AES CORP/THE - AES 6 7/8 02/15/24 (AESC) Stock Fundamental Analysis
USA - NYSE:AESC - US00130H2040
62.61 USD
+0.66 (+1.07%)
AESC gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 20 industry peers in the Independent Power and Renewable Electricity Producers industry. Both the profitability and financial health of AESC have multiple concerns. AESC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AESC was profitable.
In the past year AESC had a positive cash flow from operations.
In multiple years AESC reported negative net income over the last 5 years.
In the past 5 years AESC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AESC (-1.30%) is worse than 76.19% of its industry peers.
With a Return On Equity value of -20.15%, AESC is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
With a decent Return On Invested Capital value of 5.43%, AESC is doing good in the industry, outperforming 76.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AESC is above the industry average of 4.08%.
| 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
Looking at the Operating Margin, with a value of 18.49%, AESC is in line with its industry, outperforming 47.62% of the companies in the same industry.
AESC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 20.16%, AESC is doing worse than 76.19% of the companies in the same industry.
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. Health
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.
With a decent Altman-Z score value of 1.02, AESC is doing good in the industry, outperforming 76.19% of the companies in the same industry.
AESC has a Debt/Equity ratio of 8.50. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 8.50, AESC is doing worse than 95.24% of the companies in the same industry.
| 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.
AESC has a worse Current ratio (0.83) than 80.95% of its industry peers.
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.
With a Quick ratio value of 0.74, AESC is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
AESC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.75%.
The Earnings Per Share has been growing by 8.91% on average over the past years. This is quite good.
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
AESC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.92% yearly.
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. Valuation
4.1 Price/Earnings Ratio
AESC is valuated quite expensively with a Price/Earnings ratio of 41.19.
AESC's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.03. AESC is valued rather expensively when compared to this.
AESC is valuated quite expensively with a Price/Forward Earnings ratio of 32.67.
AESC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AESC is cheaper than 61.90% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, AESC is valued a bit more expensive.
| 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 61.90% of the companies in the same industry.
| 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 an expensive valuation of the company.
PEG (NY)9.54
PEG (5Y)4.62
EPS Next 2Y7.13%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
AESC has a Yearly Dividend Yield of 4.31%, which is a nice return.
Compared to an average industry Dividend Yield of 4.65, AESC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, AESC pays a better dividend.
| 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 been paying a dividend for less than 5 years, so it still needs to build a track record.
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%
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)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap41.93B
Revenue(TTM)12.76B
Net Income(TTM)-560000000
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 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 of AES CORP/THE - AES 6 7/8 02/15/24 (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.
What is the financial health of AES CORP/THE - AES 6 7/8 02/15/24 (AESC) stock?
The financial health rating of AES CORP/THE - AES 6 7/8 02/15/24 (AESC) is 0 / 10.
What is the expected EPS growth for AES CORP/THE - AES 6 7/8 02/15/24 (AESC) stock?
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.