Saturday, July 19, 2008

American Express

American Express (AXP)
American Express provides credit card services and other travel related services.

Competitive Advantage
More affluent customer base than competitors (hopefully less defaults/bankruptcy claims)
Valuation

Main Competitors
Discover Financial Services (DFS)
Mastercard Incorporated (MA)
Visa (V)
Citigroup Inc (C)

Weaknesses
Dependent on the weak American economy. Has a good amount of exposure to defaulting loans.

Financials (From Yahoo!)
Market Cap: 48.87B
P/E: 12.66
PEG: 1.13
EPS: 3.33
Cash: 33.64B
Debt: 74.53B
FCF: -568.25M
Div (Yield): 0.72 (1.70%)

Disclosure: I do not own shares in American Express.

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