AES CORP (AES)
US00130H1059 - Common Stock
Taking everything into account, AES scores 4 out of 10 in our fundamental rating. AES was compared to 21 industry peers in the Independent Power and Renewable Electricity Producers industry. There are concerns on the financial health of AES while its profitability can be described as average. 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
In the past year AES was profitable.
AES had a positive operating cash flow in the past year.
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
AES has a better Return On Assets (2.05%) than 66.67% of its industry peers.
AES has a Return On Equity of 31.16%. This is amongst the best in the industry. AES outperforms 90.48% of its industry peers.
AES's Return On Invested Capital of 4.53% is fine compared to the rest of the industry. AES outperforms 76.19% 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 4.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.05% | ||
| ROE | 31.16% | ||
| ROIC | 4.53% |
ROA(3y)-0.7%
ROA(5y)-0.21%
ROE(3y)-9%
ROE(5y)-3.03%
ROIC(3y)6.39%
ROIC(5y)6.42%
1.3 Margins
AES has a Profit Margin (8.34%) which is in line with its industry peers.
AES's Profit Margin has declined in the last couple of years.
AES has a Operating Margin of 17.62%. This is comparable to the rest of the industry: AES outperforms 57.14% of its industry peers.
AES's Operating Margin has declined in the last couple of years.
AES has a Gross Margin of 19.44%. This is in the lower half of the industry: AES underperforms 76.19% of its industry peers.
AES's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.62% | ||
| PM (TTM) | 8.34% | ||
| GM | 19.44% |
OM growth 3Y-12.22%
OM growth 5Y-4.18%
PM growth 3Y60.41%
PM growth 5Y-29.4%
GM growth 3Y-10.83%
GM growth 5Y-3.78%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AES is creating some 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
Compared to 1 year ago, AES has an improved debt to assets ratio.
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.
AES has a Altman-Z score (0.45) which is comparable to the rest of the industry.
A Debt/Equity ratio of 7.45 is on the high side and indicates that AES has dependencies on debt financing.
AES has a worse Debt to Equity ratio (7.45) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.45 |
ROIC/WACC0.83
WACC5.49%
2.3 Liquidity
A Current Ratio of 0.85 indicates that AES may have some problems paying its short term obligations.
AES has a Current ratio of 0.85. This is in the lower half of the industry: AES underperforms 61.90% of its industry peers.
A Quick Ratio of 0.80 indicates that AES may have some problems paying its short term obligations.
AES has a Quick ratio (0.80) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.63% over the past year.
The Earnings Per Share has been growing slightly by 7.26% on average over the past years.
AES shows a decrease in Revenue. In the last year, the revenue decreased by -3.73%.
AES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.36% yearly.
EPS 1Y (TTM)52.63%
EPS 3Y6.92%
EPS 5Y7.26%
EPS Q2Q%18.33%
Revenue 1Y (TTM)-3.73%
Revenue growth 3Y9.46%
Revenue growth 5Y3.36%
Sales Q2Q%-4.22%
3.2 Future
The Earnings Per Share is expected to grow by 8.19% on average over the next years. This is quite good.
Based on estimates for the next years, AES will show a small growth in Revenue. The Revenue will grow by 5.81% on average per year.
EPS Next Y9.56%
EPS Next 2Y8.53%
EPS Next 3Y7.04%
EPS Next 5Y8.19%
Revenue Next Year1.92%
Revenue Next 2Y3.19%
Revenue Next 3Y3.09%
Revenue Next 5Y5.81%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
With a Price/Earnings ratio of 5.53, the valuation of AES can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of AES indicates a rather cheap valuation: AES is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.55. AES is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.19 indicates a rather cheap valuation of AES.
Based on the Price/Forward Earnings ratio, AES is valued cheaper than 100.00% 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 24.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.53 | ||
| Fwd PE | 6.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AES is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.8 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.58
PEG (5Y)0.76
EPS Next 2Y8.53%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.66%, AES is a good candidate for dividend investing.
In the last 3 months the price of AES has falen by -36.02%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
AES's Dividend Yield is rather good when compared to the industry average which is at 6.43. AES pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, AES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.66% |
5.2 History
The dividend of AES has a limited annual growth rate of 4.97%.
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)4.97%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
46.05% of the earnings are spent on dividend by AES. This is a bit on the high side, but may be sustainable.
