AES CORP (AES) Fundamental Analysis & Valuation

NYSE:AES • US00130H1059

Current stock price

14.205 USD
+0.01 (+0.04%)
Last:

This AES fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. AES Profitability Analysis

1.1 Basic Checks

  • In the past year AES was profitable.
  • 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.
AES Yearly Net Income VS EBIT VS OCF VS FCFAES Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B -4B

1.2 Ratios

  • AES's Return On Assets of 1.74% 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 22.15%, AES belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 3.53%, AES is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
  • AES had an Average Return On Invested Capital over the past 3 years of 4.28%. This is in line with the industry average of 3.88%.
Industry RankSector Rank
ROA 1.74%
ROE 22.15%
ROIC 3.53%
ROA(3y)1.95%
ROA(5y)0.63%
ROE(3y)26.08%
ROE(5y)8.24%
ROIC(3y)4.28%
ROIC(5y)5.37%
AES Yearly ROA, ROE, ROICAES Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40

1.3 Margins

  • AES has a better Profit Margin (7.36%) than 70.00% 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 15.79%, AES is in the better half of 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.
  • AES has a Gross Margin of 18.40%. This is in the lower half of the industry: AES underperforms 70.00% of its industry peers.
  • In the last couple of years the Gross Margin of AES has declined.
Industry RankSector Rank
OM 15.79%
PM (TTM) 7.36%
GM 18.4%
OM growth 3Y-5.58%
OM growth 5Y-9.97%
PM growth 3YN/A
PM growth 5Y72.9%
GM growth 3Y-3.05%
GM growth 5Y-7.97%
AES Yearly Profit, Operating, Gross MarginsAES Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. AES Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AES is destroying value.
  • Compared to 1 year ago, AES has about the same amount of shares outstanding.
  • Compared to 5 years ago, AES has more shares outstanding
  • AES has a better debt/assets ratio than last year.
AES Yearly Shares OutstandingAES Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
AES Yearly Total Debt VS Total AssetsAES Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • Based on the Altman-Z score of 0.46, we must say that AES is in the distress zone and has some risk of bankruptcy.
  • AES has a Altman-Z score of 0.46. This is comparable to the rest of the industry: AES outperforms 55.00% of its industry peers.
  • A Debt/Equity ratio of 6.59 is on the high side and indicates that AES has dependencies on debt financing.
  • AES's Debt to Equity ratio of 6.59 is on the low side compared to the rest of the industry. AES is outperformed by 90.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 6.59
Debt/FCF N/A
Altman-Z 0.46
ROIC/WACC0.65
WACC5.43%
AES Yearly LT Debt VS Equity VS FCFAES Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B

2.3 Liquidity

  • A Current Ratio of 0.77 indicates that AES may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.77, AES is doing worse than 65.00% of the companies in the same industry.
  • AES has a Quick Ratio of 0.77. 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 worse Quick ratio (0.69) than 65.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.77
Quick Ratio 0.69
AES Yearly Current Assets VS Current LiabilitesAES Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. AES Growth Analysis

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.
  • The Earnings Per Share has been growing by 9.23% on average over the past years. This is quite good.
  • Looking at the last year, AES shows a decrease in Revenue. The Revenue has decreased by -0.37% in the last 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)21.02%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%-41.02%
Revenue 1Y (TTM)-0.37%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%4.69%

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 Y2.32%
EPS Next 2Y4.96%
EPS Next 3Y3.94%
EPS Next 5Y5.68%
Revenue Next Year-2.69%
Revenue Next 2Y0.66%
Revenue Next 3Y1.88%
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.
AES Yearly Revenue VS EstimatesAES Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B
AES Yearly EPS VS EstimatesAES Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3

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5

4. AES Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 6.67, the valuation of AES can be described as very cheap.
  • 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.
  • Compared to an average S&P500 Price/Earnings ratio of 26.11, AES is valued rather cheaply.
  • A Price/Forward Earnings ratio of 6.05 indicates a rather cheap valuation of AES.
  • 95.00% of the companies in the same industry are more expensive than AES, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of AES to the average of the S&P500 Index (24.12), we can say AES is valued rather cheaply.
Industry RankSector Rank
PE 6.67
Fwd PE 6.05
AES Price Earnings VS Forward Price EarningsAES Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AES is valued a bit cheaper than 70.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 11.3
AES Per share dataAES EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

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)2.88
PEG (5Y)0.72
EPS Next 2Y4.96%
EPS Next 3Y3.94%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. AES Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.95%, AES is a good candidate for dividend investing.
  • AES's Dividend Yield is rather good when compared to the industry average which is at 1.42. AES pays more dividend than 95.00% of the companies in the same industry.
  • AES's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 4.95%

5.2 History

  • The dividend of AES has a limited annual growth rate of 4.19%.
  • AES has been paying a dividend for at least 10 years, so it has 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)4.19%
Div Incr Years12
Div Non Decr Years12
AES Yearly Dividends per shareAES Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6

