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American Electric Power Company

DB:AEP
Snowflake Description

Established dividend payer with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AEP
DB
$45B
Market Cap
  1. Home
  2. DE
  3. Utilities
Company description

American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. The last earnings update was 24 days ago. More info.


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AEP Share Price and Events
7 Day Returns
1.7%
DB:AEP
2%
Europe Electric Utilities
-1.5%
DE Market
1 Year Returns
28.2%
DB:AEP
18.5%
Europe Electric Utilities
-10.4%
DE Market
AEP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
American Electric Power Company (AEP) 1.7% -0.4% 5.7% 28.2% 39.1% 104.3%
Europe Electric Utilities 2% 0.6% 5.8% 18.5% 38.3% 6.8%
DE Market -1.5% -4.3% -5.9% -10.4% 0% 8.1%
1 Year Return vs Industry and Market
  • AEP outperformed the Electric Utilities industry which returned 18.5% over the past year.
  • AEP outperformed the Market in Germany which returned -10.4% over the past year.
Price Volatility
AEP
Industry
5yr Volatility vs Market

AEP Value

 Is American Electric Power Company undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of American Electric Power Company to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for American Electric Power Company.

DB:AEP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-06-30) in USD $ 2.8629780555556
Payout Ratio Company Filings (2019-06-30) 6503.3%
Discount Rate (Cost of Equity) See below 5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:AEP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Electric Utilities Unlevered Beta Simply Wall St/ S&P Global 0.32
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.322 (1 + (1- 21%) (65.18%))
0.292
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.8 * 5.96%)
5%

Discounted Cash Flow Calculation for DB:AEP using Dividend Discount Model Model

The calculations below outline how an intrinsic value for American Electric Power Company is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

DB:AEP Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= $2.86 / (5% - 0.23%)
$48.82
DB:AEP Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:AEP represents 0.9017x of NYSE:AEP
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.9017x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 60.05 x 0.9017
€54.14
Value per share (EUR) From above. €54.14
Current discount Discount to share price of €81.36
= -1 x (€81.36 - €54.14) / €54.14
-50.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of American Electric Power Company is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for American Electric Power Company's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are American Electric Power Company's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:AEP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $4.00
NYSE:AEP Share Price ** NYSE (2019-08-16) in USD $90.23
Europe Electric Utilities Industry PE Ratio Median Figure of 72 Publicly-Listed Electric Utilities Companies 11.83x
Germany Market PE Ratio Median Figure of 411 Publicly-Listed Companies 18.54x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of American Electric Power Company.

DB:AEP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:AEP Share Price ÷ EPS (both in USD)

= 90.23 ÷ 4.00

22.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • American Electric Power Company is overvalued based on earnings compared to the Europe Electric Utilities industry average.
  • American Electric Power Company is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does American Electric Power Company's expected growth come at a high price?
Raw Data
DB:AEP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.53x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
7.3%per year
Europe Electric Utilities Industry PEG Ratio Median Figure of 35 Publicly-Listed Electric Utilities Companies 1.2x
Germany Market PEG Ratio Median Figure of 263 Publicly-Listed Companies 1.31x

*Line of best fit is calculated by linear regression .

DB:AEP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.53x ÷ 7.3%

3.08x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • American Electric Power Company is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on American Electric Power Company's assets?
Raw Data
DB:AEP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $39.01
NYSE:AEP Share Price * NYSE (2019-08-16) in USD $90.23
Europe Electric Utilities Industry PB Ratio Median Figure of 77 Publicly-Listed Electric Utilities Companies 0.81x
Germany Market PB Ratio Median Figure of 568 Publicly-Listed Companies 1.64x
DB:AEP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:AEP Share Price ÷ Book Value per Share (both in USD)

= 90.23 ÷ 39.01

2.31x

* Primary Listing of American Electric Power Company.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • American Electric Power Company is overvalued based on assets compared to the Europe Electric Utilities industry average.
X
Value checks
We assess American Electric Power Company's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)
  5. American Electric Power Company has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

