American Express Co
NYSE:AXP

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American Express Co
NYSE:AXP
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Price: 295.38 USD 0.69% Market Closed
Market Cap: 206.9B USD

ROCE
Return on Capital Employed

10.8%
Current
10%
Average
5.1%
Industry

ROCE, or Return on Capital Employed, is a financial ratio that measures a company’s profitability in relation to the capital it employs.

ROCE
10.8%
=
EBIT
13B
/
Capital Employed
120.2B

ROCE Across Competitors

American Express Co
Glance View

Economic Moat
Wide
Market Cap
207.1B USD
Industry
Financial Services

In the bustling heart of the financial service industry sits American Express Co., a titan with a storied legacy stretching back to 1850. Originally founded as an express mail business, it has evolved significantly over the decades, now commanding a substantial presence in the world of financial services. Central to the company’s operations is its unique closed-loop payment network, a rare system that allows it to control every stage of the transaction process. This network facilitates not only payment processing but also integrates issuing credit cards and acquiring transactions directly with merchants. American Express leverages this model to gather detailed customer data, refining its services to create tailored offerings—transforming ordinary transactions into personalized experiences for card members. How American Express generates revenue is distinguished by its diverse stream. Primarily, it earns through discount revenue, which is a fee charged to merchants for accepting its cards, typically higher than that charged by competitors. Additionally, the company reaps financial rewards from annual card member fees, interest on outstanding balances, and a variety of travel and lifestyle services designed to enhance card loyalty. By combining premium pricing with rewards programs that appeal to affluent customers, American Express has created a strong brand association with exclusivity and prestige. This equation of high-value clientele, proprietary technological infrastructure, and premium service offerings underscores American Express's profitability and underpins its resilient business model in the often volatile financial sector.

AXP Intrinsic Value
319.77 USD
Undervaluation 8%
Intrinsic Value
Price
What is Return on Capital Employed?

ROCE, or Return on Capital Employed, is a financial ratio that measures a company’s profitability in relation to the capital it employs.

ROCE
10.8%
=
EBIT
13B
/
Capital Employed
120.2B
What is the ROCE of American Express Co?

Based on American Express Co's most recent financial statements, the company has ROCE of 10.8%.

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