Aureus
BGood

American Express Company(AXP)

B

Financial data as of Dec 31, 2025Declining · Financials

FCF Margin22.2%Free Cash Flow / Revenue
Cash Conversion170.1%Operating CF / Net Income
Free Cash Flow$16.0B
Revenue$72.2B
Net Cash-$10.1BNet debt position
Debt / FCF3.6xElevated debt burden
Current Ratio0.00Tight short-term liquidity
YoY FCF Growth-55.6%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (22.2%, 3.6x)
→
-1Current ratio below 1.0 (0.00)
→
-1Significant YoY FCF decline (-55.6%)
→
+0.5Highly consistent quarterly FCF
→
FinalB

Analysis Summary

Strengths

  • Exceptional FCF margin (22.2%)
  • Excellent cash conversion (170%)
  • Highly consistent quarterly FCF

Concerns

  • Net debt position ($10.1B)
  • Current ratio below 1.0 — tight short-term liquidity
  • Significant YoY FCF decline (-55.6%)
  • Significant FCF decline (-55.6% YoY)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin22.2%
Net Margin15.0%
Operating CF Margin25.5%
CapEx Ratio3.4%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$10.1BNet debt position
Debt / FCF3.6xElevated debt burden
Current Ratio0.00Tight liquidity
Debt / Equity1.73Moderate leverage

Quarterly FCF Trend

-55.6% YoYDeclining (-55.6%)

Free cash flow per quarter

Sector Comparison — Financials

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameAmerican Express Company
SectorFinancials
Free Cash Flow$16.0B
Revenue$72.2B
Net Income$10.8B
Operating Cash Flow$18.4B
Capital Expenditure$2.4B
FCF Margin22.2%
Cash Conversion Rate170.1%
Net Margin15.0%
Total Debt$57.8B
Total Cash$47.7B
Net Cash-$10.1B
Current Ratio0.00
Debt / Equity1.73
Debt / FCF3.6x
YoY FCF Growth-55.6%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeB
Data SourceYahoo Finance

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