Today’s Stock: American Express Company (AXP)Today’s Stock: American Express Company (AXP)

The company offers credit and charge cards and complementary products and services, including travel, dining, and lifestyle and expense management products and services; and banking and other payment and financing products and services, including deposits and non-card lending. It also provides merchant acquisition and processing, servicing and settlement, fraud prevention, and point-of-sale marketing and information products and services, as well as network services.

My Thoughts 💭My Thoughts 💭

I’ve been a member of American Express (AMEX) for quite some time now. They offer great cards and provide excellent customer service. However, I was concerned about their over-reliance on China for growth when I read the K-10 report. Despite this, I had already bought a few shares of this company a long time ago when I was looking for dividend stocks.

Recently, Jeremy has been buying this stock and is optimistic about its prospects over the next 3-5 years. I never invested heavily in this company because, at the current price of 479.4k sats per share ($68,212), the stock pays a modest 4.8k sats per share yearly dividend. It would take an incredibly long time, approximately 99.87 years, to break even on the initial investment.

The company trades at a price-to-earnings (P/E) ratio of 21, which means investors are paying $21 for every $1 of profit. While this valuation may seem a bit high, it is still considered reasonable from a value investor’s perspective.

To determine if this stock is worth investing in, let’s review some key fundamentals.

PE:PE:

Expected Growth:Expected Growth:

Revenues and expenses:Revenues and expenses:

Balance Sheet:Balance Sheet:

Dividend:Dividend:

Bitcoin per share:Bitcoin per share:

NoneNone

Ownership breakdown :Ownership breakdown :

Leadership:Leadership:

The company’s fundamentals are sound. Its balance sheet is healthy, considering it’s a financial institution reliant on debt. The growth prospects are promising, with a PE ratio of 21 (projected to underperform Bitcoin). The company boasts excellent margins and free cash flow. The leadership is effectively managing the company.

However, from a Bitcoin perspective, the offer of almost 500,000 sats for a meager 4,000 sats per year dividend is not compelling. Bitcoin is poised to disrupt the business model of AMEX, which relies on fees for its financial products. In the long run, I anticipate Bitcoin replacing the utility AMEX provides unless they begin to adopt it. While they have Bitcoin-branded cards, there’s nothing that suggests they’re actively utilizing UTXOs in their product suite.

Here is the performance according to Simply Wall Street

I like my American Express (AMEX) cards, but I have a stronger preference for Bitcoin. In the long run, 400,000 sats will have more purchasing power than one share of American Express (AXP). Unless the leadership of the company has a genuine Bitcoin strategy, I believe AXP will be left behind.

I will not be purchasing shares of this company. The small shares I currently own from dividend investing will remain with me for now.