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. There are concerns on the financial health of AES while its profitability can be described as average. AES is not valued too expensively and it also shows a decent 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.
The reported net income has been mixed in the past 5 years: AES reported negative net income in multiple years.
In the past 5 years AES always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AES (2.07%) is better than 63.16% of its industry peers.
The Return On Equity of AES (29.77%) is better than 89.47% of its industry peers.
With a decent Return On Invested Capital value of 3.22%, AES is doing good in the industry, outperforming 73.68% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AES is in line with the industry average of 3.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 29.77% | ||
| ROIC | 3.22% |
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 8.34%, AES is doing good in the industry, outperforming 63.16% of the companies in the same industry.
AES's Profit Margin has improved in the last couple of years.
AES has a Operating Margin (13.82%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AES has declined.
Looking at the Gross Margin, with a value of 17.25%, AES is doing worse than 73.68% of the companies in the same industry.
In the last couple of years the Gross Margin of AES has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.82% | ||
| PM (TTM) | 8.34% | ||
| GM | 17.25% |
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.
The number of shares outstanding for AES has been increased compared to 1 year ago.
Compared to 5 years ago, AES has more shares outstanding
The debt/assets ratio for AES is higher compared to a year ago.
2.2 Solvency
AES has an Altman-Z score of 0.45. 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 0.45 is fine compared to the rest of the industry. AES outperforms 63.16% 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 has a Debt to Equity ratio of 7.88. This is in the lower half of the industry: AES underperforms 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.45 |
ROIC/WACC0.55
WACC5.8%
2.3 Liquidity
AES has a Current 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.
With a Current ratio value of 0.82, AES is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
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.
AES's Quick ratio of 0.74 is on the low side compared to the rest of the industry. AES is outperformed by 63.16% of its industry peers.
| 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.
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 -3.19% 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
The Earnings Per Share is expected to grow by 5.68% on average over the next years.
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 Y1.97%
EPS Next 2Y2.84%
EPS Next 3Y3.54%
EPS Next 5Y5.68%
Revenue Next Year-1.3%
Revenue Next 2Y1.1%
Revenue Next 3Y1.65%
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
AES is valuated cheaply with a Price/Earnings ratio of 6.56.
AES's Price/Earnings ratio is rather cheap when compared to the industry. AES is cheaper than 89.47% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.87. AES is valued rather cheaply when compared to this.
AES is valuated cheaply with a Price/Forward Earnings ratio of 5.91.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AES indicates a rather cheap valuation: AES is cheaper than 89.47% of the companies listed in the same industry.
AES is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 5.91 |
4.2 Price Multiples
AES's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AES is cheaper than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.72 |
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)3.33
PEG (5Y)0.71
EPS Next 2Y2.84%
EPS Next 3Y3.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.48%, AES is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.87, AES pays a better dividend. On top of this AES pays more dividend than 84.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, AES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.48% |
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
49.35% of the earnings are spent on dividend by AES. 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 2Y2.84%
EPS Next 3Y3.54%
13.31
+0.37 (+2.86%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners91.55%
Inst Owner Change1.53%
Ins Owners0.46%
Ins Owner Change0.61%
Market Cap9.48B
Analysts71.58
Price Target14.03 (5.41%)
Short Float %4.77%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.48% |
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)0.74%
PT rev (3m)-6.71%
EPS NQ rev (1m)4.11%
EPS NQ rev (3m)3.14%
EPS NY rev (1m)0%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)2.84%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)-1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 5.91 | ||
| P/S | 0.79 | ||
| P/FCF | N/A | ||
| P/OCF | 2.51 | ||
| P/B | 2.81 | ||
| P/tB | 9.73 | ||
| EV/EBITDA | 12.72 |
EPS(TTM)2.03
EY15.25%
EPS(NY)2.25
Fwd EY16.93%
FCF(TTM)-3.34
FCFYN/A
OCF(TTM)5.3
OCFY39.79%
SpS16.9
BVpS4.73
TBVpS1.37
PEG (NY)3.33
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 29.77% | ||
| ROCE | 4.07% | ||
| ROIC | 3.22% | ||
| ROICexc | 3.32% | ||
| ROICexgc | 3.54% | ||
| OM | 13.82% | ||
| PM (TTM) | 8.34% | ||
| GM | 17.25% | ||
| 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 | 8.86 | ||
| Cap/Depr | 460.3% | ||
| Cap/Sales | 51.07% | ||
| Interest Coverage | 1.51 | ||
| Cash Conversion | 125.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 0.45 |
F-Score4
WACC5.8%
ROIC/WACC0.55
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 Y1.97%
EPS Next 2Y2.84%
EPS Next 3Y3.54%
EPS Next 5Y5.68%
Revenue 1Y (TTM)-3.19%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%-2.96%
Revenue Next Year-1.3%
Revenue Next 2Y1.1%
Revenue Next 3Y1.65%
Revenue Next 5Y8.94%
EBIT growth 1Y-27.57%
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%