AES CORP (AES) Stock Fundamental Analysis
NYSE:AES - US00130H1059 - Common Stock
12.93 USD
+0.12 (+0.94%)
12.8983 USD
-0.03 (-0.25%)
Overall AES gets a fundamental rating of 4 out of 10. We evaluated AES against 20 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.
AES had a positive operating cash flow in the past year.
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
AES has a better Return On Assets (2.07%) than 70.00% of its industry peers.
Looking at the Return On Equity, with a value of 29.77%, AES belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.59%, AES is doing good in the industry, outperforming 80.00% of the companies in the same industry.
AES had an Average Return On Invested Capital over the past 3 years of 5.08%. This is in line with the industry average of 4.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 29.77% | ||
| ROIC | 3.59% |
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
Looking at the Profit Margin, with a value of 8.34%, AES is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
AES's Profit Margin has improved in the last couple of years.
AES has a Operating Margin of 15.44%. This is comparable to the rest of the industry: AES outperforms 60.00% of its industry peers.
In the last couple of years the Operating Margin of AES has declined.
Looking at the Gross Margin, with a value of 17.28%, AES is doing worse than 80.00% of the companies in the same industry.
AES's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.44% | ||
| PM (TTM) | 8.34% | ||
| GM | 17.28% |
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
AES has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AES has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AES has been increased compared to 5 years ago.
AES has a worse debt/assets ratio than last year.
2.2 Solvency
AES has an Altman-Z score of 0.46. This is a bad value and indicates that AES is not financially healthy and even has some risk of bankruptcy.
AES's Altman-Z score of 0.46 is in line compared to the rest of the industry. AES outperforms 60.00% of its industry peers.
AES has a Debt/Equity ratio of 7.88. This is a high value indicating a heavy dependency on external financing.
AES's Debt to Equity ratio of 7.88 is on the low side compared to the rest of the industry. AES is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.46 |
ROIC/WACC0.6
WACC5.99%
2.3 Liquidity
A Current Ratio of 0.82 indicates that AES may have some problems paying its short term obligations.
AES has a Current ratio (0.82) which is in line with its industry peers.
AES has a Quick Ratio of 0.82. This is a bad value and indicates that AES is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AES (0.74) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
AES shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.14%.
Measured over the past years, AES shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.23% on average per year.
Looking at the last year, AES shows a decrease in Revenue. The Revenue has decreased by -3.19% in the last year.
The Revenue has been growing slightly by 3.80% on average over the past years.
EPS 1Y (TTM)-8.14%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%34.21%
Revenue 1Y (TTM)-3.19%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%-2.96%
3.2 Future
The Earnings Per Share is expected to grow by 5.68% on average over the next years.
The Revenue is expected to grow by 8.94% on average over the next years. This is quite good.
EPS Next Y1.86%
EPS Next 2Y4.04%
EPS Next 3Y3.64%
EPS Next 5Y5.68%
Revenue Next Year-1.57%
Revenue Next 2Y1.28%
Revenue Next 3Y2.07%
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.
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 6.37, the valuation of AES can be described as very cheap.
Based on the Price/Earnings ratio, AES is valued cheaper than 90.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.06, AES is valued rather cheaply.
A Price/Forward Earnings ratio of 5.61 indicates a rather cheap valuation of AES.
Based on the Price/Forward Earnings ratio, AES is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
AES's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.37 | ||
| Fwd PE | 5.61 |
4.2 Price Multiples
65.00% 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 | 11.91 |
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)3.43
PEG (5Y)0.69
EPS Next 2Y4.04%
EPS Next 3Y3.64%
5. Dividend
5.1 Amount
AES has a Yearly Dividend Yield of 5.50%, which is a nice return.
AES's Dividend Yield is rather good when compared to the industry average which is at 4.75. AES pays more dividend than 85.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, AES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.5% |
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 49.35% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of AES is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP49.35%
EPS Next 2Y4.04%
EPS Next 3Y3.64%
12.93
+0.12 (+0.94%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners91.55%
Inst Owner Change2.75%
Ins Owners0.46%
Ins Owner Change0%
Market Cap9.21B
Analysts71.58
Price Target14.03 (8.51%)
Short Float %4.61%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.5% |
Yearly Dividend0.7
Dividend Growth(5Y)5.08%
DP49.35%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.96%
Min EPS beat(2)-23.78%
Max EPS beat(2)27.71%
EPS beat(4)3
Avg EPS beat(4)17.43%
Min EPS beat(4)-23.78%
Max EPS beat(4)55.73%
EPS beat(8)7
Avg EPS beat(8)16.59%
EPS beat(12)9
Avg EPS beat(12)12.15%
EPS beat(16)12
Avg EPS beat(16)9.08%
Revenue beat(2)0
Avg Revenue beat(2)-5.54%
Min Revenue beat(2)-6.15%
Max Revenue beat(2)-4.94%
Revenue beat(4)0
Avg Revenue beat(4)-5.37%
Min Revenue beat(4)-6.15%
Max Revenue beat(4)-4.48%
Revenue beat(8)0
Avg Revenue beat(8)-6.46%
Revenue beat(12)3
Avg Revenue beat(12)-1.84%
Revenue beat(16)6
Avg Revenue beat(16)1.88%
PT rev (1m)2.02%
PT rev (3m)-6.71%
EPS NQ rev (1m)0.57%
EPS NQ rev (3m)3.24%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-0.44%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)2.84%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.37 | ||
| Fwd PE | 5.61 | ||
| P/S | 0.77 | ||
| P/FCF | N/A | ||
| P/OCF | 2.44 | ||
| P/B | 2.73 | ||
| P/tB | 9.45 | ||
| EV/EBITDA | 11.91 |
EPS(TTM)2.03
EY15.7%
EPS(NY)2.31
Fwd EY17.83%
FCF(TTM)-3.34
FCFYN/A
OCF(TTM)5.29
OCFY40.95%
SpS16.9
BVpS4.73
TBVpS1.37
PEG (NY)3.43
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 29.77% | ||
| ROCE | 4.55% | ||
| ROIC | 3.59% | ||
| ROICexc | 3.71% | ||
| ROICexgc | 3.95% | ||
| OM | 15.44% | ||
| PM (TTM) | 8.34% | ||
| GM | 17.28% | ||
| 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-Score4
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.88 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.32 | ||
| Cap/Depr | 460.3% | ||
| Cap/Sales | 51.07% | ||
| Interest Coverage | 1.69 | ||
| Cash Conversion | 118.07% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 0.46 |
F-Score4
WACC5.99%
ROIC/WACC0.6
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)-8.14%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%34.21%
EPS Next Y1.86%
EPS Next 2Y4.04%
EPS Next 3Y3.64%
EPS Next 5Y5.68%
Revenue 1Y (TTM)-3.19%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%-2.96%
Revenue Next Year-1.57%
Revenue Next 2Y1.28%
Revenue Next 3Y2.07%
Revenue Next 5Y8.94%
EBIT growth 1Y-19.08%
EBIT growth 3Y-10.52%
EBIT growth 5Y-0.59%
EBIT Next Year28.95%
EBIT Next 3Y16.68%
EBIT Next 5Y9.33%
FCF growth 1Y26.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.64%
OCF growth 3Y13.34%
OCF growth 5Y3.54%