American Express Co Valuation – April 2019 #AXP

Company Profile (excerpt from Reuters): American Express Company, incorporated on June 10, 1965, together with its subsidiaries, is a global services company. The Company’s principal products and services are charge and credit card products, and travel-related services offered to consumers and businesses around the world. The Company’s segments include the Global Consumer Services Group (GCSG), Global Merchant and Network Services (GMNS), and Global Commercial Services (GCS). The Company’s range of products and services includes network services; merchant acquisition and processing, servicing and settlement, and point-of-sale marketing and information products and services for merchants; other fee services, including fraud prevention services and the design and operation of customer loyalty programs; expense management products and services, and stored value/prepaid products.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of AXP – April 2019

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass all 6 of the following tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $93,000,342,672 Pass
2. Earnings Stability Positive EPS for 10 years prior Pass
3. Dividend Record Dividend Payments for 10 years prior Pass
4. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 83.98% Pass
5. Moderate PEmg Ratio PEmg < 20 15.56 Pass
6. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 4.24 Fail
Enterprising Investor; must pass all 3 of the following tests, or be suitable for the Defensive Investor.
1. Earnings Stability Positive EPS for 5 years prior Pass
2. Dividend Record Currently Pays Dividend Pass
3. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $7.13
MG Growth Estimate 6.66%
MG Value $155.42
Opinion Undervalued
MG Grade B-
MG Value based on 3% Growth $103.32
MG Value based on 0% Growth $60.57
Market Implied Growth Rate 3.53%
Current Price $110.86
% of Intrinsic Value 71.33%

American Express Company is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the high PB ratio. The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $4.94 in 2015 to an estimated $7.13 for 2019. This level of demonstrated earnings growth outpaces the market’s implied estimate of 3.53% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into American Express Company revealed the company was trading above its Graham Number of $76.95. The company pays a dividend of $1.48 per share, for a yield of 1.3% Its PEmg (price over earnings per share – ModernGraham) was 15.56, which was below the industry average of 21.66, which by some methods of valuation makes it one of the most undervalued stocks in its industry.

American Express Company performs fairly well in the ModernGraham grading system, scoring a B-.

Stage 3: Information for Further Research

Graham Number $76.95
PEmg 15.56
PB Ratio 4.24
Dividend Yield 1.34%
TTM Dividend $1.48
Number of Consecutive Years of Dividend Growth 3

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2018
Long-Term Debt & Capital Lease Obligation $58,423,000,000
Total Assets $188,602,000,000
Intangible Assets $3,347,000,000
Total Liabilities $166,312,000,000
Shares Outstanding (Diluted Average) 853,000,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $10.00
Dec2018 $7.91
Dec2017 $2.99
Dec2016 $5.61
Dec2015 $5.05
Dec2014 $5.56
Dec2013 $4.88
Dec2012 $3.89
Dec2011 $4.12
Dec2010 $3.35
Dec2009 $1.54
Dec2008 $2.32
Dec2007 $3.36
Dec2006 $2.99
Dec2005 $2.97
Dec2004 $2.68
Dec2003 $2.30
Dec2002 $2.01
Dec2001 $0.98
Dec2000 $2.07
Dec1999 $1.81

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $7.13
Dec2018 $5.60
Dec2017 $4.57
Dec2016 $5.24
Dec2015 $4.94
Dec2014 $4.71
Dec2013 $4.04
Dec2012 $3.43
Dec2011 $3.11
Dec2010 $2.64
Dec2009 $2.40
Dec2008 $2.84
Dec2007 $3.02
Dec2006 $2.77
Dec2005 $2.50
Dec2004 $2.18
Dec2003 $1.90

Recommended Reading:

Other ModernGraham posts about the company

American Express Co Valuation – November 2018 $AXP
American Express Co. Valuation – February 2018 $AXP
5 Undervalued Dow Components to Research – March 2017
5 Undervalued Dow Components to Research – February 2017
10 Stocks for Using A Benjamin Graham Value Investing Strategy – January 2017

Other ModernGraham posts about related companies

Broadridge Financial Solutions Inc Valuation – April 2019 #BR
T.Rowe Price Group Inc Valuation – March 2019 #TROW
Moody’s Corp Valuation – March 2019 #MCO
Charles Schwab Corp Valuation – March 2019 #SCHW
Willis Towers Watson PLC Valuation – March 2019 #WLTW
Paypal Holdings Inc Valuation – March 2019 #PYPL
Synchrony Financial Valuation – March 2019 #SYF
CBRE Group Inc Valuation – March 2019 #CBRE
Franklin Resources Inc Valuation – March 2019 #BEN
S&P Global Inc Valuation – March 2019 #SPGI

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

American Express Co Valuation – November 2018 $AXP

Company Profile (excerpt from Reuters): American Express Company, incorporated on June 10, 1965, together with its subsidiaries, is a global services company. The Company’s principal products and services are charge and credit card products, and travel-related services offered to consumers and businesses around the world. The Company’s segments include the Global Consumer Services Group (GCSG), Global Merchant and Network Services (GMNS), and Global Commercial Services (GCS). The Company’s range of products and services includes network services; merchant acquisition and processing, servicing and settlement, and point-of-sale marketing and information products and services for merchants; other fee services, including fraud prevention services and the design and operation of customer loyalty programs; expense management products and services, and stored value/prepaid products.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of AXP – November 2018

