NYSE:AEE

Stock Analysis Report

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Executive Summary

Ameren Corporation, together with its subsidiaries, operates as a public utility holding company in the United States.


Snowflake Analysis

Established dividend payer with imperfect balance sheet.


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

Stable Share Price: AEE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.0%

AEE

5.2%

US Integrated Utilities

3.0%

US Market


1 Year Return

0.3%

AEE

-3.4%

US Integrated Utilities

9.9%

US Market

Return vs Industry: AEE exceeded the US Integrated Utilities industry which returned -3.4% over the past year.

Return vs Market: AEE underperformed the US Market which returned 9.9% over the past year.


Shareholder returns

AEEIndustryMarket
7 Day7.0%5.2%3.0%
30 Day4.6%5.0%8.2%
90 Day-10.1%-6.4%0.4%
1 Year2.9%0.3%-0.05%-3.4%12.4%9.9%
3 Year43.0%31.4%16.5%5.0%31.0%22.3%
5 Year128.5%97.0%63.0%30.1%58.1%40.3%

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 compared to its fair value and its price relative to the market?

23.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AEE ($74.73) is trading above our estimate of fair value ($45.02)

Significantly Below Fair Value: AEE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AEE is poor value based on its PE Ratio (23.5x) compared to the Integrated Utilities industry average (20.1x).

PE vs Market: AEE is poor value based on its PE Ratio (23.5x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: AEE is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: AEE is overvalued based on its PB Ratio (2.3x) compared to the US Integrated Utilities industry average (1.8x).


Next Steps

Future Growth

How is Ameren forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AEE's forecast earnings growth (7.9% per year) is above the savings rate (2.2%).

Earnings vs Market: AEE's earnings (7.9% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: AEE's revenue (3.9% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: AEE's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AEE's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has Ameren performed over the past 5 years?

7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AEE has high quality earnings.

Growing Profit Margin: AEE's current net profit margins (14.1%) are lower than last year (14.3%).


Past Earnings Growth Analysis

Earnings Trend: AEE's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: AEE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AEE had negative earnings growth (-8.4%) over the past year, making it difficult to compare to the Integrated Utilities industry average (-6.1%).


Return on Equity

High ROE: AEE's Return on Equity (9.6%) is considered low.


Next Steps

Financial Health

How is Ameren's financial position?


Financial Position Analysis

Short Term Liabilities: AEE's short term assets ($1.5B) do not cover its short term liabilities ($2.4B).

Long Term Liabilities: AEE's short term assets ($1.5B) do not cover its long term liabilities ($18.7B).


Debt to Equity History and Analysis

Debt Level: AEE's debt to equity ratio (125.4%) is considered high.

Reducing Debt: AEE's debt to equity ratio has increased from 105.1% to 125.4% over the past 5 years.

Debt Coverage: AEE's debt is well covered by operating cash flow (20.1%).

Interest Coverage: AEE's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Next Steps

Dividend

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

2.65%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: AEE's dividend (2.65%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: AEE's dividend (2.65%) is low compared to the top 25% of dividend payers in the US market (4.54%).


Stability and Growth of Payments

Stable Dividend: AEE's dividends per share have been stable in the past 10 years.

Growing Dividend: AEE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.9%), AEE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AEE's dividends in 3 years are forecast to be covered by earnings (55.9% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Warner Baxter (57yo)

6.17yrs

Tenure

US$9,718,998

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

Compensation vs Market: Warner's total compensation ($USD9.72M) is about average for companies of similar size in the US market ($USD11.60M).

Compensation vs Earnings: Warner's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Warner Baxter
Chairman6.17yrsUS$9.72m0.13% $24.8m
Michael Moehn
Executive VP0.50yrUS$2.97m0.039% $7.2m
Martin Lyons
Chairman & President of Ameren Missouri0.50yrUS$3.78m0.058% $10.6m
Fadi Diya
Chief Nuclear Officer & Senior VP of Ameren Missouri6.42yrsUS$2.30m0.029% $5.3m
Bhavani Amirthalingam
Senior VP & Chief Digital Information Officer of Ameren Services2.25yrsUS$1.47m0.00073% $134.7k
Richard Mark
Chairman & President of Ameren Illinois8yrsUS$2.46m0.055% $10.1m
Bruce Steinke
Senior VP of Finance & Chief Accounting Officer7.42yrsno data0.017% $3.1m
Andrew Kirk
Director of Investor Relationsno datano datano data
Chonda Nwamu
Senior VP0.83yrno data0.0022% $396.7k
Mark Birk
Senior VP of Customer & Power Operations of Ameren Missourino dataUS$1.17m0.026% $4.9m

6.3yrs

Average Tenure

54yo

Average Age

Experienced Management: AEE's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Warner Baxter
Chairman6.17yrsUS$9.72m0.13% $24.8m
Martin Lyons
Chairman & President of Ameren Missouri0.50yrUS$3.78m0.058% $10.6m
Richard Mark
Chairman & President of Ameren Illinois8yrsUS$2.46m0.055% $10.1m
Shawn Schukar
Chairman & President of Ameren Transmission Company3.08yrsno data0.016% $2.9m
Richard Harshman
Lead Independent Director2.08yrsUS$285.00k0.0053% $983.4k
J. Coleman
Independent Director5.33yrsUS$251.66k0.0011% $210.3k
Ellen Fitzsimmons
Independent Director11.17yrsUS$245.00k0.015% $2.8m
Catherine Brune
Independent Director8.67yrsUS$249.98k0.0070% $1.3m
James Johnson
Independent Director15.17yrsUS$250.00k0.011% $2.0m
Stephen Wilson
Independent Director10.5yrsUS$250.00k0.012% $2.2m

7.0yrs

Average Tenure

63yo

Average Age

Experienced Board: AEE's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AEE 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

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


Key Information

  • Name: Ameren Corporation
  • Ticker: AEE
  • Exchange: NYSE
  • Founded: 1881
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: US$18.450b
  • Shares outstanding: 246.89m
  • 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
A1EE34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Ameren Corporation, together with its subsidiaries, 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, and Ameren Transmission. The company engages in the rate-regulated electric generation, transmission, and distribution activities; and rate-regulated natural gas distribution and transmission businesses. It primarily generates electricity through coal, nuclear, and natural gas, as well as renewable sources, such as hydroelectric, methane gas, and solar. The company serves residential, commercial, and industrial customers. As of March 25, 2020, it served approximately 1.2 million electric customers and approximately 132,000 natural gas customers in central and eastern Missouri. The company was founded in 1881 and is headquartered in St. Louis, Missouri. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 03:14
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
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.