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About The Company

CEO

Ms. Julia A. Sloat

Market Cap

42.75 Billion USD

Sector

Utilities

Website

https://www.aep.com

Last Update

2/22/2024, 12:00:00 PM

Description

American Electric Power Company, Inc.

Read More

Overview

Value

25

Growth

33

Health

44

Management

26

Analyst Opinion

46

Total

34

All Scores Out Of 100

Best Features

  • Has strong dividend growth

Risk Factors

  • Earnings have declined recently
  • Income is not covering expenditure and investment
  • There is a history of diluting shareholders
  • Has a high level of debt
  • Does not hold enough liquid assets to cover short term liabilities
  • No margin of safety at their current market price
  • Disliked by Twitter users
  • Poor earnings and cashflow growth
  • Price-to-earnings ratio of 23.3 is higher than the market average (19.6x)
  • Accounting anomalies: Growing revenues without a corresponding growth in cash flows.
  • High preportion of income is paid as dividend

Market Peers

AEP

Key Figures

PE Ratio (TTM)

23.28

Margin Of Safety (DCF)

-5.89%

Revenue Growth (5 Year Average)

9.76%

Ratings Consensus

Sell

Share Buybacks

-0.80%

Dividend Yeild (TTM)

3.98%

Valuation

Value Score

25

  • Estimated intrinsic-value of 79.10 USD is lower than current price ( 81.24 USD)
  • Price-to-earnings ratio of 23.3 is higher than the market average (19.6x)
  • Free-cashflow-yeild of -5.64% is worse than the market average (4.7%)
  • Margin-of-safety of -5.89% is worse than the market average (17.95%)

Desired Margin Of Safety

0%

Tip: Set your desired Margin Of Safety

Free Cash Flow Type

Annual Cashflow Growth

0%

Discount Rate

0%

Buy Target: < 88.4 USD

Current Price: 84.1 USD

Negative Cashflows: Cashflow can become negative due to operating losses, investing activities or financing activites. Negative cashflow makes it dificult to use a discounted free cashflow model to assess intrinsic value.

How Does This Work?

Show Advanced Options

This calculator helps investors estimate the Intrinsic Value of a company based on the current value of future cash flows. To use the tool, simply input a desired Margin Of Safety, which is an additional discount applied to the present value of the expected future cash flows. The tool calculates the present value using a discount rate that reflects the risk and time value of money, and provides an estimated target price for the company based on the selected margin of safety. The calculator defaults to using 5 Year Free Cash Flow Growth % and a discount rate based on the US 10-year treasury bond coupon rate. Use our performance analyser to get a feel the impact this has on longterm investment returns and discover a margin of safety you are comfortable with. This can be a useful tool for investors looking to make informed decisions about whether to buy or sell shares of a particular company.

Price/Earnings

23.28x

Free Cashflow Yeild

-5.64%

PE/Earnings Growth

N/A

Price/Book

1.75x

Growth

Growth Score

33

  • 5 Year Average Revenue growth of 9.76% is lower than the market average (10.97%)
  • Revenue growth has slowed this year
  • 5 Year Average Earnings growth of 6.10% is lower than the market average (14.48%)
  • Earnings growth has slowed this year
  • 5 Year Average Free Cashflow growth of -1.00% is lower than the market average (12.35%)
  • Free Cashflow growth has slowed this year

Revenue Growth

9.76%

Earnings Growth

6.10%

Cashflow Growth

-1.00%

Health

Health Score

44

  • Cashflow is negative
  • Has a high level of debt
  • Assets do not cover liabilities
  • High financial leverage and base interest rate exposure
  • Requires debt for normal operation to be sustainable
  • Debt repayments significantly impact cashflow

Altman Z Score

0.82

Piostroski Score

6.00

Debt/Equity

863.84x

Current Assets/Liabilities

0.65x

Free Cashflow/Total Debt

0.13x

Debt/Capital

4.21x

Dividend

Secure Dividend Score

35

  • Dividend yeild of 3.98% is more than the market average (1.85%)
  • At risk of being unsafe
  • Dividends have shown growth over the last 5 years
  • Dividend growth has been accelerating recently
  • Long term dividend payout ratio of 65.84% is high and may limit growth
  • Payout ratio (TTM) of 79.72% is higher than the average (40%)
  • Spending a higher percentage of their income on dividends than last 5 years

Dividend Yeild

3.98%

Dividend Growth

8.27%

Payout Ratio (Earnings)

79.72%

Payout Ratio (Cashflow)

N/A

Management

Management Score

26

  • Has issued new shares to finance growth when share price is high
  • Has returned higher dividends when earnings have risen
  • Return-on-equity of 5158.68% is higher than the market average (15%)
  • Return-on-capital-employed of 9.36% is lower than the market average (10%)
  • Has a history of diluting shareholders to finance activity

Average Buybacks/Dilution

-0.80%

Recent Buybacks/Dilution

2.80%

5 Year Price Volitility

11.44%

Return On Assets

2.53%

Return On Capital Employed

9.36%

Return On Equity

5158.68%

Return On Free Cashflow

N/A

Return On Investments

N/A

Social Sentiment

Social Sentiment Score

28

Twitter Sentiment

0.00

Stocktwits Sentiment

55.00

Analysts

Analyst Opinion

46

  • Ratings consensus is Sell

SEC Filings

Find yearly (10-K), quaterly (10-Q) and disclosure (8-K) report here, on the Securities and Exchange Commission's EDGAR database. If reading through reports isn't your cup of tea, don't worry. We've made it easy for you by summarizing all the important bits.

Other Information

Company Name

American Electric Power Company, Inc.

Currency

USD

Beta

0.452185

Vol Avg

3056435

Ceo

Ms. Julia A. Sloat

Cik

0000004904

Cusip

025537101

Exchange

NASDAQ Global Select

Full Time Employees

16974

Industry

Utilities—Regulated Electric

Sector

Utilities

Ipo Date

1962-01-02

Address

1 Riverside Plaza

City

Columbus

State

OH

Country

US

Zip

43215-2373

Phone

614 716 1000

Analysis Last Updated

2/22/2024, 12:00:00 PM

All financial data provided by FMP

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