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

 

Defensive Investor; must pass all 6 of the following tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $92,499,471,317 Pass
2. Earnings Stability Positive EPS for 10 years prior Pass
3. Dividend Record Dividend Payments for 10 years prior Pass
4. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 78.47% Pass
5. Moderate PEmg Ratio PEmg < 20 19.86 Pass
6. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 4.34 Fail
Enterprising Investor; must pass all 3 of the following tests, or be suitable for the Defensive Investor.
1. Earnings Stability Positive EPS for 5 years prior Pass
2. Dividend Record Currently Pays Dividend Pass
3. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $5.45
MG Growth Estimate 2.38%
MG Value $72.33
Opinion Overvalued
MG Grade C
MG Value based on 3% Growth $79.06
MG Value based on 0% Growth $46.35
Market Implied Growth Rate 5.68%
Current Price $108.28
% of Intrinsic Value 149.71%

American Express Company is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the high PB ratio. The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Overvalued after growing its EPSmg (normalized earnings) from $4.71 in 2014 to an estimated $5.45 for 2018. This level of demonstrated earnings growth does not support the market’s implied estimate of 5.68% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into American Express Company revealed the company was trading above its Graham Number of $59.68. The company pays a dividend of $1.34 per share, for a yield of 1.2% Its PEmg (price over earnings per share – ModernGraham) was 19.86, which was below the industry average of 33.02, which by some methods of valuation makes it one of the most undervalued stocks in its industry.

American Express Company receives an average overall rating in the ModernGraham grading system, scoring a C.

Stage 3: Information for Further Research

Graham Number $59.68
PEmg 19.86
PB Ratio 4.34
Dividend Yield 1.24%
TTM Dividend $1.34
Number of Consecutive Years of Dividend Growth 2

Useful Links:

 

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 9/1/2018
Long-Term Debt & Capital Lease Obligation $55,300,000,000
Total Assets $189,092,000,000
Intangible Assets $0
Total Liabilities $167,632,000,000
Shares Outstanding (Diluted Average) 860,000,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $7.46
Dec2017 $2.97
Dec2016 $5.65
Dec2015 $5.05
Dec2014 $5.56
Dec2013 $4.88
Dec2012 $3.89
Dec2011 $4.12
Dec2010 $3.35
Dec2009 $1.54
Dec2008 $2.32
Dec2007 $3.36
Dec2006 $2.99
Dec2005 $2.97
Dec2004 $2.68
Dec2003 $2.30
Dec2002 $2.01
Dec2001 $0.98
Dec2000 $2.07
Dec1999 $1.81
Dec1998 $1.54

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $5.45
Dec2017 $4.57
Dec2016 $5.25
Dec2015 $4.94
Dec2014 $4.71
Dec2013 $4.04
Dec2012 $3.43
Dec2011 $3.11
Dec2010 $2.64
Dec2009 $2.40
Dec2008 $2.84
Dec2007 $3.02
Dec2006 $2.77
Dec2005 $2.50
Dec2004 $2.18
Dec2003 $1.90
Dec2002 $1.69

Recommended Reading:

Other ModernGraham posts about the company

American Express Co. Valuation – February 2018 $AXP
5 Undervalued Dow Components to Research – March 2017
5 Undervalued Dow Components to Research – February 2017
10 Stocks for Using A Benjamin Graham Value Investing Strategy – January 2017
5 Undervalued Dow Components to Research – December 2016

Other ModernGraham posts about related companies

Mastercard Inc Valuation – March 2018 $MA
Discover Financial Services Valuation – January 2017 $DFS
Discover Financial Services Valuation – August 2016 $DFS
Mastercard Inc Valuation – July 2016 $MA
Discover Financial Services Valuation – February 2016 $DFS
Mastercard Inc Valuation – January 2016 Update $MA
Discover Financial Services Inc. Valuation – November 2015 Update $DFS
MasterCard Inc. Analysis – October 2015 Update $MA
Discover Financial Services Analysis – August 2015 Update $DFS
Mastercard Inc. Analysis – June 2015 Update $MA

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

American Express Co. Valuation – February 2018 $AXP

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Undervalued Stocks for the Enterprising Investor – August 2017.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how American Express Co. (AXP) fares in the ModernGraham valuation model.

Company Profile (obtained from Marketwatch): American Express Co. operates as a global services company, which engages in the provision of credit card, financial, and global travel services. It operates through the following business segments: U.S. Card Services, International Card Services, Global Commercial Services, Global Network & Merchant Services, and Corporate & Other. The USCS segment offers products and services to consumers and small businesses in the United States and provides travel services to card members and other customers. The ICS segment provides proprietary consumer and small business cards outside the United States. The GCS segment includes global corporate payment services to large and mid-sized companies. The GNMS segment operates a global payments network that processes and settles proprietary and non-proprietary card transactions. It also provides point-of-sale products, multi-channel marketing programs and capabilities, services and data, leveraging the global closed-loop network. The Corporate & Other segment includes corporate functions and certain other businesses including the company’s enterprise growth business and other company operations. The company was founded by Henry Wells, William G. Fargo and John Warren Butterfield on March 28, 1850 and is headquartered in New York, NY.