AES's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP46.05%
EPS Next 2Y8.53%
EPS Next 3Y7.04%
AES CORP
NYSE:AES (12/26/2024, 8:04:00 PM)
Premarket: 12.82 -0.02 (-0.16%)12.84
-0.18 (-1.38%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners99.08%
Inst Owner Change0.46%
Ins Owners0.41%
Ins Owner Change-0.01%
Market Cap9.13B
Analysts78.95
Price Target20.13 (56.78%)
Short Float %3.15%
Short Ratio1.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.66% |
Dividend Growth(5Y)4.97%
DP46.05%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.38%
Min EPS beat(2)0.72%
Max EPS beat(2)10.05%
EPS beat(4)4
Avg EPS beat(4)15.79%
Min EPS beat(4)0.72%
Max EPS beat(4)44.28%
EPS beat(8)6
Avg EPS beat(8)8.64%
EPS beat(12)9
Avg EPS beat(12)5.96%
EPS beat(16)12
Avg EPS beat(16)5.8%
Revenue beat(2)0
Avg Revenue beat(2)-7.25%
Min Revenue beat(2)-8.58%
Max Revenue beat(2)-5.92%
Revenue beat(4)0
Avg Revenue beat(4)-7.85%
Min Revenue beat(4)-12.45%
Max Revenue beat(4)-4.46%
Revenue beat(8)2
Avg Revenue beat(8)-3.05%
Revenue beat(12)5
Avg Revenue beat(12)2.34%
Revenue beat(16)8
Avg Revenue beat(16)3.88%
PT rev (1m)-13.08%
PT rev (3m)-13.89%
EPS NQ rev (1m)8.16%
EPS NQ rev (3m)-34.76%
EPS NY rev (1m)-0.91%
EPS NY rev (3m)-0.44%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-12.92%
Revenue NY rev (1m)-5.83%
Revenue NY rev (3m)-3.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.53 | ||
| Fwd PE | 6.19 | ||
| P/S | 0.74 | ||
| P/FCF | N/A | ||
| P/OCF | 4.18 | ||
| P/B | 2.77 | ||
| P/tB | 9 | ||
| EV/EBITDA | 10.8 |
EPS(TTM)2.32
EY18.07%
EPS(NY)2.07
Fwd EY16.14%
FCF(TTM)-8.31
FCFYN/A
OCF(TTM)3.07
OCFY23.93%
SpS17.28
BVpS4.63
TBVpS1.43
PEG (NY)0.58
PEG (5Y)0.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.05% | ||
| ROE | 31.16% | ||
| ROCE | 5.74% | ||
| ROIC | 4.53% | ||
| ROICexc | 4.79% | ||
| ROICexgc | 5.11% | ||
| OM | 17.62% | ||
| PM (TTM) | 8.34% | ||
| GM | 19.44% | ||
| FCFM | N/A |
ROA(3y)-0.7%
ROA(5y)-0.21%
ROE(3y)-9%
ROE(5y)-3.03%
ROIC(3y)6.39%
ROIC(5y)6.42%
ROICexc(3y)6.74%
ROICexc(5y)6.76%
ROICexgc(3y)7.37%
ROICexgc(5y)7.32%
ROCE(3y)8.09%
ROCE(5y)8.12%
ROICexcg growth 3Y-9.14%
ROICexcg growth 5Y-4.8%
ROICexc growth 3Y-9.47%
ROICexc growth 5Y-5.24%
OM growth 3Y-12.22%
OM growth 5Y-4.18%
PM growth 3Y60.41%
PM growth 5Y-29.4%
GM growth 3Y-10.83%
GM growth 5Y-3.78%
F-Score6
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.45 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.25 | ||
| Cap/Depr | 664.53% | ||
| Cap/Sales | 65.89% | ||
| Interest Coverage | 1.28 | ||
| Cash Conversion | 64.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 0.45 |
F-Score6
WACC5.49%
ROIC/WACC0.83
Cap/Depr(3y)439.11%
Cap/Depr(5y)345.07%
Cap/Sales(3y)38.68%
Cap/Sales(5y)31.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)52.63%
EPS 3Y6.92%
EPS 5Y7.26%
EPS Q2Q%18.33%
EPS Next Y9.56%
EPS Next 2Y8.53%
EPS Next 3Y7.04%
EPS Next 5Y8.19%
Revenue 1Y (TTM)-3.73%
Revenue growth 3Y9.46%
Revenue growth 5Y3.36%
Sales Q2Q%-4.22%
Revenue Next Year1.92%
Revenue Next 2Y3.19%
Revenue Next 3Y3.09%
Revenue Next 5Y5.81%
EBIT growth 1Y-8.27%
EBIT growth 3Y-3.92%
EBIT growth 5Y-0.95%
EBIT Next Year39.54%
EBIT Next 3Y16.05%
EBIT Next 5Y10.45%
FCF growth 1Y-409.84%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.39%
OCF growth 3Y3.68%
OCF growth 5Y4.11%