American Express
Transcript: Positive: 14.34% Beginning: 1,462.62 Currently: 1,630.74 Competitor Analysis Positive: 16.45% Max: 1,667.47(yr-2013) Min: 683.38(yr-2009) Over 160 years of doing business Known for security, service, and personal recognition “Member Since” Date on cards Mastercard Incorporated - 37.71% New Programs Balance Sheet American Express American Express Stock Price Trends (YTD) Questions? AMERICAN EXPRESS BUSINESS Mr. Stephen Squeri, 54 Group President of Global Corp. Services Pay: 5.66M Exercised: 2.65M Positive: 28.87% Beginning: 58.75 Currently: 75.71 Debt Ratio- .876675 Beta- .94 Discover Financial Services Mastercard Incorporated Visa Inc. Mr. Daniel Henry, 63 CFO, Executive VP and Chairman of Asses-Liability Committee Pay: 4.3M Exercised: 9.10M American Express - 15.12% Income Statement Current Market Cap: $85.74 Billion Sales Revenue: (Income Statement) $29.8 Billion Financial Crisis Conversion to Bank Holding Company Received $3.4 Billion Bailout Repaid in June 2009 CEO Kenneth Chenault Bonus Pay 2008 - $6.1 million cash bonus 2009 - $5.1 million cash bonus Average Earnings Estimate Next Year: 5.2 Average Revenue Estimate Next Year: $34.8 Billion Growth Estimates: Next Year: 10% Next 5 Years(per year): 12.08% Industry Next 5 Years(per year): 13.07% S&P 500 Next 5 Years(per year): 9.43% Comparisons to Representative Competitors and Industry Key Executives American Express/ APX Largest Offerings Charge and Credit Cards (merchants and cardholder themselves secondly) Fastest Growing Global Merchant Services consisting of social media platforms, business insights, loyalty programs and digital marketing services Market Leader Especially in the U.S. card services (97.4 million worldwide cards on December 31, 2010) Positive: 27.6% Value From, June 11-May 12: Positive:1.36% Current Market Capitalization & Sales Revenue also publishes luxury lifestyle magazines under the Travel + Leisure, Food & Wine, Departures, and Executive Travel brand names ROA, ROE, EPS, and DPS American Express’ P/E Ratio: 19.69 Ownership by Insiders and 5% Owners: 1% Ownership by Institutions and Mutual Funds: 90% Amount of Institutions Holding Shares: 727 Largest Shares Holder: Dodge & Cox Inc. with 48,608,415 and 8.32% ownership Size of the Firm American Express Earnings per Share- 3.96 Dividends per Share- .92 (1.20%) Strong Brand Positive: 41.7% Value From June 11-May12: Positive:11.61% INTRODUCTION Recent Developments Positive: 69.56% Max: 77.39(yr-2013) Min: 10.26(yr-2009) First time Stock Price was this low Since 1995 Financial Performance How AXP Compares to Competition S&P 500 Major Competitors Premium Customers Team 4 Visa Incorporated - 21.50% Profit Margin Acquisitions and Retrenchment Market Performance Industry: Banking, Financial services Founded: Buffalo, New York, United States 1850 Headquarters: Three World Financial Center Area Served: Worldwide Products: Charge card, credit cards and traveler’s cheque References: Mr. Edward Gilligan, 53 President Pay: 6.86M Exercised: 9.80M Profile Ratios and Cash on Hand Market Capitalization- 85.74 Billion Sales Revenue- 29.8 Billion Employees- 63,500,000 Spend 4x more than MasterCard 3.5x more than Visa Amex has highest credit quality out of all major card issuers Mr. Daniel Schulman, 55 Group President of Enterprise Growth Pay: 5.39M Exercised: 0.00 American Express Stock Price Trends (over past 5 years) Majority from card member spending Instead of: Lending Fees Balances carried on cards “Spend-Centric Model” Retrenchment of Travel Division 8,500 job cuts Revamped Loyalty Programs Alexander Hull Yao Xiao Xinyi Song Austin Estlund Christopher McKenzie Dylan Davison "AXP: Summary for American Express Company Common- Yahoo! Finance." Yahoo! Finance. Yahoo, 06 June 2013. Web. 09 June 2013. Steveman, Ben. "American Express Banks on FederalHelp." Markets&Finance. BloombergBusinessweek, 12 Nov. 2008. Web. 7 June 2013. <http://www.businessweek.com/stories/2008-11-12/american-express-banks-on-federal-helpbusinessweek-business-news-stock-market-and-financial-advice>. Kharif, Olga. "American Express Seeks Acquisitions to Expand in Online, Mobile." Bloomberg. N.p., 14 Sept. 2011. Web. 10 June 2013. <http://www.bloomberg.com/news/2011-09-14/american-express-seeks-acquisitions-to-expand-e-commerce-mobile-payments.html>. http://wsj.com/deals/2010/03/16/ken-chenault-collects-a-big-bonus-quietly/ http://online.wsj.com/article/SB10001424127887324581504578234052700797198.html Superior Customer Service Loyalty Partners Revolution Money Qrtly. Rev. Growth- .03 Competitors: All were higher Industry: .00 EPS- 3.96 Competitors: Higher on average Industry: 2.86 5 consecutive J.D. Power & Assoc. awards for highest customer satisfaction among credit card companies Mr. Kenneth Chenault, 62 Chairman. CEO of American Express Travel Related Services Company Inc. Pay: 6.9M Exercised: 13.43M Analysts Forecast for the Firm in the Future S&P 500 Stock Price Trends (Over the past 12 months) Discover Financial Services -