AMERICAN ELECTRIC POWER (AEP.DE) Fundamental Analysis & Valuation

FRA:AEP • US0255371017

112.5 EUR
-1 (-0.88%)
Last: Mar 6, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership

This AEP.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

Overall AEP gets a fundamental rating of 4 out of 10. We evaluated AEP against 27 industry peers in the Electric Utilities industry. There are concerns on the financial health of AEP while its profitability can be described as average. AEP is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. AEP.DE Profitability Analysis

1.1 Basic Checks

  • AEP had positive earnings in the past year.
  • In the past year AEP had a positive cash flow from operations.
  • In the past 5 years AEP has always been profitable.
  • Each year in the past 5 years AEP had a positive operating cash flow.
AEP.DE Yearly Net Income VS EBIT VS OCF VS FCFAEP.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B 6B

1.2 Ratios

  • AEP has a Return On Assets (3.13%) which is in line with its industry peers.
  • AEP's Return On Equity of 11.48% is in line compared to the rest of the industry. AEP outperforms 59.26% of its industry peers.
  • AEP has a Return On Invested Capital of 3.69%. This is in the lower half of the industry: AEP underperforms 62.96% of its industry peers.
  • AEP had an Average Return On Invested Capital over the past 3 years of 3.35%. This is below the industry average of 6.23%.
  • The 3 year average ROIC (3.35%) for AEP is below the current ROIC(3.69%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.13%
ROE 11.48%
ROIC 3.69%
ROA(3y)2.76%
ROA(5y)2.72%
ROE(3y)10.4%
ROE(5y)10.38%
ROIC(3y)3.35%
ROIC(5y)3.26%
AEP.DE Yearly ROA, ROE, ROICAEP.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • With an excellent Profit Margin value of 16.36%, AEP belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
  • In the last couple of years the Profit Margin of AEP has grown nicely.
  • AEP has a better Operating Margin (24.62%) than 74.07% of its industry peers.
  • AEP's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 67.86%, AEP is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
  • AEP's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 24.62%
PM (TTM) 16.36%
GM 67.86%
OM growth 3Y8.91%
OM growth 5Y4.21%
PM growth 3Y11.69%
PM growth 5Y2.1%
GM growth 3Y2.05%
GM growth 5Y-3.33%
AEP.DE Yearly Profit, Operating, Gross MarginsAEP.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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1

2. AEP.DE Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AEP is destroying value.
  • Compared to 1 year ago, AEP has more shares outstanding
  • 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.
AEP.DE Yearly Shares OutstandingAEP.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
AEP.DE Yearly Total Debt VS Total AssetsAEP.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

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 70.37% of the companies in the same industry.
  • AEP has a Debt/Equity ratio of 1.46. This is a high value indicating a heavy dependency on external financing.
  • AEP's Debt to Equity ratio of 1.46 is in line compared to the rest of the industry. AEP outperforms 59.26% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.46
Debt/FCF N/A
Altman-Z 0.97
ROIC/WACC0.6
WACC6.19%
AEP.DE Yearly LT Debt VS Equity VS FCFAEP.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B 40B

2.3 Liquidity

  • AEP has a Current Ratio of 0.45. 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 has a Current ratio of 0.45. This is amonst the worse of the industry: AEP underperforms 96.30% of its industry peers.
  • AEP has a Quick Ratio of 0.45. This is a bad value and indicates that AEP is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.33, AEP is not doing good in the industry: 96.30% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.45
Quick Ratio 0.33
AEP.DE Yearly Current Assets VS Current LiabilitesAEP.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. AEP.DE Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 6.24% over the past year.
  • Measured over the past 5 years, AEP shows a small growth in Earnings Per Share. The EPS has been growing by 6.07% on average per year.
  • The Revenue has grown by 10.93% in the past year. This is quite good.
  • The Revenue has been growing slightly by 7.96% on average over the past years.
EPS 1Y (TTM)6.24%
EPS 3Y5.4%
EPS 5Y6.07%
EPS Q2Q%-4.03%
Revenue 1Y (TTM)10.93%
Revenue growth 3Y3.66%
Revenue growth 5Y7.96%
Sales Q2Q%13.15%

3.2 Future

  • AEP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.61% yearly.
  • AEP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.38% yearly.
EPS Next Y7.51%
EPS Next 2Y7.74%
EPS Next 3Y8.34%
EPS Next 5Y8.61%
Revenue Next Year7.48%
Revenue Next 2Y6.08%
Revenue Next 3Y6.27%
Revenue Next 5Y8.38%

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 stable: in the next years the growth will be about the same than in the last years.
AEP.DE Yearly Revenue VS EstimatesAEP.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B
AEP.DE Yearly EPS VS EstimatesAEP.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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1

4. AEP.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 21.80, the valuation of AEP can be described as rather expensive.
  • Based on the Price/Earnings ratio, AEP is valued a bit more expensive than 74.07% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.29, AEP is valued at the same level.
  • The Price/Forward Earnings ratio is 20.30, which indicates a rather expensive current valuation of AEP.
  • Based on the Price/Forward Earnings ratio, AEP is valued a bit more expensive than 74.07% of the companies in the same industry.
  • AEP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.60.
Industry RankSector Rank
PE 21.8
Fwd PE 20.3
AEP.DE Price Earnings VS Forward Price EarningsAEP.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AEP is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.19
AEP.DE Per share dataAEP.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The decent profitability rating of AEP may justify a higher PE ratio.
PEG (NY)2.9
PEG (5Y)3.59
EPS Next 2Y7.74%
EPS Next 3Y8.34%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. AEP.DE Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.88%, AEP has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.94, AEP has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, AEP pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.88%

