AES CORP (AES) Stock Fundamental Analysis
USA - NYSE:AES - US00130H1059 - Common Stock
14.07 USD
-0.2 (-1.4%)
14.07 USD
0 (0%)
Overall AES gets a fundamental rating of 4 out of 10. We evaluated AES 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
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.
In the past 5 years AES always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AES (2.23%) is better than 80.00% of its industry peers.
AES has a better Return On Equity (29.37%) than 95.00% of its industry peers.
The Return On Invested Capital of AES (3.43%) is better than 75.00% 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 3.85%.
| 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
Looking at the Profit Margin, with a value of 9.38%, AES is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
AES's Profit Margin has improved in the last couple of years.
AES has a Operating Margin of 14.83%. This is in the better half of the industry: AES outperforms 70.00% of its industry peers.
In the last couple of years the Operating Margin of AES has declined.
AES has a worse Gross Margin (17.26%) than 75.00% of its industry peers.
AES's Gross Margin has declined in the last couple of years.
| 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
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.
Compared to 1 year ago, AES has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.44, we must say that AES is in the distress zone and has some risk of bankruptcy.
AES has a Altman-Z score of 0.44. This is comparable to the rest of the industry: AES outperforms 55.00% of 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 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.44 |
ROIC/WACC0.56
WACC6.16%
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 worse Current ratio (0.72) than 65.00% of its industry peers.
AES has a Quick 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.
The Quick ratio of AES (0.66) is worse than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
AES shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.74%.
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.
AES shows a decrease in Revenue. In the last year, the revenue decreased by -1.55%.
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)-4.74%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%25.35%
Revenue 1Y (TTM)-1.55%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%1.89%
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.
Based on estimates for the next years, AES will show a quite strong growth in Revenue. The Revenue will grow by 8.94% on average per year.
EPS Next Y2.31%
EPS Next 2Y4.29%
EPS Next 3Y3.38%
EPS Next 5Y5.68%
Revenue Next Year-2.9%
Revenue Next 2Y0.75%
Revenue Next 3Y1.76%
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 6.37 indicates a rather cheap valuation of AES.
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 (26.34), we can say AES is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.07, the valuation of AES can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AES indicates a rather cheap valuation: AES is cheaper than 100.00% of the companies listed 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 34.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.37 | ||
| Fwd PE | 6.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AES is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.32 |
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)2.75
PEG (5Y)0.69
EPS Next 2Y4.29%
EPS Next 3Y3.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.93%, AES is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.64, AES pays a better dividend. On top of this AES pays more dividend than 90.00% of the companies listed in the same industry.
AES's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
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 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 2Y4.29%
EPS Next 3Y3.38%
14.07
-0.2 (-1.4%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners93.78%
Inst Owner Change-2.16%
Ins Owners0.46%
Ins Owner Change0%
Market Cap10.02B
Revenue(TTM)12.09B
Net Income(TTM)1.14B
Analysts70.53
Price Target15.2 (8.03%)
Short Float %3.67%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
Yearly Dividend0.7
Dividend Growth(5Y)5.08%
DP43.88%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.11%
Min EPS beat(2)16.5%
Max EPS beat(2)27.71%
EPS beat(4)3
Avg EPS beat(4)19.04%
Min EPS beat(4)-23.78%
Max EPS beat(4)55.73%
EPS beat(8)7
Avg EPS beat(8)17.41%
EPS beat(12)9
Avg EPS beat(12)12.1%
EPS beat(16)12
Avg EPS beat(16)9.23%
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)9.31%
PT rev (3m)8.33%
EPS NQ rev (1m)6.58%
EPS NQ rev (3m)6.68%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)-4.26%
Revenue NQ rev (3m)-4.26%
Revenue NY rev (1m)-1.59%
Revenue NY rev (3m)-1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.37 | ||
| Fwd PE | 6.07 | ||
| P/S | 0.83 | ||
| P/FCF | N/A | ||
| P/OCF | 2.37 | ||
| P/B | 2.59 | ||
| P/tB | 6.66 | ||
| EV/EBITDA | 12.32 |
EPS(TTM)2.21
EY15.71%
EPS(NY)2.32
Fwd EY16.47%
FCF(TTM)-2.66
FCFYN/A
OCF(TTM)5.94
OCFY42.2%
SpS16.98
BVpS5.43
TBVpS2.11
PEG (NY)2.75
PEG (5Y)0.69
Graham Number16.43
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 | 0.44 |
F-Score4
WACC6.16%
ROIC/WACC0.56
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)-4.74%
EPS 3Y11.42%
EPS 5Y9.23%
EPS Q2Q%25.35%
EPS Next Y2.31%
EPS Next 2Y4.29%
EPS Next 3Y3.38%
EPS Next 5Y5.68%
Revenue 1Y (TTM)-1.55%
Revenue growth 3Y3.29%
Revenue growth 5Y3.8%
Sales Q2Q%1.89%
Revenue Next Year-2.9%
Revenue Next 2Y0.75%
Revenue Next 3Y1.76%
Revenue Next 5Y8.94%
EBIT growth 1Y-17.14%
EBIT growth 3Y-11.13%
EBIT growth 5Y-1%
EBIT Next Year29%
EBIT Next 3Y16.73%
EBIT Next 5Y9.6%
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 of AES CORP (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.
Can you provide the PE and PB ratios for AES stock?
The Price/Earnings (PE) ratio for AES CORP (AES) is 6.37 and the Price/Book (PB) ratio is 2.59.
Can you provide the financial health for AES stock?
The financial health rating of AES CORP (AES) is 0 / 10.