AMERICAN ELECTRIC POWER (AEP) Stock Fundamental Analysis

NASDAQ:AEP • US0255371017

130.32 USD
-2.97 (-2.23%)
Last: Mar 3, 2026, 10:05 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

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 valied quite expensively at the moment, while it does show a decent growth rate. Finally AEP also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

7

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.
AEP Yearly Net Income VS EBIT VS OCF VS FCFAEP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B 6B

1.2 Ratios

  • The Return On Assets of AEP (3.13%) is better than 67.39% of its industry peers.
  • AEP has a better Return On Equity (11.48%) than 65.22% of its industry peers.
  • With a Return On Invested Capital value of 4.14%, AEP perfoms like the industry average, outperforming 47.83% 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 4.48%.
  • The last Return On Invested Capital (4.14%) for AEP is above the 3 year average (3.76%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.13%
ROE 11.48%
ROIC 4.14%
ROA(3y)2.76%
ROA(5y)2.72%
ROE(3y)10.4%
ROE(5y)10.38%
ROIC(3y)3.76%
ROIC(5y)3.65%
AEP Yearly ROA, ROE, ROICAEP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • The Profit Margin of AEP (16.36%) is better than 84.78% of its industry peers.
  • AEP's Profit Margin has improved in the last couple of years.
  • With a decent Operating Margin value of 24.62%, 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.
  • Looking at the Gross Margin, with a value of 67.86%, AEP is in line with its industry, outperforming 58.70% of the companies in the same industry.
  • AEP's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 24.62%
PM (TTM) 16.36%
GM 67.86%
OM growth 3Y8.91%
OM growth 5Y4.21%
PM growth 3Y11.69%
PM growth 5Y2.1%
GM growth 3Y2.05%
GM growth 5Y-3.33%
AEP Yearly Profit, Operating, Gross MarginsAEP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
  • Compared to 1 year ago, AEP has an improved debt to assets ratio.
AEP Yearly Shares OutstandingAEP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
AEP Yearly Total Debt VS Total AssetsAEP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

  • AEP has an Altman-Z score of 0.97. This is a bad value and indicates that AEP is not financially healthy and even has some risk of bankruptcy.
  • AEP's Altman-Z score of 0.97 is fine compared to the rest of the industry. AEP outperforms 63.04% of its industry peers.
  • AEP has a Debt/Equity ratio of 1.46. This is a high value indicating a heavy dependency on external financing.
  • AEP has a Debt to Equity ratio of 1.46. This is comparable to the rest of the industry: AEP outperforms 54.35% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.46
Debt/FCF N/A
Altman-Z 0.97
ROIC/WACC0.64
WACC6.44%
AEP Yearly LT Debt VS Equity VS FCFAEP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B 40B

2.3 Liquidity

  • AEP has a Current Ratio of 0.45. This is a bad value and indicates that AEP is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Current ratio value of 0.45, AEP is not doing good in the industry: 93.48% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.33 indicates that AEP may have some problems paying its short term obligations.
  • AEP's Quick ratio of 0.33 is on the low side compared to the rest of the industry. AEP is outperformed by 91.30% of its industry peers.
Industry RankSector Rank
Current Ratio 0.45
Quick Ratio 0.33
AEP Yearly Current Assets VS Current LiabilitesAEP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 6.24% over the past year.
  • AEP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.07% yearly.
  • Looking at the last year, AEP shows a quite strong growth in Revenue. The Revenue has grown by 10.93% in the last year.
  • AEP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.96% yearly.
EPS 1Y (TTM)6.24%
EPS 3Y5.4%
EPS 5Y6.07%
EPS Q2Q%-4.03%
Revenue 1Y (TTM)10.93%
Revenue growth 3Y3.66%
Revenue growth 5Y7.96%
Sales Q2Q%13.15%

3.2 Future

  • The Earnings Per Share is expected to grow by 8.57% on average over the next years. This is quite good.
  • AEP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.13% yearly.
EPS Next Y7.15%
EPS Next 2Y7.47%
EPS Next 3Y7.93%
EPS Next 5Y8.57%
Revenue Next Year7.35%
Revenue Next 2Y6.67%
Revenue Next 3Y7.33%
Revenue Next 5Y8.13%

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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
AEP Yearly Revenue VS EstimatesAEP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B
AEP Yearly EPS VS EstimatesAEP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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Find the best growth stocksShow best growing peers

1

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 21.87, which indicates a rather expensive current valuation of AEP.
  • 67.39% of the companies in the same industry are cheaper than AEP, based on the Price/Earnings ratio.
  • AEP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 20.41, which indicates a rather expensive current valuation of AEP.
  • 67.39% of the companies in the same industry are cheaper than AEP, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.11, AEP is valued a bit cheaper.
Industry RankSector Rank
PE 21.87
Fwd PE 20.41
AEP Price Earnings VS Forward Price EarningsAEP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AEP is valued a bit more expensive than 60.87% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.28
AEP Per share dataAEP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

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)3.61
EPS Next 2Y7.47%
EPS Next 3Y7.93%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. Dividend

5.1 Amount

  • AEP has a Yearly Dividend Yield of 2.88%.
  • AEP's Dividend Yield is comparable with the industry average which is at 3.16.
  • Compared to an average S&P500 Dividend Yield of 1.82, AEP pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.88%

