AMERICAN ELECTRIC POWER (AEP.DE) Stock Fundamental Analysis

Europe • Frankfurt Stock Exchange • FRA:AEP • US0255371017

102 EUR
0 (0%)
Last: Feb 10, 2026, 07:00 PM
Fundamental Rating

4

AEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 27 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.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • AEP had positive earnings in the past year.
  • AEP had a positive operating cash flow in the past year.
  • Each year in the past 5 years AEP has 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 0 2B -2B 4B 6B

1.2 Ratios

  • The Return On Assets of AEP (3.32%) is better than 62.96% of its industry peers.
  • Looking at the Return On Equity, with a value of 12.03%, AEP is in line with its industry, outperforming 59.26% of the companies in the same industry.
  • AEP has a worse Return On Invested Capital (3.68%) than 62.96% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for AEP is below the industry average of 6.36%.
  • The 3 year average ROIC (3.17%) for AEP is below the current ROIC(3.68%), indicating increased profibility in the last year.
Industry RankSector 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%
AEP.DE Yearly ROA, ROE, ROICAEP.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

  • The Profit Margin of AEP (17.23%) is better than 88.89% of its industry peers.
  • AEP's Profit Margin has improved in the last couple of years.
  • AEP has a better Operating Margin (24.93%) than 77.78% of its industry peers.
  • In the last couple of years the Operating Margin of AEP has grown nicely.
  • AEP's Gross Margin of 68.45% is fine compared to the rest of the industry. AEP outperforms 66.67% of its industry peers.
  • AEP's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
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 20 40 60 80

1

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AEP is destroying value.
  • The number of shares outstanding for AEP has been increased compared to 1 year ago.
  • The number of shares outstanding for AEP has been increased compared to 5 years ago.
  • The debt/assets ratio for AEP has been reduced compared to a year ago.
AEP.DE Yearly Shares OutstandingAEP.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 20B 40B 60B 80B 100B

2.2 Solvency

  • Based on the Altman-Z score of 1.00, we must say that AEP is in the distress zone and has some risk of bankruptcy.
  • AEP has a Altman-Z score of 1.00. This is comparable to the rest of the industry: AEP outperforms 40.74% of its industry peers.
  • A Debt/Equity ratio of 1.49 is on the high side and indicates that AEP has dependencies on debt financing.
  • AEP has a Debt to Equity ratio of 1.49. This is comparable to the rest of the industry: AEP outperforms 51.85% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.49
Debt/FCF N/A
Altman-Z 1
ROIC/WACC0.59
WACC6.2%
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 0 10B 20B 30B

2.3 Liquidity

  • A Current Ratio of 0.69 indicates that AEP may have some problems paying its short term obligations.
  • With a Current ratio value of 0.69, AEP is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
  • AEP has a Quick 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.
  • With a Quick ratio value of 0.53, AEP is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.69
Quick Ratio 0.53
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 2B 4B 6B 8B 10B

5

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 7.32% over the past year.
  • AEP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.71% yearly.
  • Looking at the last year, AEP shows a quite strong growth in Revenue. The Revenue has grown by 8.44% in the last year.
  • The Revenue has been growing slightly by 4.85% on average over the past years.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.09% yearly.
  • Based on estimates for the next years, AEP will show a small growth in Revenue. The Revenue will grow by 7.46% on average per year.
EPS Next Y6.46%
EPS Next 2Y6.69%
EPS Next 3Y7.06%
EPS Next 5Y8.09%
Revenue Next Year5.72%
Revenue Next 2Y6.56%
Revenue Next 3Y6.37%
Revenue Next 5Y7.46%

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.
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

2

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 20.20, which indicates a rather expensive current valuation of AEP.
  • The rest of the industry has a similar Price/Earnings ratio as AEP.
  • AEP is valuated rather cheaply when we compare the Price/Earnings ratio to 28.03, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 19.00, which indicates a rather expensive current valuation of AEP.
  • Based on the Price/Forward Earnings ratio, AEP is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
  • AEP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.97, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.2
Fwd PE 19
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

  • Based on the Enterprise Value to EBITDA ratio, AEP is valued a bit more expensive than 62.96% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.44
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)3.12
PEG (5Y)3.54
EPS Next 2Y6.69%
EPS Next 3Y7.06%

6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 3.15%, AEP has a reasonable but not impressive dividend return.
  • AEP's Dividend Yield is comparable with the industry average which is at 3.17.
  • Compared to an average S&P500 Dividend Yield of 1.80, AEP pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.15%

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
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

  • 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 2Y6.69%
EPS Next 3Y7.06%
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 0 1B -1B 2B -2B
AEP.DE Dividend Payout.AEP.DE Dividend Payout, showing the Payout Ratio.AEP.DE Dividend Payout.PayoutRetained Earnings

AMERICAN ELECTRIC POWER

FRA:AEP (2/10/2026, 7:00:00 PM)

102

0 (0%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)10-29
Earnings (Next)02-12
Inst Owners86.2%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap54.48B
Revenue(TTM)21.26B
Net Income(TTM)3.66B
Analysts72.86
Price Target112.2 (10%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.15%
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)-1.66%
PT rev (3m)-5.91%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.02%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-2.12%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 20.2
Fwd PE 19
P/S 3.05
P/FCF N/A
P/OCF 9.45
P/B 2.13
P/tB 2.13
EV/EBITDA 12.44
EPS(TTM)5.05
EY4.95%
EPS(NY)5.37
Fwd EY5.26%
FCF(TTM)-2.73
FCFYN/A
OCF(TTM)10.8
OCFY10.58%
SpS33.46
BVpS47.93
TBVpS47.85
PEG (NY)3.12
PEG (5Y)3.54
Graham Number73.8
Profitability
Industry RankSector 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 RankSector 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 1
F-Score6
WACC6.2%
ROIC/WACC0.59
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 Y6.46%
EPS Next 2Y6.69%
EPS Next 3Y7.06%
EPS Next 5Y8.09%
Revenue 1Y (TTM)8.44%
Revenue growth 3Y5.51%
Revenue growth 5Y4.85%
Sales Q2Q%10.89%
Revenue Next Year5.72%
Revenue Next 2Y6.56%
Revenue Next 3Y6.37%
Revenue Next 5Y7.46%
EBIT growth 1Y31.19%
EBIT growth 3Y9.11%
EBIT growth 5Y10.1%
EBIT Next Year83.65%
EBIT Next 3Y30.68%
EBIT Next 5Y22.53%
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.


Can you provide the valuation status for AMERICAN ELECTRIC POWER?

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 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 6.46% in the next year.