AXP Chart

AXP data by YCharts

Downloadable PDF version of this valuation:

ModernGraham Valuation of AXP – February 2018

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass all 6 of the following tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $84,456,033,395 Pass
2. Earnings Stability Positive EPS for 10 years prior Pass
3. Dividend Record Dividend Payments for 10 years prior Pass
4. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 66.48% Pass
5. Moderate PEmg Ratio PEmg < 20 19.11 Pass
6. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 4.63 Fail
Enterprising Investor; must pass all 3 of the following tests, or be suitable for the Defensive Investor.
1. Earnings Stability Positive EPS for 5 years prior Pass
2. Dividend Record Currently Pays Dividend Pass
3. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

EPSmg $5.09
MG Growth Estimate 1.23%
MG Value $55.86
Opinion Overvalued
MG Grade C
MG Value based on 3% Growth $73.84
MG Value based on 0% Growth $43.29
Market Implied Growth Rate 5.30%
Current Price $97.30
% of Intrinsic Value 174.17%

American Express Company is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the high PB ratio. The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Overvalued after growing its EPSmg (normalized earnings) from $4.71 in 2014 to an estimated $5.09 for 2018. This level of demonstrated earnings growth does not support the market’s implied estimate of 5.3% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into American Express Company revealed the company was trading above its Graham Number of $55.19. The company pays a dividend of $1.34 per share, for a yield of 1.4% Its PEmg (price over earnings per share – ModernGraham) was 19.11, which was below the industry average of 21.55, which by some methods of valuation makes it one of the most undervalued stocks in its industry.

American Express Company receives an average overall rating in the ModernGraham grading system, scoring a C.

 

Stage 3: Information for Further Research

Graham Number $55.19
PEmg 19.11
PB Ratio 4.63
Dividend Yield 1.38%
TTM Dividend $1.34
Number of Consecutive Years of Dividend Growth 2

 

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2017
Long-Term Debt & Capital Lease Obligation $55,804,000,000
Total Assets $181,159,000,000
Intangible Assets $0
Total Liabilities $162,932,000,000
Shares Outstanding (Diluted Average) 868,000,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $6.38
Dec2017 $2.97
Dec2016 $5.65
Dec2015 $5.05
Dec2014 $5.56
Dec2013 $4.88
Dec2012 $3.89
Dec2011 $4.12
Dec2010 $3.35
Dec2009 $1.54
Dec2008 $2.32
Dec2007 $3.36
Dec2006 $2.99
Dec2005 $2.97
Dec2004 $2.68
Dec2003 $2.30
Dec2002 $2.01
Dec2001 $0.98
Dec2000 $2.07
Dec1999 $1.81
Dec1998 $1.54

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $5.09
Dec2017 $4.57
Dec2016 $5.25
Dec2015 $4.94
Dec2014 $4.71
Dec2013 $4.04
Dec2012 $3.43
Dec2011 $3.11
Dec2010 $2.64
Dec2009 $2.40
Dec2008 $2.84
Dec2007 $3.02
Dec2006 $2.77
Dec2005 $2.50
Dec2004 $2.18
Dec2003 $1.90
Dec2002 $1.69

Recommended Reading:

Other ModernGraham posts about the company

5 Undervalued Companies for Enterprising Investors Near 52 Week Lows – January 2016
5 Undervalued Companies for Enterprising Investors Near 52 Week Lows – November 2015
5 Undervalued Dow Stocks to Research – November 2015
10 Best Stocks For Value Investors This Week – 10/31/15
American Express Company Valuation – October 2015 Update $AXP

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Moody’s Corporation Valuation – March 2017 $MCO
KKR & Co Ltd Valuation – March 2017 $KKR
Charles Schwab Corp Valuation – March 2017 $SCHW
Synchrony Financial Valuation – Initial Coverage $SYF
Franklin Resources Inc Valuation – February 2017 $BEN
S&P Global Inc Valuation – Initial Coverage $SPGI

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

American Express Company Valuation – May 2016 $AXP

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Companies Benjamin Graham Would Invest In Today – March 2016.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how American Express Company (AXP) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): American Express Company is a services company. The Company’s principal products and services are charge and credit payment card products, and travel-related services offered to consumers and businesses around the world. The Company’s segments include U.S. Consumer Services (USCS), International Consumer and Network Services (ICNS), Global Commercial Services (GCS) and Global Merchant Services (GMS). The USCS segment includes the U.S. Consumer Card Services business and travel services in the United States. The ICNS segment includes the International Consumer Card Services business, Global Network Services (GNS) business and travel services outside the United States. The GCS segment includes the Global Corporate Payments (GCP) business, small business services businesses in the United States and internationally, merchant financing products and foreign exchange services operations. The GMS segment includes the Global Merchant Services business and global loyalty coalition businesses.

