AES CORP/THE - AES 6 7/8 02/15/24 (AESC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AESC • US00130H2040
62.61 USD
+0.66 (+1.07%)
Last: Feb 14, 2024, 08:25 PM
Taking everything into account, AESC scores 2 out of 10 in our fundamental rating. AESC was compared to 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- AESC had positive earnings in the past year.
- In the past year AESC had a positive cash flow from operations.
1.2 Ratios
- With a Return On Assets value of -1.30%, AESC is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
- AESC has a worse Return On Equity (-20.15%) than 80.95% of its industry peers.
- AESC has a better Return On Invested Capital (5.43%) than 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 4.01%.
| 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.
- 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.
- 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
- 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.
- 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.
- 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.
- 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 Current ratio of 0.83. This is amonst the worse of the industry: AESC underperforms 80.95% of its industry peers.
- A Quick Ratio of 0.74 indicates that AESC may have some problems paying its short term obligations.
- The Quick ratio of AESC (0.74) is worse than 85.71% of its industry peers.
| 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%.
- AESC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.68% yearly.
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
- The Earnings Per Share is expected to grow by 6.92% on average over the next years.
- AESC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.31% yearly.
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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 28.06. AESC is valued slightly more expensive when compared to this.
- The Price/Forward Earnings ratio is 32.67, which means the current valuation is very expensive for AESC.
- 61.90% of the companies in the same industry are more expensive than AESC, based on the Price/Forward Earnings ratio.
- AESC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.19 | ||
| Fwd PE | 32.67 |
4.2 Price Multiples
- AESC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AESC is 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 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 1.60.
- Compared to an average S&P500 Dividend Yield of 1.80, 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.
- The dividend of AESC is growing, but earnings are growing more, so the dividend growth is 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)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 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.