MMarketMath

AXP

Fast growerQuality: High (91/100)

American Express · Financials · Consumer Finance

$337.33

52w 290.97 – 387.49

20y monthly, adjusted

Mkt cap

$227.8B

P/E

20.9

P/FCF

14.2

FCF yield

7.1%

ROE

32.4%

Shldr yield

3.6%

div 1.0% + bb 2.6%

What today's price assumes

At $227.8B, the market is pricing in 3.0% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 5.5% per year — expectations look undemanding relative to history.

Simple DCF per-share range: $361 · $403 · $502 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 7.4× across 14 years, AXP would trade near $203/share (25th–75th percentile: $153–$249); it trades at 12.4× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

+6.5%

Rev 5y

+13.5%

Rev 10y

+2.3%

EPS 5y

+32.5%

EPS 10y

+10.7%

FCF 5y

+31.2%

FCF 10y

+5.5%

Fundamentals

Fiscal 2008–2025, from SEC filings

Revenue

2008: $28.4B
2009: $24.5B
2010: $27.8B
2015: $32.8B
2016: $24.2B
2017: $24.8B
2018: $26.6B
2019: $28.2B
2020: $22.0B
2021: $27.7B
2022: $34.2B
2023: $37.2B
2024: $38.8B
2025: $41.3B
$0$20.0B$40.0B
08
15
18
21
24

Net income

2008: $2.7B
2009: $2.1B
2010: $4.1B
2015: $5.2B
2016: $5.4B
2017: $2.7B
2018: $6.9B
2019: $6.8B
2020: $3.1B
2021: $8.1B
2022: $7.5B
2023: $8.4B
2024: $10.1B
2025: $10.8B
$0$5.0B$10.0B
08
15
18
21
24

Free cash flow

2008: $6.8B
2009: $5.6B
2010: $8.1B
2015: $9.4B
2016: $6.9B
2017: $12.5B
2018: $7.6B
2019: $12.0B
2020: $4.1B
2021: $13.1B
2022: $19.2B
2023: $17.0B
2024: $12.1B
2025: $16.0B
$0$5.0B$10.0B$15.0B
08
15
18
21
24

Diluted shares (lower is better)

2008: 1.2B
2009: 1.2B
2010: 1.2B
2015: 1.0B
2016: 935.0M
2017: 886.0M
2018: 859.0M
2019: 830.0M
2020: 806.0M
2021: 790.0M
2022: 752.0M
2023: 736.0M
2024: 713.0M
2025: 696.0M
0500.0M1.0B
08
15
18
21
24

Margins

20%40%60%08101618202224
Net marginFCF margin

Capital returned (dividends + buybacks)

2008: $1.1B
2009: $924.0M
2010: $1.5B
2015: $5.7B
2016: $5.6B
2017: $5.6B
2018: $2.9B
2019: $1.4B
2020: $2.5B
2021: $9.1B
2022: $5.1B
2023: $5.4B
2024: $8.0B
2025: $8.1B
$0$2.5B$5.0B$7.5B
08
15
18
21
24

Cash vs long-term debt

$0$25.0B$50.0B$75.0B08101618202224
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q2'23: $9.4B
Q3'23: $9.4B
Q4'23: $9.6B
Q1'24: $9.3B
Q2'24: $9.8B
Q3'24: $9.7B
Q4'24: $10.0B
Q1'25: $9.6B
Q2'25: $10.3B
Q3'25: $10.4B
Q4'25: $10.9B
Q1'26: $10.5B
Q2'26: $11.2B
$0$5.0B$10.0B
23
24
24
25
26

Net income by quarter

Q2'23: $2.2B
Q3'23: $2.5B
Q4'23: $1.9B
Q1'24: $2.4B
Q2'24: $3.0B
Q3'24: $2.5B
Q4'24: $2.2B
Q1'25: $2.6B
Q2'25: $2.9B
Q3'25: $2.9B
Q4'25: $2.5B
Q1'26: $3.0B
Q2'26: $3.1B
$0$1.0B$2.0B$3.0B
23
24
24
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q2'26$11.2B+8.6%$3.1B+7.8%4.53$5.4B
Q1'26$10.5B+9.3%$3.0B+15.0%4.28$3.8B
Q4'25 *$10.9B+9.9%$2.5B+13.5%3.52$3.1B
Q3'25$10.4B+7.2%$2.9B+15.8%4.14$6.2B
Q2'25$10.3B+5.1%$2.9B−4.3%4.08$4.4B
Q1'25$9.6B+3.1%$2.6B+6.0%3.64$4.8B
Q4'24 *$10.0B+4.1%$2.2B+12.3%3.04$5.8B
Q3'24$9.7B+3.6%$2.5B+2.3%3.49−$1.8B
Q2'24$9.8B+4.1%$3.0B+38.7%4.15$4.5B
Q1'24$9.3B+5.6%$2.4B+34.2%3.33$5.6B
Q4'23 *$9.6B+5.4%$1.9B+23.0%2.62$6.8B
Q3'23$9.4B+7.4%$2.5B+30.4%3.30$8.2B
Q2'23$9.4B+7.5%$2.2B+10.7%2.89$3.9B

