122.04 USD
+1.2 (+0.99%)
122.04 USD
0 (0%)
AEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. AEP scores excellent on profitability, but there are concerns on its financial health. AEP is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AEP was profitable.
AEP had a positive operating cash flow in the past year.
AEP had positive earnings in each of the past 5 years.
In the past 5 years AEP always reported a positive cash flow from operatings.
1.2 Ratios
AEP's Return On Assets of 3.32% is fine compared to the rest of the industry. AEP outperforms 70.21% of its industry peers.
AEP has a Return On Equity of 12.03%. This is in the better half of the industry: AEP outperforms 68.09% of its industry peers.
AEP's Return On Invested Capital of 4.13% is in line compared to the rest of the industry. AEP outperforms 46.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AEP is in line with the industry average of 4.92%.
The last Return On Invested Capital (4.13%) for AEP is above the 3 year average (3.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 12.03% | ||
| ROIC | 4.13% |
ROA(3y)2.54%
ROA(5y)2.64%
ROE(3y)9.79%
ROE(5y)10.22%
ROIC(3y)3.55%
ROIC(5y)3.47%
1.3 Margins
With an excellent Profit Margin value of 17.23%, AEP belongs to the best of the industry, outperforming 87.23% of the companies in the same industry.
AEP's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 24.93%, AEP is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
AEP's Operating Margin has improved in the last couple of years.
AEP has a Gross Margin of 68.45%. This is comparable to the rest of the industry: AEP outperforms 59.57% of its industry peers.
AEP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.93% | ||
| PM (TTM) | 17.23% | ||
| GM | 68.45% |
OM growth 3Y3.41%
OM growth 5Y5.01%
PM growth 3Y0.51%
PM growth 5Y4.04%
GM growth 3Y1.2%
GM growth 5Y-2.58%
2. Health
2.1 Basic Checks
AEP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AEP has more shares outstanding than it did 1 year ago.
AEP has more shares outstanding than it did 5 years ago.
AEP has a better debt/assets ratio than last year.
2.2 Solvency
AEP has an Altman-Z score of 1.00. This is a bad value and indicates that AEP is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.00, AEP is doing good in the industry, outperforming 61.70% of the companies in the same industry.
A Debt/Equity ratio of 1.49 is on the high side and indicates that AEP has dependencies on debt financing.
AEP has a Debt to Equity ratio (1.49) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1 |
ROIC/WACC0.63
WACC6.51%
2.3 Liquidity
A Current Ratio of 0.69 indicates that AEP may have some problems paying its short term obligations.
AEP has a worse Current ratio (0.69) than 76.60% of its industry peers.
A Quick Ratio of 0.53 indicates that AEP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.53, AEP is doing worse than 74.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.32% over the past year.
Measured over the past 5 years, AEP shows a small growth in Earnings Per Share. The EPS has been growing by 5.71% on average per year.
The Revenue has grown by 8.44% in the past year. This is quite good.
Measured over the past years, AEP shows a small growth in Revenue. The Revenue has been growing by 4.85% on average per year.
EPS 1Y (TTM)7.32%
EPS 3Y5.78%
EPS 5Y5.71%
EPS Q2Q%-2.7%
Revenue 1Y (TTM)8.44%
Revenue growth 3Y5.51%
Revenue growth 5Y4.85%
Sales Q2Q%11.3%
3.2 Future
AEP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.56% yearly.
The Revenue is expected to grow by 6.82% on average over the next years.
EPS Next Y6.43%
EPS Next 2Y6.59%
EPS Next 3Y6.97%
EPS Next 5Y7.56%
Revenue Next Year5.49%
Revenue Next 2Y6.24%
Revenue Next 3Y6.05%
Revenue Next 5Y6.82%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 20.31, which indicates a rather expensive current valuation of AEP.
AEP's Price/Earnings is on the same level as the industry average.
AEP is valuated rather cheaply when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.15 indicates a rather expensive valuation of AEP.
AEP's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AEP is more expensive than 61.70% of the companies in the same industry.
AEP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.31 | ||
| Fwd PE | 19.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AEP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AEP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.16
PEG (5Y)3.56
EPS Next 2Y6.59%
EPS Next 3Y6.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.14%, AEP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.39, AEP has a dividend in line with its industry peers.
AEP's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
5.2 History
The dividend of AEP has a limited annual growth rate of 5.62%.
AEP has been paying a dividend for at least 10 years, so it has a reliable track record.
