AES CORP (AES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AES - US00130H1059 - Common Stock
14.19 USD
-0.25 (-1.73%)
14.2168 USD
+0.03 (+0.19%)
Overall AES gets a fundamental rating of 4 out of 10. We evaluated AES against 20 industry peers in the Independent Power and Renewable Electricity Producers industry. AES has a medium profitability rating, but doesn't score so well on its financial health evaluation. AES has a decent growth rate and is not valued too expensively. AES also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- AES had positive earnings in the past year.
- In the past year AES had a positive cash flow from operations.
- In multiple years AES reported negative net income over the last 5 years.
- In the past 5 years AES always reported a positive cash flow from operatings.
1.2 Ratios
- AES has a Return On Assets of 2.23%. This is in the better half of the industry: AES outperforms 80.00% of its industry peers.
- AES's Return On Equity of 29.37% is amongst the best of the industry. AES outperforms 95.00% of its industry peers.
- AES has a Return On Invested Capital of 3.43%. This is in the better half of the industry: AES outperforms 75.00% of its industry peers.
- AES had an Average Return On Invested Capital over the past 3 years of 5.05%. This is in line with the industry average of 4.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.23% | ||
| ROE | 29.37% | ||
| ROIC | 3.43% |
ROA(3y)0.89%
ROA(5y)0.31%
ROE(3y)11.23%
ROE(5y)4.16%
ROIC(3y)5.05%
ROIC(5y)6.06%
1.3 Margins
- Looking at the Profit Margin, with a value of 9.38%, AES is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of AES has grown nicely.
- The Operating Margin of AES (14.83%) is better than 70.00% of its industry peers.
- In the last couple of years the Operating Margin of AES has declined.
- AES has a Gross Margin of 17.26%. This is amonst the worse of the industry: AES underperforms 80.00% of its industry peers.
- In the last couple of years the Gross Margin of AES has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.83% | ||
| PM (TTM) | 9.38% | ||
| GM | 17.26% |
OM growth 3Y-13.97%
OM growth 5Y-4.63%
PM growth 3YN/A
PM growth 5Y35.68%
GM growth 3Y-8.16%
GM growth 5Y-3.95%
2. Health
2.1 Basic Checks
- AES has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- AES has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, AES has more shares outstanding
- The debt/assets ratio for AES is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.44, we must say that AES is in the distress zone and has some risk of bankruptcy.
- AES's Altman-Z score of 0.44 is in line compared to the rest of the industry. AES outperforms 55.00% of its industry peers.
- AES has a Debt/Equity ratio of 6.85. This is a high value indicating a heavy dependency on external financing.
- AES has a worse Debt to Equity ratio (6.85) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.44 |
ROIC/WACC0.63
WACC5.44%
2.3 Liquidity
- A Current Ratio of 0.72 indicates that AES may have some problems paying its short term obligations.
- AES has a worse Current ratio (0.72) than 65.00% of its industry peers.
- AES has a Quick Ratio of 0.72. This is a bad value and indicates that AES is not financially healthy enough and could expect problems in meeting its short term obligations.
- AES has a Quick ratio of 0.66. This is in the lower half of the industry: AES underperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
- AES shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.78%.
- The Earnings Per Share has been growing by 9.23% on average over the past years. This is quite good.
- AES shows a decrease in Revenue. In the last year, the revenue decreased by -1.55%.
- The Revenue has been growing slightly by 3.80% on average over the past years.
EPS 1Y (TTM)-10.78%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%5.63%
Revenue 1Y (TTM)-1.55%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%1.89%
3.2 Future
- The Earnings Per Share is expected to grow by 5.68% on average over the next years.
- The Revenue is expected to grow by 8.94% on average over the next years. This is quite good.
EPS Next Y2.23%
EPS Next 2Y4.6%
EPS Next 3Y3.8%
EPS Next 5Y5.68%
Revenue Next Year-2.73%
Revenue Next 2Y0.69%
Revenue Next 3Y1.86%
Revenue Next 5Y8.94%
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 decreasing.
- 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
- A Price/Earnings ratio of 6.86 indicates a rather cheap valuation of AES.
- Based on the Price/Earnings ratio, AES is valued cheaper than 95.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of AES to the average of the S&P500 Index (27.38), we can say AES is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 6.09, the valuation of AES can be described as very cheap.
- 100.00% of the companies in the same industry are more expensive than AES, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, AES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.86 | ||
| Fwd PE | 6.09 |
4.2 Price Multiples
- AES's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AES is cheaper than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.3 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AES does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.08
PEG (5Y)0.74
EPS Next 2Y4.6%
EPS Next 3Y3.8%
5. Dividend
5.1 Amount
- AES has a Yearly Dividend Yield of 4.88%, which is a nice return.
- Compared to an average industry Dividend Yield of 1.64, AES pays a better dividend. On top of this AES pays more dividend than 85.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.85, AES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.88% |
5.2 History
- The dividend of AES has a limited annual growth rate of 5.08%.
- AES has been paying a dividend for at least 10 years, so it has a reliable track record.
- AES has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.08%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
- 43.88% of the earnings are spent on dividend by AES. This is a bit on the high side, but may be sustainable.
