AES CORP (AES) Stock Fundamental Analysis
USA - NYSE:AES - US00130H1059 - Common Stock
13.24 USD
+0.21 (+1.61%)
13.25 USD
+0.01 (+0.08%)
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. There are concerns on the financial health of AES while its profitability can be described as average. 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.
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
The Return On Assets of AES (2.07%) is better than 70.00% of its industry peers.
AES's Return On Equity of 29.77% is amongst the best of the industry. AES outperforms 90.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.59%, AES is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AES is in line with the industry average of 4.08%.
| 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
The Profit Margin of AES (8.34%) is better than 65.00% of its industry peers.
AES's Profit Margin has improved in the last couple of years.
AES has a Operating Margin (15.44%) which is comparable to the rest of the industry.
AES's Operating Margin has declined in the last couple of years.
AES's Gross Margin of 17.28% is on the low side compared to the rest of the industry. AES is outperformed by 75.00% of its industry peers.
In the last couple of years the Gross Margin of AES has declined.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AES is destroying value.
Compared to 1 year ago, AES has more shares outstanding
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 has a Altman-Z score (0.46) which is in line with 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 has a Debt to Equity ratio of 7.88. This is amonst the worse of the industry: AES underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.46 |
ROIC/WACC0.57
WACC6.3%
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 of 0.82. This is comparable to the rest of the industry: AES outperforms 55.00% of its industry peers.
A Quick Ratio of 0.74 indicates that AES may have some problems paying its short term obligations.
AES has a Quick ratio (0.74) which 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
The earnings per share for AES have decreased by -8.14% in the last year.
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.
AES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.80% yearly.
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
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.
Based on estimates for the next years, AES will show a quite strong growth in Revenue. The Revenue will grow by 8.94% on average per year.
EPS Next Y2.29%
EPS Next 2Y3.96%
EPS Next 3Y3.4%
EPS Next 5Y5.68%
Revenue Next Year-1.57%
Revenue Next 2Y1.31%
Revenue Next 3Y2.07%
Revenue Next 5Y8.94%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
AES is valuated cheaply with a Price/Earnings ratio of 6.52.
90.00% of the companies in the same industry are more expensive than AES, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.32. AES is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.75, 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 22.89. AES is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.52 | ||
| Fwd PE | 5.75 |
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 65.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AES does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.85
PEG (5Y)0.71
EPS Next 2Y3.96%
EPS Next 3Y3.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.27%, AES is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.79, AES pays a better dividend. On top of this AES pays more dividend than 85.00% of the companies listed in the same industry.
AES's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.27% |
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 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
49.35% of the earnings are spent on dividend by AES. This is a bit on the high side, but may be sustainable.
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.
DP49.35%
EPS Next 2Y3.96%
EPS Next 3Y3.4%
13.24
+0.21 (+1.61%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners93.78%
Inst Owner Change2.75%
Ins Owners0.46%
Ins Owner Change0%
Market Cap9.43B
Analysts71.58
Price Target14.03 (5.97%)
Short Float %4.17%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.27% |
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)0%
PT rev (3m)0.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.21%
EPS NY rev (1m)0.42%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.52 | ||
| Fwd PE | 5.75 | ||
| P/S | 0.78 | ||
| P/FCF | N/A | ||
| P/OCF | 2.5 | ||
| P/B | 2.8 | ||
| P/tB | 9.68 | ||
| EV/EBITDA | 12.01 |
EPS(TTM)2.03
EY15.33%
EPS(NY)2.3
Fwd EY17.39%
FCF(TTM)-3.34
FCFYN/A
OCF(TTM)5.29
OCFY39.99%
SpS16.9
BVpS4.73
TBVpS1.37
PEG (NY)2.85
PEG (5Y)0.71
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
WACC6.3%
ROIC/WACC0.57
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 Y2.29%
EPS Next 2Y3.96%
EPS Next 3Y3.4%
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 2Y1.31%
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 Year29%
EBIT Next 3Y16.73%
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%