American Express: Buy The Downturn

Summary

• American Express shows strong financial performance with 7% YoY revenue growth, 6% net income growth, and 9% diluted EPS growth, justifying its 18x P/E ratio.
• Consistent mid-to-high single-digit growth in billed business and double-digit growth in international card services highlight the company's robust business model.
• Solid credit metrics with a 1.3% 30+ days past due rate and a 2.1% net write-off rate in a high-interest environment are impressive.
• Strong cash flow enables American Express to pay a 1.3% dividend and aggressively repurchase shares, forecasting 9% revenue and 14% EPS growth by 2025.
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of AXP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.