AES CORP (AES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AES - US00130H1059 - Common Stock
14.395 USD
+0.15 (+1.09%)
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 correct valuation and a medium growth rate. 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.
- 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
- AES has a Return On Assets of 2.23%. This is in the better half of the industry: AES outperforms 80.00% of its industry peers.
- The Return On Equity of AES (29.37%) is better than 95.00% of its industry peers.
- AES's Return On Invested Capital of 3.43% is fine compared to the rest of the industry. AES outperforms 75.00% 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 4.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.23% | ||
| ROE | 29.37% | ||
| ROIC | 3.43% |
ROA(3y)0.89%
ROA(5y)0.31%
ROE(3y)11.23%
ROE(5y)4.16%
ROIC(3y)5.05%
ROIC(5y)6.06%
1.3 Margins
- With a decent Profit Margin value of 9.38%, 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.
- Looking at the Operating Margin, with a value of 14.83%, AES is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
- AES's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 17.26%, AES is doing worse than 80.00% 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 | 14.83% | ||
| PM (TTM) | 9.38% | ||
| GM | 17.26% |
OM growth 3Y-13.97%
OM growth 5Y-4.63%
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.
- The number of shares outstanding for AES has been increased compared to 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
- Based on the Altman-Z score of 0.44, we must say that AES is in the distress zone and has some risk of bankruptcy.
- AES has a Altman-Z score (0.44) which is in line with its industry peers.
- A Debt/Equity ratio of 6.85 is on the high side and indicates that AES has dependencies on debt financing.
- AES has a Debt to Equity ratio of 6.85. This is amonst the worse of the industry: AES underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.44 |
ROIC/WACC0.63
WACC5.46%
2.3 Liquidity
- A Current Ratio of 0.72 indicates that AES may have some problems paying its short term obligations.
- AES has a worse Current ratio (0.72) than 65.00% of its industry peers.
- A Quick Ratio of 0.66 indicates that AES may have some problems paying its short term obligations.
- AES's Quick ratio of 0.66 is on the low side compared to the rest of the industry. AES is outperformed by 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
- AES shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.78%.
- The Earnings Per Share has been growing by 9.23% on average over the past years. This is quite good.
- The Revenue has decreased by -1.55% in the past year.
- The Revenue has been growing slightly by 3.80% on average over the past years.
EPS 1Y (TTM)-10.78%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%5.63%
Revenue 1Y (TTM)-1.55%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%1.89%
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.
- The Revenue is expected to grow by 8.94% on average over the next years. This is quite good.
EPS Next Y2.23%
EPS Next 2Y4.6%
EPS Next 3Y3.8%
EPS Next 5Y5.68%
Revenue Next Year-2.73%
Revenue Next 2Y0.69%
Revenue Next 3Y1.86%
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
- The Price/Earnings ratio is 6.95, which indicates a rather cheap valuation of AES.
- Based on the Price/Earnings ratio, AES is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of AES to the average of the S&P500 Index (27.32), we can say AES is valued rather cheaply.
- AES is valuated cheaply with a Price/Forward Earnings ratio of 6.18.
- 100.00% of the companies in the same industry are more expensive than AES, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.30. AES is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.95 | ||
| Fwd PE | 6.18 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AES is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
| 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)3.12
PEG (5Y)0.75
EPS Next 2Y4.6%
EPS Next 3Y3.8%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.88%, AES is a good candidate for dividend investing.
- AES's Dividend Yield is rather good when compared to the industry average which is at 1.64. 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 1.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.88% |
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 43.88% 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.