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Premium members can view a full ModernGraham valuation of the company and have access to download a PDF version of the valuation for easy reference. Here is a free sample valuation pdf, and here is a post detailing what can be found within each individual company’s valuation.

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[not-level-free]

Downloadable PDF version of this valuation:

ModernGraham Valuation of AXP – May 2016

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass all 6 of the following tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $58,839,094,843 Pass
2. Earnings Stability Positive EPS for 10 years prior Pass
3. Dividend Record Dividend Payments for 10 years prior Pass
4. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 118.12% Pass
5. Moderate PEmg Ratio PEmg < 20 12.41 Pass
6. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 2.93 Pass
Score
Enterprising Investor; must pass all 3 of the following tests, or be suitable for the Defensive Investor.
1. Earnings Stability Positive EPS for 5 years prior Pass
2. Dividend Record Currently Pays Dividend Pass
3. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

AXP value Chart May 2016

EPSmg $5.09
MG Growth Estimate 7.28%
MG Value $117.34
Opinion Undervalued
MG Grade B
MG Value based on 3% Growth $73.79
MG Value based on 0% Growth $43.25
Market Implied Growth Rate 1.96%
Current Price $63.16
% of Intrinsic Value 53.83%

American Express Company qualifies for both the Defensive Investor and the Enterprising Investor. In fact, the company meets all of the requirements of both investor types, a rare accomplishment indicative of the company’s strong financial position. . The Enterprising Investor has no initial concerns. As a result, all value investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $3.43 in 2012 to an estimated $5.09 for 2016. This level of demonstrated earnings growth outpaces the market’s implied estimate of 1.95% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.

American Express Company performs fairly well in the ModernGraham grading system, scoring a B.

Stage 3: Information for Further Research

AXP Charts May 2016

Graham Number $49.96
PEmg 12.41
PB Ratio 2.93
Current Dividend $1.16
Dividend Yield 1.84%
Number of Consecutive Years of Dividend Growth 1

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Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 3/1/2016
Long-term Debt $47,311,000,000
Total Assets $158,816,000,000
Intangible Assets $0
Total Liabilities $138,089,000,000
Shares Outstanding (Diluted Average) 963,000,000

Earnings Per Share History

Next Fiscal Year Estimate $5.16
12/1/2015 $5.05
12/1/2014 $5.56
12/1/2013 $4.88
12/1/2012 $3.89
12/1/2011 $4.12
12/1/2010 $3.35
12/1/2009 $1.54
12/1/2008 $2.33
12/1/2007 $3.36
12/1/2006 $2.99
12/1/2005 $2.97
12/1/2004 $2.68
12/1/2003 $2.30
12/1/2002 $2.01
12/1/2001 $0.98
12/1/2000 $2.07
12/1/1999 $1.81
12/1/1998 $1.54
12/1/1997 $1.38
12/1/1996 $1.30

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $5.09
12/1/2015 $4.94
12/1/2014 $4.71
12/1/2013 $4.04
12/1/2012 $3.43
12/1/2011 $3.11
12/1/2010 $2.64
12/1/2009 $2.40
12/1/2008 $2.85
12/1/2007 $3.02
12/1/2006 $2.77
12/1/2005 $2.50
12/1/2004 $2.18
12/1/2003 $1.90
12/1/2002 $1.69
12/1/2001 $1.54
12/1/2000 $1.75

Recommended Reading:

Other ModernGraham posts about the company

5 Undervalued Companies for Enterprising Investors Near 52 Week Lows – January 2016
5 Undervalued Companies for Enterprising Investors Near 52 Week Lows – November 2015
5 Undervalued Dow Stocks to Research – November 2015
10 Best Stocks For Value Investors This Week – 10/31/15
American Express Company Valuation – October 2015 Update $AXP

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Franklin Resources Inc Valuation – January 2016 Update $BEN
T.Rowe Price Group Inc Stock Valuation – February 2016 $TROW
Moody’s Corporation Stock Valuation – February 2016 $MCO
KKR & Co LP Stock Valuation – February 2016 $KKR
Capital One Financial Corp Valuation – January 2016 Update $COF
Franklin Resources Inc Valuation – January 2016 Update $BEN

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

American Express Company Valuation – October 2015 Update $AXP

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Most Undervalued Companies for the Defensive Investor – September 2015.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how American Express Company (AXP) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): American Express Company is a global services company. The Company’s principal products and services are charge and credit payment card products, and travel-related services offered to consumers and businesses around the world. The Company’s segments include U.S. Card Services, International Card Services, Global Commercial Services and Global Network & Merchant Services. The Company’s United States banking subsidiaries, Centurion Bank and AEBFSB, issue a range of Card products and services. It also issues its charge and credit Cards around the world either on its own or as cobrands with partnering institutions. The Company provides expense management and travel services to companies and organizations through its Global Corporate Payments and Global Business Travel businesses. The Global Network & Merchant Services (GNMS) segment operates a global payments network that processes and settles card transactions.

