American Express Stock Return On Equity
AXPB34 Stock | BRL 118.92 2.65 2.18% |
American Express fundamentals help investors to digest information that contributes to American Express' financial success or failures. It also enables traders to predict the movement of American Stock. The fundamental analysis module provides a way to measure American Express' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to American Express stock.
American |
American Express Company Return On Equity Analysis
American Express' Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current American Express Return On Equity | 0.32 |
Most of American Express' fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, American Express is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Competition |
Based on the latest financial disclosure, American Express has a Return On Equity of 0.3205. This is 77.9% lower than that of the Financial Services sector and 95.79% lower than that of the Credit Services industry. The return on equity for all Brazil stocks is notably lower than that of the firm.
American Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses American Express' direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of American Express could also be used in its relative valuation, which is a method of valuing American Express by comparing valuation metrics of similar companies.American Express is rated fifth in return on equity category among related companies.
American Fundamentals
Return On Equity | 0.32 | |||
Return On Asset | 0.0361 | |||
Profit Margin | 0.15 % | |||
Operating Margin | 0.19 % | |||
Current Valuation | 801.87 B | |||
Shares Outstanding | 7.43 B | |||
Price To Earning | 32.93 X | |||
Price To Book | 4.79 X | |||
Price To Sales | 12.07 X | |||
Revenue | 50.68 B | |||
Gross Profit | 28.78 B | |||
Net Income | 7.51 B | |||
Cash And Equivalents | 29.11 B | |||
Cash Per Share | 3.66 X | |||
Total Debt | 43 B | |||
Debt To Equity | 1.54 % | |||
Current Ratio | 1.58 X | |||
Book Value Per Share | 3.33 X | |||
Cash Flow From Operations | 14.64 B | |||
Earnings Per Share | 5.21 X | |||
Price To Earnings To Growth | 1.15 X | |||
Number Of Employees | 77.3 K | |||
Beta | 1.19 | |||
Market Capitalization | 710.99 B | |||
Total Asset | 228 B | |||
Z Score | 9.6 | |||
Annual Yield | 0.01 % | |||
Five Year Return | 1.39 % | |||
Net Asset | 228 B | |||
Last Dividend Paid | 2.08 |
About American Express Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze American Express's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of American Express using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of American Express based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards American Express in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, American Express' short interest history, or implied volatility extrapolated from American Express options trading.
Pair Trading with American Express
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Express position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Express will appreciate offsetting losses from the drop in the long position's value.Moving together with American Stock
0.61 | MSCD34 | Mastercard Incorporated | PairCorr |
0.68 | PYPL34 | PayPal Holdings | PairCorr |
0.69 | CAON34 | Capital One Financial | PairCorr |
Moving against American Stock
0.63 | AFLT3 | Afluente Transmisso | PairCorr |
0.58 | RMAI11 | Domo Fundo de | PairCorr |
0.56 | RCRB11 | Fundo de Investimento | PairCorr |
0.53 | BMLC11 | Fundo de Investimento | PairCorr |
The ability to find closely correlated positions to American Express could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Express when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Express - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Express to buy it.
The correlation of American Express is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Express moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Express moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Express can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Express. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. For information on how to trade American Stock refer to our How to Trade American Stock guide.Note that the American Express information on this page should be used as a complementary analysis to other American Express' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Complementary Tools for American Stock analysis
When running American Express' price analysis, check to measure American Express' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Express is operating at the current time. Most of American Express' value examination focuses on studying past and present price action to predict the probability of American Express' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Express' price. Additionally, you may evaluate how the addition of American Express to your portfolios can decrease your overall portfolio volatility.
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