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AEP

American Electric Power Company NasdaqGS:AEP Stock Report

Last Price

US$99.04

Market Cap

US$51.3b

7D

0.5%

1Y

14.8%

Updated

19 May, 2022

Data

Company Financials +
AEP fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance5/6
Financial Health1/6
Dividends4/6

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

Summary of all time highs, changes and price drops for American Electric Power Company
Historical stock prices
Current Share PriceUS$99.04
52 Week HighUS$104.81
52 Week LowUS$80.22
Beta0.34
1 Month Change-3.31%
3 Month Change15.55%
1 Year Change14.82%
3 Year Change12.32%
5 Year Change39.89%
Change since IPO198.99%

Recent News & Updates

Apr 16
With EPS Growth And More, American Electric Power Company (NASDAQ:AEP) Is Interesting

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...

Apr 04
Calculating The Fair Value Of American Electric Power Company, Inc. (NASDAQ:AEP)

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...

Shareholder Returns

AEPUS Electric UtilitiesUS Market
7D0.5%1.7%0.1%
1Y14.8%5.0%-12.7%

Return vs Industry: AEP exceeded the US Electric Utilities industry which returned 6.1% over the past year.

Return vs Market: AEP exceeded the US Market which returned -11.5% over the past year.

Price Volatility

Is AEP's price volatile compared to industry and market?
AEP volatility
AEP Average Weekly Movement3.0%
Electric Utilities Industry Average Movement3.2%
Market Average Movement8.0%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.0%

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

FoundedEmployeesCEOWebsite
190616,688Nick Akinshttps://www.aep.com

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

How do American Electric Power Company's earnings and revenue compare to its market cap?
AEP fundamental statistics
Market CapUS$51.29b
Earnings (TTM)US$2.63b
Revenue (TTM)US$17.10b

19.4x

P/E Ratio

3.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AEP income statement (TTM)
RevenueUS$17.10b
Cost of RevenueUS$9.16b
Gross ProfitUS$7.95b
Other ExpensesUS$5.32b
EarningsUS$2.63b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.12
Gross Margin46.47%
Net Profit Margin15.36%
Debt/Equity Ratio154.9%

How did AEP perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

58%

Payout Ratio

Valuation

Is American Electric Power Company undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


1.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AEP ($99.04) 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 (19.4x) compared to the US Electric Utilities industry average (21.7x).

PE vs Market: AEP is poor value based on its PE Ratio (19.4x) compared to the US market (15.5x).


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).


Future Growth

How is American Electric Power Company forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AEP's forecast earnings growth (8.1% per year) is above the savings rate (1.9%).

Earnings vs Market: AEP's earnings (8.1% per year) are forecast to grow slower than the US market (12.4% per year).

High Growth Earnings: AEP's earnings are forecast to grow, but not significantly.

Revenue vs Market: AEP's revenue (2.2% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: AEP's revenue (2.2% 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%).


Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


12.6%

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.


Financial Health

How is American Electric Power Company's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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).


Balance Sheet


Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.15%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AEP's dividend (3.15%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: AEP's dividend (3.15%) is low compared to the top 25% of dividend payers in the US market (4.07%).


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.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Nick Akins (61 yo)

11.33yrs

Tenure

US$15,051,215

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 ($USD15.05M) is about average for companies of similar size in the US market ($USD13.26M).

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 considered experienced (4.4 years average tenure).


Board Members

Experienced Board: AEP's board of directors are considered experienced (8.8 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 been diluted in the past year, with total shares outstanding growing by 2.8%.


Top Shareholders

Company Information

American Electric Power Company, Inc.'s 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
  • Implied Market Cap: US$51.293b
  • Shares outstanding: 513.54m
  • Website: https://www.aep.com

Number of Employees


Location

  • American Electric Power Company, Inc.
  • 1 Riverside Plaza
  • Columbus
  • Ohio
  • 43215-2373
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/19 00:00
End of Day Share Price2022/05/19 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.