- The dividend of AES is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP43.88%
EPS Next 2Y4.6%
EPS Next 3Y3.8%
14.19
-0.25 (-1.73%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)11-04 2025-11-04/amc
Earnings (Next)02-26 2026-02-26/amc
Inst Owners90.61%
Inst Owner Change1.16%
Ins Owners0.46%
Ins Owner Change-0.36%
Market Cap10.10B
Revenue(TTM)12.09B
Net Income(TTM)1.14B
Analysts74.74
Price Target15.62 (10.08%)
Short Float %3.09%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.88% |
Yearly Dividend0.7
Dividend Growth(5Y)5.08%
DP43.88%
Div Incr Years12
Div Non Decr Years12
Ex-Date01-30 2026-01-30 (0.17595)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.94%
Min EPS beat(2)-1.83%
Max EPS beat(2)27.71%
EPS beat(4)2
Avg EPS beat(4)14.46%
Min EPS beat(4)-23.78%
Max EPS beat(4)55.73%
EPS beat(8)6
Avg EPS beat(8)15.12%
EPS beat(12)8
Avg EPS beat(12)10.58%
EPS beat(16)11
Avg EPS beat(16)8.08%
Revenue beat(2)1
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-6.15%
Max Revenue beat(2)2.89%
Revenue beat(4)1
Avg Revenue beat(4)-3.17%
Min Revenue beat(4)-6.15%
Max Revenue beat(4)2.89%
Revenue beat(8)1
Avg Revenue beat(8)-5.51%
Revenue beat(12)3
Avg Revenue beat(12)-3.09%
Revenue beat(16)6
Avg Revenue beat(16)0.96%
PT rev (1m)0%
PT rev (3m)12.37%
EPS NQ rev (1m)0.81%
EPS NQ rev (3m)-14.9%
EPS NY rev (1m)0.19%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.82%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.86 | ||
| Fwd PE | 6.09 | ||
| P/S | 0.84 | ||
| P/FCF | N/A | ||
| P/OCF | 2.39 | ||
| P/B | 2.61 | ||
| P/tB | 6.72 | ||
| EV/EBITDA | 12.3 |
EPS(TTM)2.07
EY14.59%
EPS(NY)2.33
Fwd EY16.42%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)5.94
OCFY41.84%
SpS16.98
BVpS5.43
TBVpS2.11
PEG (NY)3.08
PEG (5Y)0.74
Graham Number15.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.23% | ||
| ROE | 29.37% | ||
| ROCE | 4.34% | ||
| ROIC | 3.43% | ||
| ROICexc | 3.58% | ||
| ROICexgc | 3.8% | ||
| OM | 14.83% | ||
| PM (TTM) | 9.38% | ||
| GM | 17.26% | ||
| FCFM | N/A |
ROA(3y)0.89%
ROA(5y)0.31%
ROE(3y)11.23%
ROE(5y)4.16%
ROIC(3y)5.05%
ROIC(5y)6.06%
ROICexc(3y)5.35%
ROICexc(5y)6.38%
ROICexgc(3y)5.76%
ROICexgc(5y)6.92%
ROCE(3y)6.4%
ROCE(5y)7.67%
ROICexgc growth 3Y-21.13%
ROICexgc growth 5Y-6.98%
ROICexc growth 3Y-20.11%
ROICexc growth 5Y-7.08%
OM growth 3Y-13.97%
OM growth 5Y-4.63%
PM growth 3YN/A
PM growth 5Y35.68%
GM growth 3Y-8.16%
GM growth 5Y-3.95%
F-Score4
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.3 | ||
| Cap/Depr | 439.1% | ||
| Cap/Sales | 50.61% | ||
| Interest Coverage | 1.75 | ||
| Cash Conversion | 132.66% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.44 |
F-Score4
WACC5.44%
ROIC/WACC0.63
Cap/Depr(3y)567.25%
Cap/Depr(5y)416.01%
Cap/Sales(3y)52.42%
Cap/Sales(5y)39.18%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.78%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%5.63%
EPS Next Y2.23%
EPS Next 2Y4.6%
EPS Next 3Y3.8%
EPS Next 5Y5.68%
Revenue 1Y (TTM)-1.55%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%1.89%
Revenue Next Year-2.73%
Revenue Next 2Y0.69%
Revenue Next 3Y1.86%
Revenue Next 5Y8.94%
EBIT growth 1Y-17.14%
EBIT growth 3Y-11.13%
EBIT growth 5Y-1%
EBIT Next Year28.83%
EBIT Next 3Y16.59%
EBIT Next 5Y10.02%
FCF growth 1Y48.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.84%
OCF growth 3Y13.34%
OCF growth 5Y3.54%
AES CORP / AES FAQ
What is the ChartMill fundamental rating of AES CORP (AES) stock?
ChartMill assigns a fundamental rating of 4 / 10 to AES.
What is the valuation status for AES stock?
ChartMill assigns a valuation rating of 5 / 10 to AES CORP (AES). This can be considered as Fairly Valued.
What is the profitability of AES stock?
AES CORP (AES) has a profitability rating of 5 / 10.
What is the financial health of AES CORP (AES) stock?
The financial health rating of AES CORP (AES) is 0 / 10.
Is the dividend of AES CORP sustainable?
The dividend rating of AES CORP (AES) is 8 / 10 and the dividend payout ratio is 43.88%.