Market Cap
US$10.9b
Last Updated
2019/10/19 23:30 UTC
Data Sources
Company Financials +
Executive Summary
The AES Corporation operates as a diversified power generation and utility company.
Snowflake
Fundamentals
Reasonable growth potential with acceptable track record.
Similar Companies
Share Price & News
How has AES's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
2.3%
AES
0.9%
US Renewable Energy
0.4%
US Market
1 Year Return
9.3%
AES
18.9%
US Renewable Energy
6.9%
US Market
Return vs Industry: AES underperformed the US Renewable Energy industry which returned 18.9% over the past year.
Return vs Market: AES exceeded the US Market which returned 6.9% over the past year.
Shareholder returns
| AES | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.3% | 0.9% | 0.4% |
| 30 Day | 2.7% | 1.2% | -1.1% |
| 90 Day | -4.9% | 10.5% | -0.5% |
| 1 Year | 13.0%9.3% | 22.9%18.9% | 9.3%6.9% |
| 3 Year | 53.2%36.3% | 64.9%41.1% | 45.8%36.4% |
| 5 Year | 43.4%19.3% | 29.3%-0.3% | 62.9%45.1% |
Price Volatility Vs. Market
How volatile is AES's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Should You Be Pleased About The CEO Pay At The AES Corporation's (NYSE:AES)1 week ago | Simply Wall St
Can You Imagine How AES's (NYSE:AES) Shareholders Feel About The 37% Share Price Increase?3 weeks ago | Simply Wall St
An Intrinsic Calculation For The AES Corporation (NYSE:AES) Suggests It's 31% UndervaluedValuation
Is AES undervalued compared to its fair value and its price relative to the market?
30.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Undervalued: AES ($16.38) is trading below our estimate of fair value ($23.49)
Significantly Undervalued: AES is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: AES is poor value based on its PE Ratio (29x) compared to the Renewable Energy industry average (19.1x).
PE vs Market: AES is poor value based on its PE Ratio (29x) compared to the US market (17.6x).
Price to Earnings Growth Ratio
Low PEG Ratio: AES is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: AES is overvalued based on its PB Ratio (3.4x) compared to the US Renewable Energy industry average (1.4x).
Next Steps
Future Growth
How is AES forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
21.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AES's forecast earnings growth (21.1% per year) is above the savings rate (2.7%).
Earnings vs Market: AES's earnings (21.1% per year) are forecast to grow faster than the US market (14.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AES's revenue (3% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: AES's revenue (3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: AES's Return on Equity is forecast to be high in 3 years time (24.6%)
Next Steps
Past Performance
How has AES performed over the past 5 years?
-15.6%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: AES's earnings have declined by -15.6% per year over the past 5 years.
Accelerating Growth: AES's earnings growth over the past year (52.7%) exceeds its 5-year average (-15.6% per year).
Earnings vs Industry: AES earnings growth over the past year (52.7%) exceeded the Renewable Energy industry 33.9%.
Return on Equity
High ROE: AES's Return on Equity (11.7%) is considered low.
Return on Assets
ROA vs Industry: AES's Return on Assets is below or equal to the Renewable Energy industry average last year.
Return on Capital Employed
ROCE Improving: AES has improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is AES's financial position?
Financial Position Analysis
Short Term Liabilities: AES's short term assets ($5.5B) exceeds its short term liabilities ($4.0B)
Long Term Liabilities: AES's short term assets (5.5B) do not cover its long term liabilities (23.7B)
Debt to Equity History and Analysis
Debt Level: AES's debt to equity ratio (357.2%) is considered high
Reducing Debt: AES's debt to equity ratio has increased from 291.6% to 357.2% over the past 5 years.
Debt Coverage: AES's debt is not well covered by operating cash flow (12.1%).
Interest Coverage: AES's interest payments on its debt are well covered by EBIT (3x coverage).
Balance Sheet
Inventory Level: AES has a high level of physical assets or inventory.
Debt Coverage by Assets: AES's debt is not covered by short term assets (assets are 0.3x debt).
Next Steps
Dividend
What is AES's current dividend yield, its reliability and sustainability?
3.33%
Current Dividend Yield
Upcoming Dividend Payment
Purchase AES before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: AES's dividend (3.33%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: AES's dividend (3.33%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stable Dividend: Whilst dividend payments have been stable, AES has been paying a dividend for less than 10 years.
Growing Dividend: AES's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (94.5%), AES's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AES's dividends in 3 years are forecast to be well covered by earnings (38.4% payout ratio).
Next Steps
Management
What is the CEO of AES's salary, the management and board of directors tenure and is there insider trading?
3.2yrs
Average management tenure
CEO
Andrés Ricardo Gluski Weilert (61yo)
8.1yrs
Tenure
US$9,759,811
Compensation
Mr. