AES CORP/THE - AES 6 7/8 02/15/24 (AESC) Fundamental Analysis & Valuation
NYSE:AESC • US00130H2040
Current stock price
62.61 USD
+0.66 (+1.07%)
Last:
This AESC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. AESC Profitability Analysis
1.1 Basic Checks
- In the past year AESC was profitable.
- In the past year AESC had a positive cash flow from operations.
1.2 Ratios
- AESC has a worse Return On Assets (-1.30%) than 76.19% of its industry peers.
- AESC's Return On Equity of -20.15% is on the low side compared to the rest of the industry. AESC is outperformed by 80.95% of its industry peers.
- AESC has a Return On Invested Capital of 5.43%. This is in the better half of the industry: AESC outperforms 76.19% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AESC is above the industry average of 3.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.3% | ||
| ROE | -20.15% | ||
| ROIC | 5.43% |
ROA(3y)-0.84%
ROA(5y)0.41%
ROE(3y)-11.76%
ROE(5y)2.47%
ROIC(3y)6.99%
ROIC(5y)6.74%
1.3 Margins
- The Operating Margin of AESC (18.49%) is comparable to the rest of the industry.
- AESC's Operating Margin has declined in the last couple of years.
- AESC has a Gross Margin of 20.16%. This is in the lower half of the industry: AESC underperforms 76.19% of its industry peers.
- In the last couple of years the Gross Margin of AESC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.49% | ||
| PM (TTM) | N/A | ||
| GM | 20.16% |
OM growth 3Y-4.04%
OM growth 5Y-3.04%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.32%
GM growth 5Y-2.9%
2. AESC Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AESC is destroying value.
- The number of shares outstanding for AESC has been increased compared to 1 year ago.
- Compared to 1 year ago, AESC has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.02, we must say that AESC is in the distress zone and has some risk of bankruptcy.
- AESC has a Altman-Z score of 1.02. This is in the better half of the industry: AESC outperforms 76.19% of its industry peers.
- AESC has a Debt/Equity ratio of 8.50. This is a high value indicating a heavy dependency on external financing.
- AESC has a Debt to Equity ratio of 8.50. This is amonst the worse of the industry: AESC underperforms 95.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.02 |
ROIC/WACC0.76
WACC7.13%
2.3 Liquidity
- AESC has a Current Ratio of 0.83. This is a bad value and indicates that AESC is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.83, AESC is doing worse than 80.95% of the companies in the same industry.
- AESC has a Quick Ratio of 0.83. This is a bad value and indicates that AESC is not financially healthy enough and could expect problems in meeting its short term obligations.
- AESC has a worse Quick ratio (0.74) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.74 |
3. AESC Growth Analysis
3.1 Past
- The earnings per share for AESC have decreased by -6.75% in the last year.
- AESC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.91% yearly.
- AESC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.51%.
- Measured over the past years, AESC shows a small growth in Revenue. The Revenue has been growing by 3.68% on average per year.
EPS 1Y (TTM)-6.75%
EPS 3Y6.82%
EPS 5Y8.91%
EPS Q2Q%-4.76%
Revenue 1Y (TTM)3.51%
Revenue growth 3Y7.38%
Revenue growth 5Y3.68%
Sales Q2Q%-5.32%
3.2 Future
- Based on estimates for the next years, AESC will show a small growth in Earnings Per Share. The EPS will grow by 6.92% on average per year.
- The Revenue is expected to grow by 5.31% on average over the next years.
EPS Next Y4.32%
EPS Next 2Y7.13%
EPS Next 3Y7.74%
EPS Next 5Y6.92%
Revenue Next Year4.09%
Revenue Next 2Y3.16%
Revenue Next 3Y3.17%
Revenue Next 5Y5.31%
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. AESC Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 41.19, AESC can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of AESC is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 25.23, AESC is valued quite expensively.
- The Price/Forward Earnings ratio is 32.67, which means the current valuation is very expensive for AESC.
- Based on the Price/Forward Earnings ratio, AESC is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
- AESC's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.19 | ||
| Fwd PE | 32.67 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AESC is valued a bit more expensive than the industry average as 61.90% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.28 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AESC does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)9.54
PEG (5Y)4.62
EPS Next 2Y7.13%
EPS Next 3Y7.74%
5. AESC Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 4.31%, AESC is a good candidate for dividend investing.
- AESC's Dividend Yield is a higher than the industry average which is at 1.36.
- AESC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
5.2 History
- The dividend of AESC has a limited annual growth rate of 5.62%.
- AESC has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)5.62%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- The earnings of AESC are negative and hence is the payout ratio. AESC will probably not be able to sustain this dividend level.
