American Electric Power Company
Market Cap
US$42.1b
Last Updated
2020/11/25 00:15 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
Established dividend payer with questionable track record.
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
-2.2%
AEP
-1.0%
US Electric Utilities
1.8%
US Market
1 Year Return
-7.3%
AEP
3.6%
US Electric Utilities
20.4%
US Market
Return vs Industry: AEP underperformed the US Electric Utilities industry which returned 3.6% over the past year.
Return vs Market: AEP underperformed the US Market which returned 20.4% over the past year.
Shareholder returns
| AEP | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.2% | -1.0% | 1.8% |
| 30 Day | -7.7% | -0.1% | 6.0% |
| 90 Day | 7.9% | 11.3% | 6.8% |
| 1 Year | -4.3%-7.3% | 7.2%3.6% | 23.2%20.4% |
| 3 Year | 21.8%10.1% | 11.3%2.0% | 47.4%37.6% |
| 5 Year | 77.3%49.5% | 52.0%30.1% | 91.9%70.8% |
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
Have American Electric Power Company, Inc. (NASDAQ:AEP) Insiders Been Selling Their Stock?2 weeks ago | Simply Wall St
American Electric Power Company (NASDAQ:AEP) Has A Somewhat Strained Balance SheetValuation
Is American Electric Power Company undervalued compared to its fair value and its price relative to the market?
21.89x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AEP ($84.82) is trading above our estimate of fair value ($63)
Significantly Below Fair Value: AEP is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AEP is poor value based on its PE Ratio (21.9x) compared to the US Electric Utilities industry average (20.1x).
PE vs Market: AEP is poor value based on its PE Ratio (21.9x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: AEP is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: AEP is overvalued based on its PB Ratio (2.1x) compared to the US Electric Utilities industry average (2x).
Next Steps
Future Growth
How is American Electric Power Company forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
9.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AEP's forecast earnings growth (9.1% per year) is above the savings rate (2.2%).
Earnings vs Market: AEP's earnings (9.1% per year) are forecast to grow slower than the US market (22.1% per year).
High Growth Earnings: AEP's earnings are forecast to grow, but not significantly.
Revenue vs Market: AEP's revenue (4% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: AEP's revenue (4% 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 (10.9%).
Next Steps
Past Performance
How has American Electric Power Company performed over the past 5 years?
10.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AEP has high quality earnings.
Growing Profit Margin: AEP's current net profit margins (12.9%) are lower than last year (13.5%).
Past Earnings Growth Analysis
Earnings Trend: AEP's earnings have grown by 10.4% per year over the past 5 years.
Accelerating Growth: AEP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AEP had negative earnings growth (-9.9%) over the past year, making it difficult to compare to the Electric Utilities industry average (6.1%).
Return on Equity
High ROE: AEP's Return on Equity (9.3%) is considered low.
Next Steps
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 ($9.0B).
Long Term Liabilities: AEP's short term assets ($4.3B) do not cover its long term liabilities ($49.0B).
Debt to Equity History and Analysis
Debt Level: AEP's debt to equity ratio (157.3%) is considered high.
Reducing Debt: AEP's debt to equity ratio has increased from 111.9% to 157.3% over the past 5 years.
Debt Coverage: AEP's debt is not well covered by operating cash flow (11.8%).
Interest Coverage: AEP's interest payments on its debt are not well covered by EBIT (2.6x coverage).
Balance Sheet
Next Steps
Dividend
What is American Electric Power Company current dividend yield, its reliability and sustainability?
3.49%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AEP's dividend (3.49%) is higher than the bottom 25% of dividend payers in the US market (1.46%).
High Dividend: AEP's dividend (3.49%) is low compared to the top 25% of dividend payers in the US market (4.05%).
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 (72.3%), 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 (62.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.9yrs
Average management tenure
CEO
Nick Akins (60 yo)
9yrs
Tenure
US$14,492,436
Compensation
Mr. Nicholas K. Akins, also known as Nick, has been the Chief Executive Officer of American Electric Power Company, Inc. since November 12, 2011 and has been its President since January 1, 2011. Mr. Akins ...
CEO Compensation Analysis
Compensation vs Market: Nick's total compensation ($USD14.49M) is above average for companies of similar size in the US market ($USD10.82M).
Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 9yrs | US$14.49m | 0.022% $ 9.3m | |
| Executive VP & CFO | 11.08yrs | US$6.51m | 0.0092% $ 3.9m | |
| Executive VP & Chief Administrative Officer | 7.92yrs | US$2.85m | 0.0022% $ 926.3k | |
| Executive VP | 8.83yrs | US$3.24m | 0.0017% $ 707.3k | |
| Executive Vice President of Utilities | 9.25yrs | US$4.89m | 0.0067% $ 2.8m | |
| Senior VP | no data | no data | 0.0036% $ 1.5m | |
| Senior VP and Chief Information & Technology Officer | 0.50yr | no data | no data | |
| Managing Director of Investor Relations | no data | no data | no data | |
| Chief Compliance Officer | no data | no data | no data | |
| Senior VP of Corporate Communications & President of AEP Foundation | 3.83yrs | no data | no data | |
| Senior VP & Chief Human Resources Officer | 1.08yrs | no data | no data | |
| Senior Vice President of Transmission Controls & Field Services | 5.25yrs | no data | no data |
7.9yrs
Average Tenure
53.5yo
Average Age
Experienced Management: AEP's management team is seasoned and experienced (7.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 9yrs | US$14.49m | 0.022% $ 9.3m | |
| Independent Director | 14.83yrs | US$298.87k | no data | |
| Lead Independent Director | 8.58yrs | US$323.87k | 0.00020% $ 84.2k | |
| Independent Director | 7.83yrs | US$285.87k | 0.00044% $ 185.3k | |
| Independent Director | 9.58yrs | US$293.87k | no data | |
| Independent Director | 9.58yrs | US$278.87k | no data | |
| Independent Director | 15.08yrs | US$278.87k | no data | |
| Independent Director | 8.17yrs | US$278.87k | no data | |
| Independent Director | 1.17yrs | US$93.54k | no data | |
| Independent Director | 8.33yrs | US$278.87k | 0.00021% $ 88.4k | |
| Independent Director | 11.83yrs | US$278.87k | 0.00031% $ 130.5k | |
| Independent Director | 6.75yrs | US$297.37k | no data |
8.5yrs
Average Tenure
67yo
Average Age
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$42.104b
- Shares outstanding: 496.39m
- Website: https://www.aep.com
Number of Employees
Location
- American Electric Power Company, Inc.
- 1 Riverside Plaza
- Columbus
- Ohio
- 43215-2373
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AEP | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jan 1968 |
| AEP | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| 0HEC | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| AEP * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| AEPC | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1968 |
| A1EP34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 2 COM | BR | BRL | Dec 2019 |
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 | 2020/11/25 00:15 |
| End of Day Share Price | 2020/11/24 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.