AES CORP (AES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AES - US00130H1059 - Common Stock
14.44 USD
+0.44 (+3.14%)
14.52 USD
+0.08 (+0.55%)
Taking everything into account, AES scores 4 out of 10 in our fundamental rating. AES was compared to 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 correct valuation and a medium growth rate. Finally AES also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- AES had positive earnings in the past year.
- AES had a positive operating cash flow in the past year.
- In multiple years AES reported negative net income over the last 5 years.
- Each year in the past 5 years AES had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of AES (2.23%) is better than 80.00% of its industry peers.
- The Return On Equity of AES (29.37%) is better than 95.00% of its industry peers.
- With a decent Return On Invested Capital value of 3.43%, AES is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for AES 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
- AES's Profit Margin of 9.38% is fine compared to the rest of the industry. AES outperforms 70.00% of its industry peers.
- AES's Profit Margin has improved in the last couple of years.
- The Operating Margin of AES (14.83%) is better than 70.00% of its industry peers.
- AES's Operating Margin has declined in the last couple of years.
- AES has a Gross Margin of 17.26%. This is amonst the worse of the industry: AES underperforms 80.00% of its industry peers.
- AES's Gross Margin has declined in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AES is destroying value.
- The number of shares outstanding for AES has been increased compared to 1 year ago.
- AES has more shares outstanding than it did 5 years ago.
- AES has a worse debt/assets ratio than last year.
2.2 Solvency
- AES has an Altman-Z score of 0.44. This is a bad value and indicates that AES is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of AES (0.44) is comparable to the rest of the industry.
- AES has a Debt/Equity ratio of 6.85. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of AES (6.85) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.44 |
ROIC/WACC0.55
WACC6.23%
2.3 Liquidity
- AES has a Current 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.
- The Current ratio of AES (0.72) is worse 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 worse Quick ratio (0.66) than 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%.
- Measured over the past years, AES shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.23% on average per year.
- Looking at the last year, AES shows a decrease in Revenue. The Revenue has decreased by -1.55% in the last year.
- Measured over the past years, AES shows a small growth in Revenue. The Revenue has been growing by 3.80% on average per year.
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
- Based on estimates for the next years, AES will show a small growth in Earnings Per Share. The EPS will grow by 5.68% on average per year.
- 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
- With a Price/Earnings ratio of 6.98, the valuation of AES can be described as very cheap.
- AES's Price/Earnings ratio is rather cheap when compared to the industry. AES is cheaper than 95.00% of the companies in the same industry.
- AES is valuated cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
- AES is valuated cheaply with a Price/Forward Earnings ratio of 6.20.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AES indicates a rather cheap valuation: AES is cheaper than 100.00% of the companies listed in the same industry.
- AES's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.98 | ||
| Fwd PE | 6.2 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AES indicates a somewhat cheap valuation: AES is cheaper than 65.00% of the companies listed 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.
PEG (NY)3.13
PEG (5Y)0.76
EPS Next 2Y4.6%
EPS Next 3Y3.8%
5. Dividend
5.1 Amount
- AES has a Yearly Dividend Yield of 4.95%, which is a nice return.
- AES's Dividend Yield is rather good when compared to the industry average which is at 1.43. AES pays more dividend than 90.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.92, AES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
5.2 History
- The dividend of AES has a limited annual growth rate of 5.08%.
- AES has paid a dividend for at least 10 years, which is a reliable track record.
- AES has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.08%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
- AES pays out 43.88% of its income as dividend. This is a bit on the high side, but may be sustainable.
- AES's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP43.88%
EPS Next 2Y4.6%
EPS Next 3Y3.8%
14.44
+0.44 (+3.14%)
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 Change1.04%
Ins Owners0.46%
Ins Owner Change-0.36%
Market Cap10.28B
Revenue(TTM)12.09B
Net Income(TTM)1.14B
Analysts74.74
Price Target15.62 (8.17%)
Short Float %3.09%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
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)-15.84%
EPS NY rev (1m)0.19%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-5.11%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.98 | ||
| Fwd PE | 6.2 | ||
| P/S | 0.85 | ||
| P/FCF | N/A | ||
| P/OCF | 2.43 | ||
| P/B | 2.66 | ||
| P/tB | 6.84 | ||
| EV/EBITDA | 12.35 |
EPS(TTM)2.07
EY14.34%
EPS(NY)2.33
Fwd EY16.14%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)5.94
OCFY41.12%
SpS16.98
BVpS5.43
TBVpS2.11
PEG (NY)3.13
PEG (5Y)0.76
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
WACC6.23%
ROIC/WACC0.55
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%.