- AESC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-78.39%
EPS Next 2Y7.13%
EPS Next 3Y7.74%
AESC Fundamentals: All Metrics, Ratios and Statistics
AES CORP/THE - AES 6 7/8 02/15/24
NYSE:AESC (2/14/2024, 8:25:21 PM)
62.61
+0.66 (+1.07%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)11-02 2023-11-02/amc
Earnings (Next)02-26 2024-02-26/amc
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap41.93B
Revenue(TTM)12.76B
Net Income(TTM)-560.00M
Analysts77.78
Price Target88.34 (41.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
Yearly Dividend0.63
Dividend Growth(5Y)5.62%
DP-78.39%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.74%
Min EPS beat(2)-4.4%
Max EPS beat(2)9.88%
EPS beat(4)2
Avg EPS beat(4)1.48%
Min EPS beat(4)-4.4%
Max EPS beat(4)9.88%
EPS beat(8)5
Avg EPS beat(8)1.05%
EPS beat(12)8
Avg EPS beat(12)2.47%
EPS beat(16)10
Avg EPS beat(16)2.33%
Revenue beat(2)0
Avg Revenue beat(2)-3.63%
Min Revenue beat(2)-4.72%
Max Revenue beat(2)-2.54%
Revenue beat(4)2
Avg Revenue beat(4)1.75%
Min Revenue beat(4)-4.72%
Max Revenue beat(4)12.94%
Revenue beat(8)5
Avg Revenue beat(8)7.43%
Revenue beat(12)8
Avg Revenue beat(12)7.79%
Revenue beat(16)8
Avg Revenue beat(16)3.05%
PT rev (1m)0%
PT rev (3m)-0.19%
EPS NQ rev (1m)6.18%
EPS NQ rev (3m)14.87%
EPS NY rev (1m)0%
EPS NY rev (3m)3.37%
Revenue NQ rev (1m)-4.43%
Revenue NQ rev (3m)3.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.19 | ||
| Fwd PE | 32.67 | ||
| P/S | 3.29 | ||
| P/FCF | N/A | ||
| P/OCF | 12.08 | ||
| P/B | 15.09 | ||
| P/tB | 330.12 | ||
| EV/EBITDA | 19.28 |
EPS(TTM)1.52
EY2.43%
EPS(NY)1.92
Fwd EY3.06%
FCF(TTM)-5.47
FCFYN/A
OCF(TTM)5.18
OCFY8.28%
SpS19.06
BVpS4.15
TBVpS0.19
PEG (NY)9.54
PEG (5Y)4.62
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.3% | ||
| ROE | -20.15% | ||
| ROCE | 6.87% | ||
| ROIC | 5.43% | ||
| ROICexc | 5.82% | ||
| ROICexgc | 6.34% | ||
| OM | 18.49% | ||
| PM (TTM) | N/A | ||
| GM | 20.16% | ||
| FCFM | N/A |
ROA(3y)-0.84%
ROA(5y)0.41%
ROE(3y)-11.76%
ROE(5y)2.47%
ROIC(3y)6.99%
ROIC(5y)6.74%
ROICexc(3y)7.37%
ROICexc(5y)7.1%
ROICexgc(3y)8.02%
ROICexgc(5y)7.65%
ROCE(3y)8.85%
ROCE(5y)8.53%
ROICexgc growth 3Y0.53%
ROICexgc growth 5Y-3.1%
ROICexc growth 3Y-0.1%
ROICexc growth 5Y-2.37%
OM growth 3Y-4.04%
OM growth 5Y-3.04%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.32%
GM growth 5Y-2.9%
F-Score2
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.5 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.85 | ||
| Cap/Depr | 655.19% | ||
| Cap/Sales | 55.92% | ||
| Interest Coverage | 2.34 | ||
| Cash Conversion | 100.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 1.02 |
F-Score2
WACC7.13%
ROIC/WACC0.76
Cap/Depr(3y)270.16%
Cap/Depr(5y)250.42%
Cap/Sales(3y)24.91%
Cap/Sales(5y)23.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.75%
EPS 3Y6.82%
EPS 5Y8.91%
EPS Q2Q%-4.76%
EPS Next Y4.32%
EPS Next 2Y7.13%
EPS Next 3Y7.74%
EPS Next 5Y6.92%
Revenue 1Y (TTM)3.51%
Revenue growth 3Y7.38%
Revenue growth 5Y3.68%
Sales Q2Q%-5.32%
Revenue Next Year4.09%
Revenue Next 2Y3.16%
Revenue Next 3Y3.17%
Revenue Next 5Y5.31%
EBIT growth 1Y-12.17%
EBIT growth 3Y3.04%
EBIT growth 5Y0.53%
EBIT Next Year37.91%
EBIT Next 3Y17.17%
EBIT Next 5Y13.77%
FCF growth 1Y-5211.59%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y74.37%
OCF growth 3Y4.56%
OCF growth 5Y2.87%
AES CORP/THE - AES 6 7/8 02/15/24 / AESC Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for AES CORP/THE - AES 6 7/8 02/15/24?
ChartMill assigns a fundamental rating of 2 / 10 to AESC.
What is the valuation status for AESC stock?
ChartMill assigns a valuation rating of 1 / 10 to AES CORP/THE - AES 6 7/8 02/15/24 (AESC). This can be considered as Overvalued.
What is the profitability of AESC stock?
AES CORP/THE - AES 6 7/8 02/15/24 (AESC) has a profitability rating of 3 / 10.
How financially healthy is AES CORP/THE - AES 6 7/8 02/15/24?
The financial health rating of AES CORP/THE - AES 6 7/8 02/15/24 (AESC) is 0 / 10.
What is the earnings growth outlook for AES CORP/THE - AES 6 7/8 02/15/24?
The Earnings per Share (EPS) of AES CORP/THE - AES 6 7/8 02/15/24 (AESC) is expected to grow by 4.32% in the next year.