AEP Future Performance

 How is American Electric Power Company expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is American Electric Power Company expected to grow at an attractive rate?
  • American Electric Power Company's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • American Electric Power Company's earnings growth is positive but not above the Germany market average.
  • American Electric Power Company's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:AEP Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:AEP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 7.3%
DB:AEP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 3.8%
Europe Electric Utilities Industry Earnings Growth Rate Market Cap Weighted Average 7%
Europe Electric Utilities Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:AEP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:AEP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31 18,611 2,570 1
2021-12-31 17,562 4,735 2,370 6
2020-12-31 17,036 4,718 2,197 8
2019-12-31 16,433 4,392 2,063 8
DB:AEP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 15,765 5,017 1,975
2019-03-31 16,204 5,229 2,042
2018-12-31 16,196 5,223 1,924
2018-09-30 16,205 5,079 1,961
2018-06-30 15,977 4,560 1,928
2018-03-31 15,540 4,266 1,775
2017-12-31 15,425 4,270 1,913
2017-09-30 15,405 4,225 1,885
2017-06-30 15,952 4,513 575
2017-03-31 16,269 4,526 704
2016-12-31 16,380 4,519 613
2016-09-30 16,205 4,316 444

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • American Electric Power Company's earnings are expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).
  • American Electric Power Company's revenue is expected to grow by 3.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:AEP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from American Electric Power Company Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:AEP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 4.93 4.93 4.93 1.00
2021-12-31 4.67 4.75 4.58 5.00
2020-12-31 4.38 4.44 4.32 5.00
2019-12-31 4.12 4.19 4.01 4.00
DB:AEP Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 4.00
2019-03-31 4.14
2018-12-31 3.90
2018-09-30 3.98
2018-06-30 3.92
2018-03-31 3.61
2017-12-31 3.89
2017-09-30 3.83
2017-06-30 1.17
2017-03-31 1.43
2016-12-31 1.25
2016-09-30 0.90

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • American Electric Power Company is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess American Electric Power Company's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
American Electric Power Company has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

AEP Past Performance

  How has American Electric Power Company performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare American Electric Power Company's growth in the last year to its industry (Electric Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • American Electric Power Company's year on year earnings growth rate has been positive over the past 5 years.
  • American Electric Power Company's 1-year earnings growth is less than its 5-year average (2.4% vs 3.6%)
  • American Electric Power Company's earnings growth has exceeded the Europe Electric Utilities industry average in the past year (2.4% vs -8.2%).
Earnings and Revenue History
American Electric Power Company's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from American Electric Power Company Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:AEP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 15,764.60 1,975.10 -121.10
2019-03-31 16,204.20 2,042.20 -122.50
2018-12-31 16,195.70 1,923.80 -124.50
2018-09-30 16,205.00 1,961.10 -61.10
2018-06-30 15,976.60 1,928.20 -86.10
2018-03-31 15,539.90 1,774.80 -66.10
2017-12-31 15,424.90 1,912.60 -45.50
2017-09-30 15,404.60 1,885.30 -34.20
2017-06-30 15,952.10 574.80 -22.80
2017-03-31 16,268.50 704.40 -11.40
2016-12-31 16,380.10 613.40 -43.20
2016-09-30 16,204.70 444.10
2016-06-30 15,983.90 1,720.40
2016-03-31 15,917.70 1,645.90
2015-12-31 16,453.20 1,763.40
2015-09-30 16,658.10 1,718.60
2015-06-30 16,387.70 1,690.10
2015-03-31 16,311.00 1,645.00
2014-12-31 16,378.60 1,586.30
2014-09-30 16,332.00 1,773.00
2014-06-30 16,347.00 1,724.00
2014-03-31 16,179.00 1,677.00
2013-12-31 14,813.50 1,470.20
2013-09-30 15,197.00 1,155.00
2013-06-30 15,177.00 1,209.00
2013-03-31 15,146.00 1,233.00
2012-12-31 14,945.00 1,259.00
2012-09-30 14,776.00 1,446.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • American Electric Power Company has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • American Electric Power Company used its assets less efficiently than the Europe Electric Utilities industry average last year based on Return on Assets.
  • American Electric Power Company's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess American Electric Power Company's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
American Electric Power Company has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

