American Express CoSTU:AEC3.PFD 78 Pretax Margin % is 19.98% as of Mar. 2026, which is 3% above its 10-year median of 19.44. GuruFocus rates STU:AEC3.PFD with a GF Score™ of 78/100. The stock has 3 warning signs investors should review. Among 534 Credit Services companies, American Express Co ranks worse than 50.94% on this metric.
The historical rank and industry rank for American Express Co's Pretax Margin % or its related term are showing as below:
STU:AEC3.PFD'
s Pretax Margin % Range Over the Past 10 Years
Min: 11.85 Med: 19.44 Max: 24.77
Current: 19.2
STU:AEC3.PFD's Pretax Margin % is ranked worse than 50.94% of 534
companies
in the Credit Services industry
Industry Median: 19.865
vs STU:AEC3.PFD: 19.20
American Express Co (STU:AEC3.PFD) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
American Express Co Pretax Margin % Related Terms
American Express Co Pretax Margin % Historical Data
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The historical data trend for American Express Co's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:AEC3.PFD vs COF, PYPL, AFRM: Pretax Margin % Comparison
For the Credit Services subindustry, American Express Co's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Express Co Pretax Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, American Express Co's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where American Express Co's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
American Express Co (STU:AEC3.PFD) has a Pretax Margin % of 19.98% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on American Express Co and its competitors. This is near median its historical median of 19.44. Over the past decade, American Express Co's Pretax Margin % has ranged from 11.85 to 24.77. According to the industry distribution chart, American Express Co ranks #272 out of 534 companies in the Credit Services industry, placing it in the top 50.9%.
Is American Express Co's Pretax Margin % too high?
American Express Co's current Pretax Margin % of 19.98% is near median its 10-year median of 19.44. Over the past 10 years, this metric has ranged from a low of 11.85 to a high of 24.77. The Credit Services industry median Pretax Margin % is 19.87. American Express Co's value of 19.98% is 0.6% above this industry median. Based on the distribution chart, American Express Co ranks #272 out of 534 companies in the Credit Services industry, which is below the industry midpoint. Overall, American Express Co has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does American Express Co's Pretax Margin % compare to COF and PYPL?
According to the Credit Services industry distribution chart, American Express Co ranks #272 out of 534 companies for Pretax Margin %. This places American Express Co in the lower half of its industry. The industry median Pretax Margin % is 19.87. American Express Co's value of 19.98% is 0.6% above this benchmark. Historically, American Express Co's own Pretax Margin % has ranged from 11.85 to 24.77 over the past decade. While the company's 10-year median is 19.44 vs. the industry median of 19.87, American Express Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Credit Services company?
The median Pretax Margin % among Credit Services companies is 19.87, based on 534 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Express Co's current Pretax Margin % of 19.98% is 0.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on American Express Co and its competitors. For the Credit Services industry, the median Pretax Margin % is 19.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Express Co's current Pretax Margin % is 19.98%, which is near median its own 10-year median of 19.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Express Co stock overvalued right now?
American Express Co (STU:AEC3.PFD) has a current Pretax Margin % of 19.98%. The current Pretax Margin % is 19.98%, which is near median its 10-year median of 19.44 and 0.6% above the Credit Services industry median of 19.87. American Express Co's overall GF Score™ is 78/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For American Express Co (STU:AEC3.PFD), the current Pretax Margin % is 19.98% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
American Express is a global financial institution, operating in about 130 countries, that provides consumers and businesses charge and credit card payment products. The company also operates a highly profitable merchant payment network. It operates in four segments: US consumer services, US commercial services, international card services, and global merchant and network services. In addition to payment products, the company's commercial business offers expense management tools, consulting services, and business loans.
78GF Score
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