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Upturn AI SWOT - About
AXP 
American Express Company (AXP)
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Upturn Advisory Summary
04/01/2025: AXP (3-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit 22.24% | Avg. Invested days 49 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 188.63B USD | Price to earnings Ratio 19.19 | 1Y Target Price 312.87 |
Price to earnings Ratio 19.19 | 1Y Target Price 312.87 | ||
Volume (30-day avg) 3225041 | Beta 1.21 | 52 Weeks Range 212.82 - 326.27 | Updated Date 03/31/2025 |
52 Weeks Range 212.82 - 326.27 | Updated Date 03/31/2025 | ||
Dividends yield (FY) 1.22% | Basic EPS (TTM) 14.02 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 16.67% | Operating Margin (TTM) 17.83% |
Management Effectiveness
Return on Assets (TTM) 3.8% | Return on Equity (TTM) 34.74% |
Valuation
Trailing PE 19.19 | Forward PE 17.33 | Enterprise Value 203389272064 | Price to Sales(TTM) 3.1 |
Enterprise Value 203389272064 | Price to Sales(TTM) 3.1 | ||
Enterprise Value to Revenue 3.6 | Enterprise Value to EBITDA - | Shares Outstanding 701110016 | Shares Floating 548958592 |
Shares Outstanding 701110016 | Shares Floating 548958592 | ||
Percent Insiders 21.75 | Percent Institutions 65.61 |
Analyst Ratings
Rating 3.32 | Target Price 299.75 | Buy 4 | Strong Buy 6 |
Buy 4 | Strong Buy 6 | ||
Hold 14 | Sell 1 | Strong Sell 3 | |
Strong Sell 3 |
Upturn AI SWOT
American Express Company
Company Overview
History and Background
American Express was founded in 1850 as an express mail business in Buffalo, New York. It evolved into a travel and financial services company, introducing the traveler's cheque in 1891 and its first charge card in 1958. It went public in 1977.
Core Business Areas
- Global Consumer Services Group: Offers a range of card products and services to consumers globally, including charge and credit cards, travel services, and loyalty programs.
- Global Commercial Services: Provides payment and expense management solutions to businesses of all sizes, including corporate cards, business travel solutions, and supplier payments.
- Global Merchant and Network Services: Operates the American Express network, processing transactions and acquiring merchants. It also provides marketing and data analytics services to merchants.
Leadership and Structure
Stephen J. Squeri serves as the Chairman and Chief Executive Officer. The company operates with a hierarchical structure, with various executive vice presidents and senior vice presidents leading different business units and functions.
Top Products and Market Share
Key Offerings
- Charge Cards (e.g., Platinum, Gold): Charge cards with high spending limits, travel rewards, and premium benefits. Competitors include Visa Infinite and Mastercard World Elite cards. Difficult to specify market share, however charge cards account for a significant portion of the companies revenue. Competitors include Chase, Capital One and Citibank
- Credit Cards (e.g., Delta SkyMiles, Hilton Honors): Co-branded credit cards offering airline miles or hotel points. Competitors include Chase Sapphire Preferred, Capital One Venture X. Difficult to specify market share, however credit cards account for a significant portion of the companies revenue. Competitors include Chase, Capital One and Citibank
- Corporate Cards: Expense management solutions for businesses of all sizes. Competitors include Visa and Mastercard business cards issued by various banks. Difficult to specify market share. Competitors include Chase, Capital One and Citibank
Market Dynamics
Industry Overview
The payment processing industry is highly competitive and evolving rapidly, driven by technological innovation and changing consumer preferences. Key trends include the growth of digital payments, the rise of fintech companies, and increasing regulatory scrutiny.
Positioning
American Express differentiates itself through its premium brand, affluent customer base, and focus on travel and entertainment rewards. Its closed-loop network provides it with valuable data and allows it to offer customized services to merchants and cardmembers.
Total Addressable Market (TAM)
The global payments market is estimated to be worth trillions of dollars. American Express focuses on capturing a share of this market by focusing on a affluent consumers and corporate travel spending.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Affluent customer base
- Closed-loop network
- Premium rewards program
- Strong merchant relationships
Weaknesses
- Higher merchant fees compared to Visa and Mastercard
- Concentration on travel and entertainment spending
- Susceptibility to economic downturns affecting discretionary spending
Opportunities
- Expansion into new markets and customer segments
- Growth of digital payments and e-commerce
- Partnerships with fintech companies
- Development of new products and services
Threats
- Increased competition from Visa, Mastercard, and fintech companies
- Economic downturns affecting consumer spending
- Data breaches and security risks
- Regulatory changes
Competitors and Market Share
Key Competitors
- Visa (V)
- Mastercard (MA)
- Capital One (COF)
Competitive Landscape
American Express's advantage lies in its brand and customer loyalty. Its disadvantage is higher merchant fees. Visa and Mastercard have greater acceptance. Fintechs are disrupting traditional payment models.
Major Acquisitions
Cake Technologies
- Year: 2019
- Acquisition Price (USD millions): 13
- Strategic Rationale: Acquisition of a restaurant technology platform to enhance dining experiences for card members.
Growth Trajectory and Initiatives
Historical Growth: American Express's growth has been driven by increased card spending, new customer acquisition, and expansion into new markets.
Future Projections: Analyst estimates suggest continued growth in revenue and earnings, driven by digital payments and international expansion.
Recent Initiatives: Recent initiatives include investments in digital platforms, partnerships with fintech companies, and expansion of its rewards program.
Summary
American Express is a strong company with a well-established brand and loyal customer base. Its premium rewards program and closed-loop network are key strengths. However, it faces increasing competition from Visa, Mastercard, and fintech companies, and needs to adapt to the evolving payments landscape to maintain its market position.
Similar Companies
- V
- MA
- COF
- DFS
- PYPL
Sources and Disclaimers
Data Sources:
- Company filings (SEC)
- Industry reports
- Analyst estimates
- Market Share Data from Nilson Report 2023.
Disclaimers:
This analysis is based on publicly available information and is for informational purposes only. It is not financial advice. Market share data varies based on source and calculation methodology.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About American Express Company
Exchange NYSE | Headquaters New York, NY, United States | ||
IPO Launch date 1972-06-01 | Chairman & CEO Mr. Stephen Joseph Squeri | ||
Sector Financial Services | Industry Credit Services | Full time employees 75100 | Website https://www.americanexpress.com |
Full time employees 75100 | Website https://www.americanexpress.com | ||
American Express Company, together with its subsidiaries, operates as 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's products and services include credit card, charge card, banking, and other payment and financing products; network services; expense management products and services; and travel and lifestyle services. It also provides merchant acquisition and processing, servicing and settlement, point-of-sale marketing, and information products and services for merchants; and fraud prevention services, as well as the design and operation of customer loyalty programs. In addition, the company leases and operates lounges at airports. It sells 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, direct mail, telephone, in-house sales teams, telephone, and direct response advertising. American Express Company was founded in 1850 and is based in New York, New York.
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