Logo image of AEPPZ

AMERICAN ELECTRIC POWER - AEP 6 1/8 08/15/23 (AEPPZ) Stock Fundamental Analysis

NASDAQ:AEPPZ - Nasdaq - US02557T3077 - Currency: USD

47.12  -0.52 (-1.09%)

After market: 47.4 +0.28 (+0.59%)

Fundamental Rating

3

Overall AEPPZ gets a fundamental rating of 3 out of 10. We evaluated AEPPZ against 46 industry peers in the Electric Utilities industry. While AEPPZ is still in line with the averages on profitability rating, there are concerns on its financial health. AEPPZ has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

4

1. Profitability

1.1 Basic Checks

In the past year AEPPZ was profitable.
In the past year AEPPZ had a positive cash flow from operations.
AEPPZ had positive earnings in each of the past 5 years.
Each year in the past 5 years AEPPZ had a positive operating cash flow.
AEPPZ Yearly Net Income VS EBIT VS OCF VS FCFAEPPZ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 2B -2B 4B

1.2 Ratios

With a Return On Assets value of 2.07%, AEPPZ perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
The Return On Equity of AEPPZ (8.29%) is comparable to the rest of the industry.
AEPPZ's Return On Invested Capital of 3.18% is on the low side compared to the rest of the industry. AEPPZ is outperformed by 60.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AEPPZ is in line with the industry average of 4.72%.
Industry RankSector Rank
ROA 2.07%
ROE 8.29%
ROIC 3.18%
ROA(3y)2.68%
ROA(5y)2.67%
ROE(3y)10.46%
ROE(5y)10.25%
ROIC(3y)3.4%
ROIC(5y)3.38%
AEPPZ Yearly ROA, ROE, ROICAEPPZ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2 4 6 8 10

1.3 Margins

Looking at the Profit Margin, with a value of 10.20%, AEPPZ is in line with its industry, outperforming 51.11% of the companies in the same industry.
In the last couple of years the Profit Margin of AEPPZ has remained more or less at the same level.
AEPPZ has a Operating Margin of 17.91%. This is comparable to the rest of the industry: AEPPZ outperforms 48.89% of its industry peers.
In the last couple of years the Operating Margin of AEPPZ has declined.
AEPPZ has a Gross Margin (63.21%) which is in line with its industry peers.
AEPPZ's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 17.91%
PM (TTM) 10.2%
GM 63.21%
OM growth 3Y2.56%
OM growth 5Y-2.79%
PM growth 3Y-1.64%
PM growth 5Y-1.08%
GM growth 3Y-7.1%
GM growth 5Y-4.59%
AEPPZ Yearly Profit, Operating, Gross MarginsAEPPZ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 20 40 60 80

More info and screens

0

2. Health

2.1 Basic Checks

AEPPZ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AEPPZ has been increased compared to 1 year ago.
Compared to 1 year ago, AEPPZ has a worse debt to assets ratio.
AEPPZ Yearly Shares OutstandingAEPPZ Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M 500M
AEPPZ Yearly Total Debt VS Total AssetsAEPPZ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 20B 40B 60B 80B

2.2 Solvency

AEPPZ has an Altman-Z score of 0.64. This is a bad value and indicates that AEPPZ is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AEPPZ (0.64) is worse than 71.11% of its industry peers.
A Debt/Equity ratio of 1.70 is on the high side and indicates that AEPPZ has dependencies on debt financing.
The Debt to Equity ratio of AEPPZ (1.70) is worse than 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.7
Debt/FCF N/A
Altman-Z 0.64
ROIC/WACC0.63
WACC5.03%
AEPPZ Yearly LT Debt VS Equity VS FCFAEPPZ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 10B 20B 30B

2.3 Liquidity

A Current Ratio of 0.61 indicates that AEPPZ may have some problems paying its short term obligations.
AEPPZ has a Current ratio of 0.61. This is in the lower half of the industry: AEPPZ underperforms 75.56% of its industry peers.
A Quick Ratio of 0.48 indicates that AEPPZ may have some problems paying its short term obligations.
AEPPZ has a worse Quick ratio (0.48) than 82.22% of its industry peers.
Industry RankSector Rank
Current Ratio 0.61
Quick Ratio 0.48
AEPPZ Yearly Current Assets VS Current LiabilitesAEPPZ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

More info and screens

4

3. Growth

3.1 Past

AEPPZ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.66%.
Measured over the past 5 years, AEPPZ shows a small growth in Earnings Per Share. The EPS has been growing by 6.82% on average per year.
Looking at the last year, AEPPZ shows a quite strong growth in Revenue. The Revenue has grown by 8.67% in the last year.
The Revenue has been growing slightly by 4.95% on average over the past years.
EPS 1Y (TTM)1.66%
EPS 3Y6.2%
EPS 5Y6.82%
EPS Q2Q%-5.83%
Revenue 1Y (TTM)8.67%
Revenue growth 3Y8.07%
Revenue growth 5Y4.95%
Sales Q2Q%-5.76%

