AES CORP (AES) Stock Fundamental Analysis
NYSE:AES • US00130H1059
14.21 USD
-3.07 (-17.77%)
At close: Mar 2, 2026
14.24 USD
+0.03 (+0.21%)
After Hours: 3/2/2026, 7:37:28 PM
AES gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 20 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 is not valued too expensively and it also shows a decent growth rate. Finally 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
- With an excellent Return On Assets value of 2.23%, AES belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
- 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 80.00% 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 4.10%.
| 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 75.00% of its industry peers.
- In the last couple of years the Profit Margin of AES has grown nicely.
- AES has a better Operating Margin (14.83%) than 70.00% of its industry peers.
- AES's Operating Margin has declined in the last couple of years.
- 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.
- The number of shares outstanding for AES has been increased compared to 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
- Based on the Altman-Z score of 0.47, we must say that AES is in the distress zone and has some risk of bankruptcy.
- AES has a Altman-Z score (0.47) 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.
- 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 | 0.47 |
ROIC/WACC0.54
WACC6.35%
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.
- A Quick Ratio of 0.66 indicates that AES may have some problems paying its short term obligations.
- AES has a Quick ratio of 0.66. This is in the lower half of the industry: AES underperforms 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.
- 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 -1.55% in the last year.
- Measured over the past years, AES shows a small growth in Revenue. The Revenue has been growing by 3.80% on average per year.
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 Y2.06%
EPS Next 2Y4.77%
EPS Next 3Y3.98%
EPS Next 5Y5.68%
Revenue Next Year-2.72%
Revenue Next 2Y0.74%
Revenue Next 3Y1.96%
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.
- 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
- A Price/Earnings ratio of 6.86 indicates a rather cheap valuation of AES.
- Based on the Price/Earnings ratio, AES is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.13, AES is valued rather cheaply.
- With a Price/Forward Earnings ratio of 6.08, the valuation of AES can be described as very cheap.
- Based on the Price/Forward Earnings ratio, AES is valued cheaper than 95.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.11, AES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.86 | ||
| Fwd PE | 6.08 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AES indicates a somewhat cheap valuation: AES is cheaper than 65.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.99 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of AES may justify a higher PE ratio.
PEG (NY)3.34
PEG (5Y)0.74
EPS Next 2Y4.77%
EPS Next 3Y3.98%
5. Dividend
5.1 Amount
- AES has a Yearly Dividend Yield of 4.07%, which is a nice return.
- AES's Dividend Yield is rather good when compared to the industry average which is at 1.26. AES pays more dividend than 85.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, AES pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
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 2Y4.77%
EPS Next 3Y3.98%
14.21
-3.07 (-17.77%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)02-26 2026-02-26/amc
Earnings (Next)03-31 2026-03-31
Inst Owners90.61%
Inst Owner Change-2.18%
Ins Owners0.46%
Ins Owner Change10.64%
Market Cap10.12B
Revenue(TTM)12.09B
Net Income(TTM)1.14B
Analysts73.68
Price Target15.75 (10.84%)
Short Float %2.77%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
Yearly Dividend0.7
Dividend Growth(5Y)5.08%
DP43.88%
Div Incr Years12
Div Non Decr Years12
Ex-Date05-01 2026-05-01 (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)0.78%
PT rev (3m)1.33%
EPS NQ rev (1m)-2.72%
EPS NQ rev (3m)-1.93%
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)0.02%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.86 | ||
| Fwd PE | 6.08 | ||
| P/S | 0.84 | ||
| P/FCF | N/A | ||
| P/OCF | 2.39 | ||
| P/B | 2.62 | ||
| P/tB | 6.73 | ||
| EV/EBITDA | 12.99 |
EPS(TTM)2.07
EY14.57%
EPS(NY)2.34
Fwd EY16.45%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)5.94
OCFY41.78%
SpS16.98
BVpS5.43
TBVpS2.11
PEG (NY)3.34
PEG (5Y)0.74
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 | 0.47 |
F-Score4
WACC6.35%
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)-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-2.72%
Revenue Next 2Y0.74%
Revenue Next 3Y1.96%
Revenue Next 5Y8.94%
EBIT growth 1Y-17.14%
EBIT growth 3Y-11.13%
EBIT growth 5Y-1%
EBIT Next Year28.42%
EBIT Next 3Y16.76%
EBIT Next 5Y9.84%
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 6 / 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 6 / 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%.