5.2 History

  • The dividend of AEP has a limited annual growth rate of 5.40%.
  • 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)5.4%
Div Incr Years15
Div Non Decr Years20
AEP Yearly Dividends per shareAEP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 56.09% of the earnings are spent on dividend by AEP. 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.
DP56.09%
EPS Next 2Y7.47%
EPS Next 3Y7.93%
AEP Yearly Income VS Free CF VS DividendAEP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B
AEP Dividend Payout.AEP Dividend Payout, showing the Payout Ratio.AEP Dividend Payout.PayoutRetained Earnings

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AMERICAN ELECTRIC POWER

NASDAQ:AEP (3/3/2026, 10:05:07 AM)

130.32

-2.97 (-2.23%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)02-12
Earnings (Next)05-04
Inst Owners86.2%
Inst Owner Change-0.16%
Ins Owners0.02%
Ins Owner Change11.99%
Market Cap69.60B
Revenue(TTM)21.88B
Net Income(TTM)3.58B
Analysts71.43
Price Target135.6 (4.05%)
Short Float %3.5%
Short Ratio5.39
Dividend
Industry RankSector Rank
Dividend Yield 2.88%
Yearly Dividend3.74
Dividend Growth(5Y)5.4%
DP56.09%
Div Incr Years15
Div Non Decr Years20
Ex-Date02-10
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.61%
Min EPS beat(2)-1.41%
Max EPS beat(2)2.62%
EPS beat(4)3
Avg EPS beat(4)5.35%
Min EPS beat(4)-1.41%
Max EPS beat(4)11.24%
EPS beat(8)6
Avg EPS beat(8)2.82%
EPS beat(12)7
Avg EPS beat(12)1.7%
EPS beat(16)10
Avg EPS beat(16)1.83%
Revenue beat(2)2
Avg Revenue beat(2)5.65%
Min Revenue beat(2)3.65%
Max Revenue beat(2)7.66%
Revenue beat(4)4
Avg Revenue beat(4)4.36%
Min Revenue beat(4)1.47%
Max Revenue beat(4)7.66%
Revenue beat(8)4
Avg Revenue beat(8)0.67%
Revenue beat(12)4
Avg Revenue beat(12)-1.39%
Revenue beat(16)8
Avg Revenue beat(16)3.11%
PT rev (1m)3.37%
PT rev (3m)5.23%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)1.01%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)-0.68%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.54%
Valuation
Industry RankSector Rank
PE 21.87
Fwd PE 20.41
P/S 3.18
P/FCF N/A
P/OCF 10.02
P/B 2.23
P/tB 2.24
EV/EBITDA 13.28
EPS(TTM)5.96
EY4.57%
EPS(NY)6.39
Fwd EY4.9%
FCF(TTM)-3.07
FCFYN/A
OCF(TTM)13
OCFY9.98%
SpS40.96
BVpS58.37
TBVpS58.27
PEG (NY)3.06
PEG (5Y)3.61
Graham Number88.47
Profitability
Industry RankSector Rank
ROA 3.13%
ROE 11.48%
ROCE 5.32%
ROIC 4.14%
ROICexc 4.16%
ROICexgc 4.16%
OM 24.62%
PM (TTM) 16.36%
GM 67.86%
FCFM N/A
ROA(3y)2.76%
ROA(5y)2.72%
ROE(3y)10.4%
ROE(5y)10.38%
ROIC(3y)3.76%
ROIC(5y)3.65%
ROICexc(3y)3.78%
ROICexc(5y)3.68%
ROICexgc(3y)3.78%
ROICexgc(5y)3.68%
ROCE(3y)4.88%
ROCE(5y)4.77%
ROICexgc growth 3Y5.55%
ROICexgc growth 5Y5.09%
ROICexc growth 3Y5.55%
ROICexc growth 5Y5.09%
OM growth 3Y8.91%
OM growth 5Y4.21%
PM growth 3Y11.69%
PM growth 5Y2.1%
GM growth 3Y2.05%
GM growth 5Y-3.33%
F-Score5
Asset Turnover0.19
Health
Industry RankSector Rank
Debt/Equity 1.46
Debt/FCF N/A
Debt/EBITDA 5.14
Cap/Depr 246%
Cap/Sales 39.23%
Interest Coverage 2.84
Cash Conversion 78.25%
Profit Quality N/A
Current Ratio 0.45
Quick Ratio 0.33
Altman-Z 0.97
F-Score5
WACC6.44%
ROIC/WACC0.64
Cap/Depr(3y)236.86%
Cap/Depr(5y)222.94%
Cap/Sales(3y)39.39%
Cap/Sales(5y)37.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.24%
EPS 3Y5.4%
EPS 5Y6.07%
EPS Q2Q%-4.03%
EPS Next Y7.15%
EPS Next 2Y7.47%
EPS Next 3Y7.93%
EPS Next 5Y8.57%
Revenue 1Y (TTM)10.93%
Revenue growth 3Y3.66%
Revenue growth 5Y7.96%
Sales Q2Q%13.15%
Revenue Next Year7.35%
Revenue Next 2Y6.67%
Revenue Next 3Y7.33%
Revenue Next 5Y8.13%
EBIT growth 1Y21.12%
EBIT growth 3Y12.9%
EBIT growth 5Y12.5%
EBIT Next Year83.98%
EBIT Next 3Y31.1%
EBIT Next 5Y22.56%
FCF growth 1Y-69.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.05%
OCF growth 3Y9.51%
OCF growth 5Y12.62%

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 1 / 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 7.15% in the next year.