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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
American Express Co's Sloan Ratio for the quarter that ended in Mar. 2026 was 6.48%.
As of Mar. 2026, American Express Co has a Sloan Ratio of 6.48%, indicating the company is in the safe zone and there is no funny business with accruals.
American Express Co (TSX:AXP) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2026, American Express Co has a Sloan Ratio of 6.48%, indicating the company is in the safe zone and there is no funny business with accruals.
American Express Co Sloan Ratio % Related Terms
American Express Co Sloan Ratio % Historical Data
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The historical data trend for American Express Co's Sloan Ratio % 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.
TSX:AXP vs COF, PYPL, AFRM: Sloan Ratio % Comparison
For the Credit Services subindustry, American Express Co's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, American Express Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where American Express Co's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
American Express Co's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
American Express Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 3943.218 (Jun. 2025 ) + 4014.627 (Sep. 2025 ) + 3396.329 (Dec. 2025 ) + 4076.212 (Mar. 2026 ) = C$15,430 Mil.
American Express Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 5964.715 (Jun. 2025 ) + 8622.732 (Sep. 2025 ) + 4230.927 (Dec. 2025 ) + 5219.088 (Mar. 2026 ) = C$24,037 Mil.
American Express Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -9290.14 (Jun. 2025 ) + -9127.673 (Sep. 2025 ) + -13721.887 (Dec. 2025 ) + -3940.384 (Mar. 2026 ) = C$-36,080 Mil.
* 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 (TSX:AXP) has a Sloan Ratio % of 6.48% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on American Express Co and its competitors.
Is American Express Co's Sloan Ratio % too high?
American Express Co's current Sloan Ratio % is 6.48%. 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 Sloan Ratio % compare to COF and PYPL?
American Express Co's Sloan Ratio % of 6.48% can be compared against companies in the Credit Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Credit Services company?
A good Sloan Ratio % depends on the Credit Services industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on American Express Co and its competitors. American Express Co's current Sloan Ratio % is 6.48%. 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 (TSX:AXP) is currently considered Fairly Valued. The stock's GF Value™ is C$27.86, compared to a current price of C$30.18 — trading 8.3% above its estimated fair value. The current Sloan Ratio % is 6.48%. 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 Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For American Express Co (TSX:AXP), the current Sloan Ratio % is 6.48% 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 (TSX:AXP) Overvalued in 2026?
Based on GuruFocus' analysis, American Express Co stock appears to be overvalued.
The current stock price of C$30.18 is trading 8.3% above its estimated GF Value™ of C$27.86.
GuruFocus considers American Express Co to be Fairly Valued.
Key valuation signals for TSX:AXP:
Sloan Ratio %: 6.48%
GF Value™: C$27.86 vs. price of C$30.18 (8.3% above fair value)
No single metric tells the full story. See the TSX: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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