AEP Health

 How is American Electric Power Company's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up American Electric Power Company's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • American Electric Power Company's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • American Electric Power Company's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of American Electric Power Company's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from American Electric Power Company Company Filings, last reported 1 month ago.

DB:AEP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 19,490.80 27,708.80 386.20
2019-03-31 19,297.00 26,284.70 396.60
2018-12-31 19,128.80 25,256.70 393.20
2018-09-30 19,116.80 25,016.60 952.40
2018-06-30 18,821.80 24,621.20 374.30
2018-03-31 18,582.30 24,119.80 351.30
2017-12-31 18,313.60 22,811.90 376.30
2017-09-30 18,105.50 21,781.00 481.70
2017-06-30 17,849.50 21,403.60 296.30
2017-03-31 17,711.70 20,772.40 297.30
2016-12-31 17,420.10 21,969.40 349.20
2016-09-30 17,343.00 21,183.00 332.20
2016-06-30 18,404.90 21,604.00 365.20
2016-03-31 18,141.70 21,003.60 307.50
2015-12-31 17,904.90 20,372.70 292.20
2015-09-30 17,709.00 20,208.00 292.00
2015-06-30 17,442.00 20,683.00 302.00
2015-03-31 17,248.00 20,084.00 297.00
2014-12-31 16,824.50 19,858.40 268.40
2014-09-30 16,872.00 19,340.00 299.00
2014-06-30 16,585.00 19,607.00 295.00
2014-03-31 16,419.00 19,419.00 396.00
2013-12-31 16,086.00 19,134.00 221.00
2013-09-30 15,763.00 18,786.00 247.00
2013-06-30 15,537.00 19,156.00 211.00
2013-03-31 15,421.00 18,880.00 273.00
2012-12-31 15,237.00 18,738.00 362.00
2012-09-30 15,306.00 18,482.00 524.00
  • American Electric Power Company's level of debt (142.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (114.9% vs 142.2% today).
  • Debt is not well covered by operating cash flow (18.1%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.7x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess American Electric Power Company's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. American Electric Power Company has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

AEP Dividends

 What is American Electric Power Company's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.97%
Current annual income from American Electric Power Company dividends. Estimated to be 3.17% next year.
If you bought €2,000 of American Electric Power Company shares you are expected to receive €59 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • American Electric Power Company's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.57%).
  • American Electric Power Company's dividend is below the markets top 25% of dividend payers in Germany (4.29%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:AEP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
Europe Electric Utilities Industry Average Dividend Yield Market Cap Weighted Average of 44 Stocks 4%
Germany Market Average Dividend Yield Market Cap Weighted Average of 321 Stocks 3.3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.6%
Germany Top 25% Dividend Yield 75th Percentile 4.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:AEP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 3.19 1.00
2021-12-31 3.03 10.00
2020-12-31 2.86 13.00
2019-12-31 2.70 12.00
DB:AEP Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-07-23 2.680 3.001
2019-04-23 2.680 3.052
2019-01-22 2.680 3.289
2018-10-23 2.680 3.540
2018-07-24 2.480 3.468
2018-04-24 2.480 3.660
2018-01-23 2.480 3.697
2017-10-24 2.480 3.356
2017-07-25 2.360 3.273
2017-04-25 2.360 3.386
2017-01-24 2.360 3.585
2016-10-25 2.360 3.824
2016-07-26 2.240 3.432
2016-04-26 2.240 3.362
2016-01-25 2.240 3.534
2015-10-20 2.240 3.936
2015-07-21 2.120 3.793
2015-04-21 2.120 3.845
2015-01-21 2.120 3.655
2014-10-21 2.120 3.597
2014-07-22 2.000 3.789
2014-04-22 2.000 3.745
2014-01-22 2.000 4.030
2013-10-22 2.000 4.276
2013-07-24 1.960 4.461
2013-04-23 1.960 4.166
2013-01-23 1.880 3.999
2012-07-25 1.880 4.356
2012-04-24 1.880 4.768
2012-01-25 1.880 4.862
2011-10-25 1.880 4.725
2011-07-27 1.840 4.906
2011-04-26 1.840 4.896
2011-01-26 1.840 5.201
2010-10-26 1.840 5.082
2010-07-28 1.680 4.661
2010-04-27 1.680 5.050
2010-01-27 1.640 4.818
2009-10-27 1.640 4.888
2009-07-29 1.640 5.283
2009-04-28 1.640 5.952
2009-01-28 1.640 5.926
2008-10-28 1.640 5.257

