AES CORP (AES) Stock Fundamental Analysis
NYSE:AES - New York Stock Exchange, Inc. - US00130H1059 - Common Stock - Currency: USD
Taking everything into account, AES scores 5 out of 10 in our fundamental rating. AES was compared to 21 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. Finally 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.
In the past 5 years AES always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 3.54%, AES belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
AES has a better Return On Equity (46.08%) than 95.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.26%, AES belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
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 3.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.54% | ||
| ROE | 46.08% | ||
| ROIC | 4.26% |
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
AES's Profit Margin of 13.67% is fine compared to the rest of the industry. AES outperforms 76.19% of its industry peers.
AES's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.06%, AES is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
AES's Operating Margin has declined in the last couple of years.
AES has a worse Gross Margin (18.85%) than 71.43% of its industry peers.
AES's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.06% | ||
| PM (TTM) | 13.67% | ||
| GM | 18.85% |
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.
The number of shares outstanding for AES has been increased compared to 1 year ago.
The number of shares outstanding for AES has been increased compared to 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.
With a decent Altman-Z score value of 0.47, AES is doing good in the industry, outperforming 61.90% of the companies in the same industry.
AES has a Debt/Equity ratio of 6.98. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of AES (6.98) is worse than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.47 |
ROIC/WACC0.79
WACC5.4%
2.3 Liquidity
A Current Ratio of 0.80 indicates that AES may have some problems paying its short term obligations.
AES has a Current ratio of 0.80. This is comparable to the rest of the industry: AES outperforms 52.38% of its industry peers.
A Quick Ratio of 0.73 indicates that AES may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.73, AES is in line with its industry, outperforming 52.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
AES shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.02%, which is quite impressive.
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 -3.08% in the past year.
The Revenue has been growing slightly by 3.80% on average over the past years.
EPS 1Y (TTM)21.02%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%-26.03%
Revenue 1Y (TTM)-3.08%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%-0.2%
3.2 Future
AES is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.68% yearly.
The Revenue is expected to grow by 8.94% on average over the next years. This is quite good.
EPS Next Y-0.43%
EPS Next 2Y2.43%
EPS Next 3Y3.28%
EPS Next 5Y5.68%
Revenue Next Year0.78%
Revenue Next 2Y1.05%
Revenue Next 3Y1.79%
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
The Price/Earnings ratio is 4.78, which indicates a rather cheap valuation of AES.
Based on the Price/Earnings ratio, AES is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
AES's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 4.80, the valuation of AES can be described as very cheap.
Based on the Price/Forward Earnings ratio, AES is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AES to the average of the S&P500 Index (21.08), we can say AES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.78 | ||
| Fwd PE | 4.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AES is valued a bit cheaper than 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.3 |
4.3 Compensation for Growth
The decent profitability rating of AES may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y2.43%
EPS Next 3Y3.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.92%, AES is a good candidate for dividend investing.
AES's Dividend Yield is rather good when compared to the industry average which is at 8.24. AES pays more dividend than 90.48% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, AES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.92% |
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 28.77% of its income as dividend. This is a sustainable payout ratio.
The dividend of AES is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP28.77%
EPS Next 2Y2.43%
EPS Next 3Y3.28%
10.18
+0.22 (+2.21%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners94.87%
Inst Owner Change0%
Ins Owners0.41%
Ins Owner Change0.59%
Market Cap7.25B
Analysts76.84
Price Target15.5 (52.26%)
Short Float %5.53%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.92% |
Yearly Dividend0.7
Dividend Growth(5Y)5.08%
DP28.77%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)32.89%
Min EPS beat(2)10.05%
Max EPS beat(2)55.73%
EPS beat(4)4
Avg EPS beat(4)27.69%
Min EPS beat(4)0.72%
Max EPS beat(4)55.73%
EPS beat(8)6
Avg EPS beat(8)15.02%
EPS beat(12)9
Avg EPS beat(12)10.39%
EPS beat(16)12
Avg EPS beat(16)8.78%
Revenue beat(2)0
Avg Revenue beat(2)-5.2%
Min Revenue beat(2)-5.92%
Max Revenue beat(2)-4.48%
Revenue beat(4)0
Avg Revenue beat(4)-5.86%
Min Revenue beat(4)-8.58%
Max Revenue beat(4)-4.46%
Revenue beat(8)1
Avg Revenue beat(8)-3.78%
Revenue beat(12)5
Avg Revenue beat(12)2.34%
Revenue beat(16)8
Avg Revenue beat(16)4.15%
PT rev (1m)-5.12%
PT rev (3m)-19.76%
EPS NQ rev (1m)-2.45%
EPS NQ rev (3m)2.9%
EPS NY rev (1m)3.23%
EPS NY rev (3m)2.31%
Revenue NQ rev (1m)2.49%
Revenue NQ rev (3m)1.57%
Revenue NY rev (1m)-1.96%
Revenue NY rev (3m)-4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.78 | ||
| Fwd PE | 4.8 | ||
| P/S | 0.59 | ||
| P/FCF | N/A | ||
| P/OCF | 2.54 | ||
| P/B | 1.99 | ||
| P/tB | 5.36 | ||
| EV/EBITDA | 10.3 |
EPS(TTM)2.13
EY20.92%
EPS(NY)2.12
Fwd EY20.83%
FCF(TTM)-6.38
FCFYN/A
OCF(TTM)4
OCFY39.31%
SpS17.25
BVpS5.12
TBVpS1.9
PEG (NY)N/A
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.54% | ||
| ROE | 46.08% | ||
| ROCE | 5.39% | ||
| ROIC | 4.26% | ||
| ROICexc | 4.45% | ||
| ROICexgc | 4.74% | ||
| OM | 17.06% | ||
| PM (TTM) | 13.67% | ||
| GM | 18.85% | ||
| 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%
ROICexcg growth 3Y-20.58%
ROICexcg 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-Score5
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.98 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.57 | ||
| Cap/Depr | 584.81% | ||
| Cap/Sales | 60.21% | ||
| Interest Coverage | 1.65 | ||
| Cash Conversion | 84.82% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 0.47 |
F-Score5
WACC5.4%
ROIC/WACC0.79
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)21.02%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%-26.03%
EPS Next Y-0.43%
EPS Next 2Y2.43%
EPS Next 3Y3.28%
EPS Next 5Y5.68%
Revenue 1Y (TTM)-3.08%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%-0.2%
Revenue Next Year0.78%
Revenue Next 2Y1.05%
Revenue Next 3Y1.79%
Revenue Next 5Y8.94%
EBIT growth 1Y-8.11%
EBIT growth 3Y-10.52%
EBIT growth 5Y-0.59%
EBIT Next Year38.96%
EBIT Next 3Y19.27%
EBIT Next 5Y8.35%
FCF growth 1Y4.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.62%
OCF growth 3Y13.34%
OCF growth 5Y3.54%