[level-free]

To read the details of this valuation, you must be logged in as a premium member. If you are not a premium member, please consider becoming one.

Premium members can view a full ModernGraham valuation of the company and have access to download a PDF version of the valuation for easy reference. Here is a free sample valuation pdf, and here is a post detailing what can be found within each individual company’s valuation.

[/level-free]
[not-level-free]

Downloadable PDF version of this valuation:

ModernGraham Valuation of AXP – October 2015

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass all 6 of the following tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $74,545,539,996 Pass
2. Earnings Stability Positive EPS for 10 years prior Pass
3. Dividend Record Dividend Payments for 10 years prior Pass
4. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 65.97% Pass
5. Moderate PEmg Ratio PEmg < 20 16.29 Pass
6. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 3.55 Fail
Score
Enterprising Investor; must pass all 3 of the following tests, or be suitable for the Defensive Investor.
1. Earnings Stability Positive EPS for 5 years prior Pass
2. Dividend Record Currently Pays Dividend Pass
3. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

AXP value Chart October 2015

EPSmg $4.57
MG Growth Estimate 7.05%
MG Value $103.25
Opinion Undervalued
MG Value based on 3% Growth $66.25
MG Value based on 0% Growth $38.83
Market Implied Growth Rate 3.89%
Current Price $74.41
% of Intrinsic Value 72.07%

American Express Company qualifies for the Enterprising Investor but not the more conservative Defensive Investor.  The Defensive Investor is concerned with the high PB ratio.  The Enterprising Investor has no initial concerns.  As a result, all Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company.

As for a valuation, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $3.11 in 2011 to an estimated $4.57 for 2015.  This level of demonstrated earnings growth outpaces the market’s implied estimate of 3.89% annual earnings growth over the next 7-10 years.  As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.

The next part of the analysis is up to individual investors, and requires discussion of the company’s prospects.  What do you think?  What value would you put on American Express Company (AXP)?  Where do you see the company going in the future?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

Stage 3: Information for Further Research

AXP Charts October 2015

Graham Number $43.17
PEmg 16.29
PB Ratio 3.55
Dividend Yield 1.79%
Number of Consecutive Years of Dividend Growth 2

 

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Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Long-Term Debt $49,000,000,000
Total Assets $154,000,000,000
Intangible Assets $0
Total Liabilities $133,000,000,000
Shares Outstanding (Diluted Average) 1,002,000,000

Earnings Per Share History

Next Fiscal Year Estimate $3.95
Dec14 $5.56
Dec13 $4.88
Dec12 $3.89
Dec11 $4.12
Dec10 $3.35
Dec09 $1.54
Dec08 $2.32
Dec07 $3.36
Dec06 $2.99
Dec05 $2.97
Dec04 $2.68
Dec03 $2.30
Dec02 $2.01
Dec01 $0.98
Dec00 $2.07
Dec99 $1.81
Dec98 $1.54
Dec97 $1.38
Dec96 $1.30
Dec95 $1.04

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $4.57
Dec14 $4.71
Dec13 $4.04
Dec12 $3.43
Dec11 $3.11
Dec10 $2.64
Dec09 $2.40
Dec08 $2.84
Dec07 $3.02
Dec06 $2.77
Dec05 $2.50
Dec04 $2.18
Dec03 $1.90
Dec02 $1.69
Dec01 $1.54
Dec00 $1.75
Dec99 $1.53

Recommended Reading:

Other ModernGraham posts about the company

The Best Stocks of the Financial Services Industry – September 2015
The 8 Best Stocks For Value Investors This Week – 8/8/15
5 Undervalued Dow Stocks to Research – August 2015
American Express Company Analysis – August 2015 Update $AXP
5 Undervalued Companies for Enterprising Investors Near 52 Week Lows – July 2015

Other ModernGraham posts about related companies

KKR & Co. LP Valuation – October 2015 Update $KKR
Invesco Limited Analysis – October 2015 Update $IVZ
CME Group Inc. Analysis – October 2015 Update $CME
T.Rowe Price Group Inc. Analysis – September 2015 Update $TROW
Moody’s Corporation Analysis – September 2015 Update $MCO
The Best Stocks of the Financial Services Industry – September 2015
Franklin Resources Inc. Analysis – September 2015 $BEN
Northern Trust Corporation Analysis – September 2015 Update $NTRS
Legg Mason Analysis – August 2015 Update $LM
Capital One Financial Corporation Analysis – August 2015 Update $COF

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

American Express Company Analysis – August 2015 Update $AXP

200px-American_Express_logo.svgAmerican Express Company (AXP) has grown its earnings well over the last few years. Recently, multiple analysts have focused on qualitative factors when reviewing the company. For example, Seeking Alpha contributor Josh Arnold took a negative view of the company based on concerns regarding currency risk and poor growth in card member spending, among other issues. Similarly, contributor Price Point believes competitors have closed the gap to the detriment of American Express. These are great factors to consider in the final stages of an investment decision, but first one must use quantitative metrics to determine the company’s intrinsic value.

