AMERICAN ELECTRIC POWER (AEP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AEP - US0255371017 - Common Stock
97.6 EUR
+0.2 (+0.21%)
Overall AEP gets a fundamental rating of 4 out of 10. We evaluated AEP against 25 industry peers in the Electric Utilities industry. AEP has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, AEP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AEP was profitable.
In the past year AEP had a positive cash flow from operations.
In the past 5 years AEP has always been profitable.
AEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.32%, AEP is in line with its industry, outperforming 60.00% of the companies in the same industry.
AEP has a Return On Equity (12.03%) which is in line with its industry peers.
AEP has a worse Return On Invested Capital (3.68%) than 64.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AEP is below the industry average of 6.56%.
The last Return On Invested Capital (3.68%) for AEP is above the 3 year average (3.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 12.03% | ||
| ROIC | 3.68% |
ROA(3y)2.54%
ROA(5y)2.64%
ROE(3y)9.79%
ROE(5y)10.22%
ROIC(3y)3.17%
ROIC(5y)3.09%
1.3 Margins
With an excellent Profit Margin value of 17.23%, AEP belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
In the last couple of years the Profit Margin of AEP has grown nicely.
AEP has a Operating Margin of 24.93%. This is in the better half of the industry: AEP outperforms 72.00% of its industry peers.
In the last couple of years the Operating Margin of AEP has grown nicely.
The Gross Margin of AEP (68.45%) is better than 64.00% of its industry peers.
AEP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.93% | ||
| PM (TTM) | 17.23% | ||
| GM | 68.45% |
OM growth 3Y3.41%
OM growth 5Y5.01%
PM growth 3Y0.51%
PM growth 5Y4.04%
GM growth 3Y1.2%
GM growth 5Y-2.58%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AEP is destroying value.
AEP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AEP has been increased compared to 5 years ago.
Compared to 1 year ago, AEP has an improved debt to assets ratio.
2.2 Solvency
AEP has an Altman-Z score of 0.97. This is a bad value and indicates that AEP is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.97, AEP is doing worse than 60.00% of the companies in the same industry.
AEP has a Debt/Equity ratio of 1.49. This is a high value indicating a heavy dependency on external financing.
AEP has a Debt to Equity ratio (1.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.97 |
ROIC/WACC0.6
WACC6.09%
2.3 Liquidity
AEP has a Current Ratio of 0.69. This is a bad value and indicates that AEP is not financially healthy enough and could expect problems in meeting its short term obligations.
AEP's Current ratio of 0.69 is on the low side compared to the rest of the industry. AEP is outperformed by 88.00% of its industry peers.
A Quick Ratio of 0.53 indicates that AEP may have some problems paying its short term obligations.
The Quick ratio of AEP (0.53) is worse than 84.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
AEP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.32%.
Measured over the past 5 years, AEP shows a small growth in Earnings Per Share. The EPS has been growing by 5.71% on average per year.
The Revenue has grown by 8.44% in the past year. This is quite good.
AEP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.85% yearly.
EPS 1Y (TTM)7.32%
EPS 3Y5.78%
EPS 5Y5.71%
EPS Q2Q%-2.7%
Revenue 1Y (TTM)8.44%
Revenue growth 3Y5.51%
Revenue growth 5Y4.85%
Sales Q2Q%10.89%
3.2 Future
AEP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.89% yearly.
The Revenue is expected to grow by 7.00% on average over the next years.
EPS Next Y6.48%
EPS Next 2Y6.71%
EPS Next 3Y7.04%
EPS Next 5Y7.89%
Revenue Next Year5.6%
Revenue Next 2Y6.68%
Revenue Next 3Y6.51%
Revenue Next 5Y7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
AEP is valuated rather expensively with a Price/Earnings ratio of 19.14.
AEP's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of AEP to the average of the S&P500 Index (26.92), we can say AEP is valued slightly cheaper.
AEP is valuated rather expensively with a Price/Forward Earnings ratio of 18.01.
Based on the Price/Forward Earnings ratio, AEP is valued a bit more expensive than 60.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AEP to the average of the S&P500 Index (23.46), we can say AEP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.14 | ||
| Fwd PE | 18.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AEP is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AEP does not grow enough to justify the current Price/Earnings ratio.
AEP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.95
PEG (5Y)3.35
EPS Next 2Y6.71%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
AEP has a Yearly Dividend Yield of 3.30%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.28, AEP has a dividend in line with its industry peers.
AEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
5.2 History
The dividend of AEP has a limited annual growth rate of 5.62%.
Dividend Growth(5Y)5.62%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
54.46% of the earnings are spent on dividend by AEP. This is a bit on the high side, but may be sustainable.
