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

USA • Nasdaq • NASDAQ:AEPPZ • US02557T3077

47.12 USD
-0.52 (-1.09%)
At close: Aug 14, 2023
47.4 USD
+0.28 (+0.59%)
After Hours: 8/14/2023, 8:00:00 PM
Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to AEPPZ. AEPPZ was compared to 46 industry peers in the Electric Utilities industry. AEPPZ may be in some trouble as it scores bad on both profitability and health. AEPPZ has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

  • In the past year AEPPZ was profitable.
  • AEPPZ had a positive operating cash flow in the past year.
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 2016 2017 2018 2019 2020 2021 2022 0 2B -2B 4B

1.2 Ratios

  • The Return On Assets of AEPPZ (2.07%) is comparable to the rest of the industry.
  • AEPPZ has a Return On Equity (8.29%) which is comparable to the rest of the industry.
  • The Return On Invested Capital of AEPPZ (3.18%) is worse than 60.00% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for AEPPZ is in line with the industry average of 4.57%.
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 2016 2017 2018 2019 2020 2021 2022 2 4 6 8 10

1.3 Margins

  • With a Profit Margin value of 10.20%, AEPPZ perfoms like the industry average, outperforming 51.11% of the companies in the same industry.
  • AEPPZ's Profit Margin has been stable in the last couple of years.
  • AEPPZ's Operating Margin of 17.91% is in line compared 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 comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of AEPPZ has declined.
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 2016 2017 2018 2019 2020 2021 2022 20 40 60 80

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0

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AEPPZ is destroying value.
  • AEPPZ has more shares outstanding than it did 1 year ago.
  • The debt/assets ratio for AEPPZ is higher compared to a year ago.
AEPPZ Yearly Shares OutstandingAEPPZ Yearly Shares OutstandingYearly Shares Outstanding 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 2016 2017 2018 2019 2020 2021 2022 20B 40B 60B 80B

2.2 Solvency

  • Based on the Altman-Z score of 0.64, we must say that AEPPZ is in the distress zone and has some risk of bankruptcy.
  • With a Altman-Z score value of 0.64, AEPPZ is not doing good in the industry: 71.11% of the companies in the same industry are doing better.
  • AEPPZ has a Debt/Equity ratio of 1.70. This is a high value indicating a heavy dependency on external 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 2016 2017 2018 2019 2020 2021 2022 0 10B 20B 30B

2.3 Liquidity

  • AEPPZ has a Current Ratio of 0.61. This is a bad value and indicates that AEPPZ is not financially healthy enough and could expect problems in meeting 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's Quick ratio of 0.48 is on the low side compared to the rest of the industry. AEPPZ is outperformed by 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 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

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4

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 1.66% over the past year.
  • AEPPZ shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.82% yearly.
  • Looking at the last year, AEPPZ shows a quite strong growth in Revenue. The Revenue has grown by 8.67% in the last year.
  • AEPPZ shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.95% yearly.
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

  • The Earnings Per Share is expected to grow by 6.23% on average over the next years.
  • AEPPZ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.11% yearly.
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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
AEPPZ Yearly Revenue VS EstimatesAEPPZ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

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5

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 9.60, which indicates a very decent valuation of AEPPZ.
  • AEPPZ's Price/Earnings ratio is rather cheap when compared to the industry. AEPPZ is cheaper than 84.44% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of AEPPZ to the average of the S&P500 Index (28.30), we can say AEPPZ is valued rather cheaply.
  • The Price/Forward Earnings ratio is 8.33, which indicates a very decent valuation of AEPPZ.
  • Based on the Price/Forward Earnings ratio, AEPPZ is valued a bit cheaper than 80.00% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 25.57. AEPPZ is valued rather cheaply when compared to this.
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 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AEPPZ indicates a somewhat cheap valuation: AEPPZ is cheaper than 75.56% of the companies listed in the same industry.
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%

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0

5. Dividend

5.1 Amount

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

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

What is the ChartMill fundamental rating of AMERICAN ELECTRIC POWER - AEP 6 1/8 08/15/23 (AEPPZ) stock?

ChartMill assigns a fundamental rating of 3 / 10 to AEPPZ.


What is the valuation status of AMERICAN ELECTRIC POWER - AEP 6 1/8 08/15/23 (AEPPZ) stock?

ChartMill assigns a valuation rating of 5 / 10 to AMERICAN ELECTRIC POWER - AEP 6 1/8 08/15/23 (AEPPZ). This can be considered as Fairly Valued.


What is the profitability of AEPPZ stock?

AMERICAN ELECTRIC POWER - AEP 6 1/8 08/15/23 (AEPPZ) has a profitability rating of 4 / 10.


Can you provide the PE and PB ratios for AEPPZ stock?

The Price/Earnings (PE) ratio for AMERICAN ELECTRIC POWER - AEP 6 1/8 08/15/23 (AEPPZ) is 9.6 and the Price/Book (PB) ratio is 1.01.


What is the expected EPS growth for AMERICAN ELECTRIC POWER - AEP 6 1/8 08/15/23 (AEPPZ) stock?

The Earnings per Share (EPS) of AMERICAN ELECTRIC POWER - AEP 6 1/8 08/15/23 (AEPPZ) is expected to grow by 4.63% in the next year.