120.84 USD
-0.06 (-0.05%)
120.84 USD
0 (0%)
Taking everything into account, AEP scores 4 out of 10 in our fundamental rating. AEP was compared to 47 industry peers in the Electric Utilities industry. AEP scores excellent on profitability, but there are concerns on its financial health. 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.
AEP had a positive operating cash flow in the past year.
AEP had positive earnings in each of the past 5 years.
AEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.32%, AEP is doing good in the industry, outperforming 70.21% of the companies in the same industry.
AEP's Return On Equity of 12.03% is fine compared to the rest of the industry. AEP outperforms 68.09% 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 46.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AEP is in line with the industry average of 5.00%.
The 3 year average ROIC (3.55%) for AEP is below the current ROIC(4.13%), indicating increased profibility in the last year.
| 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
The Profit Margin of AEP (17.23%) is better than 87.23% 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 70.21% 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 68.45%, AEP is in line with its industry, outperforming 59.57% of the companies in the same industry.
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
AEP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 1.00. This is a bad value and indicates that AEP is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AEP (1.00) is better than 61.70% of its industry peers.
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 of 1.49. This is comparable to the rest of the industry: AEP outperforms 44.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1 |
ROIC/WACC0.64
WACC6.5%
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 has a worse Current ratio (0.69) than 76.60% 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 worse Quick ratio (0.53) than 74.47% 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%.
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%11.3%
3.2 Future
The Earnings Per Share is expected to grow by 7.56% on average over the next years.
AEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.82% yearly.
EPS Next Y6.43%
EPS Next 2Y6.59%
EPS Next 3Y6.97%
EPS Next 5Y7.56%
Revenue Next Year5.49%
Revenue Next 2Y6.24%
Revenue Next 3Y6.05%
Revenue Next 5Y6.82%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.11, AEP is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of AEP is on the same level as its industry peers.
When comparing the Price/Earnings ratio of AEP to the average of the S&P500 Index (25.45), we can say AEP is valued slightly cheaper.
With a Price/Forward Earnings ratio of 18.96, AEP is valued on the expensive side.
61.70% of the companies in the same industry are cheaper than AEP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.46. AEP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.11 | ||
| Fwd PE | 18.96 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AEP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.42 |
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)3.13
PEG (5Y)3.52
EPS Next 2Y6.59%
EPS Next 3Y6.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.14%, AEP has a reasonable but not impressive dividend return.
AEP's Dividend Yield is comparable with the industry average which is at 3.44.
Compared to an average S&P500 Dividend Yield of 2.42, AEP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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 2Y6.59%
EPS Next 3Y6.97%
120.84
-0.06 (-0.05%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.1%
Inst Owner Change-0.26%
Ins Owners0.02%
Ins Owner Change6.99%
Market Cap64.62B
Revenue(TTM)21.26B
Net Income(TTM)3.66B
Analysts70.37
Price Target128.86 (6.64%)
Short Float %3.96%
Short Ratio6.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
Yearly Dividend3.6
Dividend Growth(5Y)5.62%
DP54.46%
Div Incr Years15
Div Non Decr Years20
Ex-Date
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)10.18%
PT rev (3m)10.55%
EPS NQ rev (1m)2.05%
EPS NQ rev (3m)10.53%
EPS NY rev (1m)0.21%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)1.06%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)1.43%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.11 | ||
| Fwd PE | 18.96 | ||
| P/S | 3.04 | ||
| P/FCF | N/A | ||
| P/OCF | 9.42 | ||
| P/B | 2.12 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 12.42 |
EPS(TTM)6.01
EY4.97%
EPS(NY)6.37
Fwd EY5.27%
FCF(TTM)-3.25
FCFYN/A
OCF(TTM)12.82
OCFY10.61%
SpS39.75
BVpS56.94
TBVpS56.84
PEG (NY)3.13
PEG (5Y)3.52
Graham Number87.75
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
WACC6.5%
ROIC/WACC0.64
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 Y6.43%
EPS Next 2Y6.59%
EPS Next 3Y6.97%
EPS Next 5Y7.56%
Revenue 1Y (TTM)8.44%
Revenue growth 3Y5.51%
Revenue growth 5Y4.85%
Sales Q2Q%11.3%
Revenue Next Year5.49%
Revenue Next 2Y6.24%
Revenue Next 3Y6.05%
Revenue Next 5Y6.82%
EBIT growth 1Y31.19%
EBIT growth 3Y9.11%
EBIT growth 5Y10.1%
EBIT Next Year85.93%
EBIT Next 3Y30.64%
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 FAQ
Can you provide the ChartMill fundamental rating for AMERICAN ELECTRIC POWER?
ChartMill assigns a fundamental rating of 4 / 10 to AEP.
What is the valuation status of AMERICAN ELECTRIC POWER (AEP) stock?
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.
How financially healthy is AMERICAN ELECTRIC POWER?
The financial health rating of AMERICAN ELECTRIC POWER (AEP) is 1 / 10.
What is the expected EPS growth for AMERICAN ELECTRIC POWER (AEP) stock?
The Earnings per Share (EPS) of AMERICAN ELECTRIC POWER (AEP) is expected to grow by 6.43% in the next year.