119.22 USD
-0.74 (-0.62%)
119.5 USD
+0.28 (+0.23%)
Overall AEP gets a fundamental rating of 4 out of 10. We evaluated AEP against 46 industry peers in the Electric Utilities industry. While AEP belongs to the best of the industry regarding profitability, there are concerns on its financial health. AEP is quite expensive at the moment. 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.
- AEP had a positive operating cash flow in the past year.
- Each year in the past 5 years AEP has been profitable.
- AEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AEP's Return On Assets of 3.32% is fine compared to the rest of the industry. AEP outperforms 73.91% of its industry peers.
- AEP's Return On Equity of 12.03% is fine compared to the rest of the industry. AEP outperforms 65.22% 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 45.65% 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 4.58%.
- 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's Profit Margin of 17.23% is amongst the best of the industry. AEP outperforms 86.96% 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.
- In the last couple of years the Operating Margin of AEP has grown nicely.
- AEP's Gross Margin of 68.45% is in line compared to the rest of the industry. AEP outperforms 58.70% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AEP is destroying value.
- Compared to 1 year ago, AEP has more shares outstanding
- The number of shares outstanding for AEP has been increased compared to 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 0.99, we must say that AEP is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.99, AEP is in the better half of the industry, outperforming 67.39% of the companies in the same industry.
- 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.99 |
ROIC/WACC0.63
WACC6.58%
2.3 Liquidity
- AEP has a Current 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.
- AEP has a worse Current ratio (0.69) than 76.09% of its industry peers.
- 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.
- AEP has a Quick ratio of 0.53. This is in the lower half of the industry: AEP underperforms 73.91% of its industry peers.
| 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.
- Looking at the last year, AEP shows a quite strong growth in Revenue. The Revenue has grown by 8.44% in the last year.
- 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
- Based on estimates for the next years, AEP will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.09% on average per year.
- 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 Y6.48%
EPS Next 2Y6.71%
EPS Next 3Y7.04%
EPS Next 5Y8.09%
Revenue Next Year5.55%
Revenue Next 2Y6.58%
Revenue Next 3Y6.41%
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
- AEP is valuated rather expensively with a Price/Earnings ratio of 19.84.
- AEP's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 26.94. AEP is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 18.66, the valuation of AEP can be described as rather expensive.
- AEP's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 23.94. AEP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.84 | ||
| Fwd PE | 18.66 |
4.2 Price Multiples
- AEP's Enterprise Value to EBITDA 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.35 |
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)3.06
PEG (5Y)3.47
EPS Next 2Y6.71%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
- AEP has a Yearly Dividend Yield of 3.18%. Purely for dividend investing, there may be better candidates out there.
- AEP's Dividend Yield is comparable with the industry average which is at 2.93.
- Compared to an average S&P500 Dividend Yield of 1.83, AEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
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 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.
- 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%
119.22
-0.74 (-0.62%)
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/amc
Inst Owners86.2%
Inst Owner Change0.46%
Ins Owners0.02%
Ins Owner Change5.88%
Market Cap63.67B
Revenue(TTM)21.26B
Net Income(TTM)3.66B
Analysts72.86
Price Target131.17 (10.02%)
Short Float %3.39%
Short Ratio5.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
Yearly Dividend3.6
Dividend Growth(5Y)5.62%
DP54.46%
Div Incr Years15
Div Non Decr Years20
Ex-DateN/A
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)-0.07%
PT rev (3m)12.16%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)8.81%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.58%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.84 | ||
| Fwd PE | 18.66 | ||
| P/S | 3 | ||
| P/FCF | N/A | ||
| P/OCF | 9.28 | ||
| P/B | 2.09 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 12.35 |
EPS(TTM)6.01
EY5.04%
EPS(NY)6.39
Fwd EY5.36%
FCF(TTM)-3.25
FCFYN/A
OCF(TTM)12.84
OCFY10.77%
SpS39.8
BVpS57.01
TBVpS56.91
PEG (NY)3.06
PEG (5Y)3.47
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 | 0.99 |
F-Score6
WACC6.58%
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 Y6.48%
EPS Next 2Y6.71%
EPS Next 3Y7.04%
EPS Next 5Y8.09%
Revenue 1Y (TTM)8.44%
Revenue growth 3Y5.51%
Revenue growth 5Y4.85%
Sales Q2Q%11.3%
Revenue Next Year5.55%
Revenue Next 2Y6.58%
Revenue Next 3Y6.41%
Revenue Next 5Y7.46%
EBIT growth 1Y31.19%
EBIT growth 3Y9.11%
EBIT growth 5Y10.1%
EBIT Next Year82.5%
EBIT Next 3Y30.52%
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 6.48% in the next year.