AMEREN CORPORATION (AEE) Stock Fundamental Analysis
NYSE:AEE - New York Stock Exchange, Inc. - US0236081024 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to AEE. AEE was compared to 25 industry peers in the Multi-Utilities industry. AEE has a medium profitability rating, but doesn't score so well on its financial health evaluation. AEE is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AEE was profitable.
In the past year AEE had a positive cash flow from operations.
AEE had positive earnings in each of the past 5 years.
Each year in the past 5 years AEE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.65%, AEE is doing worse than 64.00% of the companies in the same industry.
AEE's Return On Equity of 9.90% is in line compared to the rest of the industry. AEE outperforms 60.00% of its industry peers.
With a Return On Invested Capital value of 3.21%, AEE is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for AEE is in line with the industry average of 3.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 9.9% | ||
| ROIC | 3.21% |
ROA(3y)2.77%
ROA(5y)2.76%
ROE(3y)10.04%
ROE(5y)10.02%
ROIC(3y)3.58%
ROIC(5y)3.63%
1.3 Margins
With a decent Profit Margin value of 15.31%, AEE is doing good in the industry, outperforming 76.00% of the companies in the same industry.
AEE's Profit Margin has improved in the last couple of years.
AEE has a Operating Margin of 19.93%. This is in the lower half of the industry: AEE underperforms 60.00% of its industry peers.
In the last couple of years the Operating Margin of AEE has remained more or less at the same level.
AEE's Gross Margin of 95.72% is amongst the best of the industry. AEE outperforms 96.00% of its industry peers.
AEE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.93% | ||
| PM (TTM) | 15.31% | ||
| GM | 95.72% |
OM growth 3Y-1.56%
OM growth 5Y-1.49%
PM growth 3Y0.05%
PM growth 5Y2.05%
GM growth 3Y4.64%
GM growth 5Y2.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AEE is destroying value.
The number of shares outstanding for AEE has been increased compared to 1 year ago.
Compared to 5 years ago, AEE has more shares outstanding
AEE has a worse debt/assets ratio than last year.
2.2 Solvency
AEE has an Altman-Z score of 0.89. This is a bad value and indicates that AEE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.89, AEE is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
AEE has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of AEE (1.60) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.48
WACC6.7%
2.3 Liquidity
A Current Ratio of 0.86 indicates that AEE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.86, AEE is doing worse than 60.00% of the companies in the same industry.
A Quick Ratio of 0.62 indicates that AEE may have some problems paying its short term obligations.
With a Quick ratio value of 0.62, AEE perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
AEE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.59%.
Measured over the past 5 years, AEE shows a small growth in Earnings Per Share. The EPS has been growing by 6.50% on average per year.
The Revenue has grown by 8.96% in the past year. This is quite good.
The Revenue has been growing slightly by 5.22% on average over the past years.
EPS 1Y (TTM)7.59%
EPS 3Y6.13%
EPS 5Y6.5%
EPS Q2Q%9.18%
Revenue 1Y (TTM)8.96%
Revenue growth 3Y6.04%
Revenue growth 5Y5.22%
Sales Q2Q%15.47%
3.2 Future
AEE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.84% yearly.
Based on estimates for the next years, AEE will show a small growth in Revenue. The Revenue will grow by 6.83% on average per year.
EPS Next Y9.12%
EPS Next 2Y8%
EPS Next 3Y7.87%
EPS Next 5Y7.84%
Revenue Next Year7.17%
Revenue Next 2Y6.2%
Revenue Next 3Y5.81%
Revenue Next 5Y6.83%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.62, which indicates a rather expensive current valuation of AEE.
76.00% of the companies in the same industry are cheaper than AEE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AEE to the average of the S&P500 Index (26.03), we can say AEE is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.03, the valuation of AEE can be described as rather expensive.
72.00% of the companies in the same industry are cheaper than AEE, based on the Price/Forward Earnings ratio.
AEE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.62 | ||
| Fwd PE | 18.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AEE indicates a rather expensive valuation: AEE more expensive than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AEE does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.26
PEG (5Y)3.17
EPS Next 2Y8%
EPS Next 3Y7.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.93%, AEE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.67, AEE's dividend is way lower than its industry peers. On top of this 88.00% of the companies listed in the same industry pay a better dividend than AEE!
Compared to an average S&P500 Dividend Yield of 2.36, AEE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
5.2 History
The dividend of AEE is nicely growing with an annual growth rate of 6.73%!
AEE has paid a dividend for at least 10 years, which is a reliable track record.
