Fundamental Analysis
About American Express
American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success.
Reasons to buy – AMEX
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see AMEX makes a margin of about 17% on Net level. This means that out of $1 that it makes $0.17 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see net revenue growth of 12% in the revenue and the net profit figures grew by 31%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see AMEX makes a Return on Assets of 3.63% and Return of Equity of 33.32% which is pretty good. For a Financial behemoth like AMEX, maintaining a RoE of over 3% is a great achievement.
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.
FAMOUS INVESTORS: This stock is owned by the Great Warren Buffett so I suggest to go for it.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by AMEX to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
