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. While AEE is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, AEE is valued expensive at the moment.
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.
In the past 5 years AEE has always been profitable.
In the past 5 years AEE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AEE (2.65%) is worse than 64.00% of its industry peers.
The Return On Equity of AEE (9.90%) is comparable to the rest of the industry.
AEE has a Return On Invested Capital of 3.21%. This is amonst the worse of the industry: AEE underperforms 88.00% of its industry peers.
AEE had an Average Return On Invested Capital over the past 3 years of 3.58%. This is in line with the industry average of 3.93%.
| 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.
In the last couple of years the Profit Margin of AEE has grown nicely.
With a Operating Margin value of 19.93%, AEE is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of AEE has remained more or less at the same level.
With an excellent Gross Margin value of 95.72%, AEE belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
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
AEE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
The debt/assets ratio for AEE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that AEE is in the distress zone and has some risk of bankruptcy.
AEE's Altman-Z score of 0.89 is fine compared to the rest of the industry. AEE outperforms 68.00% of its industry peers.
A Debt/Equity ratio of 1.60 is on the high side and indicates that AEE has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.60, AEE is in line with its industry, outperforming 44.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.49
WACC6.57%
2.3 Liquidity
AEE has a Current Ratio of 0.86. This is a bad value and indicates that AEE is not financially healthy enough and could expect problems in meeting its short term obligations.
AEE has a worse Current ratio (0.86) than 60.00% of its industry peers.
A Quick Ratio of 0.62 indicates that AEE may have some problems paying its short term obligations.
AEE's Quick ratio of 0.62 is in line compared to the rest of the industry. AEE outperforms 44.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.59% over the past year.
AEE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.50% yearly.
AEE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.96%.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.07% yearly.
The Revenue is expected to grow by 6.84% on average over the next years.
EPS Next Y8.99%
EPS Next 2Y7.99%
EPS Next 3Y7.88%
EPS Next 5Y8.07%
Revenue Next Year7.58%
Revenue Next 2Y6.41%
Revenue Next 3Y6.05%
Revenue Next 5Y6.84%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.52 indicates a rather expensive valuation of AEE.
Based on the Price/Earnings ratio, AEE is valued a bit more expensive than 72.00% of the companies in the same industry.
AEE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
A Price/Forward Earnings ratio of 17.94 indicates a rather expensive valuation of AEE.
Based on the Price/Forward Earnings ratio, AEE is valued a bit more expensive than the industry average as 68.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, AEE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.52 | ||
| Fwd PE | 17.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AEE is valued more expensive than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.28
PEG (5Y)3.16
EPS Next 2Y7.99%
EPS Next 3Y7.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.98%, AEE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.00, 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 2.42, AEE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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.
As AEE did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)6.73%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
60.08% of the earnings are spent on dividend by AEE. 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 2Y7.99%
EPS Next 3Y7.88%
96.02
+0.54 (+0.57%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners82.15%
Inst Owner Change1.36%
Ins Owners0.15%
Ins Owner Change1.51%
Market Cap25.95B
Analysts74.29
Price Target105.51 (9.88%)
Short Float %3.27%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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)-0.03%
PT rev (3m)3.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.51%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.95%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)2.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.52 | ||
| Fwd PE | 17.94 | ||
| P/S | 3.28 | ||
| P/FCF | N/A | ||
| P/OCF | 9.6 | ||
| P/B | 2.12 | ||
| P/tB | 2.2 | ||
| EV/EBITDA | 14.22 |
EPS(TTM)4.68
EY4.87%
EPS(NY)5.35
Fwd EY5.58%
FCF(TTM)-6.99
FCFYN/A
OCF(TTM)10
OCFY10.41%
SpS29.24
BVpS45.21
TBVpS43.69
PEG (NY)2.28
PEG (5Y)3.16
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
WACC6.57%
ROIC/WACC0.49
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 Y8.99%
EPS Next 2Y7.99%
EPS Next 3Y7.88%
EPS Next 5Y8.07%
Revenue 1Y (TTM)8.96%
Revenue growth 3Y6.04%
Revenue growth 5Y5.22%
Sales Q2Q%15.47%
Revenue Next Year7.58%
Revenue Next 2Y6.41%
Revenue Next 3Y6.05%
Revenue Next 5Y6.84%
EBIT growth 1Y-0.19%
EBIT growth 3Y4.38%
EBIT growth 5Y3.65%
EBIT Next Year100.6%
EBIT Next 3Y34.07%
EBIT Next 5Y24.53%
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%