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of American Electric Power Company's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess American Electric Power Company's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can American Electric Power Company afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. American Electric Power Company has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

AEP Management

 What is the CEO of American Electric Power Company's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Nick Akins
COMPENSATION $12,202,028
AGE 59
TENURE AS CEO 7.8 years
CEO Bio

Mr. Nicholas K. Akins, also known as Nick, has been the Chief Executive Officer of American Electric Power Company, Inc. since November 12, 2011 and has been its President since January 1, 2011. Mr. Akins has been the Chief Executive Officer at Public Service Company of Oklahoma and Appalachian Power Company since November 2011. He serves as Chairman of the Board and Chief Executive Officer of AEP Oklahoma Transmission Company, Inc., AEP Kentucky Transmission Company, Inc., AEP West Virginia Transmission Company, Inc. and AEP Indiana Michigan Transmission Company, Inc. He is Chairman of the Board and Chief Executive Officer at Kentucky Power Company. He has been the Chief Executive Officer of Ohio Power Company since November 2011 and serves as its Chairman. He has been the Chief Executive Officer of Indiana Michigan Power Company since November 2011. He has been the President of AEP Transmission Holding Company LLC since January 1, 2011. He serves as the Chairman of the Board and Chief Executive Officer of AEP Texas Inc. He serves as the Chairman and Chief Executive Officer at AEP Appalachian Transmission Company, Inc. He serves as the Chief Executive Officer and President of Southwestern Electric Power Company. He serves as Chairman of the Board, Chief Executive Officer and Manager at AEP Transmission Company, LLC. He served as the President of Ohio Valley Electric Corporation and Indiana-Kentucky Electric Corporation until April 27, 2018. He has been an Executive Vice President of AEP Texas North Company since 2006. He served as the President of Indiana Michigan Power Company since November 2011. He served as the President of Appalachian Power Company since January 1, 2011. He served as Vice President at Appalachian Power Company since 2006. He served as an Executive Vice President of Generation at AEP Pro Serv, Inc. from 2006 to 2010. He began his career in 1982 as an Electrical Engineer before moving up to positions of increasing responsibility. He served as the President of Ohio Power Company since January 2011. He served as the President at Public Service Company of Oklahoma. Mr. Akins served as Vice President of Public Service Company of Oklahoma and Ohio Power Company since 2006. He served as the President and Chief Operating Officer of Southwestern Electric Power Company from 2004 to September 1, 2006 and served as its Vice President since 2006. He served as an Executive Vice President of Generation at American Electric Power Service Corporation (AEPSC) from September 1, 2006 to December 31, 2010. He served as an Executive Vice President of American Electric Power Co., Inc. from 2006 to December 31, 2010. He served as Executive Vice President of Generation at American Electric Power Co., Inc. since 2011. He served as Vice President of Energy Marketing services of American Electric Power Service Corporation (AEPSC) from 2002 to 2004, where he was responsible for directing the activities of Market Development, including the transmission marketing and services functions. He served as Vice President of Energy Delivery and Business Development of AEPSC from 2001 to 2002 and was responsible for external affairs including