Benjamin Graham, the father of value investing, taught that the most important aspect to consider is whether the company is trading at a discount relative to its intrinsic value. It is through a thorough fundamental analysis that the investor is able to make a determination about a potential investment’s merits.

The model is inspired by the teachings of Benjamin Graham and considers numerous metrics intended to help the investor reduce risk levels. The first part of the analysis is to determine whether the company is suitable for the very conservative Defensive Investor or the less conservative Enterprising Investor, who is willing to spend a greater amount of time conducting further research.

In addition, Graham strongly suggested that investors avoid speculation in order to remove the subjective elements of emotion. This is best achieved by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another. By using the ModernGraham method, one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.

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[level-mg-stocks-screens-subscriber]

Defensive Investor – Must pass all 6 of the following tests: Score = 5/6

  1. Adequate Size of Enterprise – Market capitalization of at least $2 billion – PASS
  2. Earnings Stability – Positive earnings per share for at least 10 straight years – PASS
  3. Dividend Record – Has paid a dividend for at least 10 straight years – PASS
  4. Earnings Growth – Earnings per share has increased by at least 1/3rd over the last 10 years, using 3-year averages at the beginning and end of the period – PASS
  5. Moderate PEmg (price over normalized earnings) Ratio – PEmg is less than 20 – PASS
  6. Moderate Price-to-Assets – PB ratio is less than 2.5 or PB x PEmg is less than 50 – FAIL

Enterprising Investor – Must pass all 3 of the following tests or be suitable for a Defensive Investor: Score = 3/3

  1. Earnings Stability – Positive earnings per share for at least 5 years – PASS
  2. Dividend Record – Currently pays a dividend – PASS
  3. Earnings Growth – EPSmg greater than that 5 years ago – PASS

Valuation Summary

Key Data

Recent Price $76.56
MG Value $132.71
MG Opinion Undervalued
Value Based on 3% Growth $72.29
Value Based on 0% Growth $42.38
Market Implied Growth Rate 3.43%
PEmg 15.36
PB Ratio 3.54

Balance Sheet – June 2015

Total Debt $52,740,000,000
Total Assets $157,152,000,000
Intangible Assets $0
Total Liabilities $135,267,000,000
Outstanding Shares 1,013,000,000

Earnings Per Share

2015 (estimate) $5.20
2014 $5.56
2013 $4.88
2012 $3.89
2011 $4.12
2010 $3.35
2009 $1.54
2008 $2.32
2007 $3.36
2006 $2.99
2005 $2.97

Earnings Per Share – ModernGraham

2015 (estimate) $4.99
2014 $4.71
2013 $4.04
2012 $3.43
2011 $3.11
2010 $2.64

Dividend History

Free Cash Flow

Conclusion

American Express passes the initial requirements of the Enterprising Investor but not the Defensive Investor. In fact, the company passes every requirement of the Enterprising Investor types, but the Defensive Investor is concerned by the high PB ratio. As a result, all Enterprising Investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.

When it comes to that valuation, it is critical to consider the company’s earnings history. In this case, it has grown its EPSmg (normalized earnings) from $3.11 in 2011 to an estimated $4.99 for 2015. This is a fairly strong level of demonstrated growth, and outpaces the market’s implied estimate for annual earnings growth of 3.43% over the next 7-10 years.

In recent years, the company’s actual growth in EPSmg has averaged around 12% annually, and while the ModernGraham valuation model reduces the actual growth to a more conservative figure when making an estimate, the model still returns an estimate of intrinsic value well above the current price, indicating that American Express is significantly undervalued at the present time.

Disclaimer:  The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  Logo taken from Wikipedia for the sole purpose of identifying the company; this article is not affiliated with the company in any manner.

[/level-mg-stocks-screens-subscriber]

American Express Company Quarterly Valuation – May 2015 $AXP

200px-American_Express_logo.svgAmerican Express Company (NYSE:AXP) presents an intriguing investment possibility for value investors, as the company has maintained very strong earnings growth over the last few years that may not be properly priced into the market price. Benjamin Graham, the father of value investing, taught that looking at the price cannot be the sole factor in investment decisions, as the most important aspect to consider is whether the company is trading at a discount relative to its intrinsic value. It is through a thorough fundamental analysis that the investor is able to make a determination about a potential investment’s merits. Here is a look at how the company fares in the ModernGraham valuation model.

The model is inspired by the teachings of Benjamin Graham, and considers numerous metrics intended to help the investor reduce risk levels. The first part of the analysis is to determine whether the company is suitable for the very conservative Defensive Investor or the less conservative Enterprising Investor, who is willing to spend a greater amount of time conducting further research.

In addition, Graham strongly suggested that investors avoid speculation, in order to remove the subjective elements of emotion. This is best achieved by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another. By using theModernGraham method, one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.

