American Express Company [NYSE: AXP] shares went lower by -1.99% from its previous closing of $120.90, now trading at the price of $118.50, also adding -2.4 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 5.27 million contracts. Compared to the average trading volume of AXP shares, the company saw a far better performance. Moreover, the stock has a 806.32M float and a -13.46% run over in the last seven days. AXP share price has been hovering between $138.13 and $106.42 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 106.42 to 138.13. This is compared to its latest closing price of $120.90.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for 04/15/2020.
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 +18.14 and its Gross Margin at +67.23, this company’s Net Margin is now 14.70%. 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 9.97, and its Return on Invested Capital has reached 4.20%. Its Return on Equity is 29.59, and its Return on Assets is 3.47. 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 278.61. Similarly, its Total Debt to Total Capital is 73.59, while its Total Debt to Total Assets stands at 32.41. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 7.34, and its Long-Term Debt to Total Capital is 183.00.
What about valuation? This company’s Enterprise Value to EBITDA is 15.45 and its Total Debt to EBITDA Value is 4.23. The Enterprise Value to Sales for this firm is now 3.19, and its Total Debt to Enterprise Value stands at 0.45. American Express Company [AXP] has a Price to Book Ratio of 4.37, a Price to Cash Flow Ratio of 7.58 and P/E Ratio of 14.84. These metrics all suggest that American Express Company is more likely to generate a positive ROI.
Similarly, this company’s Receivables Turnover is 0.82 and its Total Asset Turnover is 0.24.
American Express Company [AXP] has 818.10M shares outstanding, amounting to a total market cap of $96.94B. Its stock price has been found in the range of 106.42 to 138.13. At its current price, it has moved down by -14.21% from its 52-week high, and it has moved up 11.35% from its 52-week low.
This stock’s Beta value is currently 1.01, which indicates that it is 3.42% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 26.91. This stock, according to these metrics, is currently Oversold.
Conclusion: Is American Express Company [AXP] a Reliable Buy?
Shares of American Express Company [AXP], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.