community affairs, economic development, advocacy for regulatory and legislative positios within Energy Delivery. He was responsible for the development and implementation of strategies for energy delivery related to AEP's entry into regional transmission organizations. He served as Vice President of Industry restructuring of AEP responsible for enterprise-wide program management for restructuring initiatives in preparation for customer choice in AEP's various jurisdictions. He served in various Director and Manager roles including CSWS Director of Restructuring Readiness, CSWS Director of Mergers and Acquisitions, CSWS Director of Solid Fuels, WTU Director of Fuels and other positions within system dispatch operations, planning and fuels. He has been the Chairman of American Electric Power Co., Inc. since January 2014 and its Director since 2011. He serves as the Chairman of Southwestern Electric Power Company and Appalachian Power Company. He serves as the Chairman of Indiana Michigan Power Company and Public Service Company of Oklahoma. He served as the Chairman of Electric Power Research Institute, Inc, from April 17, 2012 to April 2014. He has been a Director of Fifth Third Bancorp since October 2013. He has been a Director of Southwestern Electric Power Company, Ohio Power Company, Appalachian Power Company, AEP Texas Inc./AEP Texas North Company, Public Service Company of Oklahoma and American Electric Power Service Corporation since 2006. He has been Director of OhioHealth Corporation since January 23, 2017 and serves as its Vice Chairman of the Board. He serves as a Director of Nuclear Electric Insurance Limited. He has been a Director of The Electric Power Research Institute, Inc, since April 17, 2012. He serve as a Director of Fifth Third Bank and Indiana-Kentucky Electric Corporation. He serve as a Director of Ohio Valley Electric Corporation since 2009 until April 27, 2018. He serves as a Director of Kentucky Power Company, AEP Generating Company and of Indiana Michigan Power Company. He served as a Director of Columbus Southern Power Company and Louisiana Tech Engineering Foundation. He was a Member of the National Society of Professional Engineers, Texas Society of Professional Engineers and Tau Beta Pi and Eta Kappa Nu Engineering Honor Societies. Mr. Akins is a registered Professional Engineer in Texas. Mr. Akins holds Bachelor degree in Electrical Engineering from Louisiana Tech University in Ruston in 1982 and a Master degree in Electrical Engineering from Louisiana Tech University in 1986. Mr. Akins holds Executive Management Programs at Louisiana State University and the University of Idaho.

CEO Compensation
  • Nick's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Nick's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the American Electric Power Company management team in years:

7.8
Average Tenure
56
Average Age
  • The average tenure for the American Electric Power Company management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Nick Akins

TITLE
Chairman
COMPENSATION
$12M
AGE
59
TENURE
7.8 yrs

Brian Tierney

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
51
TENURE
9.8 yrs

Lana Hillebrand

TITLE
Executive VP & Chief Administrative Officer
COMPENSATION
$2M
AGE
59
TENURE
6.7 yrs

David Feinberg

TITLE
Executive VP
COMPENSATION
$3M
AGE
49
TENURE
7.6 yrs

Lisa Barton

TITLE
Executive Vice President of Utilities
COMPENSATION
$2M
AGE
53
TENURE
8 yrs

Joseph Buonaiuto

TITLE
Senior VP

Bette Rozsa

TITLE
Managing Director of Investor Relations

Gina Mazzei-Smith

TITLE
Chief Compliance Officer
AGE
52

Dale Heydlauff

TITLE
Senior Vice President of Corporate Communications
AGE
62
TENURE
2.6 yrs

Tracy Elich

TITLE
Vice President of Human Resources
AGE
62
TENURE
7.8 yrs
Board of Directors Tenure

