NasdaqGS:AEP

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American Electric Power Company

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


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

AEPIndustryMarket
7 Day-2.2%-1.0%1.8%
30 Day-7.7%-0.1%6.0%
90 Day7.9%11.3%6.8%
1 Year-4.3%-7.3%7.2%3.6%23.2%20.4%
3 Year21.8%10.1%11.3%2.0%47.4%37.6%
5 Year77.3%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

Valuation

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

NamePositionTenureCompensationOwnership
Nicholas Akins
Chairman9yrsUS$14.49m0.022%
$ 9.3m
Brian Tierney
Executive VP & CFO11.08yrsUS$6.51m0.0092%
$ 3.9m
Lana Hillebrand
Executive VP & Chief Administrative Officer7.92yrsUS$2.85m0.0022%
$ 926.3k
David Feinberg
Executive VP8.83yrsUS$3.24m0.0017%
$ 707.3k
Lisa Barton
Executive Vice President of Utilities9.25yrsUS$4.89m0.0067%
$ 2.8m
Joseph Buonaiuto
Senior VPno datano data0.0036%
$ 1.5m
Therace Risch
Senior VP and Chief Information & Technology Officer0.50yrno datano data
Darcy Reese
Managing Director of Investor Relationsno datano datano data
Gina Mazzei-Smith
Chief Compliance Officerno datano datano data
Dale Heydlauff
Senior VP of Corporate Communications & President of AEP Foundation3.83yrsno datano data
Julius Cox
Senior VP & Chief Human Resources Officer1.08yrsno datano data
Scott Smith
Senior Vice President of Transmission Controls & Field Services5.25yrsno datano 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

NamePositionTenureCompensationOwnership
Nicholas Akins
Chairman9yrsUS$14.49m0.022%
$ 9.3m
Ralph Crosby
Independent Director14.83yrsUS$298.87kno data
Thomas Hoaglin
Lead Independent Director8.58yrsUS$323.87k0.00020%
$ 84.2k
Oliver Richard
Independent Director7.83yrsUS$285.87k0.00044%
$ 185.3k
David Anderson
Independent Director9.58yrsUS$293.87kno data
Richard Notebaert
Independent Director9.58yrsUS$278.87kno data
Linda Goodspeed
Independent Director15.08yrsUS$278.87kno data
Stephen Rasmussen
Independent Director8.17yrsUS$278.87kno data
Art Garcia
Independent Director1.17yrsUS$93.54kno data
Sandra Lin
Independent Director8.33yrsUS$278.87k0.00021%
$ 88.4k
Sara Martinez Tucker
Independent Director11.83yrsUS$278.87k0.00031%
$ 130.5k
James Beasley
Independent Director6.75yrsUS$297.37kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AEPNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1968
AEPDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0HECLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
AEP *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
AEPCWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
A1EP34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 2 COMBRBRLDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 00:15
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.