AES CORP (AES) Stock Fundamental Analysis
USA - NYSE:AES - US00130H1059 - Common Stock
14.02 USD
-0.35 (-2.44%)
14.03 USD
+0.01 (+0.07%)
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.
The reported net income has been mixed in the past 5 years: AES reported negative net income in multiple years.
AES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AES has a Return On Assets of 2.07%. This is in the better half of the industry: AES outperforms 70.00% of its industry peers.
With an excellent Return On Equity value of 29.77%, AES belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
The Return On Invested Capital of AES (3.59%) is better than 80.00% of its industry peers.
AES had an Average Return On Invested Capital over the past 3 years of 5.08%. This is in line with the industry average of 4.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 29.77% | ||
| ROIC | 3.59% |
ROA(3y)0.89%
ROA(5y)0.31%
ROE(3y)11.23%
ROE(5y)4.16%
ROIC(3y)5.08%
ROIC(5y)6.08%
1.3 Margins
Looking at the Profit Margin, with a value of 8.34%, AES is in the better half of the industry, outperforming 65.00% 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 (15.44%) is comparable to the rest of the industry.
AES's Operating Margin has declined in the last couple of years.
AES has a Gross Margin of 17.28%. This is in the lower half of the industry: AES underperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of AES has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.44% | ||
| PM (TTM) | 8.34% | ||
| GM | 17.28% |
OM growth 3Y-13.37%
OM growth 5Y-4.23%
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.
AES has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AES has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.47, we must say that AES is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AES (0.47) is comparable to the rest of the industry.
A Debt/Equity ratio of 7.88 is on the high side and indicates that AES has dependencies on debt financing.
AES has a worse Debt to Equity ratio (7.88) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.47 |
ROIC/WACC0.66
WACC5.46%
2.3 Liquidity
AES has a Current Ratio of 0.82. 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 (0.82) is comparable to the rest of the industry.
AES has a Quick Ratio of 0.82. 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 0.74. This is comparable to the rest of the industry: AES outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
AES shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.14%.
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.
The Revenue has decreased by -3.19% in the past 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)-8.14%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%34.21%
Revenue 1Y (TTM)-3.19%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%-2.96%
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.
AES is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.94% yearly.
EPS Next Y2.14%
EPS Next 2Y4.33%
EPS Next 3Y3.4%
EPS Next 5Y5.68%
Revenue Next Year-2.77%
Revenue Next 2Y0.84%
Revenue Next 3Y1.88%
Revenue Next 5Y8.94%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 6.91, the valuation of AES can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of AES indicates a rather cheap valuation: AES is cheaper than 90.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AES to the average of the S&P500 Index (26.19), we can say AES is valued rather cheaply.
A Price/Forward Earnings ratio of 6.05 indicates a rather cheap valuation of AES.
Based on the Price/Forward Earnings ratio, AES is valued cheaper than 100.00% of the companies 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 22.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.91 | ||
| Fwd PE | 6.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AES is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.26 |
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)3.22
PEG (5Y)0.75
EPS Next 2Y4.33%
EPS Next 3Y3.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.96%, AES is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.71, AES pays a better dividend. On top of this AES pays more dividend than 85.00% of the companies listed in the same industry.
AES's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
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 49.35% 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.
