American Express Company (AXP)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with business quality and then ask what I am paying. American Express is an integrated payments company with four segments, and the filed numbers show a durable earnings machine. In fiscal Q2 2026, the quarter ended 2026-06-30, it reported revenue of $11.2 billion, net income of $3.1 billion, and diluted EPS of $4.53. A year earlier, in fiscal Q2 2025, the quarter ended 2025-06-30, those figures were revenue of $10.3 billion, net income of $2.9 billion, and diluted EPS of $4.08. For fiscal year 2025, the year ended 2025-12-31, it filed revenue of $41.3 billion, net income of $10.8 billion, and diluted EPS of $15.38, up from fiscal year 2024's $38.8 billion, $10.1 billion, and $14.01. FairStock calls it a FAST GROWER, citing 28.1% a year profit growth over five years and 13.5% revenue growth. The 34.38% ROE and 7.2% free cash flow yield suggest a high-quality franchise. But at the 2026-10-13 close of $309.84, FairStock's P/E is 18.80, P/B is 6.10, PEG is 2.41, and its Graham Number is $136.49, leaving a margin of safety of -127.01%. The balance sheet gives pause: D/E 1.72 and Altman Z 0.64, while Piotroski is 6/9. I admire the business, but the price already reflects much of the good news.

In plain English: American Express is a payments company that issues cards and runs a card network for consumers and businesses. The business looks strong: it earns solid profits and keeps growing, with a high return on shareholders' money and lots of free cash. But the stock price looks high compared with the company's earnings and accounting value, so it is not obviously a bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer