120.8 USD
+0.19 (+0.16%)
At close: Feb 6, 2026
120.8 USD
0 (0%)
After Hours: 2/6/2026, 8:16:59 PM
Taking everything into account, AEP scores 4 out of 10 in our fundamental rating. AEP was compared to 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. Finally AEP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- AEP had positive earnings in the past year.
- 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 73.91% of the companies in the same industry.
- AEP has a better Return On Equity (12.03%) than 63.04% of its industry peers.
- AEP has a Return On Invested Capital (4.13%) which is comparable to the rest of the industry.
- AEP had an Average Return On Invested Capital over the past 3 years of 3.55%. This is in line with the industry average of 4.57%.
- 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
- The Profit Margin of AEP (17.23%) is better than 86.96% of its industry peers.
- AEP's Profit Margin has improved in the last couple of years.
- AEP has a better Operating Margin (24.93%) than 67.39% of its industry peers.
- AEP's Operating Margin has improved in the last couple of years.
- AEP has a Gross Margin (68.45%) which 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.
- The number of shares outstanding for AEP has been increased compared to 1 year ago.
- Compared to 5 years ago, AEP has more shares outstanding
- Compared to 1 year ago, AEP has an improved debt to assets ratio.
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.
- The Altman-Z score of AEP (1.00) is better than 67.39% of its industry peers.
- A Debt/Equity ratio of 1.49 is on the high side and indicates that AEP has dependencies on debt financing.
- AEP's Debt to Equity ratio of 1.49 is in line compared to the rest of the industry. AEP outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1 |
ROIC/WACC0.63
WACC6.59%
2.3 Liquidity
- A Current Ratio of 0.69 indicates that AEP may have some problems paying its short term obligations.
- AEP's Current ratio of 0.69 is on the low side compared to the rest of the industry. AEP is outperformed by 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.
- 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
- The Earnings Per Share has been growing slightly by 7.32% over the past year.
- AEP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.71% yearly.
- 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
- AEP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.09% yearly.
- AEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.46% yearly.
EPS Next Y6.51%
EPS Next 2Y6.69%
EPS Next 3Y7.04%
EPS Next 5Y8.09%
Revenue Next Year5.56%
Revenue Next 2Y6.52%
Revenue Next 3Y6.39%
Revenue Next 5Y7.46%
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
- With a Price/Earnings ratio of 20.10, AEP is valued on the expensive side.
- The rest of the industry has a similar Price/Earnings ratio as AEP.
- Compared to an average S&P500 Price/Earnings ratio of 27.92, AEP is valued a bit cheaper.
- A Price/Forward Earnings ratio of 18.92 indicates a rather expensive valuation of AEP.
- The rest of the industry has a similar Price/Forward Earnings ratio as AEP.
- When comparing the Price/Forward Earnings ratio of AEP to the average of the S&P500 Index (27.78), we can say AEP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.1 | ||
| Fwd PE | 18.92 |
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 | 12.39 |
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.
- AEP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.09
PEG (5Y)3.52
EPS Next 2Y6.69%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
- AEP has a Yearly Dividend Yield of 3.19%. Purely for dividend investing, there may be better candidates out there.
- AEP's Dividend Yield is comparable with the industry average which is at 2.90.
- AEP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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
- 54.46% of the earnings are spent on dividend by AEP. 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 3Y7.04%
120.8
+0.19 (+0.16%)
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 Change-0.19%
Ins Owners0.02%
Ins Owner Change6.16%
Market Cap64.52B
Revenue(TTM)21.26B
Net Income(TTM)3.66B
Analysts72.86
Price Target131.17 (8.58%)
Short Float %3.45%
Short Ratio5.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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)-0.39%
PT rev (3m)5.74%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)2.94%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)-2.12%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.1 | ||
| Fwd PE | 18.92 | ||
| P/S | 3.04 | ||
| P/FCF | N/A | ||
| P/OCF | 9.41 | ||
| P/B | 2.12 | ||
| P/tB | 2.12 | ||
| EV/EBITDA | 12.39 |
EPS(TTM)6.01
EY4.98%
EPS(NY)6.39
Fwd EY5.29%
FCF(TTM)-3.25
FCFYN/A
OCF(TTM)12.84
OCFY10.63%
SpS39.8
BVpS57.01
TBVpS56.91
PEG (NY)3.09
PEG (5Y)3.52
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
WACC6.59%
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 Y6.51%
EPS Next 2Y6.69%
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 Year5.56%
Revenue Next 2Y6.52%
Revenue Next 3Y6.39%
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 6.51% in the next year.