AMEREN CORPORATION (AEE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AEE - US0236081024 - Common Stock
102.32 USD
-0.58 (-0.56%)
102.32 USD
0 (0%)
Taking everything into account, AEE scores 4 out of 10 in our fundamental rating. AEE was compared to 26 industry peers in the Multi-Utilities industry. While AEE has a great profitability rating, there are quite some concerns on its financial health. AEE is quite expensive at the moment. 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
- With an excellent Return On Assets value of 2.98%, AEE belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
- With a Return On Equity value of 11.04%, AEE perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
- AEE has a worse Return On Invested Capital (3.68%) than 65.38% of its industry peers.
- AEE had an Average Return On Invested Capital over the past 3 years of 3.58%. This is in line with the industry average of 3.94%.
- The 3 year average ROIC (3.58%) for AEE is below the current ROIC(3.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 11.04% | ||
| ROIC | 3.68% |
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 15.75%, AEE belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
- In the last couple of years the Profit Margin of AEE has grown nicely.
- AEE has a Operating Margin of 20.81%. This is comparable to the rest of the industry: AEE outperforms 50.00% of its industry peers.
- AEE's Operating Margin has been stable in the last couple of years.
- The Gross Margin of AEE (96.22%) is better than 96.15% of its industry peers.
- AEE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.81% | ||
| PM (TTM) | 15.75% | ||
| GM | 96.22% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AEE 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
- AEE has an Altman-Z score of 0.95. This is a bad value and indicates that AEE is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.95, AEE is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
- A Debt/Equity ratio of 1.57 is on the high side and indicates that AEE has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.57, AEE perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC0.55
WACC6.65%
2.3 Liquidity
- AEE has a Current Ratio of 0.93. This is a bad value and indicates that AEE is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.93, AEE perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
- AEE has a Quick Ratio of 0.93. 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's Quick ratio of 0.64 is in line compared to the rest of the industry. AEE outperforms 42.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 13.57% over the past year.
- Measured over the past 5 years, AEE shows a small growth in Earnings Per Share. The EPS has been growing by 6.50% on average per year.
- The Revenue has grown by 22.71% in the past year. This is a very strong growth!
- AEE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.22% yearly.
EPS 1Y (TTM)13.57%
EPS 3Y6.13%
EPS 5Y6.5%
EPS Q2Q%16.04%
Revenue 1Y (TTM)22.71%
Revenue growth 3Y6.04%
Revenue growth 5Y5.22%
Sales Q2Q%24.21%
3.2 Future
- Based on estimates for the next years, AEE will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.12% on average per year.
- Based on estimates for the next years, AEE will show a small growth in Revenue. The Revenue will grow by 7.25% on average per year.
EPS Next Y10.08%
EPS Next 2Y8.49%
EPS Next 3Y8.35%
EPS Next 5Y8.12%
Revenue Next Year9.62%
Revenue Next 2Y7.78%
Revenue Next 3Y7.24%
Revenue Next 5Y7.25%
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 accelerating.
- 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
- AEE is valuated rather expensively with a Price/Earnings ratio of 20.38.
- 76.92% of the companies in the same industry are cheaper than AEE, based on the Price/Earnings ratio.
- AEE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 18.94 indicates a rather expensive valuation of AEE.
- Based on the Price/Forward Earnings ratio, AEE is valued a bit more expensive than 76.92% of the companies in the same industry.
- AEE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.38 | ||
| Fwd PE | 18.94 |
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 80.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.65 |
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.
- AEE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.02
PEG (5Y)3.14
EPS Next 2Y8.49%
EPS Next 3Y8.35%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.75%, AEE has a reasonable but not impressive dividend return.
- With a Dividend Yield of 2.75, AEE pays less dividend than the industry average, which is at 4.14. 88.46% of the companies listed in the same industry pay a better dividend than AEE!
- AEE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
5.2 History
- The dividend of AEE is nicely growing with an annual growth rate of 6.73%!
- AEE has paid a dividend for at least 10 years, which is a reliable track record.
- AEE has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)6.73%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
- 53.51% of the earnings are spent on dividend by AEE. This is a bit on the high side, but may be sustainable.
- The dividend of AEE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP53.51%
EPS Next 2Y8.49%
EPS Next 3Y8.35%
AMEREN CORPORATION / AEE FAQ
What is the fundamental rating for AEE stock?
ChartMill assigns a fundamental rating of 4 / 10 to AEE.
What is the valuation status for AEE stock?
ChartMill assigns a valuation rating of 2 / 10 to AMEREN CORPORATION (AEE). This can be considered as Overvalued.
Can you provide the profitability details for AMEREN CORPORATION?
AMEREN CORPORATION (AEE) has a profitability rating of 7 / 10.
How financially healthy is AMEREN CORPORATION?
The financial health rating of AMEREN CORPORATION (AEE) is 1 / 10.
How sustainable is the dividend of AMEREN CORPORATION (AEE) stock?
The dividend rating of AMEREN CORPORATION (AEE) is 6 / 10 and the dividend payout ratio is 53.51%.