Aureus
AExcellent

American Express Company(AXP)

A

Financial data as of Dec 31, 2025Declining · Financials

FCF Margin21.4%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 / FCF3.7xElevated debt burden
Current Ratio0.00Tight short-term liquidity
YoY FCF Growth-41.3%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 (21.4%, 3.7x; 0.2x sector-adjusted)
→
-0.5Current ratio below 1.0 (0.00) (reduced — strong FCF covers short-term obligations)
→
-1Significant YoY FCF decline (-41.3%)
→
+1Very low debt-to-FCF ratio (3.7x; 0.2x sector-adjusted)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (21.4%)
  • Excellent cash conversion (170%)

Concerns

  • Net debt position ($10.1B) — 3.7x FCF, manageable
  • Current ratio below 1.0 — tight short-term liquidity
  • Significant YoY FCF decline (-41.3%)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin21.4%
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 / FCF3.7xElevated debt burden
Current Ratio0.00Tight liquidity
Debt / Equity1.73Moderate leverage

Quarterly FCF Trend

-41.3% YoYDeclining (-41.3%)

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 Margin21.4%
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 / FCF3.7x
YoY FCF Growth-41.3%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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