DP43.88%
EPS Next 2Y4.6%
EPS Next 3Y3.8%
NYSE:AES (1/22/2026, 10:53:06 AM)
14.395
+0.15 (+1.09%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)11-04 2025-11-04/amc
Earnings (Next)02-26 2026-02-26/amc
Inst Owners90.61%
Inst Owner Change1.16%
Ins Owners0.46%
Ins Owner Change-0.36%
Market Cap10.25B
Revenue(TTM)12.09B
Net Income(TTM)1.14B
Analysts74.74
Price Target15.62 (8.51%)
Short Float %2.99%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.88% |
Yearly Dividend0.7
Dividend Growth(5Y)5.08%
DP43.88%
Div Incr Years12
Div Non Decr Years12
Ex-Date01-30 2026-01-30 (0.17595)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.94%
Min EPS beat(2)-1.83%
Max EPS beat(2)27.71%
EPS beat(4)2
Avg EPS beat(4)14.46%
Min EPS beat(4)-23.78%
Max EPS beat(4)55.73%
EPS beat(8)6
Avg EPS beat(8)15.12%
EPS beat(12)8
Avg EPS beat(12)10.58%
EPS beat(16)11
Avg EPS beat(16)8.08%
Revenue beat(2)1
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-6.15%
Max Revenue beat(2)2.89%
Revenue beat(4)1
Avg Revenue beat(4)-3.17%
Min Revenue beat(4)-6.15%
Max Revenue beat(4)2.89%
Revenue beat(8)1
Avg Revenue beat(8)-5.51%
Revenue beat(12)3
Avg Revenue beat(12)-3.09%
Revenue beat(16)6
Avg Revenue beat(16)0.96%
PT rev (1m)0%
PT rev (3m)12.37%
EPS NQ rev (1m)0.81%
EPS NQ rev (3m)-14.9%
EPS NY rev (1m)0.19%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.82%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.95 | ||
| Fwd PE | 6.18 | ||
| P/S | 0.85 | ||
| P/FCF | N/A | ||
| P/OCF | 2.42 | ||
| P/B | 2.65 | ||
| P/tB | 6.82 | ||
| EV/EBITDA | 12.31 |
EPS(TTM)2.07
EY14.38%
EPS(NY)2.33
Fwd EY16.19%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)5.94
OCFY41.24%
SpS16.98
BVpS5.43
TBVpS2.11
PEG (NY)3.12
PEG (5Y)0.75
Graham Number15.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.23% | ||
| ROE | 29.37% | ||
| ROCE | 4.34% | ||
| ROIC | 3.43% | ||
| ROICexc | 3.58% | ||
| ROICexgc | 3.8% | ||
| OM | 14.83% | ||
| PM (TTM) | 9.38% | ||
| GM | 17.26% | ||
| FCFM | N/A |
ROA(3y)0.89%
ROA(5y)0.31%
ROE(3y)11.23%
ROE(5y)4.16%
ROIC(3y)5.05%
ROIC(5y)6.06%
ROICexc(3y)5.35%
ROICexc(5y)6.38%
ROICexgc(3y)5.76%
ROICexgc(5y)6.92%
ROCE(3y)6.4%
ROCE(5y)7.67%
ROICexgc growth 3Y-21.13%
ROICexgc growth 5Y-6.98%
ROICexc growth 3Y-20.11%
ROICexc growth 5Y-7.08%
OM growth 3Y-13.97%
OM growth 5Y-4.63%
PM growth 3YN/A
PM growth 5Y35.68%
GM growth 3Y-8.16%
GM growth 5Y-3.95%
F-Score4
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.3 | ||
| Cap/Depr | 439.1% | ||
| Cap/Sales | 50.61% | ||
| Interest Coverage | 1.75 | ||
| Cash Conversion | 132.66% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.44 |
F-Score4
WACC5.46%
ROIC/WACC0.63
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)-10.78%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%5.63%
EPS Next Y2.23%
EPS Next 2Y4.6%
EPS Next 3Y3.8%
EPS Next 5Y5.68%
Revenue 1Y (TTM)-1.55%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%1.89%
Revenue Next Year-2.73%
Revenue Next 2Y0.69%
Revenue Next 3Y1.86%
Revenue Next 5Y8.94%
EBIT growth 1Y-17.14%
EBIT growth 3Y-11.13%
EBIT growth 5Y-1%
EBIT Next Year28.83%
EBIT Next 3Y16.59%
EBIT Next 5Y10.02%
FCF growth 1Y48.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.84%
OCF growth 3Y13.34%
OCF growth 5Y3.54%
AES CORP / AES FAQ
What is the ChartMill fundamental rating of AES CORP (AES) stock?
ChartMill assigns a fundamental rating of 4 / 10 to AES.
What is the valuation status for AES stock?
ChartMill assigns a valuation rating of 5 / 10 to AES CORP (AES). This can be considered as Fairly Valued.
What is the profitability of AES stock?
AES CORP (AES) has a profitability rating of 5 / 10.
What is the financial health of AES CORP (AES) stock?
The financial health rating of AES CORP (AES) is 0 / 10.
Is the dividend of AES CORP sustainable?
The dividend rating of AES CORP (AES) is 8 / 10 and the dividend payout ratio is 43.88%.