sale Of PPE
Purchase Of PPE	-1,149,000	-721,000
Operating Cash Flow	3,804,000	3,067,000
Cash Flow From Continuing Operating Activities	3,804,000	3,067,000
Change In Working Capital	-910,000	-1,127,000
Change In Other Current Assets	-1,386,000	-1,448,000
Change In Payables And Accrued Expense	476,000	321,000
Change In Payable	476,000	321,000
Change In Account Payable	476,000	321,000
Other Non Cash Items	-324,000	-385,000
Stock Based Compensation	203,000	141,000
Deferred Tax	145,000	100,000
Deferred Income Tax	145,000	100,000
Depreciation Amortization Depletion	468,000	462,000
Depreciation And Amortization	468,000	462,000
Net Income From Continuing Operations	2,971,000	2,462,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $17.0B ▲ $18.9B +11.4%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Net Margin

Prior year: 15.2% ▲ 15.7% +0.5pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$18.9B/qtr (≈$75.6B ann.)

vs > $1.5B annualised revenue

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$2.7B

vs Positive

Operating Cash Flow

$3.8B

Latest quarter · Buffett's cash reality check

ROIC

N/A

Based on latest annual operating income

Market Cap / Net Assets

6.8x

Net Assets: $34.0B

Peers & Industry

No auto-detected peers for Credit Services. You can manually compare AXP against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

22.33%

High — management has strong skin in the game

Return on Equity (ROE)

8.7%

Adequate — returns are moderate

Return on Assets (ROA)

1.0%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$5.8B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+4.6% YoY

Debt is roughly stable

Leadership Team

Stephen Joseph Squeri

Chairman & CEO

Age 65

Pay: $17,287,408

0.582% of net income

Christophe Le Caillec

Chief Financial Officer

Age 58

Pay: $6,992,536

0.235% of net income

Raymond Donald Joabar

Group President of Global Commercial Services

Age 59

Pay: $6,363,786

0.214% of net income

Howard Martin Grosfield

Group President of US Consumer Services

Age 56

Pay: $6,975,740

0.235% of net income

Denise Pickett

President of Enterprise Shared Services

Age 59

Top Institutional Holders

Institution	% Owned	Shares
Berkshire Hathaway, Inc	22.22%	151,610,700
Blackrock Inc.	6.14%	41,910,309
Vanguard Capital Management LLC	4.84%	33,010,215
State Street Corporation	4.28%	29,227,721
JPMORGAN CHASE & CO	2.99%	20,408,323
Geode Capital Management, LLC	2.08%	14,166,474
Morgan Stanley	1.88%	12,808,752
Fisher Asset Management, LLC	1.36%	9,250,373

Risk Analysis

Beta (Market Risk)

1.06

Moderate volatility — moves slightly more than market

Short Interest

2.3% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

1.78x

Moderate leverage

Current Ratio

1.57x

Adequate liquidity

52-Week Price Range

Low: $288.34 Current: $338.00 High: $387.49

Currently at 50% of 52-week range