AXP Chart

AXP data by YCharts

[level-free]
To read the rest of this valuation, you must be logged in as a premium member. If you are not a premium member, please consider becoming one.
[/level-free]
[level-mg-stocks-screens-subscriber]

Defensive Investor – Must pass all 6 of the following tests: Score = 5/6

  1. Adequate Size of Enterprise – Market capitalization of at least $2 billion – PASS
  2. Earnings Stability – Positive earnings per share for at least 10 straight years – PASS
  3. Dividend Record – Has paid a dividend for at least 10 straight years – PASS
  4. Earnings Growth – Earnings per share has increased by at least 1/3rd over the last 10 years, using 3-year averages at the beginning and end of the period – PASS
  5. Moderate PEmg (price over normalized earnings) Ratio – PEmg is less than 20 – PASS
  6. Moderate Price-to-Assets – PB ratio is less than 2.5 or PB x PEmg is less than 50 – FAIL

Enterprising Investor – Must pass all 3 of the following tests or be suitable for a Defensive Investor: Score = 3/3

  1. Earnings Stability – Positive earnings per share for at least 5 years – PASS
  2. Dividend Record – Currently pays a dividend – PASS
  3. Earnings Growth – EPSmg greater than 5 years ago – PASS

Valuation Summary

Key Data

Recent Price $77.16
MG Value $132.71
MG Opinion Undervalued
Value Based on 3% Growth $72.29
Value Based on 0% Growth $42.38
Market Implied Growth Rate 3.49%
PEmg 15.48
PB Ratio 3.59

Balance Sheet – March 2015

Total Debt $55,000,000,000
Total Assets $155,000,000,000
Intangible Assets $0
Total Liabilities $133,000,000,000
Outstanding Shares 1,023,000,000

Earnings Per Share

2015 (estimate) $5.20
2014 $5.56
2013 $4.88
2012 $3.89
2011 $4.12
2010 $3.35
2009 $1.54
2008 $2.32
2007 $3.36
2006 $2.99
2005 $2.97

Earnings Per Share – ModernGraham

2015 (estimate) $4.99
2014 $4.71
2013 $4.04
2012 $3.43
2011 $3.11
2010 $2.64

Dividend History

AXP Dividend Chart

AXP Dividend data by YCharts

Conclusion

American Express Company passes the initial requirements of the Enterprising Investor, but not the more conservative Defensive Investor. The Defensive Investor has an issue with the company’s high PB ratio, while the Enterprising Investor has no initial concerns. As a result, all Enterprising Investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.

When it comes to that valuation, it is critical to consider the company’s earnings history. In this case, the company has grown its EPSmg (normalized earnings) from $3.11 in 2011 to an estimated $4.99 for 2015. This is a very strong level of demonstrated growth, which is well above the market’s implied estimate for earnings growth of only 3.49% over the next 7-10 years. In fact, the historical growth is around 12.08% per year, so the market is expecting a very significant drop in earnings growth. The ModernGraham valuation model reduces the historical growth to a more conservative figure, assuming that some slowdown will occur, but still returns an estimate of intrinsic value falling above the current price, indicating that the company is undervalued at the present time.

Disclaimer: The author did not hold a position in any of the companies listed in this article at the time of publication and had no intention of changing that position within the next 72 hours. Logos taken from either the company website or Wikipedia; this article is not affiliated with the companies in any manner.

[/level-mg-stocks-screens-subscriber]

American Express Company Quarterly Valuation – February 2015 $AXP

200px-American_Express_logo.svg

American Express Company passes the initial requirements of the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned by the high PB ratio while the Enterprising Investor has no initial concerns. As a result, Enterprising Investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.

When it comes to that valuation, it is critical to consider the company’s earnings history. In this case, the company has grown its EPSmg (normalized earnings) from $2.64 in 2010 to $4.71 for 2014. This is a very strong level of demonstrated growth, which is well above the market’s implied estimate for earnings growth of only 4.75% over the next 7-10 years. In fact, the historical growth is around 15.66% per year, so the market is expecting a very significant drop in earnings growth. The ModernGraham valuation model reduces the historical growth to a more conservative figure, assuming that some slowdown will occur, and therefore returns an estimate of intrinsic value falling above the current price, indicating the company is undervalued at the present time.

Be sure to check out previous ModernGraham valuations of American Express Company (AXP) for greater perspective!

Read the full valuation on Seeking Alpha!

AXP Chart

AXP data by YCharts

Disclaimer:  The author did not hold a position in American Express Company (AXP) at the time of publication and had no intention of changing that position within the next 72 hours.  Logo taken from Wikipedia for the sole purpose of identifying the company; this article is not affiliated with the company in any manner.

American Express Company Quarterly Valuation – October 2014 $AXP

200px-American_Express_logo.svg

Enterprising Investors following the ModernGraham approach should keep a keen eye on American Express and pour some time into conducting further research. The Defensive Investor may not feel the same way, with concerns regarding the high PB ratio. However, Enterprising Investors have no initial concerns, and should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.

To determine an estimate of the intrinsic value, one must consider the company’s earnings. Here, the company has grown its EPSmg (normalized earnings) from $2.64 in 2010 to an estimated $4.67 for 2014. This is a high level of growth, approximately 15% each year. Even adjusting for a margin of safety to assume the company will not do as well in the future, a conservative growth estimate may be around 11.5%, which is well below the market’s implied forecast of only 5.15% earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model returns an estimate of intrinsic value well above the price, supporting a clear conclusion that the company is significantly undervalued. Enterprising Investors are therefore encouraged to proceed with further research to determine whether American Express is suitable for their own individual portfolios.

