American Express CoLIM:AXP 64 Return-on-Tangible-Asset is 3.94% as of Mar. 2026, which is 9% above its 10-year median of 3.62. GuruFocus rates LIM:AXP with a GF Score™ of 64/100 and a GF Value™ of $319.27 (Fairly Valued). The stock has 4 warning signs investors should review. Among 542 Credit Services companies, American Express Co ranks better than 72.88% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. American Express Co's annualizedNet Income for the quarter that ended in Mar. 2026 was $11,884 Mil. American Express Co's average total tangible assets for the quarter that ended in Mar. 2026 was $301,992 Mil. Therefore, American Express Co's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 3.94%.
The historical rank and industry rank for American Express Co's Return-on-Tangible-Asset or its related term are showing as below:
LIM:AXP'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.64 Med: 3.62 Max: 4.34
Current: 3.79
During the past 13 years, American Express Co's highest Return-on-Tangible-Asset was 4.34%. The lowest was 1.64%. And the median was 3.62%.
LIM:AXP's Return-on-Tangible-Asset is ranked better than 72.88% of 542
companies
in the Credit Services industry
Industry Median: 1.94
vs LIM:AXP: 3.79
American Express Co (LIM:AXP) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
American Express Co Return-on-Tangible-Asset Related Terms
American Express Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for American Express Co's Return-on-Tangible-Asset 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.
American Express Co Return-on-Tangible-Asset Chart
LIM:AXP vs COF, PYPL, AFRM: Return-on-Tangible-Asset Comparison
For the Credit Services subindustry, American Express Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Credit Services Industry
For the Credit Services industry and Financial Services sector, American Express Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where American Express Co's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 3.94% mean?
American Express Co (LIM:AXP) has a Return-on-Tangible-Asset of 3.94% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on American Express Co and its competitors. This is near median its historical median of 3.62. Over the past decade, American Express Co's Return-on-Tangible-Asset has ranged from 1.64 to 4.34. According to the industry distribution chart, American Express Co ranks #147 out of 542 companies in the Credit Services industry, placing it in the top 27.1%.
Is American Express Co's Return-on-Tangible-Asset too high?
American Express Co's current Return-on-Tangible-Asset of 3.94% is near median its 10-year median of 3.62. Over the past 10 years, this metric has ranged from a low of 1.64 to a high of 4.34. The Credit Services industry median Return-on-Tangible-Asset is 1.94. American Express Co's value of 3.94% is 103.1% above this industry median. Based on the distribution chart, American Express Co ranks #147 out of 542 companies in the Credit Services industry, which is above the industry midpoint. Overall, American Express Co has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does American Express Co's Return-on-Tangible-Asset compare to COF and PYPL?
According to the Credit Services industry distribution chart, American Express Co ranks #147 out of 542 companies for Return-on-Tangible-Asset. This puts American Express Co in the upper half of its industry. The industry median Return-on-Tangible-Asset is 1.94. American Express Co's value of 3.94% is 103.1% above this benchmark. Historically, American Express Co's own Return-on-Tangible-Asset has ranged from 1.64 to 4.34 over the past decade. While the company's 10-year median is 3.62 vs. the industry median of 1.94, 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 Return-on-Tangible-Asset for a Credit Services company?
The median Return-on-Tangible-Asset among Credit Services companies is 1.94, based on 542 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Express Co's current Return-on-Tangible-Asset of 3.94% is 103.1% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on American Express Co and its competitors. For the Credit Services industry, the median Return-on-Tangible-Asset is 1.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Express Co's current Return-on-Tangible-Asset is 3.94%, which is near median its own 10-year median of 3.62. 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?
Based on GuruFocus' analysis, American Express Co (LIM:AXP) is currently considered Fairly Valued. The stock's GF Value™ is $319.27, compared to a current price of $349.00 — trading 9.3% above its estimated fair value. The current Return-on-Tangible-Asset is 3.94%, which is near median its 10-year median of 3.62 and 103.1% above the Credit Services industry median of 1.94. American Express Co's overall GF Score™ is 64/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For American Express Co (LIM:AXP), the current Return-on-Tangible-Asset is 3.94% 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.
Is American Express Co (LIM:AXP) Overvalued in 2026?
Based on GuruFocus' analysis, American Express Co stock appears to be overvalued.
The current stock price of $349.00 is trading 9.3% above its estimated GF Value™ of $319.27.
GuruFocus considers American Express Co to be Fairly Valued.
Key valuation signals for LIM:AXP:
Return-on-Tangible-Asset: 3.94% (near median its 10-year median of 3.62)
GF Value™: $319.27 vs. price of $349.00 (9.3% above fair value)
Industry Position: 103.1% above the Credit Services median (#147 of 542)
No single metric tells the full story. See the LIM:AXP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
64GF Score
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