NYSE:AEE

Stock Analysis Report

Executive Summary

Ameren Corporation operates as a public utility holding company in the United States.

Snowflake

Fundamentals

Acceptable track record second-rate dividend payer.


Similar Companies

Share Price & News

How has Ameren's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.2%

AEE

2.1%

US Integrated Utilities

-0.6%

US Market


1 Year Return

22.7%

AEE

19.5%

US Integrated Utilities

0.7%

US Market

AEE outperformed the Integrated Utilities industry which returned 19.5% over the past year.

AEE outperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

AEEIndustryMarket
7 Day3.2%2.1%-0.6%
30 Day2.9%3.2%2.9%
90 Day2.1%3.3%1.3%
1 Year25.9%22.7%23.7%19.5%2.9%0.7%
3 Year67.1%52.9%38.4%24.4%44.6%35.2%
5 Year145.7%108.1%81.4%45.7%61.9%44.2%

Price Volatility Vs. Market

How volatile is Ameren's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ameren undervalued based on future cash flows and its price relative to the stock market?

24.34x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Ameren's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Ameren's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Ameren is overvalued based on earnings compared to the US Integrated Utilities industry average.

Ameren is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Ameren is poor value based on expected growth next year.


Price Based on Value of Assets

Ameren is overvalued based on assets compared to the US Integrated Utilities industry average.


Next Steps

Future Growth

How is Ameren expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ameren's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).

Ameren's earnings are expected to grow by 10% yearly, however this is not considered high growth (20% yearly).

Ameren's revenue growth is positive but not above the United States of America market average.

Ameren's earnings growth is positive but not above the United States of America market average.

Ameren's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Ameren is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Ameren performed over the past 5 years?

5.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ameren's year on year earnings growth rate has been positive over the past 5 years.

Ameren's 1-year earnings growth exceeds its 5-year average (28.6% vs 5.8%)

Ameren's earnings growth has exceeded the US Integrated Utilities industry average in the past year (28.6% vs -11.4%).


Return on Equity

Ameren has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Ameren used its assets less efficiently than the US Integrated Utilities industry average last year based on Return on Assets.


Return on Capital Employed

Ameren's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ameren's financial position?


Financial Position Analysis

Ameren's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Ameren's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Ameren's level of debt (120.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (100.3% vs 120.5% today).

Debt is well covered by operating cash flow (23.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

What is Ameren's current dividend yield, its reliability and sustainability?

2.61%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Ameren's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Ameren's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

What is the CEO of Ameren's salary, the management and board of directors tenure and is there insider trading?

5.7yrs

Average management tenure


CEO

Warner Baxter (57yo)

5.4yrs

Tenure

US$8,454,460

Compensation

Mr. Warner L. Baxter, CPA, has been the Executive Chairman of the Board of Ameren Corporation since July 1, 2014 and has been its Chief Executive Officer since April 24, 2014 and President since February 1 ...


CEO Compensation Analysis

Warner's remuneration is about average for companies of similar size in United States of America.

Warner's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.7yrs

Average Tenure

56.5yo

Average Age

The average tenure for the Ameren management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.7yrs

Average Tenure

63yo

Average Age

The tenure for the Ameren board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$228,06014 Jun 19
Mary Heger
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Customer Experience for Ameren Illinois
Shares3,000
Max PriceUS$76.02
SellUS$90,32428 May 19
Shawn Schukar
EntityIndividual
Role
Unit Chairman
Chairman & President of Ameren Transmission Company
Shares1,200
Max PriceUS$75.27
SellUS$854,16008 Mar 19
Michael Moehn
EntityIndividual
Role
Unit Chairman
Chairman & President of Ameren Missouri
Shares12,000
Max PriceUS$71.18
SellUS$1,067,70008 Mar 19
Fadi Diya
EntityIndividual
Role
Senior Key Executive
Chief Nuclear Officer & Senior VP of Ameren Missouri
Shares15,000
Max PriceUS$71.18
SellUS$552,00016 Nov 18
Michael Moehn
EntityIndividual
Role
Unit Chairman
Chairman & President of Ameren Missouri
Shares8,000
Max PriceUS$69.00
SellUS$690,00016 Nov 18
Gregory Nelson
EntityIndividual
Shares10,000
Max PriceUS$69.00

Ownership Breakdown


Management Team

  • Warner Baxter (57yo)

    Chairman

    • Tenure: 5.4yrs
    • Compensation: US$8.45m
  • Richard Mark (63yo)

    Chairman & President of Ameren Illinois

    • Tenure: 7.3yrs
    • Compensation: US$3.04m
  • Marty Lyons (52yo)

    Executive VP & CFO

    • Tenure: 0yrs
    • Compensation: US$4.15m
  • Mark Birk (54yo)

    Senior VP of Customer & Power Operations of Ameren Missouri

    • Tenure: 0yrs
    • Compensation: US$1.17m
  • Michael Moehn (49yo)

    Chairman & President of Ameren Missouri

    • Tenure: 5.7yrs
    • Compensation: US$3.18m
  • Mary Heger (62yo)

    Senior Vice President of Customer Experience for Ameren Illinois

    • Tenure: 0.6yrs
  • Bruce Steinke (58yo)

    Senior VP of Finance & Chief Accounting Officer

    • Tenure: 6.7yrs
  • Fadi Diya (56yo)

    Chief Nuclear Officer & Senior VP of Ameren Missouri

    • Tenure: 5.7yrs
    • Compensation: US$1.57m
  • Chonda Nwamu

    Senior VP

    • Tenure: 0.08yrs
  • Andrew Kirk

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Rich Harshman (63yo)

    Lead Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$256.58k
  • Warner Baxter (57yo)

    Chairman

    • Tenure: 5.4yrs
    • Compensation: US$8.45m
  • Ed Coleman (67yo)

    Director

    • Tenure: 4.6yrs
    • Compensation: US$235.05k
  • Richard Mark (63yo)

    Chairman & President of Ameren Illinois

    • Tenure: 7.3yrs
    • Compensation: US$3.04m
  • Marty Lyons (52yo)

    Executive VP & CFO

    • Tenure: 0yrs
    • Compensation: US$4.15m
  • Cathy Brune (65yo)

    Director

    • Tenure: 7.9yrs
    • Compensation: US$230.05k
  • James Johnson (66yo)

    Director

    • Tenure: 14.4yrs
    • Compensation: US$233.80k
  • Michael Moehn (49yo)

    Chairman & President of Ameren Missouri

    • Tenure: 5.7yrs
    • Compensation: US$3.18m
  • Shawn Schukar (57yo)

    Chairman & President of Ameren Transmission Company

    • Tenure: 2.3yrs
  • Steve Wilson (70yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$232.55k

Company Information

Ameren Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ameren Corporation
  • Ticker: AEE
  • Exchange: NYSE
  • Founded: 1997
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: US$19.428b
  • Shares outstanding: 245.80m
  • Website: https://www.ameren.com

Number of Employees


Location

  • Ameren Corporation
  • 1901 Chouteau Avenue
  • St. Louis
  • Missouri
  • 63103
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AEENYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1998
AE4DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1998
0HE2LSE (London Stock Exchange)YesCommon StockGBUSDJan 1998

Biography

Ameren Corporation operates as a public utility holding company in the United States. It operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 23:31
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.