AEE has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)6.73%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
AEE pays out 60.08% of its income as dividend. This is not a sustainable payout ratio.
AEE's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP60.08%
EPS Next 2Y8%
EPS Next 3Y7.87%
96.5
-2.08 (-2.11%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners81.66%
Inst Owner Change1.32%
Ins Owners0.19%
Ins Owner Change1.44%
Market Cap26.07B
Analysts73.33
Price Target105.54 (9.37%)
Short Float %1.45%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
Yearly Dividend2.66
Dividend Growth(5Y)6.73%
DP60.08%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.28%
Min EPS beat(2)-4.08%
Max EPS beat(2)-0.49%
EPS beat(4)1
Avg EPS beat(4)-1.06%
Min EPS beat(4)-4.08%
Max EPS beat(4)3.16%
EPS beat(8)3
Avg EPS beat(8)-0.19%
EPS beat(12)5
Avg EPS beat(12)0.76%
EPS beat(16)7
Avg EPS beat(16)0.47%
Revenue beat(2)2
Avg Revenue beat(2)4.81%
Min Revenue beat(2)1.2%
Max Revenue beat(2)8.43%
Revenue beat(4)2
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-10.57%
Max Revenue beat(4)8.43%
Revenue beat(8)3
Avg Revenue beat(8)-6.2%
Revenue beat(12)7
Avg Revenue beat(12)5.3%
Revenue beat(16)11
Avg Revenue beat(16)5.71%
PT rev (1m)2.19%
PT rev (3m)9.78%
EPS NQ rev (1m)5.79%
EPS NQ rev (3m)-3.24%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)1.6%
Revenue NQ rev (3m)-0.97%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.62 | ||
| Fwd PE | 18.03 | ||
| P/S | 3.3 | ||
| P/FCF | N/A | ||
| P/OCF | 9.65 | ||
| P/B | 2.13 | ||
| P/tB | 2.21 | ||
| EV/EBITDA | 14.26 |
EPS(TTM)4.68
EY4.85%
EPS(NY)5.35
Fwd EY5.55%
FCF(TTM)-6.99
FCFYN/A
OCF(TTM)10
OCFY10.36%
SpS29.26
BVpS45.23
TBVpS43.71
PEG (NY)2.26
PEG (5Y)3.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 9.9% | ||
| ROCE | 3.68% | ||
| ROIC | 3.21% | ||
| ROICexc | 3.22% | ||
| ROICexgc | 3.25% | ||
| OM | 19.93% | ||
| PM (TTM) | 15.31% | ||
| GM | 95.72% | ||
| FCFM | N/A |
ROA(3y)2.77%
ROA(5y)2.76%
ROE(3y)10.04%
ROE(5y)10.02%
ROIC(3y)3.58%
ROIC(5y)3.63%
ROICexc(3y)3.59%
ROICexc(5y)3.64%
ROICexgc(3y)3.63%
ROICexgc(5y)3.69%
ROCE(3y)4.07%
ROCE(5y)4.13%
ROICexcg growth 3Y-3.58%
ROICexcg growth 5Y-5.47%
ROICexc growth 3Y-3.49%
ROICexc growth 5Y-5.36%
OM growth 3Y-1.56%
OM growth 5Y-1.49%
PM growth 3Y0.05%
PM growth 5Y2.05%
GM growth 3Y4.64%
GM growth 5Y2.42%
F-Score5
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.29 | ||
| Cap/Depr | 298.05% | ||
| Cap/Sales | 58.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 0.89 |
F-Score5
WACC6.7%
ROIC/WACC0.48
Cap/Depr(3y)262.59%
Cap/Depr(5y)276.16%
Cap/Sales(3y)50.2%
Cap/Sales(5y)52.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.59%
EPS 3Y6.13%
EPS 5Y6.5%
EPS Q2Q%9.18%
EPS Next Y9.12%
EPS Next 2Y8%
EPS Next 3Y7.87%
EPS Next 5Y7.84%
Revenue 1Y (TTM)8.96%
Revenue growth 3Y6.04%
Revenue growth 5Y5.22%
Sales Q2Q%15.47%
Revenue Next Year7.17%
Revenue Next 2Y6.2%
Revenue Next 3Y5.81%
Revenue Next 5Y6.83%
EBIT growth 1Y-0.19%
EBIT growth 3Y4.38%
EBIT growth 5Y3.65%
EBIT Next Year102.9%
EBIT Next 3Y34.61%
EBIT Next 5Y23.74%
FCF growth 1Y-61.37%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y13.96%
OCF growth 3Y18.49%
OCF growth 5Y4.95%