AES CORP (AES) Stock Fundamental Analysis
USA - NYSE:AES - US00130H1059 - Common Stock
13.575 USD
-0.2 (-1.42%)
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. 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.
In multiple years AES reported negative net income over the last 5 years.
Each year in the past 5 years AES had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.23%, AES is doing good in the industry, outperforming 80.00% of the companies in the same industry.
With an excellent Return On Equity value of 29.37%, AES belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
AES's Return On Invested Capital of 3.43% is fine compared to the rest of the industry. AES outperforms 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AES is in line with the industry average of 4.55%.
| 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.
In the last couple of years the Operating Margin of AES has declined.
AES's Gross Margin of 17.26% is on the low side compared to the rest of the industry. AES is outperformed by 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AES is destroying value.
The number of shares outstanding for AES has been increased compared to 1 year ago.
AES has more shares outstanding than it did 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 0.43. This is a bad value and indicates that AES is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.43, AES is in line with its industry, outperforming 55.00% of the companies in the same industry.
AES has a Debt/Equity ratio of 6.85. This is a high value indicating a heavy dependency on external financing.
AES has a worse Debt to Equity ratio (6.85) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.43 |
ROIC/WACC0.65
WACC5.27%
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.
Looking at the Quick ratio, with a value of 0.66, AES is doing worse than 65.00% of the companies in the same industry.
| 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%.
AES shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.23% yearly.
Looking at the last year, AES shows a decrease in Revenue. The Revenue has decreased by -1.55% in the last year.
The Revenue has been growing slightly by 3.80% on average over the past years.
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
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.
Based on estimates for the next years, AES will show a quite strong growth in Revenue. The Revenue will grow by 8.94% on average per year.
EPS Next Y2.31%
EPS Next 2Y4.29%
EPS Next 3Y3.38%
EPS Next 5Y5.68%
Revenue Next Year-2.9%
Revenue Next 2Y0.75%
Revenue Next 3Y1.76%
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.
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
A Price/Earnings ratio of 6.14 indicates a rather cheap 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.
Compared to an average S&P500 Price/Earnings ratio of 25.47, AES is valued rather cheaply.
AES is valuated cheaply with a Price/Forward Earnings ratio of 5.86.
100.00% of the companies in the same industry are more expensive than AES, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 35.42. AES is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.14 | ||
| Fwd PE | 5.86 |
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 | 12.2 |
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)2.66
PEG (5Y)0.67
EPS Next 2Y4.29%
EPS Next 3Y3.38%
5. Dividend
5.1 Amount
AES has a Yearly Dividend Yield of 5.15%, which is a nice return.
Compared to an average industry Dividend Yield of 4.24, 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
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
43.88% 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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP43.88%
EPS Next 2Y4.29%
EPS Next 3Y3.38%
NYSE:AES (11/20/2025, 2:45:54 PM)
13.575
-0.2 (-1.42%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners93.78%
Inst Owner Change-4.73%
Ins Owners0.46%
Ins Owner Change0%
Market Cap9.67B
Revenue(TTM)12.09B
Net Income(TTM)1.14B
Analysts70.53
Price Target15.2 (11.97%)
Short Float %3.23%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
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)9.31%
PT rev (3m)8.33%
EPS NQ rev (1m)-15.6%
EPS NQ rev (3m)-16.72%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)-4.66%
Revenue NQ rev (3m)-4.96%
Revenue NY rev (1m)-1.59%
Revenue NY rev (3m)-1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.14 | ||
| Fwd PE | 5.86 | ||
| P/S | 0.8 | ||
| P/FCF | N/A | ||
| P/OCF | 2.29 | ||
| P/B | 2.5 | ||
| P/tB | 6.43 | ||
| EV/EBITDA | 12.2 |
EPS(TTM)2.21
EY16.28%
EPS(NY)2.32
Fwd EY17.07%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)5.94
OCFY43.74%
SpS16.98
BVpS5.43
TBVpS2.11
PEG (NY)2.66
PEG (5Y)0.67
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 | 0.43 |
F-Score4
WACC5.27%
ROIC/WACC0.65
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 Y2.31%
EPS Next 2Y4.29%
EPS Next 3Y3.38%
EPS Next 5Y5.68%
Revenue 1Y (TTM)-1.55%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%1.89%
Revenue Next Year-2.9%
Revenue Next 2Y0.75%
Revenue Next 3Y1.76%
Revenue Next 5Y8.94%
EBIT growth 1Y-17.14%
EBIT growth 3Y-11.13%
EBIT growth 5Y-1%
EBIT Next Year29%
EBIT Next 3Y16.73%
EBIT Next 5Y9.6%
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 6.14 and the Price/Book (PB) ratio is 2.5.
Can you provide the financial health for AES stock?
The financial health rating of AES CORP (AES) is 0 / 10.