AES CORP (AES) Stock Fundamental Analysis
USA - NYSE:AES - US00130H1059 - Common Stock
14.4 USD
-0.18 (-1.23%)
14.38 USD
-0.02 (-0.14%)
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
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.
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.
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.
The Return On Invested Capital of AES (3.59%) is better than 80.00% 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 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
With a decent Profit Margin value of 8.34%, AES is doing good in the industry, outperforming 65.00% of the companies in the same industry.
In the last couple of years the Profit Margin of AES has grown nicely.
With a Operating Margin value of 15.44%, AES perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AES has declined.
With a Gross Margin value of 17.28%, AES is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
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.
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 0.48, we must say that AES is in the distress zone and has some risk of bankruptcy.
AES has a Altman-Z score (0.48) which is comparable to the rest of the industry.
AES has a Debt/Equity ratio of 7.88. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 7.88, AES is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.48 |
ROIC/WACC0.6
WACC6.02%
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.
AES's Current ratio of 0.82 is in line compared 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.
With a Quick ratio value of 0.74, AES perfoms like the industry average, outperforming 50.00% of the companies in the same 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.
AES shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.23% yearly.
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
AES is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.68% yearly.
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-1.34%
Revenue Next 2Y1.46%
Revenue Next 3Y2.29%
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.
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 7.09.
Based on the Price/Earnings ratio, AES is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AES to the average of the S&P500 Index (27.69), we can say AES is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.26, the valuation of AES can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AES indicates a rather cheap valuation: AES is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AES to the average of the S&P500 Index (23.18), we can say AES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.09 | ||
| Fwd PE | 6.26 |
4.2 Price Multiples
AES's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AES is cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.31 |
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)3.1
PEG (5Y)0.77
EPS Next 2Y3.96%
EPS Next 3Y3.4%
5. Dividend
5.1 Amount
AES has a Yearly Dividend Yield of 4.75%, which is a nice return.
Compared to an average industry Dividend Yield of 4.35, 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
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.
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%
14.4
-0.18 (-1.23%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners93.78%
Inst Owner Change0.12%
Ins Owners0.46%
Ins Owner Change0%
Market Cap10.25B
Analysts71.11
Price Target13.9 (-3.47%)
Short Float %4.69%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
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)-0.9%
PT rev (3m)1.1%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)3.8%
EPS NY rev (1m)0.42%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.09 | ||
| Fwd PE | 6.26 | ||
| P/S | 0.85 | ||
| P/FCF | N/A | ||
| P/OCF | 2.72 | ||
| P/B | 3.04 | ||
| P/tB | 10.53 | ||
| EV/EBITDA | 12.31 |
EPS(TTM)2.03
EY14.1%
EPS(NY)2.3
Fwd EY15.99%
FCF(TTM)-3.34
FCFYN/A
OCF(TTM)5.29
OCFY36.77%
SpS16.9
BVpS4.73
TBVpS1.37
PEG (NY)3.1
PEG (5Y)0.77
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 | 0.48 |
F-Score4
WACC6.02%
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 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-1.34%
Revenue Next 2Y1.46%
Revenue Next 3Y2.29%
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%