115.99 USD
+0.22 (+0.19%)
116.03 USD
+0.04 (+0.03%)
We assign a fundamental rating of 4 out of 10 to AEP. AEP was compared to 47 industry peers in the Electric Utilities industry. AEP has an excellent profitability rating, but there are concerns on its financial health. AEP is valied quite expensively at the moment, while it does show a decent growth rate. AEP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year AEP was profitable.
In the past year AEP had a positive cash flow from operations.
In the past 5 years AEP has always been profitable.
In the past 5 years AEP always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.32%, AEP is doing good in the industry, outperforming 70.21% of the companies in the same industry.
AEP has a better Return On Equity (12.03%) than 65.96% of its industry peers.
With a Return On Invested Capital value of 4.13%, AEP perfoms like the industry average, outperforming 42.55% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AEP is in line with the industry average of 5.04%.
The 3 year average ROIC (3.55%) for AEP is below the current ROIC(4.13%), indicating increased profibility in the last year.
| 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
AEP has a Profit Margin of 17.23%. This is amongst the best in the industry. AEP outperforms 87.23% of its industry peers.
In the last couple of years the Profit Margin of AEP has grown nicely.
Looking at the Operating Margin, with a value of 24.93%, AEP is in the better half of the industry, outperforming 68.09% of the companies in the same industry.
AEP's Operating Margin has improved in the last couple of years.
The Gross Margin of AEP (68.45%) is comparable to the rest of the industry.
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
Based on the Altman-Z score of 0.98, we must say that AEP is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AEP (0.98) is better than 63.83% of its industry peers.
AEP has a Debt/Equity ratio of 1.49. This is a high value indicating a heavy dependency on external financing.
AEP's Debt to Equity ratio of 1.49 is in line compared to the rest of the industry. AEP outperforms 46.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.98 |
ROIC/WACC0.64
WACC6.48%
2.3 Liquidity
A Current Ratio of 0.69 indicates that AEP may have some problems paying its short term obligations.
AEP has a Current ratio of 0.69. This is in the lower half of the industry: AEP underperforms 78.72% of its industry peers.
A Quick Ratio of 0.53 indicates that AEP may have some problems paying its short term obligations.
AEP has a worse Quick ratio (0.53) than 76.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
AEP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.32%.
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.
Looking at the last year, AEP shows a quite strong growth in Revenue. The Revenue has grown by 8.44% in the last year.
AEP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.85% yearly.
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
Based on estimates for the next years, AEP will show a small growth in Earnings Per Share. The EPS will grow by 7.89% on average per year.
AEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.00% yearly.
EPS Next Y6.48%
EPS Next 2Y6.71%
EPS Next 3Y7.04%
EPS Next 5Y7.89%
Revenue Next Year5.6%
Revenue Next 2Y6.68%
Revenue Next 3Y6.51%
Revenue Next 5Y7%
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
AEP is valuated rather expensively with a Price/Earnings ratio of 19.30.
Compared to the rest of the industry, the Price/Earnings ratio of AEP is on the same level as its industry peers.
When comparing the Price/Earnings ratio of AEP to the average of the S&P500 Index (26.77), we can say AEP is valued slightly cheaper.
A Price/Forward Earnings ratio of 18.16 indicates a rather expensive valuation of AEP.
AEP's Price/Forward Earnings is on the same level as the industry average.
AEP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 18.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AEP indicates a slightly more expensive valuation: AEP is more expensive than 61.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.1 |
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)2.98
PEG (5Y)3.38
EPS Next 2Y6.71%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
AEP has a Yearly Dividend Yield of 3.30%.
AEP's Dividend Yield is comparable with the industry average which is at 3.02.
AEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
AEP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP54.46%
EPS Next 2Y6.71%
EPS Next 3Y7.04%
115.99
+0.22 (+0.19%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners85.99%
Inst Owner Change-0.2%
Ins Owners0.02%
Ins Owner Change5.87%
Market Cap61.95B
Revenue(TTM)21.26B
Net Income(TTM)3.66B
Analysts71.85
Price Target131.68 (13.53%)
Short Float %4.25%
Short Ratio6.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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)2.19%
PT rev (3m)12.71%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)7.99%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 18.16 | ||
| P/S | 2.91 | ||
| P/FCF | N/A | ||
| P/OCF | 9.03 | ||
| P/B | 2.03 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 12.1 |
EPS(TTM)6.01
EY5.18%
EPS(NY)6.39
Fwd EY5.51%
FCF(TTM)-3.25
FCFYN/A
OCF(TTM)12.84
OCFY11.07%
SpS39.8
BVpS57.01
TBVpS56.91
PEG (NY)2.98
PEG (5Y)3.38
Graham Number87.8
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 | 0.98 |
F-Score6
WACC6.48%
ROIC/WACC0.64
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 Y6.48%
EPS Next 2Y6.71%
EPS Next 3Y7.04%
EPS Next 5Y7.89%
Revenue 1Y (TTM)8.44%
Revenue growth 3Y5.51%
Revenue growth 5Y4.85%
Sales Q2Q%11.3%
Revenue Next Year5.6%
Revenue Next 2Y6.68%
Revenue Next 3Y6.51%
Revenue Next 5Y7%
EBIT growth 1Y31.19%
EBIT growth 3Y9.11%
EBIT growth 5Y10.1%
EBIT Next Year82.5%
EBIT Next 3Y30.52%
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 6.48% in the next year.