122.25 USD
+1.02 (+0.84%)
At close: Feb 11, 2026
122.73 USD
+0.48 (+0.39%)
After Hours: 2/11/2026, 8:05:30 PM
Taking everything into account, AEP scores 4 out of 10 in our fundamental rating. AEP was compared to 46 industry peers in the Electric Utilities industry. AEP scores excellent on profitability, but there are concerns on its financial health. AEP is valied quite expensively at the moment, while it does show a decent growth rate. AEP also has an excellent dividend rating.
1. Profitability
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.
1.2 Ratios
- AEP has a Return On Assets of 3.32%. This is in the better half of the industry: AEP outperforms 73.91% of its industry peers.
- AEP has a better Return On Equity (12.03%) than 67.39% of its industry peers.
- AEP's Return On Invested Capital of 4.13% is in line compared to the rest of the industry. AEP outperforms 47.83% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AEP is in line with the industry average of 4.58%.
- The last Return On Invested Capital (4.13%) for AEP is above the 3 year average (3.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 12.03% | ||
| ROIC | 4.13% |
ROA(3y)2.54%
ROA(5y)2.64%
ROE(3y)9.79%
ROE(5y)10.22%
ROIC(3y)3.55%
ROIC(5y)3.47%
1.3 Margins
- AEP has a Profit Margin of 17.23%. This is amongst the best in the industry. AEP outperforms 89.13% of its industry peers.
- AEP's Profit Margin has improved in the last couple of years.
- The Operating Margin of AEP (24.93%) is better than 67.39% of its industry peers.
- AEP's Operating Margin has improved in the last couple of years.
- AEP's Gross Margin of 68.45% is in line compared to the rest of the industry. AEP outperforms 58.70% of its industry peers.
- In the last couple of years the Gross Margin of AEP has declined.
| 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
- 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
- Compared to 5 years ago, AEP has more shares outstanding
- The debt/assets ratio for AEP has been reduced compared to a year ago.
2.2 Solvency
- AEP has an Altman-Z score of 1.00. This is a bad value and indicates that AEP is not financially healthy and even has some risk of bankruptcy.
- AEP has a Altman-Z score of 1.00. This is in the better half of the industry: AEP outperforms 67.39% 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.
- With a Debt to Equity ratio value of 1.49, AEP perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1 |
ROIC/WACC0.63
WACC6.57%
2.3 Liquidity
- A Current Ratio of 0.69 indicates that AEP may have some problems paying 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 76.09% of its industry peers.
- A Quick Ratio of 0.53 indicates that AEP may have some problems paying its short term obligations.
- AEP has a Quick ratio of 0.53. This is in the lower half of the industry: AEP underperforms 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.32% 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 5.71% on average per year.
- The Revenue has grown by 8.44% in the past year. This is quite good.
- Measured over the past years, AEP shows a small growth in Revenue. The Revenue has been growing by 4.85% on average per year.
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%11.3%
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
- 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
- With a Price/Earnings ratio of 20.34, AEP is valued on the expensive side.
- AEP's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 28.23. AEP is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 19.14, AEP is valued on the expensive side.
- AEP's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AEP is more expensive than 60.87% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.01. AEP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.34 | ||
| Fwd PE | 19.14 |
4.2 Price Multiples
- 60.87% of the companies in the same industry are cheaper than AEP, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.43 |
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)3.15
PEG (5Y)3.56
EPS Next 2Y6.69%
EPS Next 3Y7.06%
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 2.92.
- AEP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
5.2 History
- The dividend of AEP has a limited annual growth rate of 5.62%.
- AEP has paid a dividend for at least 10 years, which is a reliable track record.
- AEP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.62%
Div Incr Years15
Div Non Decr Years20
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%
122.25
+1.02 (+0.84%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)02-12 2026-02-12/bmo
Inst Owners86.2%
Inst Owner Change-0.12%
Ins Owners0.02%
Ins Owner Change6.16%
Market Cap65.29B
Revenue(TTM)21.26B
Net Income(TTM)3.66B
Analysts72.86
Price Target131.46 (7.53%)
Short Float %3.45%
Short Ratio5.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend3.6
Dividend Growth(5Y)5.62%
DP54.46%
Div Incr Years15
Div Non Decr Years20
Ex-Date02-10 2026-02-10 (0.95)
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)-1.72%
Revenue beat(12)4
Avg Revenue beat(12)1.1%
Revenue beat(16)8
Avg Revenue beat(16)3.12%
PT rev (1m)-0.17%
PT rev (3m)5.96%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)-2.12%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.34 | ||
| Fwd PE | 19.14 | ||
| P/S | 3.07 | ||
| P/FCF | N/A | ||
| P/OCF | 9.52 | ||
| P/B | 2.14 | ||
| P/tB | 2.15 | ||
| EV/EBITDA | 12.43 |
EPS(TTM)6.01
EY4.92%
EPS(NY)6.39
Fwd EY5.22%
FCF(TTM)-3.25
FCFYN/A
OCF(TTM)12.84
OCFY10.5%
SpS39.8
BVpS57.01
TBVpS56.91
PEG (NY)3.15
PEG (5Y)3.56
Graham Number87.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 12.03% | ||
| ROCE | 5.29% | ||
| ROIC | 4.13% | ||
| ROICexc | 4.18% | ||
| ROICexgc | 4.18% | ||
| 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)3.55%
ROIC(5y)3.47%
ROICexc(3y)3.57%
ROICexc(5y)3.49%
ROICexgc(3y)3.58%
ROICexgc(5y)3.5%
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 | 1 |
F-Score6
WACC6.57%
ROIC/WACC0.63
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%11.3%
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 FAQ
Can you provide the ChartMill fundamental rating for AMERICAN ELECTRIC POWER?
ChartMill assigns a fundamental rating of 4 / 10 to AEP.
Can you provide the valuation status for AMERICAN ELECTRIC POWER?
ChartMill assigns a valuation rating of 2 / 10 to AMERICAN ELECTRIC POWER (AEP). This can be considered as Overvalued.
Can you provide the profitability details for AMERICAN ELECTRIC POWER?
AMERICAN ELECTRIC POWER (AEP) has a profitability rating of 7 / 10.
What is the financial health of AMERICAN ELECTRIC POWER (AEP) stock?
The financial health rating of AMERICAN ELECTRIC POWER (AEP) is 1 / 10.
What is the earnings growth outlook for AMERICAN ELECTRIC POWER?
The Earnings per Share (EPS) of AMERICAN ELECTRIC POWER (AEP) is expected to grow by 6.46% in the next year.