AXP

American Express Co.

Finance/Real Estate


Presented:01/22/2023
Price:$151.60
Cap:$113.28B
Current Price:$277.31
Cap:$197.14B

Presented

Date01/22/2023
Price$151.60
Market Cap$113.28B
Ent Value$113.77B
P/E Ratio15.23x
Book Value$32.05
Div Yield1.37%
Shares O/S747.23M
Ave Daily Vol2,974,670
Short Int0.94%

Current

Price$277.31
Market Cap$197.14B
American Express Co. engages in the provision of charge and credit card products and travel-related services. It operates through the following segments: U.S Consumer Services (USCS), Commercial Services (CS), International Card Services (ICS), Global Merchant and Network Services (GMNS), and Corporate and Other. The USCS segment issues a wide range of proprietary consumer cards to U.S consumers. The CS segment offers proprietary corporate and small business cards and provides services to U.S. businesses, including payment and expense management, banking and non-card financing products. The ICS segment focuses on a range of proprietary consumer, small business and corporate cards outside the United States. It also provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and loyalty coalition businesses. The GMNS segment operates a global payments network that processes and settles card transactions, acquires merchants, and provides multi-channel marketing programs and capabilities, services, and data analytics. The Corporate and Other segment covers corporate functions and certain other businesses and operations. The company was founded by Henry Wells, William G. Fargo, and John Warren Butterfield on March 28, 1850 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: American Express Co. (AMEX) 

Highlights

The presenter is short American Express Co. (AXP), a company that he acknowledges has long been viewed as superior to other card issuers and deserving of a higher valuation. He cites significant changes to the demographic of the company’s customer base, with more than 30% of its customers now Millennials or Gen Z, up from 23% in 2020. Those cohorts, taken together, are growing at 40% per year for the company in terms of customer demographic shift. 

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Idea Discussion

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