AES CORP/THE - AES 6 7/8 02/15/24 (AESC) Stock Fundamental Analysis
NYSE:AESC - New York Stock Exchange, Inc. - US00130H2040 - Currency: USD
AESC gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 19 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.
The reported net income has been mixed in the past 5 years: AESC reported negative net income in multiple years.
Each year in the past 5 years AESC had a positive operating cash flow.
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.
AESC's Return On Invested Capital of 5.43% is fine compared to the rest 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 3.81%.
| 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.
In the last couple of years the Operating Margin of AESC has declined.
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. Health
2.1 Basic Checks
AESC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AESC has more shares outstanding than it did 1 year ago.
AESC has a worse debt/assets ratio than last year.
2.2 Solvency
AESC has an Altman-Z score of 1.02. This is a bad value and indicates that AESC is not financially healthy and even 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.
A Debt/Equity ratio of 8.50 is on the high side and indicates that AESC has dependencies on debt financing.
With a Debt to Equity ratio value of 8.50, AESC is not doing good in the industry: 95.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.02 |
ROIC/WACC0.76
WACC7.13%
2.3 Liquidity
A Current Ratio of 0.83 indicates that AESC may have some problems paying its short term obligations.
With a Current ratio value of 0.83, AESC is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
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
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.
Looking at the last year, AESC shows a small growth in Revenue. The Revenue has grown by 3.51% in the last year.
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.
Based on estimates for the next years, AESC will show a small growth in Revenue. The Revenue will grow by 5.31% on average per year.
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.
Compared to the rest of the industry, the Price/Earnings ratio of AESC is on the same level as its industry peers.
AESC is valuated expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 32.67, AESC can be considered very expensive at the moment.
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 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.19 | ||
| Fwd PE | 32.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AESC indicates a slightly more expensive valuation: AESC is more expensive than 61.90% of the companies listed 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
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 7.17.
Compared to an average S&P500 Dividend Yield of 2.42, 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
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
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%
ROICexcg growth 3Y0.53%
ROICexcg 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%