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue+6.5%+13.5%+2.3%+2.7%
Operating cash flow−4.4%+26.9%+5.6%+4.9%
Free cash flow−5.9%+31.2%+5.5%+4.7%
EPS (diluted)+16.0%+32.5%+10.7%+10.7%
Equity+10.6%+7.8%+4.9%+3.9%
LT debt+9.8%+5.6%+1.6%−1.1%
Diluted shares−2.5%−2.9%−3.6%−3.5%
Stock price+30.3%+16.7%+19.4%+15.2%

$100, 3 years ago

$221vs $176 in SPY

30.3% vs 20.7%/yr

$100, 5 years ago

$216vs $181 in SPY

16.7% vs 12.6%/yr

$100, 10 years ago

$590vs $412 in SPY

19.4% vs 15.2%/yr

$100, 15 years ago

$835vs $813 in SPY

15.2% vs 15.0%/yr

The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)

Last 5 years

$4.35

$156.0B created / $35.8B retained

Last 10 years

$3.65

$197.4B created / $54.1B retained

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

20.5%

OCF ÷ (equity + debt)

OCF / EV yield

7.8%

MC vs 10× OCF

1.23

≤1 = priced under 10× OCF

Debt / FCF

3.5y

SBC / FCF

3.4%

Owner earnings

$15.5B

OCF − capex − SBC

OE yield

6.8%

Share count 5y

−2.9%

per year; negative = buybacks

Growth engine (5y): reinvested 10.5% of operating cash flow at an incremental return of 141.1% — an organically fundable growth rate of about 14.8% per year (growth ≈ reinvestment rate × incremental ROIC).

Checklist

22 of 24 checks pass · 92%. Checks with structurally missing inputs are excluded.

Growth & Consistency

7/7

  • Revenue growth

    13.5% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    32.5% · 5y CAGR ≥ 5%

    pass
  • FCF growth

    31.2% · 5y CAGR ≥ 5%

    pass
  • Revenue rises consistently

    8 of 9 · up in ≥ 7 of last 10 years

    pass
  • FCF consistently positive

    10 of 10 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    10 of 10 · net income > 0 in ≥ 8 of last 10

    pass
  • Cash flow keeps up with sales

    26.9% vs 13.5% · OCF CAGR ≥ 0.9× revenue CAGR

    pass

Profitability

5/5

  • Net margin

    26.2% · ≥ 8%

    pass
  • Operating margin

    · ≥ 10%

    na
  • Gross margin stable or rising

    · no drop > 2 pts over 3y

    na
  • Return on equity

    32.4% · ≥ 12%

    pass
  • Cash ROIC

    20.5% · ≥ 12%

    pass
  • FCF margin

    38.7% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $18.4B vs NI $10.8B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

2/4

  • Debt payable from cash flow

    3.5y · LT debt ≤ 3× FCF

    fail
  • Cash cushion

    85% · cash ≥ 50% of LT debt

    pass
  • Leverage

    1.68 · LT debt ≤ 1.5× equity

    fail
  • Equity positive and compounding

    $33.5B · equity > 0 and grew over ~5y

    pass
  • Interest burden

    · interest ≤ 15% of operating income

    na

Capital Allocation

4/4

  • Share count flat or shrinking

    -2.9% · ≤ +0.5%/yr over ~5y

    pass
  • Stock comp restrained

    3% · SBC ≤ 15% of FCF

    pass
  • Distributions funded by FCF

    51% · dividends + buybacks ≤ 100% of FCF

    pass
  • Repurchases are a habit

    9 of 10 · buybacks in ≥ 5 of last 10 years

    pass

Valuation Discipline

4/4

  • FCF yield

    7.1% · ≥ 3%

    pass
  • Earnings multiple

    20.9 · P/E ≤ 25

    pass
  • Price asks less than history delivered

    3.0% vs 5.5% · implied FCF growth ≤ historical FCF CAGR

    pass
  • Shareholder yield

    3.6% · dividends + buybacks ≥ 2% of market cap

    pass

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
202541,30410,83315.3818,4282,42516,0032,2715,81455147,79256,38733,474696
202438,82510,12914.0114,0501,91112,1391,9996,02050440,64049,71530,264713
202337,2188,37411.2118,5591,56316,9961,7803,65045046,59647,86628,057736
202234,2197,5149.8521,0791,85519,2241,5653,50237533,91442,57324,711752
202127,7168,06010.0214,6451,55013,0951,4487,65233022,02838,67522,177790
202021,9743,1353.775,5911,4784,1131,4741,02924932,96542,95222,984806
201928,1596,7597.9913,6321,64511,9871,42228324,44657,83523,071830
201826,6076,9218,9301,3107,6201,3241,60028327,80858,42322,290859
201724,7802,74813,5401,06212,4781,2514,30028233,26355,80418,261886
201624,2355,3758,2911,3756,9161,2074,40025425,49446,99020,523935
201532,8185,16310,7061,3419,3651,1724,50023423,23948,06120,6731,003
201027,8194,0573.358,9358788,05786759028765466,41618,7941,195
200924,5232,8412,1301.546,3377225,61592402304,06477,30012,6371,171
200828,3653,5812,6992.327,7739776,79683621825620,55060,04111,8411,156

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.