AES CORP (AES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AES - US00130H1059 - Common Stock
14.06 USD
+0.15 (+1.08%)
14.05 USD
-0.01 (-0.07%)
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
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
AES has a better Return On Assets (2.23%) than 80.00% of its industry peers.
The Return On Equity of AES (29.37%) is better than 95.00% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for AES is in line with the industry average of 4.56%.
| 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
AES's Profit Margin of 9.38% is fine compared to the rest of the industry. AES outperforms 70.00% of its industry peers.
In the last couple of years the Profit Margin of AES has grown nicely.
AES has a Operating Margin of 14.83%. This is in the better half of the industry: AES outperforms 70.00% of its industry peers.
In the last couple of years the Operating Margin of AES has declined.
With a Gross Margin value of 17.26%, AES is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
AES's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AES 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.
Compared to 1 year ago, AES has a worse debt to assets ratio.
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.
AES has a Altman-Z score (0.43) which is in line with its industry peers.
A Debt/Equity ratio of 6.85 is on the high side and indicates that AES has dependencies on debt financing.
The Debt to Equity ratio of AES (6.85) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.43 |
ROIC/WACC0.54
WACC6.31%
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.
AES has a Current ratio of 0.72. This is in the lower half of the industry: AES underperforms 65.00% of its industry peers.
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.
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
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.
The Revenue is expected to grow by 8.94% on average over the next years. This is quite good.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
AES is valuated cheaply with a Price/Earnings ratio of 6.36.
Based on the Price/Earnings ratio, AES is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AES to the average of the S&P500 Index (26.31), we can say AES is valued rather cheaply.
A Price/Forward Earnings ratio of 6.07 indicates a rather cheap valuation of AES.
Based on the Price/Forward Earnings ratio, AES is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.59. AES is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.36 | ||
| Fwd PE | 6.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AES is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.24 |
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)2.75
PEG (5Y)0.69
EPS Next 2Y4.29%
EPS Next 3Y3.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.06%, AES is a good candidate for dividend investing.
AES's Dividend Yield is rather good when compared to the industry average which is at 3.57. AES pays more dividend than 90.00% of the companies in the same industry.
AES's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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%
14.06
+0.15 (+1.08%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners93.78%
Inst Owner Change-4.71%
Ins Owners0.46%
Ins Owner Change-0.36%
Market Cap10.01B
Revenue(TTM)12.09B
Net Income(TTM)1.14B
Analysts70.53
Price Target15.54 (10.53%)
Short Float %3.23%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
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)11.76%
PT rev (3m)10.75%
EPS NQ rev (1m)-14.62%
EPS NQ rev (3m)-17.74%
EPS NY rev (1m)0.17%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-4.96%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.36 | ||
| Fwd PE | 6.07 | ||
| P/S | 0.83 | ||
| P/FCF | N/A | ||
| P/OCF | 2.37 | ||
| P/B | 2.59 | ||
| P/tB | 6.66 | ||
| EV/EBITDA | 12.24 |
EPS(TTM)2.21
EY15.72%
EPS(NY)2.32
Fwd EY16.48%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)5.94
OCFY42.23%
SpS16.98
BVpS5.43
TBVpS2.11
PEG (NY)2.75
PEG (5Y)0.69
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
WACC6.31%
ROIC/WACC0.54
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 6.36 and the Price/Book (PB) ratio is 2.59.
Can you provide the financial health for AES stock?
The financial health rating of AES CORP (AES) is 0 / 10.