Average tenure and age of the American Electric Power Company board of directors in years:

8.3
Average Tenure
65
Average Age
  • The tenure for the American Electric Power Company board of directors is about average.
Board of Directors

Nick Akins

TITLE
Chairman
COMPENSATION
$12M
AGE
59
TENURE
5.6 yrs

Lionel Nowell

TITLE
Director
COMPENSATION
$304K
AGE
64
TENURE
15.1 yrs

Ralph Crosby

TITLE
Director
COMPENSATION
$299K
AGE
72
TENURE
13.6 yrs

Tom Hoaglin

TITLE
Lead Director
COMPENSATION
$324K
AGE
70
TENURE
7.3 yrs

Dave Anderson

TITLE
Director
COMPENSATION
$294K
AGE
70
TENURE
8.3 yrs

Linda Goodspeed

TITLE
Director
COMPENSATION
$279K
AGE
57
TENURE
13.8 yrs

Sara Martinez Tucker

TITLE
Director
COMPENSATION
$279K
AGE
64
TENURE
10.6 yrs

Dick Notebaert

TITLE
Director
COMPENSATION
$279K
AGE
72
TENURE
8.3 yrs

Sandy Lin

TITLE
Director
COMPENSATION
$280K
AGE
61
TENURE
7.1 yrs

Steve Rasmussen

TITLE
Director
COMPENSATION
$279K
AGE
66
TENURE
6.9 yrs
Who owns this company?
Recent Insider Trading
  • American Electric Power Company individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
30. Jul 19 Sell Brian Tierney Individual 29. Jul 19 29. Jul 19 -4,458 €80.59 €-359,255
06. Jun 19 Sell Lisa Barton Individual 05. Jun 19 05. Jun 19 -1,752 €79.49 €-139,272
23. May 19 Sell Paul Chodak Individual 22. May 19 22. May 19 -1,303 €77.59 €-101,095
16. May 19 Sell David Feinberg Individual 15. May 19 15. May 19 -4,535 €76.52 €-347,006
15. May 19 Sell Brian Tierney Individual 14. May 19 14. May 19 -4,392 €76.75 €-337,073
15. May 19 Sell Mark McCullough Individual 14. May 19 14. May 19 -1,503 €76.56 €-115,066
21. Nov 18 Sell Lisa Barton Individual 20. Nov 18 20. Nov 18 -881 €68.05 €-59,950
16. Nov 18 Sell Paul Chodak Individual 14. Nov 18 14. Nov 18 -847 €67.57 €-57,231
X
Management checks
We assess American Electric Power Company's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. American Electric Power Company has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

AEP News

Simply Wall St News

AEP Company Info

Description

American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. The company generates electricity using coal and lignite, natural gas, nuclear, hydroelectric, solar, wind, and other energy sources. It also supplies and markets electric power at wholesale to other electric utility companies, rural electric cooperatives, municipalities, and other market participants. The company owns, leases, or controls approximately 3,664 railcars, 468 barges, 9 towboats, and a coal handling terminal with approximately 18 million tons of annual capacity. American Electric Power Company, Inc. was founded in 1906 and is headquartered in Columbus, Ohio.

Details
Name: American Electric Power Company, Inc.
AEP
Exchange: DB
Founded: 1906
$40,153,085,738
493,795,111
Website: http://www.aep.com
Address: American Electric Power Company, Inc.
1 Riverside Plaza,
Columbus,
Ohio, 43215,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE AEP Common Stock New York Stock Exchange US USD 02. Jan 1968
DB AEP Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0HEC Common Stock London Stock Exchange GB USD 02. Jan 1968
BMV AEP * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
Number of employees
Current staff
Staff numbers
17,582
American Electric Power Company employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/18 20:37
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/16
Last earnings filing: 2019/07/25
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.