Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
American Express Co's 5-Year RORE % for the quarter that ended in Mar. 2026 was 12.30%.
The industry rank for American Express Co's 5-Year RORE % or its related term are showing as below:
LIM:AXP's 5-Year RORE % is ranked better than 57.49% of 487
companies
in the Credit Services industry
Industry Median: 7.54
vs LIM:AXP: 12.30
American Express Co (LIM:AXP) 5-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
American Express Co 5-Year RORE % Related Terms
American Express Co 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for American Express Co's 5-Year RORE % 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.
LIM:AXP vs COF, PYPL, AFRM: 5-Year RORE % Comparison
For the Credit Services subindustry, American Express Co's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, American Express Co's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where American Express Co's 5-Year RORE % 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 5-year before.
American Express Co (LIM:AXP) has a 5-Year RORE % of 12.30 as of Mar. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on American Express Co and its competitors. According to the industry distribution chart, American Express Co ranks #207 out of 487 companies in the Credit Services industry, placing it in the top 42.5%.
Is American Express Co's 5-Year RORE % too high?
American Express Co's current 5-Year RORE % is 12.30. The Credit Services industry median 5-Year RORE % is 7.54. American Express Co's value of 12.30 is 63.1% above this industry median. Based on the distribution chart, American Express Co ranks #207 out of 487 companies in the Credit Services industry, which is above the industry midpoint. Overall, American Express Co has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does American Express Co's 5-Year RORE % compare to COF and PYPL?
According to the Credit Services industry distribution chart, American Express Co ranks #207 out of 487 companies for 5-Year RORE %. This puts American Express Co in the upper half of its industry. The industry median 5-Year RORE % is 7.54. American Express Co's value of 12.30 is 63.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year RORE % for a Credit Services company?
The median 5-Year RORE % among Credit Services companies is 7.54, based on 487 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Express Co's current 5-Year RORE % of 12.30 is 63.1% 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 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on American Express Co and its competitors. For the Credit Services industry, the median 5-Year RORE % is 7.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Express Co's current 5-Year RORE % is 12.30. 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 $327.76, compared to a current price of $345.29 — trading 5.3% above its estimated fair value. The current 5-Year RORE % is 12.30 and 63.1% above the Credit Services industry median of 7.54. American Express Co's overall GF Score™ is 65/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For American Express Co (LIM:AXP), the current 5-Year RORE % is 12.30 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 5.3% above its estimated GF Value™ of $327.76.
GuruFocus considers American Express Co to be Fairly Valued.
Key valuation signals for LIM:AXP:
5-Year RORE %: 12.30
GF Value™: $327.76 vs. price of $345.29 (5.3% above fair value)
Industry Position: 63.1% above the Credit Services median (#207 of 487)
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.
65GF Score
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