AMERICAN ELECTRIC POWER (AEPPL)
We assign a fundamental rating of 2 out of 10 to AEPPL. AEPPL was compared to 45 industry peers in the Electric Utilities industry. AEPPL has a bad profitability rating. Also its financial health evaluation is rather negative. AEPPL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AEPPL had positive earnings in the past year.
In the past 5 years AEPPL has always been profitable.
Each year in the past 5 years AEPPL had a positive operating cash flow.
1.2 Ratios
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.84% | ||
| ROE | 11.07% | ||
| ROIC | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.09% | ||
| PM (TTM) | 14.82% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
AEPPL has more shares outstanding than it did 1 year ago.
AEPPL has a better debt/assets ratio than last year.
2.2 Solvency
AEPPL has an Altman-Z score of 0.69. This is a bad value and indicates that AEPPL is not financially healthy and even has some risk of bankruptcy.
A Debt/Equity ratio of 1.40 is on the high side and indicates that AEPPL has dependencies on debt financing.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.69 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.63 indicates that AEPPL may have some problems paying its short term obligations.
AEPPL has a Quick Ratio of 0.63. This is a bad value and indicates that AEPPL is not financially healthy enough and could expect problems in meeting its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
AEPPL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.76%.
The Earnings Per Share has been growing slightly by 3.77% on average over the past years.
Looking at the last year, AEPPL shows a quite strong growth in Revenue. The Revenue has grown by 12.55% in the last year.
AEPPL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.50% yearly.
EPS 1Y (TTM)6.76%
EPS 3Y6.27%
EPS 5Y3.77%
EPS growth Q2Q12.64%
Revenue 1Y (TTM)12.55%
Revenue growth 3Y1.21%
Revenue growth 5Y0.5%
Revenue growth Q2Q12.47%
3.2 Future
The Earnings Per Share is expected to grow by 5.56% on average over the next years.
AEPPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.59% yearly.
EPS Next Y5.9%
EPS Next 2Y5.81%
EPS Next 3Y5.47%
EPS Next 5Y5.56%
Revenue Next Year4.18%
Revenue Next 2Y3.85%
Revenue Next 3Y3.5%
Revenue Next 5Y3.59%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 11.10, which indicates a very decent valuation of AEPPL.
AEPPL is valuated cheaply when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
AEPPL is valuated reasonably with a Price/Forward Earnings ratio of 10.48.
The average S&P500 Price/Forward Earnings ratio is at 20.88. AEPPL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.1 | ||
| Fwd PE | 10.48 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AEPPL does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)1.88
PEG (5Y)2.95
EPS Next 2Y5.81%
EPS Next 3Y5.47%
5. Dividend
5.1 Amount
AEPPL has a Yearly Dividend Yield of 3.28%. Purely for dividend investing, there may be better candidates out there.
Compared to an average S&P500 Dividend Yield of 2.41, AEPPL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
5.2 History
The dividend of AEPPL has a limited annual growth rate of 5.84%.
AEPPL has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)5.84%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
61.07% of the earnings are spent on dividend by AEPPL. This is not a sustainable payout ratio.
The dividend of AEPPL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP61.07%
EPS Next 2Y5.81%
EPS Next 3Y5.47%
AMERICAN ELECTRIC POWER
NASDAQ:AEPPL (3/14/2022, 8:00:00 PM)
After market: 52.65 +0.04 (+0.08%)52.61
-0.77 (-1.44%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap26.54B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.1 | ||
| Fwd PE | 10.48 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.88
PEG (5Y)2.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.84% | ||
| ROE | 11.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.09% | ||
| PM (TTM) | 14.82% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)6.76%
EPS 3Y6.27%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.9%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.55%
Revenue growth 3Y1.21%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y