American Express Co
NYSE:AXP

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American Express Co
NYSE:AXP
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Price: 299.63 USD 0.35% Market Closed
Market Cap: 209.9B USD

ROE
Return on Equity

33.8%
Current
32%
Average
6.2%
Industry

ROE, or Return on Equity, is a key financial ratio that measures a company's profitability. Specifically, it measures how many dollars of profit are generated for each dollar of shareholder's equity. A higher ROE indicates better financial performance and effective use of capital, making it a valuable metric for investors assessing a company's earning potential.

ROE
33.8%
=
Net Income
10.1B
/
Equity
30B

ROE Across Competitors

American Express Co
Glance View

Economic Moat
Wide
Market Cap
210B 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
320.83 USD
Undervaluation 7%
Intrinsic Value
Price
What is Return on Equity?

ROE, or Return on Equity, is a key financial ratio that measures a company's profitability. Specifically, it measures how many dollars of profit are generated for each dollar of shareholder's equity. A higher ROE indicates better financial performance and effective use of capital, making it a valuable metric for investors assessing a company's earning potential.

ROE
33.8%
=
Net Income
10.1B
/
Equity
30B
What is the ROE of American Express Co?

Based on American Express Co's most recent financial statements, the company has ROE of 33.8%.

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