3.2 Future

Based on estimates for the next years, AEPPZ will show a small growth in Earnings Per Share. The EPS will grow by 6.23% on average per year.
The Revenue is expected to grow by 5.11% on average over the next years.
EPS Next Y4.63%
EPS Next 2Y5.43%
EPS Next 3Y5.86%
EPS Next 5Y6.23%
Revenue Next Year10.37%
Revenue Next 2Y6.74%
Revenue Next 3Y5.84%
Revenue Next 5Y5.11%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same 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.
AEPPZ Yearly Revenue VS EstimatesAEPPZ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5B 10B 15B 20B
AEPPZ Yearly EPS VS EstimatesAEPPZ Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

More info and screens

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 9.60, the valuation of AEPPZ can be described as reasonable.
84.44% of the companies in the same industry are more expensive than AEPPZ, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AEPPZ to the average of the S&P500 Index (24.83), we can say AEPPZ is valued rather cheaply.
AEPPZ is valuated reasonably with a Price/Forward Earnings ratio of 8.33.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AEPPZ indicates a somewhat cheap valuation: AEPPZ is cheaper than 80.00% of the companies listed in the same industry.
AEPPZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.94, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.6
Fwd PE 8.33
AEPPZ Price Earnings VS Forward Price EarningsAEPPZ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AEPPZ is valued a bit cheaper than the industry average as 75.56% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 9.51
AEPPZ Per share dataAEPPZ 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.
PEG (NY)2.07
PEG (5Y)1.41
EPS Next 2Y5.43%
EPS Next 3Y5.86%

More info and screens

0

5. Dividend

5.1 Amount

AEPPZ does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

AMERICAN ELECTRIC POWER - AEP 6 1/8 08/15/23

NASDAQ:AEPPZ (8/14/2023, 8:00:00 PM)

After market: 47.4 +0.28 (+0.59%)

47.12

-0.52 (-1.09%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)07-27 2023-07-27/bmo
Earnings (Next)10-25 2023-10-25/bmo
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap24.28B
Analysts72.17
Price Target58.57 (24.3%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP85.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.98%
Min EPS beat(2)-1.45%
Max EPS beat(2)-0.5%
EPS beat(4)2
Avg EPS beat(4)1.5%
Min EPS beat(4)-1.45%
Max EPS beat(4)5.28%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.61%
Min Revenue beat(2)-7.89%
Max Revenue beat(2)-1.33%
Revenue beat(4)2
Avg Revenue beat(4)10.85%
Min Revenue beat(4)-7.89%
Max Revenue beat(4)37.53%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-4.57%
PT rev (3m)0.32%
EPS NQ rev (1m)4.4%
EPS NQ rev (3m)3.27%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)1.85%
Revenue NQ rev (3m)3.57%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)5.04%
Valuation
Industry RankSector Rank
PE 9.6
Fwd PE 8.33
P/S 1.25
P/FCF N/A
P/OCF 5.81
P/B 1.01
P/tB 1.02
EV/EBITDA 9.51
EPS(TTM)4.91
EY10.42%
EPS(NY)5.66
Fwd EY12.01%
FCF(TTM)-6.82
FCFYN/A
OCF(TTM)8.11
OCFY17.21%
SpS37.79
BVpS46.52
TBVpS46.42
PEG (NY)2.07
PEG (5Y)1.41
Profitability
Industry RankSector Rank
ROA 2.07%
ROE 8.29%
ROCE N/A
ROIC 3.18%
ROICexc 3.2%
ROICexgc 3.2%
OM 17.91%
PM (TTM) 10.2%
GM 63.21%
FCFM N/A
ROA(3y)2.68%
ROA(5y)2.67%
ROE(3y)10.46%
ROE(5y)10.25%
ROIC(3y)3.4%
ROIC(5y)3.38%
ROICexc(3y)3.43%
ROICexc(5y)3.4%
ROICexgc(3y)3.43%
ROICexgc(5y)3.4%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y3.47%
ROICexcg growth 5Y-5.26%
ROICexc growth 3Y3.47%
ROICexc growth 5Y-5.26%
OM growth 3Y2.56%
OM growth 5Y-2.79%
PM growth 3Y-1.64%
PM growth 5Y-1.08%
GM growth 3Y-7.1%
GM growth 5Y-4.59%
F-Score4
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 1.7
Debt/FCF N/A
Debt/EBITDA 6.07
Cap/Depr 239.73%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.61
Quick Ratio 0.48
Altman-Z 0.64
F-Score4
WACC5.03%
ROIC/WACC0.63
Cap/Depr(3y)210.71%
Cap/Depr(5y)226.58%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.66%
EPS 3Y6.2%
EPS 5Y6.82%
EPS Q2Q%-5.83%
EPS Next Y4.63%
EPS Next 2Y5.43%
EPS Next 3Y5.86%
EPS Next 5Y6.23%
Revenue 1Y (TTM)8.67%
Revenue growth 3Y8.07%
Revenue growth 5Y4.95%
Sales Q2Q%-5.76%
Revenue Next Year10.37%
Revenue Next 2Y6.74%
Revenue Next 3Y5.84%
Revenue Next 5Y5.11%
EBIT growth 1Y-6.93%
EBIT growth 3Y10.83%
EBIT growth 5Y2.02%
EBIT Next Year90.81%
EBIT Next 3Y30.64%
EBIT Next 5Y-12.54%
FCF growth 1Y-27.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y33.49%
OCF growth 3Y7.39%
OCF growth 5Y4.37%