AMEREN CORPORATION (AEE) Stock Fundamental Analysis
NYSE:AEE - New York Stock Exchange, Inc. - US0236081024 - Common Stock - Currency: USD
AEE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 25 industry peers in the Multi-Utilities industry. There are concerns on the financial health of AEE while its profitability can be described as average. AEE is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AEE had positive earnings in the past year.
AEE had a positive operating cash flow in the past year.
In the past 5 years AEE has always been profitable.
In the past 5 years AEE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.65%, AEE is in line with its industry, outperforming 44.00% of the companies in the same industry.
The Return On Equity of AEE (9.76%) is comparable to the rest of the industry.
AEE has a worse Return On Invested Capital (3.22%) than 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AEE is in line with the industry average of 3.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 9.76% | ||
| ROIC | 3.22% |
ROA(3y)2.77%
ROA(5y)2.76%
ROE(3y)10.04%
ROE(5y)10.02%
ROIC(3y)3.58%
ROIC(5y)3.63%
1.3 Margins
Looking at the Profit Margin, with a value of 15.51%, AEE belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
AEE's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 19.89%, AEE perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AEE has remained more or less at the same level.
The Gross Margin of AEE (95.80%) is better than 96.00% of its industry peers.
In the last couple of years the Gross Margin of AEE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.89% | ||
| PM (TTM) | 15.51% | ||
| GM | 95.8% |
OM growth 3Y-1.56%
OM growth 5Y-1.49%
PM growth 3Y0.05%
PM growth 5Y2.05%
GM growth 3Y4.64%
GM growth 5Y2.42%
2. Health
2.1 Basic Checks
AEE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AEE has been increased compared to 1 year ago.
Compared to 5 years ago, AEE has more shares outstanding
Compared to 1 year ago, AEE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.88, we must say that AEE is in the distress zone and has some risk of bankruptcy.
AEE's Altman-Z score of 0.88 is fine compared to the rest of the industry. AEE outperforms 64.00% of its industry peers.
A Debt/Equity ratio of 1.52 is on the high side and indicates that AEE has dependencies on debt financing.
The Debt to Equity ratio of AEE (1.52) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.88 |
ROIC/WACC0.44
WACC7.28%
2.3 Liquidity
AEE has a Current Ratio of 0.66. This is a bad value and indicates that AEE is not financially healthy enough and could expect problems in meeting its short term obligations.
AEE has a Current ratio of 0.66. This is in the lower half of the industry: AEE underperforms 76.00% of its industry peers.
A Quick Ratio of 0.44 indicates that AEE may have some problems paying its short term obligations.
AEE has a Quick ratio of 0.44. This is amonst the worse of the industry: AEE underperforms 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.03% over the past year.
The Earnings Per Share has been growing slightly by 6.50% on average over the past years.
AEE shows a small growth in Revenue. In the last year, the Revenue has grown by 1.64%.
Measured over the past years, AEE shows a small growth in Revenue. The Revenue has been growing by 5.22% on average per year.
EPS 1Y (TTM)5.03%
EPS 3Y6.13%
EPS 5Y6.5%
EPS Q2Q%28.33%
Revenue 1Y (TTM)1.64%
Revenue growth 3Y6.04%
Revenue growth 5Y5.22%
Sales Q2Q%19.96%
3.2 Future
AEE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.95% yearly.
AEE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.73% yearly.
EPS Next Y8.77%
EPS Next 2Y8.25%
EPS Next 3Y8.02%
EPS Next 5Y6.95%
Revenue Next Year6.25%
Revenue Next 2Y5.43%
Revenue Next 3Y5.39%
Revenue Next 5Y5.73%
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 stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.18 indicates a rather expensive valuation of AEE.
Compared to the rest of the industry, the Price/Earnings ratio of AEE indicates a rather expensive valuation: AEE more expensive than 80.00% of the companies listed in the same industry.
AEE is valuated rather cheaply when we compare the Price/Earnings ratio to 30.30, which is the current average of the S&P500 Index.
AEE is valuated rather expensively with a Price/Forward Earnings ratio of 19.47.
AEE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AEE is more expensive than 72.00% of the companies in the same industry.
AEE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.18 | ||
| Fwd PE | 19.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AEE indicates a rather expensive valuation: AEE more expensive than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AEE does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of AEE may justify a higher PE ratio.
PEG (NY)2.41
PEG (5Y)3.26
EPS Next 2Y8.25%
EPS Next 3Y8.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.90%, AEE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.78, AEE's dividend is way lower than its industry peers. On top of this 88.00% of the companies listed in the same industry pay a better dividend than AEE!