5.2 History

  • The dividend of AEP has a limited annual growth rate of 5.40%.
Dividend Growth(5Y)5.4%
Div Incr YearsN/A
Div Non Decr YearsN/A
AEP.DE Yearly Dividends per shareAEP.DE Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • 56.09% 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.
DP56.09%
EPS Next 2Y7.74%
EPS Next 3Y8.34%
AEP.DE Yearly Income VS Free CF VS DividendAEP.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B
AEP.DE Dividend Payout.AEP.DE Dividend Payout, showing the Payout Ratio.AEP.DE Dividend Payout.PayoutRetained Earnings

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AEP.DE Fundamentals: All Metrics, Ratios and Statistics

AMERICAN ELECTRIC POWER

FRA:AEP (3/6/2026, 7:00:00 PM)

112.5

-1 (-0.88%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)02-12
Earnings (Next)05-04
Inst Owners84.54%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap60.85B
Revenue(TTM)21.88B
Net Income(TTM)3.58B
Analysts73.57
Price Target112.2 (-0.27%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.88%
Yearly Dividend3.24
Dividend Growth(5Y)5.4%
DP56.09%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.61%
Min EPS beat(2)-1.41%
Max EPS beat(2)2.62%
EPS beat(4)3
Avg EPS beat(4)5.35%
Min EPS beat(4)-1.41%
Max EPS beat(4)11.24%
EPS beat(8)6
Avg EPS beat(8)2.82%
EPS beat(12)7
Avg EPS beat(12)1.7%
EPS beat(16)10
Avg EPS beat(16)1.83%
Revenue beat(2)2
Avg Revenue beat(2)5.65%
Min Revenue beat(2)3.65%
Max Revenue beat(2)7.66%
Revenue beat(4)4
Avg Revenue beat(4)4.36%
Min Revenue beat(4)1.47%
Max Revenue beat(4)7.66%
Revenue beat(8)4
Avg Revenue beat(8)0.72%
Revenue beat(12)4
Avg Revenue beat(12)-1.36%
Revenue beat(16)8
Avg Revenue beat(16)3.14%
PT rev (1m)0%
PT rev (3m)1.08%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)1%
EPS NY rev (1m)0.34%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.16%
Valuation
Industry RankSector Rank
PE 21.8
Fwd PE 20.3
P/S 3.22
P/FCF N/A
P/OCF 10.13
P/B 2.26
P/tB 2.26
EV/EBITDA 13.19
EPS(TTM)5.16
EY4.59%
EPS(NY)5.54
Fwd EY4.93%
FCF(TTM)-2.62
FCFYN/A
OCF(TTM)11.11
OCFY9.87%
SpS34.99
BVpS49.86
TBVpS49.77
PEG (NY)2.9
PEG (5Y)3.59
Graham Number76.08
Profitability
Industry RankSector Rank
ROA 3.13%
ROE 11.48%
ROCE 5.32%
ROIC 3.69%
ROICexc 3.71%
ROICexgc 3.71%
OM 24.62%
PM (TTM) 16.36%
GM 67.86%
FCFM N/A
ROA(3y)2.76%
ROA(5y)2.72%
ROE(3y)10.4%
ROE(5y)10.38%
ROIC(3y)3.35%
ROIC(5y)3.26%
ROICexc(3y)3.37%
ROICexc(5y)3.28%
ROICexgc(3y)3.37%
ROICexgc(5y)3.28%
ROCE(3y)4.88%
ROCE(5y)4.77%
ROICexgc growth 3Y5.55%
ROICexgc growth 5Y5.09%
ROICexc growth 3Y5.55%
ROICexc growth 5Y5.09%
OM growth 3Y8.91%
OM growth 5Y4.21%
PM growth 3Y11.69%
PM growth 5Y2.1%
GM growth 3Y2.05%
GM growth 5Y-3.33%
F-Score5
Asset Turnover0.19
Health
Industry RankSector Rank
Debt/Equity 1.46
Debt/FCF N/A
Debt/EBITDA 5.14
Cap/Depr 246%
Cap/Sales 39.23%
Interest Coverage 2.84
Cash Conversion 78.25%
Profit Quality N/A
Current Ratio 0.45
Quick Ratio 0.33
Altman-Z 0.97
F-Score5
WACC6.19%
ROIC/WACC0.6
Cap/Depr(3y)236.86%
Cap/Depr(5y)222.94%
Cap/Sales(3y)39.39%
Cap/Sales(5y)37.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.24%
EPS 3Y5.4%
EPS 5Y6.07%
EPS Q2Q%-4.03%
EPS Next Y7.51%
EPS Next 2Y7.74%
EPS Next 3Y8.34%
EPS Next 5Y8.61%
Revenue 1Y (TTM)10.93%
Revenue growth 3Y3.66%
Revenue growth 5Y7.96%
Sales Q2Q%13.15%
Revenue Next Year7.48%
Revenue Next 2Y6.08%
Revenue Next 3Y6.27%
Revenue Next 5Y8.38%
EBIT growth 1Y21.12%
EBIT growth 3Y12.9%
EBIT growth 5Y12.5%
EBIT Next Year84.22%
EBIT Next 3Y31.35%
EBIT Next 5Y22.67%
FCF growth 1Y-69.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.05%
OCF growth 3Y9.51%
OCF growth 5Y12.62%

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.


Can you provide the valuation status for AMERICAN ELECTRIC POWER?

ChartMill assigns a valuation rating of 1 / 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 6 / 10.


What is the financial health of AMERICAN ELECTRIC POWER (AEP.DE) stock?

The financial health rating of AMERICAN ELECTRIC POWER (AEP.DE) is 1 / 10.


What is the earnings growth outlook for AMERICAN ELECTRIC POWER?

The Earnings per Share (EPS) of AMERICAN ELECTRIC POWER (AEP.DE) is expected to grow by 7.51% in the next year.