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American Express Company (NYSE: AXP) – Is this large market cap stock undervalued?

American Express Company (NYSE: AXP), is firmly in the large market cap category with market cap of 56227.46. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for American Express Company is 60.25 (with a change from open of 0.25%), this in conjunction with a target price of 67.18. Volume today has so far reached 2426906, with an average volume of about 4023.92. The GAP for this stock, is -0.97%.

The P/E ratio is 10.68, bringing the forward P/E to a value of 10.97. The current EPS for American Express Company, is 5.68, with a EPS growth for this year coming to a value of -9.80%. Performance has been interesting with performance year to date coming to -11.04%.

Looking further into the growth statistics for American Express Company, EPS is looking like it will grow 0.40% in the next year. Looking even further it is projected to be 7.72%. Quarter over quarter is 47.70% for EPS growth and for sales growth quarter over quarter it is -0.30%. Looking at past EPS growth statistics we see that for the past five years it has been 8.50%. Sales growth for the past five years has in fact been 2.80%.

Looking at the ownership, we see that the insider ownership is at 0.10% and institutional ownership is 84.50%. Shares outstanding is 926.47, while shares float is at a value of 921.97. Float short for American Express Company is 2.22% and the short ratio is 5.1.

In terms of debt, long term debt/equity is 2.45, while the total debt/equity comes to 5.19. The ability to meet these debts, means that the current ratio is *TBA, and the quick ratio is *TBA. The most recent gross margin is 71.80% and their operating margin is 24.90%. The profit margin is 15.90%.

American Express Company has seen returns on assets of 3.50%, and on investment, 4.00%. Return on equity is 26.30%. Price/Earnings to growth ratio is 1.38. Price/Sales ratio is at a value of 1.63, with Price/book ratio coming to 2.75 and Price/cash is 20, and finally Price/Free cash Flow is 7.9.

The simple moving averages are -6.14% and -2.07% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -20.86% and the 52 week low is 21.65%.

American Express Company has a dividend yield of 2.11%, with a current price of 60.25. The ability to pay this means the payout ratio is 20.40%. This is in an industry, Credit Services, with equally high dividends from other companies in this sector, which it is Financial. American Express Company is based in USA.

Performance in the Credit Services industry means that American Express Company has seen performance for the past week of -5.70%, with performance for the month coming to -5.23%. Looking at the data for the quarter it is at a value of -4.11%, and for the half year the performance is -19.23%. Volatility for this week is 1.61% and for the month this is 1.48%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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