American Express Company (AXP) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: American Express Company

Updated on October 24, 2026 · accounts published on October 23, 2026

A highly profitable card business with steady growth and a long dividend record

American Express trades at a P/E of 17.9× over the last 12 months, 38 % above its sector median and 10 % above its own ten-year median.

• Is American Express expensive or cheap? Its P/E of 17.9× is 38 % above the sector median and higher than it was during 67 % of the last decade.
• How is the business doing? Over the last 12 months the operating margin reached 27 %, well above its 19 % average for fiscal 2014-2025.
• How strong is the balance sheet? Debt is 1.72 times equity over the last 12 months, while the dividend has risen for 11 straight fiscal years.
• What to expect from the next earnings? Analysts expect EPS of $4.30 in the report due January 29, 2027; the 2026 EPS consensus holds steady at $17.68.
• Is it a scalable, lightly leveraged business? Revenue per share grew 19.4 % a year in fiscal 2020-2025, far above the 6 % healthy bar, but debt fails the test.

Is American Express expensive or cheap?

American Express trades at a P/E of 17.9× over the last 12 months. That is 10 % above its ten-year median of 16.3× and 38 % above the 13.0× median of its sector. Over the past decade the multiple ranged from 9.0× to 28.2×, and it was lower than today 67 % of the time. Against its five-year average of 18.6×, the current P/E sits inside the normal band. The free cash flow yield of 9.3 % over the last 12 months is generous for that multiple. The stock is 16 % below its 52-week high.

How is the business doing?

Over the last 12 months revenue rose 8.4 % and earnings per share 9.7 %, so profit is growing a little faster than sales. The operating margin of 27 % in that period stands well above the 19 % average for fiscal 2014-2025 and the 17 % of fiscal 2025, a clear recent improvement in profitability. The net margin is 14 %. Return on equity reaches 34 %, a high figure, partly helped by a leveraged balance sheet. Earnings also turn into cash: free cash flow equalled 148 % of net income in fiscal 2025.

How strong is the balance sheet?

Over the last 12 months American Express carried debt of 1.72 times its equity, more than three times the 0.5 level considered prudent in financial services. That leverage is the main weak point in the data, and the reason its high return on equity deserves a careful read. Shareholder returns are steady and conservative: the dividend per share has risen for 11 consecutive fiscal years through 2025, and in fiscal 2025 the payout took only 21 % of earnings. The dividend yield is a modest 1.2 % over the last 12 months.

What to expect from the next earnings?

On October 23, 2026 American Express reported EPS of $4.68 against $4.50 expected, a 4.0 % beat, and it has topped estimates in 7 of the last 8 quarters. For the next report, due January 29, 2027, analysts expect EPS of $4.30. The 2026 EPS consensus barely moved in the last 30 days, from $17.65 to $17.68 across 20 analysts, and the revenue estimate is also stable, so expectations look settled. Of the 57 analysts covering the company, 23 say buy, 30 hold and 4 sell, a lukewarm balance.

Is it a scalable, lightly leveraged business?

Financial firms that are not banks are judged on how fast revenue grows, the fees they collect and the quality of their cash, because they should scale without much capital or borrowing. American Express passes three of five checks: revenue per share grew 19.4 % a year over fiscal 2020-2025 against a healthy bar of 6 %, return on equity of 34 % over the last 12 months beats 15 %, and free cash flow at 148 % of fiscal 2025 net income clears 90 %. It fails on the fiscal 2025 operating margin, 17 % against 30 %, and on debt of 1.72 times equity.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.