AMERICAN ELECTRIC POWER - AEP 6 1/8 08/15/23 (AEPPZ)
US02557T3077
AEPPZ gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 45 industry peers in the Electric Utilities industry. AEPPZ has a medium profitability rating, but doesn't score so well on its financial health evaluation. AEPPZ has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AEPPZ was profitable.
AEPPZ had a positive operating cash flow in the past year.
In the past 5 years AEPPZ has always been profitable.
AEPPZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AEPPZ has a Return On Assets (2.07%) which is comparable to the rest of the industry.
AEPPZ has a Return On Equity of 8.29%. This is comparable to the rest of the industry: AEPPZ outperforms 55.56% of its industry peers.
AEPPZ has a Return On Invested Capital of 3.18%. This is in the lower half of the industry: AEPPZ underperforms 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 4.42%.
| Industry Rank | Sector 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%
1.3 Margins
AEPPZ has a Profit Margin (10.20%) which is comparable to the rest of the industry.
AEPPZ's Profit Margin has been stable in the last couple of years.
AEPPZ has a Operating Margin (17.91%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AEPPZ has declined.
The Gross Margin of AEPPZ (63.21%) is comparable to the rest of the industry.
AEPPZ's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
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 5 years ago, AEPPZ has more shares outstanding
AEPPZ has a worse debt/assets ratio than last year.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.64 |
ROIC/WACC0.63
WACC5.03%
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 has a worse Quick ratio (0.48) than 82.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.66% over the past year.
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.
AEPPZ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.67%.
Measured over the past years, AEPPZ shows a small growth in Revenue. The Revenue has been growing by 4.95% on average per year.
EPS 1Y (TTM)1.66%
EPS 3Y6.2%
EPS 5Y6.82%
EPS growth Q2Q-5.83%
Revenue 1Y (TTM)8.67%
Revenue growth 3Y8.07%
Revenue growth 5Y4.95%
Revenue growth Q2Q-5.76%
3.2 Future
AEPPZ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.23% yearly.
Based on estimates for the next years, AEPPZ will show a small growth in Revenue. The Revenue will grow by 5.11% on average per year.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.60, which indicates a very decent valuation of AEPPZ.
Compared to the rest of the industry, the Price/Earnings ratio of AEPPZ indicates a rather cheap valuation: AEPPZ is cheaper than 84.44% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AEPPZ to the average of the S&P500 Index (24.92), we can say AEPPZ is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.33, the valuation of AEPPZ can be described as reasonable.
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.
When comparing the Price/Forward Earnings ratio of AEPPZ to the average of the S&P500 Index (21.49), we can say AEPPZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 8.33 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AEPPZ does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.07
PEG (5Y)1.41
EPS Next 2Y5.43%
EPS Next 3Y5.86%
5. Dividend
5.1 Amount
No dividends for AEPPZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AMERICAN ELECTRIC POWER - AEP 6 1/8 08/15/23
NASDAQ:AEPPZ (8/14/2023, 7:00:00 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)
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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 | 9.6 | ||
| Fwd PE | 8.33 | ||
| 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)2.07
PEG (5Y)1.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 8.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.91% | ||
| PM (TTM) | 10.2% | ||
| GM | 63.21% | ||
| 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 Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.7 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.48 | ||
| 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)1.66%
EPS 3Y6.2%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.67%
Revenue growth 3Y8.07%
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