AES CORP (AES) Stock Fundamental Analysis
USA - NYSE:AES - US00130H1059 - Common Stock
12.905 USD
+0.39 (+3.16%)
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 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.
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.
In the past 5 years AES always reported a positive cash flow from operatings.
1.2 Ratios
AES has a Return On Assets of 2.07%. This is in the better half of the industry: AES outperforms 70.00% of its industry peers.
AES's Return On Equity of 29.77% is amongst the best of the industry. AES outperforms 90.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.59%, AES is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AES is in line with the industry average of 4.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 29.77% | ||
| ROIC | 3.59% |
ROA(3y)0.89%
ROA(5y)0.31%
ROE(3y)11.23%
ROE(5y)4.16%
ROIC(3y)5.08%
ROIC(5y)6.08%
1.3 Margins
AES has a Profit Margin of 8.34%. This is in the better half of the industry: AES outperforms 65.00% of its industry peers.
AES's Profit Margin has improved in the last couple of years.
The Operating Margin of AES (15.44%) is comparable to the rest of the industry.
AES's Operating Margin has declined in the last couple of years.
AES has a Gross Margin of 17.28%. This is in the lower half of the industry: AES underperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of AES has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.44% | ||
| PM (TTM) | 8.34% | ||
| GM | 17.28% |
OM growth 3Y-13.37%
OM growth 5Y-4.23%
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.
AES has more shares outstanding than it did 1 year ago.
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 0.46, 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 60.00% of its industry peers.
AES has a Debt/Equity ratio of 7.88. This is a high value indicating a heavy dependency on external financing.
AES's Debt to Equity ratio of 7.88 is on the low side compared to the rest of the industry. AES is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.46 |
ROIC/WACC0.61
WACC5.86%
2.3 Liquidity
A Current Ratio of 0.82 indicates that AES may have some problems paying its short term obligations.
AES has a Current ratio of 0.82. This is comparable to the rest of the industry: AES outperforms 55.00% of its industry peers.
AES has a Quick Ratio of 0.82. 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 Quick ratio (0.74) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
AES shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.14%.
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.
Looking at the last year, AES shows a decrease in Revenue. The Revenue has decreased by -3.19% 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)-8.14%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%34.21%
Revenue 1Y (TTM)-3.19%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%-2.96%
3.2 Future
AES is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.68% yearly.
The Revenue is expected to grow by 8.94% on average over the next years. This is quite good.
EPS Next Y1.86%
EPS Next 2Y4.04%
EPS Next 3Y3.64%
EPS Next 5Y5.68%
Revenue Next Year-1.57%
Revenue Next 2Y1.31%
Revenue Next 3Y2.07%
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.
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 6.36, the valuation of AES can be described as very cheap.
Based on the Price/Earnings ratio, AES is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AES to the average of the S&P500 Index (27.20), we can say AES is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.60, the valuation of AES can be described as very cheap.
AES's Price/Forward Earnings ratio is rather cheap when compared to the industry. AES is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AES to the average of the S&P500 Index (22.70), we can say AES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.36 | ||
| Fwd PE | 5.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AES is valued a bit cheaper than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.85 |
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)3.42
PEG (5Y)0.69
EPS Next 2Y4.04%
EPS Next 3Y3.64%
5. Dividend
5.1 Amount
AES has a Yearly Dividend Yield of 5.48%, which is a nice return.
AES's Dividend Yield is rather good when compared to the industry average which is at 4.70. 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.48% |
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 49.35% 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.
DP49.35%
EPS Next 2Y4.04%
EPS Next 3Y3.64%
NYSE:AES (9/18/2025, 2:45:09 PM)
12.905
+0.39 (+3.16%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners91.55%
Inst Owner Change2.75%
Ins Owners0.46%
Ins Owner Change0%
Market Cap9.19B
Analysts71.58
Price Target14.03 (8.72%)
Short Float %4.17%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.48% |
Yearly Dividend0.7
Dividend Growth(5Y)5.08%
DP49.35%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.96%
Min EPS beat(2)-23.78%
Max EPS beat(2)27.71%
EPS beat(4)3
Avg EPS beat(4)17.43%
Min EPS beat(4)-23.78%
Max EPS beat(4)55.73%
EPS beat(8)7
Avg EPS beat(8)16.59%
EPS beat(12)9
Avg EPS beat(12)12.15%
EPS beat(16)12
Avg EPS beat(16)9.08%
Revenue beat(2)0
Avg Revenue beat(2)-5.54%
Min Revenue beat(2)-6.15%
Max Revenue beat(2)-4.94%
Revenue beat(4)0
Avg Revenue beat(4)-5.37%
Min Revenue beat(4)-6.15%
Max Revenue beat(4)-4.48%
Revenue beat(8)0
Avg Revenue beat(8)-6.46%
Revenue beat(12)3
Avg Revenue beat(12)-1.84%
Revenue beat(16)6
Avg Revenue beat(16)1.88%
PT rev (1m)0%
PT rev (3m)0.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.21%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-0.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.36 | ||
| Fwd PE | 5.6 | ||
| P/S | 0.76 | ||
| P/FCF | N/A | ||
| P/OCF | 2.44 | ||
| P/B | 2.73 | ||
| P/tB | 9.43 | ||
| EV/EBITDA | 11.85 |
EPS(TTM)2.03
EY15.73%
EPS(NY)2.31
Fwd EY17.87%
FCF(TTM)-3.34
FCFYN/A
OCF(TTM)5.29
OCFY41.03%
SpS16.9
BVpS4.73
TBVpS1.37
PEG (NY)3.42
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 29.77% | ||
| ROCE | 4.55% | ||
| ROIC | 3.59% | ||
| ROICexc | 3.71% | ||
| ROICexgc | 3.95% | ||
| OM | 15.44% | ||
| PM (TTM) | 8.34% | ||
| GM | 17.28% | ||
| FCFM | N/A |
ROA(3y)0.89%
ROA(5y)0.31%
ROE(3y)11.23%
ROE(5y)4.16%
ROIC(3y)5.08%
ROIC(5y)6.08%
ROICexc(3y)5.38%
ROICexc(5y)6.39%
ROICexgc(3y)5.79%
ROICexgc(5y)6.93%
ROCE(3y)6.44%
ROCE(5y)7.69%
ROICexcg growth 3Y-20.58%
ROICexcg growth 5Y-6.59%
ROICexc growth 3Y-19.55%
ROICexc growth 5Y-6.69%
OM growth 3Y-13.37%
OM growth 5Y-4.23%
PM growth 3YN/A
PM growth 5Y35.68%
GM growth 3Y-8.16%
GM growth 5Y-3.95%
F-Score4
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.88 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.32 | ||
| Cap/Depr | 460.3% | ||
| Cap/Sales | 51.07% | ||
| Interest Coverage | 1.69 | ||
| Cash Conversion | 118.07% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 0.46 |
F-Score4
WACC5.86%
ROIC/WACC0.61
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)-8.14%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%34.21%
EPS Next Y1.86%
EPS Next 2Y4.04%
EPS Next 3Y3.64%
EPS Next 5Y5.68%
Revenue 1Y (TTM)-3.19%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%-2.96%
Revenue Next Year-1.57%
Revenue Next 2Y1.31%
Revenue Next 3Y2.07%
Revenue Next 5Y8.94%
EBIT growth 1Y-19.08%
EBIT growth 3Y-10.52%
EBIT growth 5Y-0.59%
EBIT Next Year28.95%
EBIT Next 3Y16.68%
EBIT Next 5Y9.33%
FCF growth 1Y26.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.64%
OCF growth 3Y13.34%
OCF growth 5Y3.54%