AES CORP (AES)
US00130H1059 - Common Stock
AES gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 21 industry peers in the Independent Power and Renewable Electricity Producers industry. AES has a medium profitability rating, but doesn't score so well on its financial health evaluation. AES has a decent growth rate and is not valued too expensively. Finally AES also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year AES was profitable.
In the past year AES had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: AES reported negative net income in multiple years.
Each year in the past 5 years AES had a positive operating cash flow.
1.2 Ratios
AES has a Return On Assets of 0.56%. This is in the better half of the industry: AES outperforms 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 10.01%, AES belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
The Return On Invested Capital of AES (5.14%) is better than 85.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AES is above the industry average of 3.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 10.01% | ||
| ROIC | 5.14% |
ROA(3y)-0.7%
ROA(5y)-0.21%
ROE(3y)-9%
ROE(5y)-3.03%
ROIC(3y)6.39%
ROIC(5y)6.42%
1.3 Margins
Looking at the Profit Margin, with a value of 1.97%, AES is in line with its industry, outperforming 52.38% of the companies in the same industry.
AES's Profit Margin has declined in the last couple of years.
AES has a Operating Margin (18.00%) which is comparable to the rest of the industry.
AES's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 19.77%, AES is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of AES has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18% | ||
| PM (TTM) | 1.97% | ||
| GM | 19.77% |
OM growth 3Y-12.22%
OM growth 5Y-4.18%
PM growth 3Y60.41%
PM growth 5Y-29.4%
GM growth 3Y-10.83%
GM growth 5Y-3.78%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AES is creating some value.
The number of shares outstanding for AES remains at a similar level compared to 1 year ago.
The number of shares outstanding for AES has been increased compared to 5 years ago.
AES has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.50, we must say that AES is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.50, AES is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
A Debt/Equity ratio of 9.14 is on the high side and indicates that AES has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 9.14, AES is doing worse than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.5 |
ROIC/WACC0.88
WACC5.86%
2.3 Liquidity
A Current Ratio of 0.68 indicates that AES may have some problems paying its short term obligations.
The Current ratio of AES (0.68) is worse than 80.95% of its industry peers.
A Quick Ratio of 0.61 indicates that AES may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.61, AES is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
AES shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.39%.
The Earnings Per Share has been growing slightly by 7.26% on average over the past years.
Looking at the last year, AES shows a small growth in Revenue. The Revenue has grown by 0.40% in the last year.
The Revenue has been growing slightly by 3.36% on average over the past years.
EPS 1Y (TTM)5.39%
EPS 3Y6.92%
EPS 5Y7.26%
EPS growth Q2Q48.98%
Revenue 1Y (TTM)0.4%
Revenue growth 3Y9.46%
Revenue growth 5Y3.36%
Revenue growth Q2Q-3.01%
3.2 Future
AES is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.74% yearly.
Based on estimates for the next years, AES will show a small growth in Revenue. The Revenue will grow by 5.62% on average per year.
EPS Next Y9.33%
EPS Next 2Y9.16%
EPS Next 3Y7.16%
EPS Next 5Y7.74%
Revenue Next Year3.54%
Revenue Next 2Y3.93%
Revenue Next 3Y4.28%
Revenue Next 5Y5.62%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.87, the valuation of AES can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of AES indicates a rather cheap valuation: AES is cheaper than 85.71% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.25. AES is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.03, the valuation of AES can be described as very reasonable.
Based on the Price/Forward Earnings ratio, AES is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, AES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.87 | ||
| Fwd PE | 9.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AES is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.86 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.06
PEG (5Y)1.36
EPS Next 2Y9.16%
EPS Next 3Y7.16%
5. Dividend
5.1 Amount
AES has a Yearly Dividend Yield of 4.24%, which is a nice return.
Compared to an average industry Dividend Yield of 6.05, AES pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, AES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
5.2 History
The dividend of AES has a limited annual growth rate of 4.97%.
AES has paid a dividend for at least 10 years, which is a reliable track record.
AES has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.97%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
AES pays out 178.31% of its income as dividend. This is not a sustainable payout ratio.
AES's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP178.31%
EPS Next 2Y9.16%
EPS Next 3Y7.16%
AES CORP
NYSE:AES (4/24/2024, 7:04:00 PM)
After market: 17.4 +0.03 (+0.17%)17.37
+0.24 (+1.4%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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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 | 9.87 | ||
| Fwd PE | 9.03 | ||
| 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)1.06
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 10.01% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18% | ||
| PM (TTM) | 1.97% | ||
| GM | 19.77% | ||
| 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 Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.61 | ||
| 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)5.39%
EPS 3Y6.92%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.33%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.4%
Revenue growth 3Y9.46%
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