AES CORP (AES) Fundamental Analysis & Valuation
NYSE:AES • US00130H1059
14.19 USD
+0.04 (+0.28%)
At close: Mar 9, 2026
14.1713 USD
-0.02 (-0.13%)
After Hours: 3/9/2026, 8:04:00 PM
This AES fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
AES gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 20 industry peers in the Independent Power and Renewable Electricity Producers industry. While AES is still in line with the averages on profitability rating, there are concerns on its financial health. AES has a decent growth rate and is not valued too expensively. AES also has an excellent dividend rating.
1. AES Profitability Analysis
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
- The Return On Assets of AES (1.74%) is better than 80.00% of its industry peers.
- AES has a Return On Equity of 22.15%. This is amongst the best in the industry. AES outperforms 95.00% of its industry peers.
- AES has a Return On Invested Capital of 3.53%. This is in the better half of the industry: AES outperforms 80.00% of its industry peers.
- AES had an Average Return On Invested Capital over the past 3 years of 4.28%. This is in line with the industry average of 4.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 22.15% | ||
| ROIC | 3.53% |
ROA(3y)1.95%
ROA(5y)0.63%
ROE(3y)26.08%
ROE(5y)8.24%
ROIC(3y)4.28%
ROIC(5y)5.37%
1.3 Margins
- AES has a Profit Margin of 7.36%. This is in the better half 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 (15.79%) is better than 70.00% of its industry peers.
- AES's Operating Margin has declined in the last couple of years.
- AES has a worse Gross Margin (18.40%) than 70.00% of its industry peers.
- In the last couple of years the Gross Margin of AES has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.79% | ||
| PM (TTM) | 7.36% | ||
| GM | 18.4% |
OM growth 3Y-5.58%
OM growth 5Y-9.97%
PM growth 3YN/A
PM growth 5Y72.9%
GM growth 3Y-3.05%
GM growth 5Y-7.97%
2. AES Health Analysis
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.
- Compared to 1 year ago, AES has about the same amount of shares outstanding.
- AES has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for AES has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.46, we must say that AES is in the distress zone and has some risk of bankruptcy.
- AES has a Altman-Z score (0.46) which is in line with its industry peers.
- A Debt/Equity ratio of 6.59 is on the high side and indicates that AES has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 6.59, AES is doing worse than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.46 |
ROIC/WACC0.57
WACC6.14%
2.3 Liquidity
- AES has a Current Ratio of 0.77. This is a bad value and indicates that AES is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.77, AES is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- A Quick Ratio of 0.69 indicates that AES may have some problems paying its short term obligations.
- AES has a worse Quick ratio (0.69) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.69 |
3. AES Growth Analysis
3.1 Past
- The earnings per share for AES have decreased strongly by -46.73% in the last year.
- The Earnings Per Share has been growing by 83.84% on average over the past years. This is a very strong growth
- AES shows a decrease in Revenue. In the last year, the revenue decreased by -0.37%.
- The Revenue has been growing slightly by 4.84% on average over the past years.
EPS 1Y (TTM)-46.73%
EPS 3YN/A
EPS 5Y83.84%
EPS Q2Q%-41.02%
Revenue 1Y (TTM)-0.37%
Revenue growth 3Y-1.02%
Revenue growth 5Y4.84%
Sales Q2Q%4.69%
3.2 Future
- The Earnings Per Share is expected to grow by 11.02% on average over the next years. This is quite good.
- The Revenue is expected to grow by 0.74% on average over the next years.
EPS Next Y7.67%
EPS Next 2Y4.76%
EPS Next 3Y5.45%
EPS Next 5Y11.02%
Revenue Next Year4.12%
Revenue Next 2Y4.25%
Revenue Next 3Y-2.29%
Revenue Next 5Y0.74%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. AES Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 11.26, which indicates a very decent valuation of AES.
- AES's Price/Earnings ratio is rather cheap when compared to the industry. AES is cheaper than 90.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.46. AES is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 6.05, the valuation of AES can be described as very cheap.
- 95.00% of the companies in the same industry are more expensive than AES, based on the Price/Forward Earnings ratio.
- AES is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.65, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.26 | ||
| 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 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.28 |
4.3 Compensation for Growth
- AES's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.47
PEG (5Y)0.13
EPS Next 2Y4.76%
EPS Next 3Y5.45%
5. AES Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 4.98%, AES is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.32, AES pays a better dividend. On top of this AES pays more dividend than 90.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, AES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.98% |
5.2 History
- The dividend of AES has a limited annual growth rate of 4.19%.
- 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)4.19%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
- 55.67% 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.
