presented by: brent penzo jessica allen zach jennings
TRANSCRIPT
American ExpressPresented By:Brent PenzoJessica Allen
Zach Jennings
American Express issues lines of credit for many different individuals, small companies, and large corporations.
Incentives are given to card holders that use it frequently. Most incentives are travel based and cover such things as airline tickets, rental cars, and hotels.
American Express’ merchants are also offered special marketing opportunities as well as trend reports to help them obtain potential customers.
Basics of American Express Business
Individual Credit Cards
Premium Reward Card
Flexible Payment Card
Air Travel Partner Card
Hotel Partner Card
Credit Cards
Small Business Credit Cards
Premium Rewards Card
Classic Rewards Card
Partner Card
Basic Card
Credit Cards Continued…
Corporate Credit Cards
Amex Corporate Card Program
Amex Business ExtrAA Corporate Card Program
Credit Cards Continued…
Total Market Share
Market Share
VisaMastercardDiscoverAmerican Express
42%
21%
5%
32%
American ExpressMarket Cap:
$51BP/E:
27.73Profit Margin:
11.09%Return on
Equity:16.28%
Market Cap:$399B
P/E: NMProfit Margin: 3.1%Return on
Equity:3.1%
Industry
Industry
DFS AXP MA V Industry
Market Cap: 8.47B 51.06B 33.33B 68.40B 399.91M
Employ ees: 10,500 58,300 5,100 5,700 2.56KQtrly Rev Growth (yoy): 8.50% 12.50% 6.00% 12.70% 16.30%
Revenue (ttm): 2.50B 19.21B 5.10B 7.13B 183.88MGross Margin (ttm): 100.00% 76.30% 100.00% 84.16% 80.28%
EBITDA (ttm): N/A N/A 2.56B 3.98B 92.29MOper Margins (ttm): 13.47% 9.70% 47.43% 52.55% 25.91%
Net Income (ttm): 982.32M 1.81B 1.45B 2.54B N/A
EPS (ttm): 1.862 1.539 11.16 3.437 0.47
P/E (ttm): 8.37 27.73 22.9 26.9 12.98PEG (5 yr expected): 5.56 1.59 1.03 1.22 0.93
P/S (ttm): 3.33 2.6 6.5 9.6 1.56
Direct Competitors
P/E Ratio Estimate:$46.51
P/CF Ratio Estimate:$47.71
P/S Ratio Estimate:$57.47
Current Market Price:$43.06
Stock Price Estimates
BUY, BUY, BUY
To Invest Or Not To Invest?