American Express Gross Profit vs. Cash And Equivalents
| AXP Stock | USD 304.68 0.43 0.14% |
Gross Profit | First Reported 1990-03-31 | Previous Quarter 11.2 B | Current Value 9.4 B | Quarterly Volatility 2.3 B |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.7 | 0.5717 |
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| Net Profit Margin | 0.096 | 0.1387 |
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| Operating Profit Margin | 0.29 | 0.1783 |
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| Pretax Profit Margin | 0.14 | 0.1742 |
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| Return On Assets | 0.0177 | 0.0321 |
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| Return On Equity | 0.18 | 0.2985 |
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For American Express profitability analysis, we use financial ratios and fundamental drivers that measure the ability of American Express to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well American Express utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between American Express's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of American Express over time as well as its relative position and ranking within its peers.
American |
American Express' Revenue Breakdown by Earning Segment
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Is Consumer Finance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Express. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Express listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.058 | Dividend Share 2.7 | Earnings Share 13.6 | Revenue Per Share 82.534 | Quarterly Revenue Growth 0.08 |
The market value of American Express is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Express' value that differs from its market value or its book value, called intrinsic value, which is American Express' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Express' market value can be influenced by many factors that don't directly affect American Express' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Express' value and its price as these two are different measures arrived at by different means. Investors typically determine if American Express is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Express' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
American Express Cash And Equivalents vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining American Express's current stock value. Our valuation model uses many indicators to compare American Express value to that of its competitors to determine the firm's financial worth. American Express is number one stock in gross profit category among its peers. It also is number one stock in cash and equivalents category among its peers creating about 1.18 of Cash And Equivalents per Gross Profit. At this time, American Express' Gross Profit is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value American Express by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.American Cash And Equivalents vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
American Express |
| = | 28.78 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
American Express |
| = | 34 B |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
American Cash And Equivalents Comparison
American Express is currently under evaluation in cash and equivalents category among its peers.
American Express Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in American Express, profitability is also one of the essential criteria for including it into their portfolios because, without profit, American Express will eventually generate negative long term returns. The profitability progress is the general direction of American Express' change in net profit over the period of time. It can combine multiple indicators of American Express, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -3.1 B | -2.9 B | |
| Operating Income | 10.8 B | 6.7 B | |
| Net Income | 8.4 B | 8.8 B | |
| Income Tax Expense | 2.1 B | 1.3 B | |
| Income Before Tax | 10.5 B | 5.4 B | |
| Total Other Income Expense Net | -249 M | -236.6 M | |
| Net Income Applicable To Common Shares | 8.5 B | 4.7 B | |
| Net Income From Continuing Ops | 8.4 B | 6.2 B | |
| Net Interest Income | 13.1 B | 9.2 B | |
| Interest Income | 20 B | 12.4 B | |
| Change To Netincome | 2.3 B | 2.3 B | |
| Net Income Per Share | 11.39 | 11.96 | |
| Income Quality | 2.22 | 2.72 | |
| Net Income Per E B T | 0.80 | 0.57 |
American Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on American Express. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of American Express position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the American Express' important profitability drivers and their relationship over time.
Use American Express in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Express position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Express will appreciate offsetting losses from the drop in the long position's value.American Express Pair Trading
American Express Pair Trading Analysis
The ability to find closely correlated positions to American Express could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Express when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Express - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Express to buy it.
The correlation of American Express is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Express moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Express moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Express can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your American Express position
In addition to having American Express in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Funds or Etfs that invest in the undervalued stocks of small to mid-sized companies. The Small Value Funds theme has 37 constituents at this time.
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Additional Tools for American Stock Analysis
When running American Express' price analysis, check to measure American Express' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Express is operating at the current time. Most of American Express' value examination focuses on studying past and present price action to predict the probability of American Express' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Express' price. Additionally, you may evaluate how the addition of American Express to your portfolios can decrease your overall portfolio volatility.