DP55.67%
EPS Next 2Y4.76%
EPS Next 3Y5.45%
AES Fundamentals: All Metrics, Ratios and Statistics
14.19
+0.04 (+0.28%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)03-02 2026-03-02/amc
Earnings (Next)03-31 2026-03-31
Inst Owners88.19%
Inst Owner Change-2.17%
Ins Owners0.53%
Ins Owner Change10.64%
Market Cap10.10B
Revenue(TTM)12.23B
Net Income(TTM)900.00M
Analysts73.68
Price Target15.75 (10.99%)
Short Float %2.77%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.98% |
Yearly Dividend0.7
Dividend Growth(5Y)4.19%
DP55.67%
Div Incr Years12
Div Non Decr Years12
Ex-Date05-01 2026-05-01 (0.17595)
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.06%
Min Revenue beat(2)1.24%
Max Revenue beat(2)2.89%
Revenue beat(4)2
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-6.15%
Max Revenue beat(4)2.89%
Revenue beat(8)2
Avg Revenue beat(8)-3.8%
Revenue beat(12)3
Avg Revenue beat(12)-3.1%
Revenue beat(16)7
Avg Revenue beat(16)1.32%
PT rev (1m)1.8%
PT rev (3m)0.78%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-0.43%
EPS NY rev (1m)0.36%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.26 | ||
| Fwd PE | 6.05 | ||
| P/S | 0.83 | ||
| P/FCF | N/A | ||
| P/OCF | 2.3 | ||
| P/B | 2.49 | ||
| P/tB | 6.01 | ||
| EV/EBITDA | 11.28 |
EPS(TTM)1.26
EY8.88%
EPS(NY)2.35
Fwd EY16.54%
FCF(TTM)-2.17
FCFYN/A
OCF(TTM)6.16
OCFY43.39%
SpS17.18
BVpS5.71
TBVpS2.36
PEG (NY)1.47
PEG (5Y)0.13
Graham Number12.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 22.15% | ||
| ROCE | 4.46% | ||
| ROIC | 3.53% | ||
| ROICexc | 3.66% | ||
| ROICexgc | 3.88% | ||
| OM | 15.79% | ||
| PM (TTM) | 7.36% | ||
| GM | 18.4% | ||
| FCFM | N/A |
ROA(3y)1.95%
ROA(5y)0.63%
ROE(3y)26.08%
ROE(5y)8.24%
ROIC(3y)4.28%
ROIC(5y)5.37%
ROICexc(3y)4.47%
ROICexc(5y)5.65%
ROICexgc(3y)4.8%
ROICexgc(5y)6.12%
ROCE(3y)5.41%
ROCE(5y)6.8%
ROICexgc growth 3Y-16.99%
ROICexgc growth 5Y-13.16%
ROICexc growth 3Y-16.49%
ROICexc growth 5Y-12.96%
OM growth 3Y-5.58%
OM growth 5Y-9.97%
PM growth 3YN/A
PM growth 5Y72.9%
GM growth 3Y-3.05%
GM growth 5Y-7.97%
F-Score4
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.59 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.9 | ||
| Cap/Depr | 406.93% | ||
| Cap/Sales | 48.47% | ||
| Interest Coverage | 1.6 | ||
| Cash Conversion | 129.39% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 0.46 |
F-Score4
WACC6.14%
ROIC/WACC0.57
Cap/Depr(3y)558.83%
Cap/Depr(5y)461.81%
Cap/Sales(3y)56.55%
Cap/Sales(5y)44.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-46.73%
EPS 3YN/A
EPS 5Y83.84%
EPS Q2Q%-41.02%
EPS Next Y7.67%
EPS Next 2Y4.76%
EPS Next 3Y5.45%
EPS Next 5Y11.02%
Revenue 1Y (TTM)-0.37%
Revenue growth 3Y-1.02%
Revenue growth 5Y4.84%
Sales Q2Q%4.69%
Revenue Next Year4.12%
Revenue Next 2Y4.25%
Revenue Next 3Y-2.29%
Revenue Next 5Y0.74%
EBIT growth 1Y-4.97%
EBIT growth 3Y-6.55%
EBIT growth 5Y-5.61%
EBIT Next Year71.93%
EBIT Next 3Y25.09%
EBIT Next 5Y16.92%
FCF growth 1Y66.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y53.91%
OCF growth 3Y17.01%
OCF growth 5Y10.58%
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 1 / 10.
Is the dividend of AES CORP sustainable?
The dividend rating of AES CORP (AES) is 8 / 10 and the dividend payout ratio is 55.67%.