American Electric Power Company
Market Cap
US$44.2b
Last Updated
2021/05/06 01:05 UTC
Data Sources
Company Financials +
Executive Summary
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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Solid track record established dividend payer.
Similar Companies
Share Price & News
How has American Electric Power Company's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AEP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: AEP's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
0.9%
AEP
-0.7%
US Electric Utilities
-1.6%
US Market
1 Year Return
11.0%
AEP
19.2%
US Electric Utilities
52.8%
US Market
Return vs Industry: AEP underperformed the US Electric Utilities industry which returned 16.8% over the past year.
Return vs Market: AEP underperformed the US Market which returned 52.4% over the past year.
Shareholder returns
| AEP | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.9% | -0.7% | -1.6% |
| 30 Day | 1.4% | -0.002% | 1.3% |
| 90 Day | 6.4% | 1.0% | 3.5% |
| 1 Year | 14.9%11.0% | 23.3%19.2% | 55.4%52.8% |
| 3 Year | 44.5%32.0% | 28.8%18.0% | 63.5%53.2% |
| 5 Year | 57.7%34.1% | 33.4%14.6% | 125.8%100.7% |
Long-Term Price Volatility Vs. Market
How volatile is American Electric Power Company's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
A Note On American Electric Power Company, Inc.'s (NASDAQ:AEP) ROE and Debt To Equity3 weeks ago | Simply Wall St
We Think The Compensation For American Electric Power Company, Inc.'s (NASDAQ:AEP) CEO Looks About Right1 month ago | Simply Wall St
Are Institutions Heavily Invested In American Electric Power Company, Inc.'s (NASDAQ:AEP) Shares?Valuation
Is American Electric Power Company undervalued compared to its fair value and its price relative to the market?
19.04x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AEP ($87.47) is trading above our estimate of fair value ($84.77)
Significantly Below Fair Value: AEP is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AEP is good value based on its PE Ratio (19x) compared to the US Electric Utilities industry average (21.7x).
PE vs Market: AEP is good value based on its PE Ratio (19x) compared to the US market (20.6x).
Price to Earnings Growth Ratio
PEG Ratio: AEP is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: AEP's PB Ratio (2.1x) is in line with the US Electric Utilities industry average.
Future Growth
How is American Electric Power Company forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
6.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AEP's forecast earnings growth (6.8% per year) is above the savings rate (2%).
Earnings vs Market: AEP's earnings (6.8% per year) are forecast to grow slower than the US market (16% per year).
High Growth Earnings: AEP's earnings are forecast to grow, but not significantly.
Revenue vs Market: AEP's revenue (4.7% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: AEP's revenue (4.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AEP's Return on Equity is forecast to be low in 3 years time (10.8%).
Past Performance
How has American Electric Power Company performed over the past 5 years?
14.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AEP has high quality earnings.
Growing Profit Margin: AEP's current net profit margins (14.8%) are higher than last year (12.1%).
Past Earnings Growth Analysis
Earnings Trend: AEP's earnings have grown by 14.4% per year over the past 5 years.
Accelerating Growth: AEP's earnings growth over the past year (23.7%) exceeds its 5-year average (14.4% per year).
Earnings vs Industry: AEP earnings growth over the past year (23.7%) exceeded the Electric Utilities industry 4.3%.
Return on Equity
High ROE: AEP's Return on Equity (10.7%) is considered low.
Financial Health
How is American Electric Power Company's financial position?
Financial Position Analysis
Short Term Liabilities: AEP's short term assets ($4.3B) do not cover its short term liabilities ($10.2B).
Long Term Liabilities: AEP's short term assets ($4.3B) do not cover its long term liabilities ($51.5B).
Debt to Equity History and Analysis
Debt Level: AEP's debt to equity ratio (166.8%) is considered high.
Reducing Debt: AEP's debt to equity ratio has increased from 114% to 166.8% over the past 5 years.
Debt Coverage: AEP's debt is not well covered by operating cash flow (8.8%).
Interest Coverage: AEP's interest payments on its debt are not well covered by EBIT (2.7x coverage).
Balance Sheet
Dividend
What is American Electric Power Company current dividend yield, its reliability and sustainability?
3.38%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AEP's dividend (3.38%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: AEP's dividend (3.38%) is low compared to the top 25% of dividend payers in the US market (3.42%).
Stability and Growth of Payments
Stable Dividend: AEP's dividends per share have been stable in the past 10 years.
Growing Dividend: AEP's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (62.7%), AEP's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AEP's dividends in 3 years are forecast to be covered by earnings (62.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.0yrs
Average management tenure
CEO
Nick Akins (60 yo)
9.5yrs
Tenure
US$15,503,434
Compensation
Mr. Nicholas K. Akins, also known as Nick, has been the Chief Executive Officer of American Electric Power Company, Inc. since November 12, 2011 and its President since January 1, 2011 to October 2011. Mr....
CEO Compensation Analysis
Compensation vs Market: Nick's total compensation ($USD15.50M) is above average for companies of similar size in the US market ($USD11.13M).
Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: AEP's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Board Members
Experienced Board: AEP's board of directors are considered experienced (8.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AEP insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
American Electric Power Company, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: American Electric Power Company, Inc.
- Ticker: AEP
- Exchange: NasdaqGS
- Founded: 1906
- Industry: Electric Utilities
- Sector: Utilities
- Market Cap: US$44.168b
- Shares outstanding: 499.75m
- Website: https://www.aep.com
Number of Employees
Location
- American Electric Power Company, Inc.
- 1 Riverside Plaza
- Columbus
- Ohio
- 43215-2373
- United States
Listings
Biography
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...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/06 01:05 |
| End of Day Share Price | 2021/05/05 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.