Compared to an average S&P500 Dividend Yield of 2.29, AEE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
On average, the dividend of AEE grows each year by 6.73%, which is quite nice.
AEE has been paying a dividend for at least 10 years, so it has a reliable track record.
As AEE did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)6.73%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
60.41% of the earnings are spent on dividend by AEE. This is not a sustainable payout ratio.
AEE's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP60.41%
EPS Next 2Y8.25%
EPS Next 3Y8.02%
97.21
-0.69 (-0.7%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners81.06%
Inst Owner Change0.33%
Ins Owners0.18%
Ins Owner Change5.43%
Market Cap25.95B
Analysts74.29
Price Target99.36 (2.21%)
Short Float %1.4%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Yearly Dividend2.66
Dividend Growth(5Y)6.73%
DP60.41%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.46%
Min EPS beat(2)-4.08%
Max EPS beat(2)-2.85%
EPS beat(4)1
Avg EPS beat(4)-3.16%
Min EPS beat(4)-8.88%
Max EPS beat(4)3.16%
EPS beat(8)4
Avg EPS beat(8)0.58%
EPS beat(12)5
Avg EPS beat(12)0.66%
EPS beat(16)8
Avg EPS beat(16)1.85%
Revenue beat(2)1
Avg Revenue beat(2)0.14%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)1.2%
Revenue beat(4)1
Avg Revenue beat(4)-7.38%
Min Revenue beat(4)-19.25%
Max Revenue beat(4)1.2%
Revenue beat(8)3
Avg Revenue beat(8)-6.68%
Revenue beat(12)7
Avg Revenue beat(12)5.89%
Revenue beat(16)11
Avg Revenue beat(16)5.25%
PT rev (1m)3.16%
PT rev (3m)7.95%
EPS NQ rev (1m)1.69%
EPS NQ rev (3m)3.01%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)-1.08%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.18 | ||
| Fwd PE | 19.47 | ||
| P/S | 3.4 | ||
| P/FCF | N/A | ||
| P/OCF | 9.39 | ||
| P/B | 2.14 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 14.32 |
EPS(TTM)4.59
EY4.72%
EPS(NY)4.99
Fwd EY5.14%
FCF(TTM)-6.17
FCFYN/A
OCF(TTM)10.35
OCFY10.65%
SpS28.56
BVpS45.38
TBVpS43.84
PEG (NY)2.41
PEG (5Y)3.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 9.76% | ||
| ROCE | 3.68% | ||
| ROIC | 3.22% | ||
| ROICexc | 3.22% | ||
| ROICexgc | 3.25% | ||
| OM | 19.89% | ||
| PM (TTM) | 15.51% | ||
| GM | 95.8% | ||
| FCFM | N/A |
ROA(3y)2.77%
ROA(5y)2.76%
ROE(3y)10.04%
ROE(5y)10.02%
ROIC(3y)3.58%
ROIC(5y)3.63%
ROICexc(3y)3.59%
ROICexc(5y)3.64%
ROICexgc(3y)3.63%
ROICexgc(5y)3.69%
ROCE(3y)4.07%
ROCE(5y)4.13%
ROICexcg growth 3Y-3.58%
ROICexcg growth 5Y-5.47%
ROICexc growth 3Y-3.49%
ROICexc growth 5Y-5.36%
OM growth 3Y-1.56%
OM growth 5Y-1.49%
PM growth 3Y0.05%
PM growth 5Y2.05%
GM growth 3Y4.64%
GM growth 5Y2.42%
F-Score5
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.05 | ||
| Cap/Depr | 289.37% | ||
| Cap/Sales | 57.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 0.88 |
F-Score5
WACC7.28%
ROIC/WACC0.44
Cap/Depr(3y)262.59%
Cap/Depr(5y)276.16%
Cap/Sales(3y)50.2%
Cap/Sales(5y)52.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.03%
EPS 3Y6.13%
EPS 5Y6.5%
EPS Q2Q%28.33%
EPS Next Y8.77%
EPS Next 2Y8.25%
EPS Next 3Y8.02%
EPS Next 5Y6.95%
Revenue 1Y (TTM)1.64%
Revenue growth 3Y6.04%
Revenue growth 5Y5.22%
Sales Q2Q%19.96%
Revenue Next Year6.25%
Revenue Next 2Y5.43%
Revenue Next 3Y5.39%
Revenue Next 5Y5.73%
EBIT growth 1Y-2.7%
EBIT growth 3Y4.38%
EBIT growth 5Y3.65%
EBIT Next Year101.53%
EBIT Next 3Y33.37%
EBIT Next 5Y22.94%
FCF growth 1Y-36.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y7.76%
OCF growth 3Y18.49%
OCF growth 5Y4.95%