AES CORP (AES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AES - US00130H1059 - Common Stock
13.96 USD
+0.1 (+0.72%)
14 USD
+0.04 (+0.29%)
We assign a fundamental rating of 4 out of 10 to AES. AES was compared to 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 is not valued too expensively and it also shows a decent growth rate. 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 2.23%, AES is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 29.37%, AES belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
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.
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 4.14%.
| 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
The Profit Margin of AES (9.38%) is better than 70.00% of its industry peers.
AES's Profit Margin has improved in the last couple of years.
AES has a better Operating Margin (14.83%) 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 (17.26%) than 75.00% 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.
The number of shares outstanding for AES has been increased compared to 5 years ago.
The debt/assets ratio for AES is higher compared to a year ago.
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.
AES has a Altman-Z score (0.44) which 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.
With a Debt to Equity ratio value of 6.85, AES is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.44 |
ROIC/WACC0.53
WACC6.42%
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.
With a Current ratio value of 0.72, AES is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.66, AES is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
AES shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.74%.
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 -1.55% in the past year.
AES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.80% yearly.
EPS 1Y (TTM)-4.74%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%25.35%
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 Y2.04%
EPS Next 2Y4.48%
EPS Next 3Y3.82%
EPS Next 5Y5.68%
Revenue Next Year-2.82%
Revenue Next 2Y0.69%
Revenue Next 3Y1.84%
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 6.32, 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 95.00% of the companies listed in the same industry.
AES is valuated cheaply when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.00, 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.
AES is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.32 | ||
| Fwd PE | 6 |
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 | 12.25 |
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)3.1
PEG (5Y)0.68
EPS Next 2Y4.48%
EPS Next 3Y3.82%
5. Dividend
5.1 Amount
AES has a Yearly Dividend Yield of 5.05%, which is a nice return.
Compared to an average industry Dividend Yield of 3.57, AES pays a better dividend. On top of this AES pays more dividend than 90.00% 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 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.05% |
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 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
AES pays out 43.88% of its income as dividend. 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 2Y4.48%
EPS Next 3Y3.82%
13.96
+0.1 (+0.72%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners90.33%
Inst Owner Change-4.55%
Ins Owners0.46%
Ins Owner Change-0.36%
Market Cap9.94B
Revenue(TTM)12.09B
Net Income(TTM)1.14B
Analysts72.63
Price Target15.62 (11.89%)
Short Float %3.48%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.05% |
Yearly Dividend0.7
Dividend Growth(5Y)5.08%
DP43.88%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.11%
Min EPS beat(2)16.5%
Max EPS beat(2)27.71%
EPS beat(4)3
Avg EPS beat(4)19.04%
Min EPS beat(4)-23.78%
Max EPS beat(4)55.73%
EPS beat(8)7
Avg EPS beat(8)17.41%
EPS beat(12)9
Avg EPS beat(12)12.1%
EPS beat(16)12
Avg EPS beat(16)9.23%
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)2.8%
PT rev (3m)11.35%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-16.71%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)0.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.96%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.32 | ||
| Fwd PE | 6 | ||
| P/S | 0.82 | ||
| P/FCF | N/A | ||
| P/OCF | 2.35 | ||
| P/B | 2.57 | ||
| P/tB | 6.61 | ||
| EV/EBITDA | 12.25 |
EPS(TTM)2.21
EY15.83%
EPS(NY)2.33
Fwd EY16.66%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)5.94
OCFY42.53%
SpS16.98
BVpS5.43
TBVpS2.11
PEG (NY)3.1
PEG (5Y)0.68
Graham Number16.43
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
WACC6.42%
ROIC/WACC0.53
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)-4.74%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%25.35%
EPS Next Y2.04%
EPS Next 2Y4.48%
EPS Next 3Y3.82%
EPS Next 5Y5.68%
Revenue 1Y (TTM)-1.55%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%1.89%
Revenue Next Year-2.82%
Revenue Next 2Y0.69%
Revenue Next 3Y1.84%
Revenue Next 5Y8.94%
EBIT growth 1Y-17.14%
EBIT growth 3Y-11.13%
EBIT growth 5Y-1%
EBIT Next Year28.25%
EBIT Next 3Y16.63%
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 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 6.32 and the Price/Book (PB) ratio is 2.57.
Can you provide the financial health for AES stock?
The financial health rating of AES CORP (AES) is 0 / 10.