AES CORP (AES)
US00130H1059 - Common Stock
Taking everything into account, AES scores 4 out of 10 in our fundamental rating. AES was compared to 22 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 is not valued too expensively and it also shows a decent growth rate. Finally AES also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year AES was profitable.
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.
Each year in the past 5 years AES had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.05%, AES is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
AES has a better Return On Equity (31.16%) than 90.91% of its industry peers.
AES's Return On Invested Capital of 4.53% is fine compared to the rest of the industry. AES outperforms 77.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AES is above the industry average of 4.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.05% | ||
| ROE | 31.16% | ||
| ROIC | 4.53% |
ROA(3y)-0.7%
ROA(5y)-0.21%
ROE(3y)-9%
ROE(5y)-3.03%
ROIC(3y)6.39%
ROIC(5y)6.42%
1.3 Margins
AES's Profit Margin of 8.34% is in line compared to the rest of the industry. AES outperforms 59.09% of its industry peers.
In the last couple of years the Profit Margin of AES has declined.
AES has a Operating Margin of 17.62%. This is comparable to the rest of the industry: AES outperforms 54.55% of its industry peers.
AES's Operating Margin has declined in the last couple of years.
AES's Gross Margin of 19.44% is on the low side compared to the rest of the industry. AES is outperformed by 77.27% of its industry peers.
AES's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.62% | ||
| PM (TTM) | 8.34% | ||
| GM | 19.44% |
OM growth 3Y-12.22%
OM growth 5Y-4.18%
PM growth 3Y60.41%
PM growth 5Y-29.4%
GM growth 3Y-10.83%
GM growth 5Y-3.78%
2. Health
2.1 Basic Checks
AES has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AES has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, AES has more shares outstanding
AES has a better debt/assets ratio than last year.
2.2 Solvency
AES has an Altman-Z score of 0.46. This is a bad value and indicates that AES is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.46, AES is doing good in the industry, outperforming 63.64% of the companies in the same industry.
A Debt/Equity ratio of 7.45 is on the high side and indicates that AES has dependencies on debt financing.
AES has a Debt to Equity ratio of 7.45. This is amonst the worse of the industry: AES underperforms 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.46 |
ROIC/WACC0.82
WACC5.56%
2.3 Liquidity
A Current Ratio of 0.85 indicates that AES may have some problems paying its short term obligations.
AES has a worse Current ratio (0.85) than 63.64% of its industry peers.
A Quick Ratio of 0.80 indicates that AES may have some problems paying its short term obligations.
AES has a Quick ratio (0.80) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.63% over the past year.
The Earnings Per Share has been growing slightly by 7.26% on average over the past years.
The Revenue has decreased by -3.73% in the past year.
The Revenue has been growing slightly by 3.36% on average over the past years.
EPS 1Y (TTM)52.63%
EPS 3Y6.92%
EPS 5Y7.26%
EPS Q2Q%18.33%
Revenue 1Y (TTM)-3.73%
Revenue growth 3Y9.46%
Revenue growth 5Y3.36%
Sales Q2Q%-4.22%
3.2 Future
The Earnings Per Share is expected to grow by 9.79% on average over the next years. This is quite good.
Based on estimates for the next years, AES will show a small growth in Revenue. The Revenue will grow by 5.10% on average per year.
EPS Next Y10.56%
EPS Next 2Y8.05%
EPS Next 3Y6.81%
EPS Next 5Y9.79%
Revenue Next Year8.24%
Revenue Next 2Y6.74%
Revenue Next 3Y5.44%
Revenue Next 5Y5.1%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.62, 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 100.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.20. AES is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.35 indicates a rather cheap valuation of AES.
Based on the Price/Forward Earnings ratio, AES is valued cheaper than 95.45% 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 24.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.62 | ||
| Fwd PE | 6.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AES is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.89 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.53
PEG (5Y)0.77
EPS Next 2Y8.05%
EPS Next 3Y6.81%
5. Dividend
5.1 Amount
AES has a Yearly Dividend Yield of 5.21%, which is a nice return.
The stock price of AES dropped by -27.88% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
AES's Dividend Yield is rather good when compared to the industry average which is at 6.66. AES pays more dividend than 81.82% of the companies in the same industry.
AES's Dividend Yield is rather good when compared to the S&P500 average which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
5.2 History
The dividend of AES has a limited annual growth rate of 4.97%.
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)4.97%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
46.05% 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, but earnings are growing more, so the dividend growth is sustainable.
DP46.05%
EPS Next 2Y8.05%
EPS Next 3Y6.81%
AES CORP
NYSE:AES (11/22/2024, 8:21:56 PM)
After market: 13.1 +0.06 (+0.46%)13.04
-0.21 (-1.58%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.62 | ||
| Fwd PE | 6.35 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.53
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.05% | ||
| ROE | 31.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.62% | ||
| PM (TTM) | 8.34% | ||
| GM | 19.44% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.45 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)52.63%
EPS 3Y6.92%
EPS 5Y
EPS Q2Q%
EPS Next Y10.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.73%
Revenue growth 3Y9.46%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y