AES CORP (AES) Stock Fundamental Analysis
NYSE:AES - New York Stock Exchange, Inc. - US00130H1059 - Common Stock - Currency: USD
AES gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 19 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 correct valuation and a medium growth rate. AES also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
AES had positive earnings in the past year.
In the past year AES had a positive cash flow from operations.
In multiple years AES reported negative net income over the last 5 years.
In the past 5 years AES always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.66%, AES is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
AES has a better Return On Equity (37.28%) than 84.21% of its industry peers.
The Return On Invested Capital of AES (3.93%) is better than 78.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AES is in line with the industry average of 3.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 37.28% | ||
| ROIC | 3.93% |
ROA(3y)0.89%
ROA(5y)0.31%
ROE(3y)11.23%
ROE(5y)4.16%
ROIC(3y)5.08%
ROIC(5y)6.08%
1.3 Margins
With a decent Profit Margin value of 10.67%, AES is doing good in the industry, outperforming 68.42% of the companies in the same industry.
In the last couple of years the Profit Margin of AES has grown nicely.
AES's Operating Margin of 16.11% is in line compared to the rest of the industry. AES outperforms 57.89% of its industry peers.
In the last couple of years the Operating Margin of AES has declined.
AES has a worse Gross Margin (17.96%) than 68.42% of its industry peers.
In the last couple of years the Gross Margin of AES has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.11% | ||
| PM (TTM) | 10.67% | ||
| GM | 17.96% |
OM growth 3Y-13.37%
OM growth 5Y-4.23%
PM growth 3YN/A
PM growth 5Y35.68%
GM growth 3Y-8.16%
GM growth 5Y-3.95%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AES is destroying value.
AES has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AES has more shares outstanding
AES has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.46, we must say that AES is in the distress zone and has some risk of bankruptcy.
AES has a Altman-Z score of 0.46. This is comparable to the rest of the industry: AES outperforms 52.63% of its industry peers.
AES has a Debt/Equity ratio of 7.62. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 7.62, AES is doing worse than 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.46 |
ROIC/WACC0.68
WACC5.76%
2.3 Liquidity
AES has a Current Ratio of 0.84. This is a bad value and indicates that AES is not financially healthy enough and could expect problems in meeting its short term obligations.
AES's Current ratio of 0.84 is on the low side compared to the rest of the industry. AES is outperformed by 68.42% of its industry peers.
AES has a Quick Ratio of 0.84. This is a bad value and indicates that AES is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.78, AES is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
AES shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.86%.
The Earnings Per Share has been growing by 9.23% on average over the past years. This is quite good.
Looking at the last year, AES shows a decrease in Revenue. The Revenue has decreased by -3.16% in the last year.
The Revenue has been growing slightly by 3.80% on average over the past years.
EPS 1Y (TTM)-6.86%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%-46%
Revenue 1Y (TTM)-3.16%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%-5.15%
3.2 Future
Based on estimates for the next years, AES will show a small growth in Earnings Per Share. The EPS will grow by 5.68% on average per year.
AES is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.94% yearly.
EPS Next Y2.31%
EPS Next 2Y3.22%
EPS Next 3Y3.77%
EPS Next 5Y5.68%
Revenue Next Year-0.11%
Revenue Next 2Y1.4%
Revenue Next 3Y1.82%
Revenue Next 5Y8.94%
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 decreasing.
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
A Price/Earnings ratio of 5.56 indicates a rather cheap valuation of AES.
Based on the Price/Earnings ratio, AES is valued cheaper than 89.47% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.57. AES is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 4.65, the valuation of AES can be described as very cheap.
AES's Price/Forward Earnings ratio is rather cheap when compared to the industry. AES is cheaper than 94.74% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.41, AES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.56 | ||
| Fwd PE | 4.65 |
4.2 Price Multiples
78.95% of the companies in the same industry are more expensive than AES, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.37 |
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)2.41
PEG (5Y)0.6
EPS Next 2Y3.22%
EPS Next 3Y3.77%
5. Dividend
5.1 Amount
AES has a Yearly Dividend Yield of 6.10%, which is a nice return.
AES's Dividend Yield is rather good when compared to the industry average which is at 6.45. AES pays more dividend than 89.47% of the companies in the same industry.
AES's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.1% |
5.2 History
The dividend of AES has a limited annual growth rate of 5.08%.
AES has been paying a dividend for at least 10 years, so it has 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)5.08%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
AES pays out 38.05% of its income as dividend. This is a sustainable payout ratio.
