AES CORP (AES) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AES • US00130H1059
16.05 USD
+0.46 (+2.95%)
At close: Feb 6, 2026
16.05 USD
0 (0%)
Pre-Market: 2/9/2026, 9:07:46 AM
Overall AES gets a fundamental rating of 4 out of 10. We evaluated AES 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 correct valuation and a medium growth rate. 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.
- In multiple years AES reported negative net income over the last 5 years.
- AES had a positive operating cash flow in each of the past 5 years.
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.
- AES has a better Return On Equity (29.37%) than 95.00% of its industry peers.
- AES has a better Return On Invested Capital (3.43%) than 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 4.01%.
| 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.
- AES's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 14.83%, AES is doing good in the industry, outperforming 70.00% of the companies in the same industry.
- 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: 80.00% 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.
- Compared to 1 year ago, AES has more shares outstanding
- 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 0.45. This is a bad value and indicates that AES is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.45, AES perfoms like the industry average, 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's Debt to Equity ratio of 6.85 is on the low side compared to the rest of the industry. AES is outperformed by 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.45 |
ROIC/WACC0.6
WACC5.68%
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's Current ratio of 0.72 is on the low side compared to the rest of the industry. AES is outperformed by 75.00% of its industry peers.
- A Quick Ratio of 0.66 indicates that AES may have some problems paying its short term obligations.
- The Quick ratio of AES (0.66) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
- The earnings per share for AES have decreased strongly by -10.78% in the last year.
- AES shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.23% yearly.
- AES shows a decrease in Revenue. In the last year, the revenue decreased by -1.55%.
- AES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.80% yearly.
EPS 1Y (TTM)-10.78%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%5.63%
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.
- AES is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.94% yearly.
EPS Next Y2.06%
EPS Next 2Y4.77%
EPS Next 3Y3.98%
EPS Next 5Y5.68%
Revenue Next Year-2.68%
Revenue Next 2Y0.76%
Revenue Next 3Y1.96%
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 7.75, which indicates a rather cheap valuation of AES.
- AES's Price/Earnings ratio is rather cheap when compared to the industry. AES is cheaper than 95.00% of the companies in the same industry.
- AES's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.93.
- The Price/Forward Earnings ratio is 6.86, which indicates a rather cheap valuation of AES.
- Based on the Price/Forward Earnings ratio, AES is valued cheaper than 95.00% of the companies in the same industry.
- AES's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 6.86 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AES is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.71 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.77
PEG (5Y)0.84
EPS Next 2Y4.77%
EPS Next 3Y3.98%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.52%, AES is a good candidate for dividend investing.
- AES's Dividend Yield is rather good when compared to the industry average which is at 1.60. AES pays more dividend than 85.00% of the companies in the same industry.
- AES's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
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
- 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 2Y4.77%
EPS Next 3Y3.98%
16.05
+0.46 (+2.95%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)11-04 2025-11-04/amc
Earnings (Next)02-26 2026-02-26/amc
Inst Owners90.61%
Inst Owner Change0.58%
Ins Owners0.46%
Ins Owner Change-0.36%
Market Cap11.43B
Revenue(TTM)12.09B
Net Income(TTM)1.14B
Analysts74.74
Price Target15.47 (-3.61%)
Short Float %3.01%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
Yearly Dividend0.7
Dividend Growth(5Y)5.08%
DP43.88%
Div Incr Years12
Div Non Decr Years12
Ex-Date01-30 2026-01-30 (0.17595)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.94%
Min EPS beat(2)-1.83%
Max EPS beat(2)27.71%
EPS beat(4)2
Avg EPS beat(4)14.46%
Min EPS beat(4)-23.78%
Max EPS beat(4)55.73%
EPS beat(8)6
Avg EPS beat(8)15.12%
EPS beat(12)8
Avg EPS beat(12)10.58%
EPS beat(16)11
Avg EPS beat(16)8.08%
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)-1%
PT rev (3m)1.77%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)0.02%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 6.86 | ||
| P/S | 0.95 | ||
| P/FCF | N/A | ||
| P/OCF | 2.7 | ||
| P/B | 2.96 | ||
| P/tB | 7.6 | ||
| EV/EBITDA | 12.71 |
EPS(TTM)2.07
EY12.9%
EPS(NY)2.34
Fwd EY14.57%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)5.94
OCFY36.99%
SpS16.98
BVpS5.43
TBVpS2.11
PEG (NY)3.77
PEG (5Y)0.84
Graham Number15.9
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 | 0.45 |
F-Score4
WACC5.68%
ROIC/WACC0.6
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)-10.78%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%5.63%
EPS Next Y2.06%
EPS Next 2Y4.77%
EPS Next 3Y3.98%
EPS Next 5Y5.68%
Revenue 1Y (TTM)-1.55%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%1.89%
Revenue Next Year-2.68%
Revenue Next 2Y0.76%
Revenue Next 3Y1.96%
Revenue Next 5Y8.94%
EBIT growth 1Y-17.14%
EBIT growth 3Y-11.13%
EBIT growth 5Y-1%
EBIT Next Year28.87%
EBIT Next 3Y16.68%
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 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 0 / 10.
Is the dividend of AES CORP sustainable?
The dividend rating of AES CORP (AES) is 8 / 10 and the dividend payout ratio is 43.88%.