DP49.35%
EPS Next 2Y4.33%
EPS Next 3Y3.4%
14.02
-0.35 (-2.44%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners93.78%
Inst Owner Change0.41%
Ins Owners0.46%
Ins Owner Change0%
Market Cap9.98B
Revenue(TTM)12.03B
Net Income(TTM)1.00B
Analysts71.11
Price Target13.9 (-0.86%)
Short Float %3.67%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
Yearly Dividend0.7
Dividend Growth(5Y)5.08%
DP49.35%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.96%
Min EPS beat(2)-23.78%
Max EPS beat(2)27.71%
EPS beat(4)3
Avg EPS beat(4)17.43%
Min EPS beat(4)-23.78%
Max EPS beat(4)55.73%
EPS beat(8)7
Avg EPS beat(8)16.59%
EPS beat(12)9
Avg EPS beat(12)12.15%
EPS beat(16)12
Avg EPS beat(16)9.08%
Revenue beat(2)0
Avg Revenue beat(2)-5.54%
Min Revenue beat(2)-6.15%
Max Revenue beat(2)-4.94%
Revenue beat(4)0
Avg Revenue beat(4)-5.37%
Min Revenue beat(4)-6.15%
Max Revenue beat(4)-4.48%
Revenue beat(8)0
Avg Revenue beat(8)-6.46%
Revenue beat(12)3
Avg Revenue beat(12)-1.84%
Revenue beat(16)6
Avg Revenue beat(16)1.88%
PT rev (1m)-0.9%
PT rev (3m)1.1%
EPS NQ rev (1m)-1%
EPS NQ rev (3m)0.63%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)-4.26%
Revenue NQ rev (3m)-5.21%
Revenue NY rev (1m)-1.22%
Revenue NY rev (3m)-2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.91 | ||
| Fwd PE | 6.05 | ||
| P/S | 0.83 | ||
| P/FCF | N/A | ||
| P/OCF | 2.65 | ||
| P/B | 2.96 | ||
| P/tB | 10.25 | ||
| EV/EBITDA | 12.26 |
EPS(TTM)2.03
EY14.48%
EPS(NY)2.32
Fwd EY16.54%
FCF(TTM)-3.34
FCFYN/A
OCF(TTM)5.29
OCFY37.76%
SpS16.9
BVpS4.73
TBVpS1.37
PEG (NY)3.22
PEG (5Y)0.75
Graham Number14.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 29.77% | ||
| ROCE | 4.55% | ||
| ROIC | 3.59% | ||
| ROICexc | 3.71% | ||
| ROICexgc | 3.95% | ||
| OM | 15.44% | ||
| PM (TTM) | 8.34% | ||
| GM | 17.28% | ||
| FCFM | N/A |
ROA(3y)0.89%
ROA(5y)0.31%
ROE(3y)11.23%
ROE(5y)4.16%
ROIC(3y)5.08%
ROIC(5y)6.08%
ROICexc(3y)5.38%
ROICexc(5y)6.39%
ROICexgc(3y)5.79%
ROICexgc(5y)6.93%
ROCE(3y)6.44%
ROCE(5y)7.69%
ROICexgc growth 3Y-20.58%
ROICexgc growth 5Y-6.59%
ROICexc growth 3Y-19.55%
ROICexc growth 5Y-6.69%
OM growth 3Y-13.37%
OM growth 5Y-4.23%
PM growth 3YN/A
PM growth 5Y35.68%
GM growth 3Y-8.16%
GM growth 5Y-3.95%
F-Score4
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.88 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.32 | ||
| Cap/Depr | 460.3% | ||
| Cap/Sales | 51.07% | ||
| Interest Coverage | 1.69 | ||
| Cash Conversion | 118.07% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 0.47 |
F-Score4
WACC5.46%
ROIC/WACC0.66
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)-8.14%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%34.21%
EPS Next Y2.14%
EPS Next 2Y4.33%
EPS Next 3Y3.4%
EPS Next 5Y5.68%
Revenue 1Y (TTM)-3.19%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%-2.96%
Revenue Next Year-2.77%
Revenue Next 2Y0.84%
Revenue Next 3Y1.88%
Revenue Next 5Y8.94%
EBIT growth 1Y-19.08%
EBIT growth 3Y-10.52%
EBIT growth 5Y-0.59%
EBIT Next Year29%
EBIT Next 3Y16.73%
EBIT Next 5Y9.33%
FCF growth 1Y26.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.64%
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 of AES CORP (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.
Can you provide the PE and PB ratios for AES stock?
The Price/Earnings (PE) ratio for AES CORP (AES) is 6.91 and the Price/Book (PB) ratio is 2.96.
Can you provide the financial health for AES stock?
The financial health rating of AES CORP (AES) is 1 / 10.