American Express CoLIM:AXP 68 Return-on-Tangible-Equity is 38.03% as of Mar. 2026, which is 0% above its 10-year median of 37.95. GuruFocus rates LIM:AXP with a GF Score™ of 68/100 and a GF Value™ of $325.23 (Fairly Valued). The stock has 3 warning signs investors should review. Among 525 Credit Services companies, American Express Co ranks better than 92.57% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. American Express Co's annualized net income for the quarter that ended in Mar. 2026 was $11,884 Mil. American Express Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $31,253 Mil. Therefore, American Express Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 38.03%.
The historical rank and industry rank for American Express Co's Return-on-Tangible-Equity or its related term are showing as below:
LIM:AXP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 16.35 Med: 37.95 Max: 43.52
Current: 35.41
During the past 13 years, American Express Co's highest Return-on-Tangible-Equity was 43.52%. The lowest was 16.35%. And the median was 37.95%.
LIM:AXP's Return-on-Tangible-Equity is ranked better than 92.57% of 525
companies
in the Credit Services industry
Industry Median: 7.01
vs LIM:AXP: 35.41
American Express Co (LIM:AXP) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
American Express Co Return-on-Tangible-Equity Related Terms
American Express Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for American Express Co's Return-on-Tangible-Equity 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-Equity Chart
LIM:AXP vs COF, PYPL, AFRM: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, American Express Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, American Express Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where American Express Co's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 38.03% mean?
American Express Co (LIM:AXP) has a Return-on-Tangible-Equity of 38.03% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on American Express Co and its competitors. This is near median its historical median of 37.95. Over the past decade, American Express Co's Return-on-Tangible-Equity has ranged from 16.35 to 43.52. According to the industry distribution chart, American Express Co ranks #39 out of 525 companies in the Credit Services industry, placing it in the top 7.4%.
Is American Express Co's Return-on-Tangible-Equity too high?
American Express Co's current Return-on-Tangible-Equity of 38.03% is near median its 10-year median of 37.95. Over the past 10 years, this metric has ranged from a low of 16.35 to a high of 43.52. The Credit Services industry median Return-on-Tangible-Equity is 7.01. American Express Co's value of 38.03% is 442.5% above this industry median. Based on the distribution chart, American Express Co ranks #39 out of 525 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, American Express Co has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does American Express Co's Return-on-Tangible-Equity compare to COF and PYPL?
According to the Credit Services industry distribution chart, American Express Co ranks #39 out of 525 companies for Return-on-Tangible-Equity. This places American Express Co in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.01. American Express Co's value of 38.03% is 442.5% above this benchmark. Historically, American Express Co's own Return-on-Tangible-Equity has ranged from 16.35 to 43.52 over the past decade. While the company's 10-year median is 37.95 vs. the industry median of 7.01, 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-Equity for a Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 7.01, based on 525 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity of 38.03% is 442.5% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on American Express Co and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.01 — 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-Equity is 38.03%, which is near median its own 10-year median of 37.95. 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 $325.23, compared to a current price of $345.29 — trading 6.2% above its estimated fair value. The current Return-on-Tangible-Equity is 38.03%, which is near median its 10-year median of 37.95 and 442.5% above the Credit Services industry median of 7.01. American Express Co's overall GF Score™ is 68/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For American Express Co (LIM:AXP), the current Return-on-Tangible-Equity is 38.03% 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 $345.29 is trading 6.2% above its estimated GF Value™ of $325.23.
GuruFocus considers American Express Co to be Fairly Valued.
Key valuation signals for LIM:AXP:
Return-on-Tangible-Equity: 38.03% (near median its 10-year median of 37.95)
GF Value™: $325.23 vs. price of $345.29 (6.2% above fair value)
Industry Position: 442.5% above the Credit Services median (#39 of 525)
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.
68GF Score
Get the complete analysis for LIM:AXP
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