The dividend of AEP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP54.46%
EPS Next 2Y6.71%
EPS Next 3Y7.04%
FRA:AEP (12/23/2025, 7:00:00 PM)
97.6
+0.2 (+0.21%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.99%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap52.13B
Revenue(TTM)21.26B
Net Income(TTM)3.66B
Analysts71.85
Price Target114.1 (16.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
Yearly Dividend3.05
Dividend Growth(5Y)5.62%
DP54.46%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.92%
Min EPS beat(2)-1.41%
Max EPS beat(2)11.24%
EPS beat(4)2
Avg EPS beat(4)4.4%
Min EPS beat(4)-1.41%
Max EPS beat(4)11.24%
EPS beat(8)5
Avg EPS beat(8)2.09%
EPS beat(12)7
Avg EPS beat(12)1.92%
EPS beat(16)10
Avg EPS beat(16)1.91%
Revenue beat(2)2
Avg Revenue beat(2)2.56%
Min Revenue beat(2)1.47%
Max Revenue beat(2)3.65%
Revenue beat(4)3
Avg Revenue beat(4)1.14%
Min Revenue beat(4)-5.22%
Max Revenue beat(4)4.64%
Revenue beat(8)3
Avg Revenue beat(8)-1.67%
Revenue beat(12)4
Avg Revenue beat(12)1.13%
Revenue beat(16)8
Avg Revenue beat(16)3.15%
PT rev (1m)-4.33%
PT rev (3m)-4.33%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.05%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.14 | ||
| Fwd PE | 18.01 | ||
| P/S | 2.89 | ||
| P/FCF | N/A | ||
| P/OCF | 8.96 | ||
| P/B | 2.02 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 12.06 |
EPS(TTM)5.1
EY5.23%
EPS(NY)5.42
Fwd EY5.55%
FCF(TTM)-2.76
FCFYN/A
OCF(TTM)10.89
OCFY11.16%
SpS33.77
BVpS48.37
TBVpS48.29
PEG (NY)2.95
PEG (5Y)3.35
Graham Number74.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 12.03% | ||
| ROCE | 5.29% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.73% | ||
| ROICexgc | 3.73% | ||
| OM | 24.93% | ||
| PM (TTM) | 17.23% | ||
| GM | 68.45% | ||
| FCFM | N/A |
ROA(3y)2.54%
ROA(5y)2.64%
ROE(3y)9.79%
ROE(5y)10.22%
ROIC(3y)3.17%
ROIC(5y)3.09%
ROICexc(3y)3.19%
ROICexc(5y)3.11%
ROICexgc(3y)3.19%
ROICexgc(5y)3.12%
ROCE(3y)4.66%
ROCE(5y)4.55%
ROICexgc growth 3Y2.86%
ROICexgc growth 5Y3.59%
ROICexc growth 3Y2.86%
ROICexc growth 5Y3.6%
OM growth 3Y3.41%
OM growth 5Y5.01%
PM growth 3Y0.51%
PM growth 5Y4.04%
GM growth 3Y1.2%
GM growth 5Y-2.58%
F-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.16 | ||
| Cap/Depr | 245.73% | ||
| Cap/Sales | 40.43% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | 77.96% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 0.97 |
F-Score6
WACC6.09%
ROIC/WACC0.6
Cap/Depr(3y)223.56%
Cap/Depr(5y)219.34%
Cap/Sales(3y)37.81%
Cap/Sales(5y)38.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.32%
EPS 3Y5.78%
EPS 5Y5.71%
EPS Q2Q%-2.7%
EPS Next Y6.48%
EPS Next 2Y6.71%
EPS Next 3Y7.04%
EPS Next 5Y7.89%
Revenue 1Y (TTM)8.44%
Revenue growth 3Y5.51%
Revenue growth 5Y4.85%
Sales Q2Q%10.89%
Revenue Next Year5.6%
Revenue Next 2Y6.68%
Revenue Next 3Y6.51%
Revenue Next 5Y7%
EBIT growth 1Y31.19%
EBIT growth 3Y9.11%
EBIT growth 5Y10.1%
EBIT Next Year82.5%
EBIT Next 3Y30.52%
EBIT Next 5Y22.43%
FCF growth 1Y50.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y62.11%
OCF growth 3Y21.01%
OCF growth 5Y9.77%
AMERICAN ELECTRIC POWER / AEP.DE FAQ
Can you provide the ChartMill fundamental rating for AMERICAN ELECTRIC POWER?
ChartMill assigns a fundamental rating of 4 / 10 to AEP.DE.
What is the valuation status of AMERICAN ELECTRIC POWER (AEP.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to AMERICAN ELECTRIC POWER (AEP.DE). This can be considered as Overvalued.
Can you provide the profitability details for AMERICAN ELECTRIC POWER?
AMERICAN ELECTRIC POWER (AEP.DE) has a profitability rating of 7 / 10.
How financially healthy is AMERICAN ELECTRIC POWER?
The financial health rating of AMERICAN ELECTRIC POWER (AEP.DE) is 1 / 10.
What is the expected EPS growth for AMERICAN ELECTRIC POWER (AEP.DE) stock?
The Earnings per Share (EPS) of AMERICAN ELECTRIC POWER (AEP.DE) is expected to grow by 6.48% in the next year.