AEP Stock Overview
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.
American Electric Power Company Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$99.69|
|52 Week High||US$104.81|
|52 Week Low||US$80.22|
|1 Month Change||-2.50%|
|3 Month Change||13.74%|
|1 Year Change||14.90%|
|3 Year Change||16.12%|
|5 Year Change||45.07%|
|Change since IPO||200.95%|
Recent News & Updates
With EPS Growth And More, American Electric Power Company (NASDAQ:AEP) Is Interesting
It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...
Calculating The Fair Value Of American Electric Power Company, Inc. (NASDAQ:AEP)
How far off is American Electric Power Company, Inc. ( NASDAQ:AEP ) from its intrinsic value? Using the most recent...
|AEP||US Electric Utilities||US Market|
Return vs Industry: AEP exceeded the US Electric Utilities industry which returned 7.1% over the past year.
Return vs Market: AEP exceeded the US Market which returned -10.8% over the past year.
|AEP Average Weekly Movement||2.9%|
|Electric Utilities Industry Average Movement||3.2%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.6%|
|10% least volatile stocks in US Market||2.8%|
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.
About the Company
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. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. The company generates electricity using coal and lignite, natural gas, nuclear, hydro, solar, wind, and other energy sources.
American Electric Power Company Fundamentals Summary
|AEP fundamental statistics|
Is AEP overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|AEP income statement (TTM)|
|Cost of Revenue||US$9.16b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||5.12|
|Net Profit Margin||15.36%|
How did AEP perform over the long term?See historical performance and comparison
3.1%Current Dividend Yield
Is American Electric Power Company undervalued compared to its fair value and its price relative to the market?
Valuation Score 2/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AEP ($99.69) is trading below our estimate of fair value ($100.76)
Significantly Below Fair Value: AEP is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: AEP is good value based on its PE Ratio (19.5x) compared to the US Electric Utilities industry average (20.6x).
PE vs Market: AEP is poor value based on its PE Ratio (19.5x) compared to the US market (15.3x).
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 is overvalued based on its PB Ratio (2.2x) compared to the US Electric Utilities industry average (2x).
How is American Electric Power Company forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AEP's forecast earnings growth (7% per year) is above the savings rate (1.9%).
Earnings vs Market: AEP's earnings (7% per year) are forecast to grow slower than the US market (12.3% per year).
High Growth Earnings: AEP's earnings are forecast to grow, but not significantly.
Revenue vs Market: AEP's revenue (2.4% per year) is forecast to grow slower than the US market (7.8% per year).
High Growth Revenue: AEP's revenue (2.4% 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 (11.4%).
How has American Electric Power Company performed over the past 5 years?
Past Performance Score5/6
Past Performance Score 5/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AEP has high quality earnings.
Growing Profit Margin: AEP's current net profit margins (15.4%) are higher than last year (14.8%).
Past Earnings Growth Analysis
Earnings Trend: AEP's earnings have grown by 12.6% per year over the past 5 years.
Accelerating Growth: AEP's earnings growth over the past year (15.3%) exceeds its 5-year average (12.6% per year).
Earnings vs Industry: AEP earnings growth over the past year (15.3%) exceeded the Electric Utilities industry 9.5%.
Return on Equity
High ROE: AEP's Return on Equity (10.9%) is considered low.
How is American Electric Power Company's financial position?
Financial Health Score1/6
Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: AEP's short term assets ($8.3B) do not cover its short term liabilities ($13.6B).
Long Term Liabilities: AEP's short term assets ($8.3B) do not cover its long term liabilities ($52.2B).
Debt to Equity History and Analysis
Debt Level: AEP's net debt to equity ratio (151.3%) is considered high.
Reducing Debt: AEP's debt to equity ratio has increased from 115.6% to 154.9% over the past 5 years.
Debt Coverage: AEP's debt is not well covered by operating cash flow (15%).
Interest Coverage: AEP's interest payments on its debt are well covered by EBIT (3.1x coverage).
What is American Electric Power Company current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AEP's dividend (3.13%) is higher than the bottom 25% of dividend payers in the US market (1.56%).
High Dividend: AEP's dividend (3.13%) is low compared to the top 25% of dividend payers in the US market (4.08%).
Stability and Growth of Payments
Stable Dividend: AEP's dividends per share have been stable in the past 10 years.
Growing Dividend: AEP's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (58.2%), AEP's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: AEP is paying a dividend but the company has no free cash flows.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Nick Akins (61 yo)
Mr. Nicholas K. Akins, also known as Nick, has been the Chief Executive Officer of American Electric Power Company, Inc. since November 12, 2011 and its President since January 1, 2011 to October 2011. Mr....
CEO Compensation Analysis
Compensation vs Market: Nick's total compensation ($USD15.05M) is about average for companies of similar size in the US market ($USD13.20M).
Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.
Experienced Management: AEP's management team is considered experienced (4.4 years average tenure).
Experienced Board: AEP's board of directors are considered experienced (8.8 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.8%.
American Electric Power Company, Inc.'s employee growth, exchange listings and data sources
- Name: American Electric Power Company, Inc.
- Ticker: AEP
- Exchange: NasdaqGS
- Founded: 1906
- Industry: Electric Utilities
- Sector: Utilities
- Implied Market Cap: US$51.195b
- Shares outstanding: 513.54m
- Website: https://www.aep.com
Number of Employees
- American Electric Power Company, Inc.
- 1 Riverside Plaza
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/13 00:00|
|End of Day Share Price||2022/05/13 00:00|
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.