122.25 USD
+1.02 (+0.84%)
At close: Feb 11, 2026
123.6 USD
+1.35 (+1.1%)
Pre-Market: 2/12/2026, 5:23:50 AM
We assign a fundamental rating of 4 out of 10 to AEP. AEP was compared to 46 industry peers in the Electric Utilities industry. While AEP has a great profitability rating, there are quite some concerns on its financial health. AEP is valied quite expensively at the moment, while it does show a decent growth rate. Finally AEP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year AEP was profitable.
- AEP had a positive operating cash flow in the past year.
- In the past 5 years AEP has always been profitable.
- Each year in the past 5 years AEP had a positive operating cash flow.
1.2 Ratios
- AEP has a Return On Assets of 3.32%. This is in the better half of the industry: AEP outperforms 73.91% of its industry peers.
- AEP has a better Return On Equity (12.03%) than 67.39% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.13%, AEP is in line with its industry, outperforming 47.83% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for AEP is in line with the industry average of 4.58%.
- 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
- AEP has a Profit Margin of 17.23%. This is amongst the best in the industry. AEP outperforms 89.13% of its industry peers.
- In the last couple of years the Profit Margin of AEP has grown nicely.
- With a decent Operating Margin value of 24.93%, AEP is doing good in the industry, outperforming 67.39% of the companies in the same industry.
- AEP's Operating Margin has improved in the last couple of years.
- AEP has a Gross Margin (68.45%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of AEP has declined.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AEP 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.
- The debt/assets ratio for AEP has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.00, we must say that AEP is in the distress zone and has some risk of bankruptcy.
- AEP's Altman-Z score of 1.00 is fine compared to the rest of the industry. AEP outperforms 67.39% 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 has a Debt to Equity ratio (1.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1 |
ROIC/WACC0.63
WACC6.57%
2.3 Liquidity
- A Current Ratio of 0.69 indicates that AEP may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.69, AEP is doing worse than 76.09% of the companies in the same industry.
- AEP has a Quick Ratio of 0.69. This is a bad value and indicates that AEP is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.53, AEP is doing worse than 73.91% of the companies in the same industry.
| 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%.
- The Earnings Per Share has been growing slightly by 5.71% on average over the past years.
- 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
- The Earnings Per Share is expected to grow by 8.09% on average over the next years. This is quite good.
- Based on estimates for the next years, AEP will show a small growth in Revenue. The Revenue will grow by 7.46% on average per year.
EPS Next Y6.46%
EPS Next 2Y6.69%
EPS Next 3Y7.06%
EPS Next 5Y8.09%
Revenue Next Year5.72%
Revenue Next 2Y6.56%
Revenue Next 3Y6.37%
Revenue Next 5Y7.46%
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
- A Price/Earnings ratio of 20.34 indicates a rather expensive valuation of AEP.
- Compared to the rest of the industry, the Price/Earnings ratio of AEP is on the same level as its industry peers.
- AEP is valuated rather cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 19.14, the valuation of AEP can be described as rather expensive.
- AEP's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AEP is more expensive than 60.87% of the companies in the same industry.
- AEP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.34 | ||
| Fwd PE | 19.14 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AEP is valued a bit more expensive than the industry average as 60.87% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.49 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AEP does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of AEP may justify a higher PE ratio.
PEG (NY)3.15
PEG (5Y)3.56
EPS Next 2Y6.69%
EPS Next 3Y7.06%
5. Dividend
5.1 Amount
- AEP has a Yearly Dividend Yield of 3.15%.
- AEP's Dividend Yield is comparable with the industry average which is at 2.92.
- Compared to an average S&P500 Dividend Yield of 1.80, AEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
5.2 History
- The dividend of AEP has a limited annual growth rate of 5.62%.
- AEP has paid a dividend for at least 10 years, which is 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 2Y6.69%
EPS Next 3Y7.06%
122.25
+1.02 (+0.84%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)02-12 2026-02-12/bmo
Inst Owners86.2%
Inst Owner Change-0.12%
Ins Owners0.02%
Ins Owner Change6.16%
Market Cap65.29B
Revenue(TTM)21.26B
Net Income(TTM)3.66B
Analysts72.86
Price Target131.46 (7.53%)
Short Float %3.45%
Short Ratio5.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend3.6
Dividend Growth(5Y)5.62%
DP54.46%
Div Incr Years15
Div Non Decr Years20
Ex-Date02-10 2026-02-10 (0.95)
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)-0.17%
PT rev (3m)5.96%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)-2.12%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.34 | ||
| Fwd PE | 19.14 | ||
| P/S | 3.07 | ||
| P/FCF | N/A | ||
| P/OCF | 9.52 | ||
| P/B | 2.14 | ||
| P/tB | 2.15 | ||
| EV/EBITDA | 12.49 |
EPS(TTM)6.01
EY4.92%
EPS(NY)6.39
Fwd EY5.22%
FCF(TTM)-3.25
FCFYN/A
OCF(TTM)12.84
OCFY10.5%
SpS39.8
BVpS57.01
TBVpS56.91
PEG (NY)3.15
PEG (5Y)3.56
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 | 1 |
F-Score6
WACC6.57%
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 Y6.46%
EPS Next 2Y6.69%
EPS Next 3Y7.06%
EPS Next 5Y8.09%
Revenue 1Y (TTM)8.44%
Revenue growth 3Y5.51%
Revenue growth 5Y4.85%
Sales Q2Q%11.3%
Revenue Next Year5.72%
Revenue Next 2Y6.56%
Revenue Next 3Y6.37%
Revenue Next 5Y7.46%
EBIT growth 1Y31.19%
EBIT growth 3Y9.11%
EBIT growth 5Y10.1%
EBIT Next Year83.65%
EBIT Next 3Y30.68%
EBIT Next 5Y22.53%
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.
Can you provide the valuation status for AMERICAN ELECTRIC POWER?
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.
What is the financial health of AMERICAN ELECTRIC POWER (AEP) stock?
The financial health rating of AMERICAN ELECTRIC POWER (AEP) is 1 / 10.
What is the earnings growth outlook for AMERICAN ELECTRIC POWER?
The Earnings per Share (EPS) of AMERICAN ELECTRIC POWER (AEP) is expected to grow by 6.46% in the next year.