AES CORP/THE - AES 6 7/8 02/15/24 (AESC)
US00130H2040
AESC gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 21 industry peers in the Independent Power and Renewable Electricity Producers industry. AESC may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, AESC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AESC was profitable.
AESC had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AESC reported negative net income in multiple years.
In the past 5 years AESC always reported a positive cash flow from operatings.
1.2 Ratios
AESC's Return On Assets of -1.30% is on the low side compared to the rest of the industry. AESC is outperformed by 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 3.68%.
| 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.
The Gross Margin of AESC (20.16%) is worse than 76.19% of its industry peers.
AESC's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, AESC has more shares outstanding
The number of shares outstanding for AESC has been increased compared to 5 years 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.
Looking at the Altman-Z score, with a value of 1.02, AESC is in the better half of 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.
AESC has a worse Debt to Equity ratio (8.50) than 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
A Current Ratio of 0.83 indicates that AESC may have some problems paying its short term obligations.
The Current ratio of AESC (0.83) is worse 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.
AESC has a Quick ratio of 0.74. This is amonst the worse of the industry: AESC underperforms 85.71% of its industry peers.
| 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.
Measured over the past years, AESC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.91% on average per year.
AESC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.51%.
The Revenue has been growing slightly by 3.68% on average over the past years.
EPS 1Y (TTM)-6.75%
EPS 3Y6.82%
EPS 5Y8.91%
EPS growth Q2Q-4.76%
Revenue 1Y (TTM)3.51%
Revenue growth 3Y7.38%
Revenue growth 5Y3.68%
Revenue growth 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
Based on the Price/Earnings ratio of 41.19, the valuation of AESC can be described as expensive.
AESC's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 24.80. AESC is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 32.67 indicates a quite expensive valuation of AESC.
Based on the Price/Forward Earnings ratio, AESC is valued a bit cheaper than 61.90% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AESC to the average of the S&P500 Index (21.27), we can say AESC is valued expensively.
| 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 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. 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 5.93.
Compared to an average S&P500 Dividend Yield of 2.40, 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
AESC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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, 7:25:21 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 Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap41.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.19 | ||
| Fwd PE | 32.67 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)9.54
PEG (5Y)4.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.3% | ||
| ROE | -20.15% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.49% | ||
| PM (TTM) | N/A | ||
| GM | 20.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-6.75%
EPS 3Y6.82%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.51%
Revenue growth 3Y7.38%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y