Be sure to check out previous ModernGraham valuations of American Express Company for better perspective.

Read the full valuation on Seeking Alpha!

AXP Chart

AXP data by YCharts

American Express Company Quarterly Valuation – July 2014 $AXP

200px-American_Express_logo.svgIn the wake of the great financial crisis it can sometimes be difficult for Intelligent Investors to find a solid financial company in which to invest, because they require specific achievements over the historical period.  Many investors may simply decide to throw out the worst years with the rationale that they are outliers that shouldn’t be considered when evaluating the company’s prospects, but doing so would involve speculation.  We don’t know whether the financial crisis will happen again, but we do know that if it does, we can expect to see similar results as we did before.  By continuing to require the same standards for the historical period, Intelligent Investors are able to widdle down banks to only those with the best financial position, and then they are able to determine an intrinsic value to get a sense of whether the company is a good investment.  In addition, a company must have strong financial statements to prove that it is stable enough for Intelligent Investors.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a specific look at how American Express (AXP) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): American Express Company (American Express) is a global service company. Its principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses worldwide. The Company operates in four segments: U.S. Card Services, International Card Services, Global Commercial Services (GCS) and Global Network & Merchant Services (GNMS). Corporate functions and auxiliary businesses, including the Company’s Enterprise Growth Group, publishing business and other company operations, are included in Corporate & Other. American Express and its principal operating subsidiary, American Express Travel Related Services Company, Inc. (TRS), are bank holding companies. During 2011, American Express completed the integration of Accertify Inc. Effective March 20, 2014, American Express Co acquired an undisclosed minority stake in Ezetap Mobile Solutions Pvt Ltd.
AXP Chart

AXP data by YCharts

Defensive Investor – must pass all 6 of the following tests: Score = 4/6

  1. Adequate Size of Enterprise – market capitalization of at least $2 billion – PASS
  2. Earnings Stability – positive earnings per share for at least 10 straight years – PASS
  3. Dividend Record – has paid a dividend for at least 10 straight years – PASS
  4. Earnings Growth – earnings per share has increased by at least 1/3 over the last 10 years using 3 year averages at beginning and end of period – PASS
  5. Moderate PEmg ratio – PEmg is less than 20 – FAIL
  6. Moderate Price to Assets – PB ratio is less than 2.5 or PB x PEmg is less than 50 – FAIL

Enterprising Investor – must pass all 3 of the following tests or be suitable for a defensive investor: Score = 3/3

  1. Earnings Stability – positive earnings per share for at least 5 years – PASS
  2. Dividend Record – currently pays a dividend – PASS
  3. Earnings growth – EPSmg greater than 5 years ago – PASS

Valuation Summary

Key Data:

MG Value $140.89
MG Opinion Undervalued
Value Based on 3% Growth $67.15
Value Based on 0% Growth $39.37
Market Implied Growth Rate 5.78%
PEmg 20.05
PB Ratio 4.92

Balance Sheet – 3/31/2014

Total Debt $54,095,000,000
Total Assets $151,497,000,000
Intangible Assets $0
Total Liabilities $131,520,000,000
Outstanding Shares 1,059,000,000

Earnings Per Share

2014 (estimate) $5.35
2013 $4.88
2012 $3.89
2011 $4.09
2010 $3.35
2009 $1.54
2008 $2.48
2007 $3.39
2006 $3.01
2005 $2.56
2004 $2.74

Earnings Per Share – ModernGraham 

2014 (estimate) $4.63
2013 $4.03
2012 $3.43
2011 $3.12
2010 $2.68
2009 $2.42

Dividend History

AXP Dividend Chart

AXP Dividend data by YCharts

Conclusion:

American Express Company is suitable for the Enterprising Investor but not the Defensive Investor.  The Defensive Investor has concerns with the high PEmg and PB ratios, but the company passes all of the Enterprising Investor’s requirements.  As a result, Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should explore other opportunities through a review of ModernGraham’s valuation of Discover Financial Services (DFS) and ModernGraham’s valuation of Capital One Financial (COF).  From a valuation side of things, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $2.68 in 2010 to an estimated $4.63 for 2014.  This strong level of demonstrated growth outpaces the market’s implied estimate of 5.78% earnings growth and leads the ModernGraham valuation model, which is based on Benjamin Graham’s formula, to return an estimate of intrinsic value well above the market price.

Be sure to check out the previous ModernGraham valuations of American Express (AXP) for more perspective!

The next part of the analysis is up to individual investors, and requires discussion of the company’s prospects.  What do you think?  What value would you put on American Express Company (AXP)?  Where do you see the company going in the future?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

Disclaimer:  The author did not hold a position in American Express Company (AXP) or any of the other companies listed in this article at the time of publication and had no intention of changing that position within the next 72 hours.  Logo taken from the Wikipedia; this article is not affiliated with the company in any manner.

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