AES CORP (AES) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AES • US00130H1059
14.66 USD
-0.2 (-1.35%)
Last: Jan 30, 2026, 02:57 PM
Taking everything into account, AES scores 4 out of 10 in our fundamental rating. 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 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.
- AES had a positive operating cash flow in the past year.
- 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
- AES's Return On Assets of 2.23% is fine compared to the rest of the industry. AES outperforms 80.00% of its industry peers.
- 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.
- AES has a better Return On Invested Capital (3.43%) than 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 4.09%.
| 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 has a better Profit Margin (9.38%) than 70.00% of its industry peers.
- AES's Profit Margin has improved in the last couple of years.
- The Operating Margin of AES (14.83%) is better than 70.00% of its industry peers.
- In the last couple of years the Operating Margin of AES has declined.
- AES has a Gross Margin of 17.26%. This is amonst the worse of the industry: AES underperforms 80.00% 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.
- 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.
- AES has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.45, we must say that AES is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of AES (0.45) 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.
- The Debt to Equity ratio of AES (6.85) is worse than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.45 |
ROIC/WACC0.54
WACC6.37%
2.3 Liquidity
- A Current Ratio of 0.72 indicates that AES may have some problems paying its short term obligations.
- AES has a worse Current ratio (0.72) than 70.00% of its industry peers.
- A Quick Ratio of 0.66 indicates that AES may have some problems paying its short term obligations.
- AES's Quick ratio of 0.66 is on the low side compared to the rest of the industry. AES is outperformed by 70.00% 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.
- 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)-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
- 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 Y2.23%
EPS Next 2Y4.6%
EPS Next 3Y3.8%
EPS Next 5Y5.68%
Revenue Next Year-2.73%
Revenue Next 2Y0.69%
Revenue Next 3Y1.86%
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
- AES is valuated cheaply with a Price/Earnings ratio of 7.08.
- Based on the Price/Earnings ratio, AES is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
- AES is valuated cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 6.29, the valuation of AES can be described as very cheap.
- 95.00% of the companies in the same industry are more expensive than AES, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, AES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.08 | ||
| Fwd PE | 6.29 |
4.2 Price Multiples
- AES's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AES is cheaper than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.49 |
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)3.18
PEG (5Y)0.77
EPS Next 2Y4.6%
EPS Next 3Y3.8%
5. Dividend
5.1 Amount
- AES has a Yearly Dividend Yield of 4.82%, which is a nice return.
- AES's Dividend Yield is rather good when compared to the industry average which is at 1.36. 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
5.2 History
- The dividend of AES has a limited annual growth rate of 5.08%.
- AES has been paying a dividend for at least 10 years, so it has 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 2Y4.6%
EPS Next 3Y3.8%
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%.