AES's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP38.05%
EPS Next 2Y3.22%
EPS Next 3Y3.77%
NYSE:AES (6/17/2025, 2:59:08 PM)
10.5575
-0.9 (-7.88%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners91.3%
Inst Owner Change-4.4%
Ins Owners0.46%
Ins Owner Change0.61%
Market Cap7.52B
Analysts70.53
Price Target13.93 (31.94%)
Short Float %6.17%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.1% |
Yearly Dividend0.7
Dividend Growth(5Y)5.08%
DP38.05%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)15.97%
Min EPS beat(2)-23.78%
Max EPS beat(2)55.73%
EPS beat(4)3
Avg EPS beat(4)10.68%
Min EPS beat(4)-23.78%
Max EPS beat(4)55.73%
EPS beat(8)6
Avg EPS beat(8)12.57%
EPS beat(12)9
Avg EPS beat(12)10.45%
EPS beat(16)12
Avg EPS beat(16)7.74%
Revenue beat(2)0
Avg Revenue beat(2)-4.71%
Min Revenue beat(2)-4.94%
Max Revenue beat(2)-4.48%
Revenue beat(4)0
Avg Revenue beat(4)-5.98%
Min Revenue beat(4)-8.58%
Max Revenue beat(4)-4.48%
Revenue beat(8)0
Avg Revenue beat(8)-6.01%
Revenue beat(12)4
Avg Revenue beat(12)0.39%
Revenue beat(16)7
Avg Revenue beat(16)3.22%
PT rev (1m)-7.4%
PT rev (3m)-14.76%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)10.17%
EPS NY rev (1m)0%
EPS NY rev (3m)6.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.57%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-2.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.56 | ||
| Fwd PE | 4.65 | ||
| P/S | 0.62 | ||
| P/FCF | N/A | ||
| P/OCF | 2.52 | ||
| P/B | 2.17 | ||
| P/tB | 6.37 | ||
| EV/EBITDA | 11.37 |
EPS(TTM)1.9
EY18%
EPS(NY)2.27
Fwd EY21.5%
FCF(TTM)-4.94
FCFYN/A
OCF(TTM)4.19
OCFY39.68%
SpS17.02
BVpS4.87
TBVpS1.66
PEG (NY)2.41
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 37.28% | ||
| ROCE | 4.97% | ||
| ROIC | 3.93% | ||
| ROICexc | 4.12% | ||
| ROICexgc | 4.39% | ||
| OM | 16.11% | ||
| PM (TTM) | 10.67% | ||
| GM | 17.96% | ||
| FCFM | N/A |
ROA(3y)0.89%
ROA(5y)0.31%
ROE(3y)11.23%
ROE(5y)4.16%
ROIC(3y)5.08%
ROIC(5y)6.08%
ROICexc(3y)5.38%
ROICexc(5y)6.39%
ROICexgc(3y)5.79%
ROICexgc(5y)6.93%
ROCE(3y)6.44%
ROCE(5y)7.69%
ROICexcg growth 3Y-20.58%
ROICexcg growth 5Y-6.59%
ROICexc growth 3Y-19.55%
ROICexc growth 5Y-6.69%
OM growth 3Y-13.37%
OM growth 5Y-4.23%
PM growth 3YN/A
PM growth 5Y35.68%
GM growth 3Y-8.16%
GM growth 5Y-3.95%
F-Score5
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.62 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.15 | ||
| Cap/Depr | 504.11% | ||
| Cap/Sales | 53.62% | ||
| Interest Coverage | 1.65 | ||
| Cash Conversion | 92.01% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 0.46 |
F-Score5
WACC5.76%
ROIC/WACC0.68
Cap/Depr(3y)567.25%
Cap/Depr(5y)416.01%
Cap/Sales(3y)52.42%
Cap/Sales(5y)39.18%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.86%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%-46%
EPS Next Y2.31%
EPS Next 2Y3.22%
EPS Next 3Y3.77%
EPS Next 5Y5.68%
Revenue 1Y (TTM)-3.16%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%-5.15%
Revenue Next Year-0.11%
Revenue Next 2Y1.4%
Revenue Next 3Y1.82%
Revenue Next 5Y8.94%
EBIT growth 1Y-15.24%
EBIT growth 3Y-10.52%
EBIT growth 5Y-0.59%
EBIT Next Year31.05%
EBIT Next 3Y16.83%
EBIT Next 5Y9.33%
FCF growth 1Y-47.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.74%
OCF growth 3Y13.34%
OCF growth 5Y3.54%