American Express Intrinsic Value – American Express Credit Card Delinquency Rate Remains Steady in April

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American Express ($NYSE:AXP) is an American financial services corporation based out of New York City. It offers a variety of credit and charge cards as well as other financial products and services. In April, the delinquency rate for American Express consumer credit cards remained steady at low levels. This is a continued sign that customers are managing their credit responsibly and avoiding delinquent payments. To further illustrate this, the American Express card delinquency rate is substantially lower than the average industry rate. This indicates that customers are making their payments on time and avoiding late fees.

Furthermore, American Express has taken a proactive approach in addressing delinquencies, with an array of tools and resources to assist those struggling to make payments. By April, American Express had also seen an increase in the number of new accounts being opened, indicating that customers are still interested in obtaining a card from the company. This steady stream of new accounts shows that customers remain confident in the security and reliability of American Express products and services. Overall, the April delinquency rate for American Express consumer credit cards remains steady and low, indicating that customers are managing their credit responsibly and taking advantage of the resources and tools provided by the company.

Market Price

On Monday, American Express (AMEX) stock opened at $148.2 and closed at $150.0, up by 1.4% from its last closing price of $147.9. This signals that the company’s strategy to help customers pay debt has been successful in keeping the rate steady. It also shows that AMEX is well-positioned to weather the economic uncertainty.

The company has also been proactive in introducing new initiatives to help customers who have been affected by job losses due to the pandemic. These efforts have been largely successful in keeping customer delinquency rates within acceptable levels. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for American Express. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for American Express. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for American Express. More…

Key Ratios Snapshot

Some of the financial key ratios for American Express are shown below. More…

Analysis – American Express Intrinsic Value

GoodWhale’s analysis of AMERICAN EXPRESS‘s fundamentals indicates that the fair value of AMERICAN EXPRESS shares is around $194.0. This was calculated by our proprietary Valuation Line, which incorporates both quantitative and qualitative factors to determine an accurate assessment of the company’s worth. At the current trading price of $150.0, the stock appears to be undervalued by 22.7%. Our analysis suggests that investors may find it beneficial to invest in AMERICAN EXPRESS shares due to the potential upside associated with the discrepancy between current and fair value pricing. More…

Peers

Amex is known for its credit card, charge card, and traveler’s cheque businesses. The company’s competitors in the credit card space include Discover Financial Services, Synchrony Financial, and Visa Inc.

– Discover Financial Services ($NYSE:DFS)

Discover Financial Services has a market cap of 28.54B as of 2022, a Return on Equity of 26.11%. The company specializes in credit cards, personal loans, and student loans. It also offers banking products such as checking and savings accounts. Discover is one of the largest credit card issuers in the United States. It has more than 50 million cardholders and operates in more than 185 countries. The company was founded in 1986 and is headquartered in Riverwoods, Illinois.

– Synchrony Financial ($NYSE:SYF)

Synchrony Financial is a consumer financial services company with a market cap of 16.02B as of 2022. The company offers a variety of financial services, including credit cards, loans, and savings products. Synchrony Financial has a return on equity of 20.2%. The company’s products are available through a variety of channels, including online, mobile, and retail.

– Visa Inc ($NYSE:V)

Visa Inc is a multinational financial services corporation headquartered in Foster City, California, United States. The company facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards and debit cards. Visa does not issue cards, extend credit, or set rates and fees for consumers. Rather, Visa provides financial institutions with Visa-branded products and services that they then use to offer credit, debit, prepaid, and cash-access products to their customers.

In terms of market cap, as of 2022, Visa Inc has a market cap of 436.4B. In terms of ROE, the company has a ROE of 32.85%. As a brief introduction, the company is a multinational financial services corporation that facilitates electronic funds transfers throughout the world.

Summary

American Express reported that its consumer credit card delinquency rate was stable in April, indicating a robust financial position for the company. This data is important for investors as it suggests that American Express is capable of weathering economic downturns as credit card payments remain up to date. The company’s strong balance sheet also implies strong cash flow and dividends, allowing investors to benefit from their investments.

In addition, American Express has a solid business model with diversified revenue streams, making it an attractive investment opportunity. The company is well-positioned to take advantage of new opportunities as the economic environment improves. All in all, American Express is a strong investment option, with low risk and the potential to generate long-term returns.