119.96 USD
+0.56 (+0.47%)
120.58 USD
+0.62 (+0.52%)
AEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. While AEP has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, AEP is valued expensive at the moment. 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.
- In the past 5 years AEP always reported a positive cash flow from operatings.
1.2 Ratios
- AEP has a better Return On Assets (3.32%) than 73.91% of its industry peers.
- The Return On Equity of AEP (12.03%) is better than 65.22% 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 45.65% of the companies in the same 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 4.58%.
- 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
- With an excellent Profit Margin value of 17.23%, AEP belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
- AEP's Profit Margin has improved in the last couple of years.
- AEP's Operating Margin of 24.93% is fine compared to the rest of the industry. AEP outperforms 67.39% of its industry peers.
- In the last couple of years the Operating Margin of AEP has grown nicely.
- 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.
- The number of shares outstanding for AEP has been increased compared to 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.
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.
- With a decent Altman-Z score value of 0.99, AEP is doing good in 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'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 | 0.99 |
ROIC/WACC0.63
WACC6.55%
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.
- A Quick Ratio of 0.53 indicates that AEP may have some problems paying 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.
- The Earnings Per Share has been growing slightly by 5.71% on average over the past years.
- The Revenue has grown by 8.44% in the past year. This is quite good.
- 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
- 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.
- 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 Year5.6%
Revenue Next 2Y6.68%
Revenue Next 3Y6.51%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- AEP is valuated rather expensively with a Price/Earnings ratio of 19.96.
- AEP's Price/Earnings ratio is in line with the industry average.
- AEP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.47.
- A Price/Forward Earnings ratio of 18.78 indicates a rather expensive valuation of AEP.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AEP is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of AEP to the average of the S&P500 Index (24.26), we can say AEP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 18.78 |
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 | 12.32 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of AEP may justify a higher PE ratio.
PEG (NY)3.08
PEG (5Y)3.5
EPS Next 2Y6.71%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
- AEP has a Yearly Dividend Yield of 3.28%.
- AEP's Dividend Yield is comparable with the industry average which is at 3.46.
- Compared to an average S&P500 Dividend Yield of 1.89, AEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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
- 54.46% 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.
DP54.46%
EPS Next 2Y6.71%
EPS Next 3Y7.04%
119.96
+0.56 (+0.47%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners86.2%
Inst Owner Change0.45%
Ins Owners0.02%
Ins Owner Change5.6%
Market Cap64.07B
Revenue(TTM)21.26B
Net Income(TTM)3.66B
Analysts72.86
Price Target131.68 (9.77%)
Short Float %4.25%
Short Ratio6.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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)0.32%
PT rev (3m)12.59%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)8.91%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 18.78 | ||
| P/S | 3.01 | ||
| P/FCF | N/A | ||
| P/OCF | 9.34 | ||
| P/B | 2.1 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 12.32 |
EPS(TTM)6.01
EY5.01%
EPS(NY)6.39
Fwd EY5.32%
FCF(TTM)-3.25
FCFYN/A
OCF(TTM)12.84
OCFY10.7%
SpS39.8
BVpS57.01
TBVpS56.91
PEG (NY)3.08
PEG (5Y)3.5
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
WACC6.55%
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 Year5.6%
Revenue Next 2Y6.68%
Revenue Next 3Y6.51%
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.