5.3 Sustainability

  • AES pays out 55.67% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The dividend of AES is growing, but earnings are growing more, so the dividend growth is sustainable.
DP55.67%
EPS Next 2Y4.96%
EPS Next 3Y3.94%
AES Yearly Income VS Free CF VS DividendAES Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -2B -4B
AES Dividend Payout.AES Dividend Payout, showing the Payout Ratio.AES Dividend Payout.PayoutRetained Earnings

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AES Fundamentals: All Metrics, Ratios and Statistics

AES CORP

NYSE:AES (3/18/2026, 2:37:09 PM)

14.205

+0.01 (+0.04%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)03-02
Earnings (Next)03-31
Inst Owners88.19%
Inst Owner Change-2.17%
Ins Owners0.53%
Ins Owner Change10.64%
Market Cap10.12B
Revenue(TTM)12.23B
Net Income(TTM)900.00M
Analysts73.68
Price Target15.75 (10.88%)
Short Float %2.54%
Short Ratio1.4
Dividend
Industry RankSector Rank
Dividend Yield 4.95%
Yearly Dividend0.7
Dividend Growth(5Y)4.19%
DP55.67%
Div Incr Years12
Div Non Decr Years12
Ex-Date05-01
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.06%
Min Revenue beat(2)1.24%
Max Revenue beat(2)2.89%
Revenue beat(4)2
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-6.15%
Max Revenue beat(4)2.89%
Revenue beat(8)2
Avg Revenue beat(8)-3.8%
Revenue beat(12)3
Avg Revenue beat(12)-3.1%
Revenue beat(16)7
Avg Revenue beat(16)1.32%
PT rev (1m)1.8%
PT rev (3m)0.78%
EPS NQ rev (1m)-4.76%
EPS NQ rev (3m)-4.76%
EPS NY rev (1m)0.36%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)1.07%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.08%
Valuation
Industry RankSector Rank
PE 6.67
Fwd PE 6.05
P/S 0.83
P/FCF N/A
P/OCF 2.31
P/B 2.49
P/tB 6.02
EV/EBITDA 11.3
EPS(TTM)2.13
EY14.99%
EPS(NY)2.35
Fwd EY16.52%
FCF(TTM)-2.17
FCFYN/A
OCF(TTM)6.16
OCFY43.35%
SpS17.18
BVpS5.71
TBVpS2.36
PEG (NY)2.88
PEG (5Y)0.72
Graham Number16.54
Profitability
Industry RankSector Rank
ROA 1.74%
ROE 22.15%
ROCE 4.46%
ROIC 3.53%
ROICexc 3.66%
ROICexgc 3.88%
OM 15.79%
PM (TTM) 7.36%
GM 18.4%
FCFM N/A
ROA(3y)1.95%
ROA(5y)0.63%
ROE(3y)26.08%
ROE(5y)8.24%
ROIC(3y)4.28%
ROIC(5y)5.37%
ROICexc(3y)4.47%
ROICexc(5y)5.65%
ROICexgc(3y)4.8%
ROICexgc(5y)6.12%
ROCE(3y)5.41%
ROCE(5y)6.8%
ROICexgc growth 3Y-16.99%
ROICexgc growth 5Y-13.16%
ROICexc growth 3Y-16.49%
ROICexc growth 5Y-12.96%
OM growth 3Y-5.58%
OM growth 5Y-9.97%
PM growth 3YN/A
PM growth 5Y72.9%
GM growth 3Y-3.05%
GM growth 5Y-7.97%
F-Score4
Asset Turnover0.24
Health
Industry RankSector Rank
Debt/Equity 6.59
Debt/FCF N/A
Debt/EBITDA 7.9
Cap/Depr 406.93%
Cap/Sales 48.47%
Interest Coverage 1.6
Cash Conversion 129.39%
Profit Quality N/A
Current Ratio 0.77
Quick Ratio 0.69
Altman-Z 0.46
F-Score4
WACC5.43%
ROIC/WACC0.65
Cap/Depr(3y)558.83%
Cap/Depr(5y)461.81%
Cap/Sales(3y)56.55%
Cap/Sales(5y)44.94%
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%-41.02%
EPS Next Y2.32%
EPS Next 2Y4.96%
EPS Next 3Y3.94%
EPS Next 5Y5.68%
Revenue 1Y (TTM)-0.37%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%4.69%
Revenue Next Year-2.69%
Revenue Next 2Y0.66%
Revenue Next 3Y1.88%
Revenue Next 5Y8.94%
EBIT growth 1Y-4.97%
EBIT growth 3Y-6.55%
EBIT growth 5Y-5.61%
EBIT Next Year71.93%
EBIT Next 3Y25.09%
EBIT Next 5Y16.92%
FCF growth 1Y66.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y53.91%
OCF growth 3Y17.01%
OCF growth 5Y10.58%

AES CORP / AES Fundamental Analysis 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 1 / 10.


Is the dividend of AES CORP sustainable?

The dividend rating of AES CORP (AES) is 8 / 10 and the dividend payout ratio is 55.67%.