AES CORP (AES) Stock Fundamental Analysis
NYSE:AES - New York Stock Exchange, Inc. - US00130H1059 - Common Stock - Currency: USD
Taking everything into account, AES scores 4 out of 10 in our fundamental rating. AES was compared to 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 is not valued too expensively and it also shows a decent growth rate. 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.
In multiple years AES reported negative net income over the last 5 years.
Each year in the past 5 years AES had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.66%, AES is doing good in the industry, outperforming 80.00% of the companies in the same industry.
AES has a Return On Equity of 37.28%. This is amongst the best in the industry. AES outperforms 90.00% of its industry peers.
The Return On Invested Capital of AES (3.93%) is better than 80.00% of its industry peers.
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 3.71%.
| 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 70.00% of the companies in the same industry.
In the last couple of years the Profit Margin of AES has grown nicely.
AES has a Operating Margin (16.11%) which is in line with its industry peers.
AES's Operating Margin has declined in the last couple of years.
AES has a worse Gross Margin (17.96%) than 70.00% 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.
AES has more shares outstanding than it did 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 55.00% 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.
AES's Debt to Equity ratio of 7.62 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 | 7.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.46 |
ROIC/WACC0.7
WACC5.62%
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 has a Current ratio of 0.84. This is comparable to the rest of the industry: AES outperforms 45.00% of its industry peers.
A Quick Ratio of 0.78 indicates that AES may have some problems paying its short term obligations.
With a Quick ratio value of 0.78, AES perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| 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%.
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.
The Revenue has decreased by -3.16% in the past 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
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 Y2.31%
EPS Next 2Y3.22%
EPS Next 3Y3.77%
EPS Next 5Y5.68%
Revenue Next Year0.03%
Revenue Next 2Y1.48%
Revenue Next 3Y1.79%
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 5.92 indicates a rather cheap valuation of AES.
Based on the Price/Earnings ratio, AES is valued cheaper than 90.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. AES is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 4.95, which indicates a rather cheap valuation of AES.
AES's Price/Forward Earnings ratio is rather cheap when compared to the industry. AES is cheaper than 95.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.43. AES is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.92 | ||
| Fwd PE | 4.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AES indicates a somewhat cheap valuation: AES is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.43 |
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)2.56
PEG (5Y)0.64
EPS Next 2Y3.22%
EPS Next 3Y3.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.68%, AES is a good candidate for dividend investing.
AES's Dividend Yield is rather good when compared to the industry average which is at 6.37. AES pays more dividend than 85.00% of the companies in the same industry.
AES's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.68% |
5.2 History
The dividend of AES has a limited annual growth rate of 5.08%.
AES has paid a dividend for at least 10 years, which is a reliable track record.
AES has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of AES is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP38.05%
EPS Next 2Y3.22%
EPS Next 3Y3.77%
11.24
-0.47 (-4.01%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners94.87%
Inst Owner Change-4.26%
Ins Owners0.41%
Ins Owner Change0.59%
Market Cap8.00B
Analysts74.74
Price Target15.04 (33.81%)
Short Float %5.74%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.68% |
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)-2.99%
PT rev (3m)-11.46%
EPS NQ rev (1m)7.95%
EPS NQ rev (3m)12.56%
EPS NY rev (1m)1.61%
EPS NY rev (3m)6.07%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)3.37%
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)-3.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.92 | ||
| Fwd PE | 4.95 | ||
| P/S | 0.66 | ||
| P/FCF | N/A | ||
| P/OCF | 2.68 | ||
| P/B | 2.31 | ||
| P/tB | 6.78 | ||
| EV/EBITDA | 11.43 |
EPS(TTM)1.9
EY16.9%
EPS(NY)2.27
Fwd EY20.19%
FCF(TTM)-4.94
FCFYN/A
OCF(TTM)4.19
OCFY37.27%
SpS17.02
BVpS4.87
TBVpS1.66
PEG (NY)2.56
PEG (5Y)0.64
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
WACC5.62%
ROIC/WACC0.7
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 Year0.03%
Revenue Next 2Y1.48%
Revenue Next 3Y1.79%
Revenue Next 5Y8.94%
EBIT growth 1Y-15.24%
EBIT growth 3Y-10.52%
EBIT growth 5Y-0.59%
EBIT Next Year38.96%
EBIT Next 3Y19.27%
EBIT Next 5Y8.35%
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%