American Express Company [NYSE: AXP] shares went lower by -2.04% from its previous closing of $120.12, now trading at the price of $117.67, also adding -2.45 points. Is AXP stock a buy or should you stay away?

The stock had a rather active trading session with the latest closing, by far recording 1.58 million contracts. Compared to the average trading volume of AXP shares, the company saw a far better performance. Moreover, the stock has a 816.62M float and a -2.40% run over in the last seven days. AXP share price has been hovering between $129.34 and $89.05 lately, and is definitely worthy of attention.

American Express Company [NYSE:AXP]: Analyst Rating and Earnings

Its stock price has been found in the range of 89.05 to 129.34. This is compared to its latest closing price of $120.12.

Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Thu 16 Jan (In 45 Days).

Fundamental Analysis of American Express Company [AXP]

Now let’s turn to look at profitability: with a current Operating Margin for American Express Company [AXP] sitting at +20.34 and its Gross Margin at +67.56, this company’s Net Margin is now 15.70%. These measurements indicate that American Express Company [AXP] is generating considerably more profit, after expenses are accounted for, compared to its market peers.

This company’s Return on Total Capital is 10.93, and its Return on Invested Capital has reached 4.20%. Its Return on Equity is 33.90, and its Return on Assets is 3.71. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates AXP financial performance.

Turning to investigate this organization’s capital structure, American Express Company [AXP] has

generated a Total Debt to Total Equity ratio of 276.01. Similarly, its Total Debt to Total Capital is 73.41, while its Total Debt to Total Assets stands at 32.62. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 8.27, and its Long-Term Debt to Total Capital is 211.34.

What about valuation? This company’s Enterprise Value to EBITDA is 13.11 and its Total Debt to EBITDA Value is 4.07. The Enterprise Value to Sales for this firm is now 2.87, and its Total Debt to Enterprise Value stands at 0.53. American Express Company [AXP] has a Price to Book Ratio of 3.62, a Price to Cash Flow Ratio of 9.17 and P/E Ratio of 14.23. These metrics all suggest that American Express Company is more likely to generate a positive ROI.

Shifting the focus to workforce efficiency, American Express Company [AXP] earns $733,559 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 0.75 and its Total Asset Turnover is 0.23.

American Express Company [AXP] has 819.70M shares outstanding, amounting to a total market cap of $98.46B. Its stock price has been found in the range of 89.05 to 129.34. At its current price, it has moved down by -9.02% from its 52-week high, and it has moved up 32.14% from its 52-week low.

This stock’s Beta value is currently 1.04, which indicates that it is 0.99% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 45.41. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is American Express Company [AXP] a Reliable Buy?

Shares of American Express Company [AXP], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.