AEP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.62%
Div Incr Years15
Div Non Decr Years20
5.3 Sustainability
AEP pays out 54.46% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of AEP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP54.46%
EPS Next 2Y6.59%
EPS Next 3Y6.97%
122.04
+1.2 (+0.99%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.1%
Inst Owner Change-0.26%
Ins Owners0.02%
Ins Owner Change6.99%
Market Cap65.27B
Revenue(TTM)21.26B
Net Income(TTM)3.66B
Analysts70.37
Price Target128.86 (5.59%)
Short Float %3.96%
Short Ratio6.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
Yearly Dividend3.6
Dividend Growth(5Y)5.62%
DP54.46%
Div Incr Years15
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.92%
Min EPS beat(2)-1.41%
Max EPS beat(2)11.24%
EPS beat(4)2
Avg EPS beat(4)4.4%
Min EPS beat(4)-1.41%
Max EPS beat(4)11.24%
EPS beat(8)5
Avg EPS beat(8)2.09%
EPS beat(12)7
Avg EPS beat(12)1.92%
EPS beat(16)10
Avg EPS beat(16)1.91%
Revenue beat(2)2
Avg Revenue beat(2)2.56%
Min Revenue beat(2)1.47%
Max Revenue beat(2)3.65%
Revenue beat(4)3
Avg Revenue beat(4)1.14%
Min Revenue beat(4)-5.22%
Max Revenue beat(4)4.64%
Revenue beat(8)3
Avg Revenue beat(8)-1.72%
Revenue beat(12)4
Avg Revenue beat(12)1.1%
Revenue beat(16)8
Avg Revenue beat(16)3.12%
PT rev (1m)10.18%
PT rev (3m)10.55%
EPS NQ rev (1m)2.05%
EPS NQ rev (3m)10.53%
EPS NY rev (1m)0.21%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)1.06%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)1.43%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.31 | ||
| Fwd PE | 19.15 | ||
| P/S | 3.07 | ||
| P/FCF | N/A | ||
| P/OCF | 9.52 | ||
| P/B | 2.14 | ||
| P/tB | 2.15 | ||
| EV/EBITDA | 12.42 |
EPS(TTM)6.01
EY4.92%
EPS(NY)6.37
Fwd EY5.22%
FCF(TTM)-3.25
FCFYN/A
OCF(TTM)12.82
OCFY10.51%
SpS39.75
BVpS56.94
TBVpS56.84
PEG (NY)3.16
PEG (5Y)3.56
Graham Number87.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 12.03% | ||
| ROCE | 5.29% | ||
| ROIC | 4.13% | ||
| ROICexc | 4.18% | ||
| ROICexgc | 4.18% | ||
| OM | 24.93% | ||
| PM (TTM) | 17.23% | ||
| GM | 68.45% | ||
| FCFM | N/A |
ROA(3y)2.54%
ROA(5y)2.64%
ROE(3y)9.79%
ROE(5y)10.22%
ROIC(3y)3.55%
ROIC(5y)3.47%
ROICexc(3y)3.57%
ROICexc(5y)3.49%
ROICexgc(3y)3.58%
ROICexgc(5y)3.5%
ROCE(3y)4.66%
ROCE(5y)4.55%
ROICexgc growth 3Y2.86%
ROICexgc growth 5Y3.59%
ROICexc growth 3Y2.86%
ROICexc growth 5Y3.6%
OM growth 3Y3.41%
OM growth 5Y5.01%
PM growth 3Y0.51%
PM growth 5Y4.04%
GM growth 3Y1.2%
GM growth 5Y-2.58%
F-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.16 | ||
| Cap/Depr | 245.73% | ||
| Cap/Sales | 40.43% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | 77.96% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 1 |
F-Score6
WACC6.51%
ROIC/WACC0.63
Cap/Depr(3y)223.56%
Cap/Depr(5y)219.34%
Cap/Sales(3y)37.81%
Cap/Sales(5y)38.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.32%
EPS 3Y5.78%
EPS 5Y5.71%
EPS Q2Q%-2.7%
EPS Next Y6.43%
EPS Next 2Y6.59%
EPS Next 3Y6.97%
EPS Next 5Y7.56%
Revenue 1Y (TTM)8.44%
Revenue growth 3Y5.51%
Revenue growth 5Y4.85%
Sales Q2Q%11.3%
Revenue Next Year5.49%
Revenue Next 2Y6.24%
Revenue Next 3Y6.05%
Revenue Next 5Y6.82%
EBIT growth 1Y31.19%
EBIT growth 3Y9.11%
EBIT growth 5Y10.1%
EBIT Next Year85.93%
EBIT Next 3Y30.64%
EBIT Next 5Y22.43%
FCF growth 1Y50.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y62.11%
OCF growth 3Y21.01%
OCF growth 5Y9.77%
AMERICAN ELECTRIC POWER / AEP FAQ
Can you provide the ChartMill fundamental rating for AMERICAN ELECTRIC POWER?
ChartMill assigns a fundamental rating of 4 / 10 to AEP.
What is the valuation status of AMERICAN ELECTRIC POWER (AEP) stock?
ChartMill assigns a valuation rating of 2 / 10 to AMERICAN ELECTRIC POWER (AEP). This can be considered as Overvalued.
Can you provide the profitability details for AMERICAN ELECTRIC POWER?
AMERICAN ELECTRIC POWER (AEP) has a profitability rating of 7 / 10.
How financially healthy is AMERICAN ELECTRIC POWER?
The financial health rating of AMERICAN ELECTRIC POWER (AEP) is 1 / 10.
What is the expected EPS growth for AMERICAN ELECTRIC POWER (AEP) stock?
The Earnings per Share (EPS) of AMERICAN ELECTRIC POWER (AEP) is expected to grow by 6.43% in the next year.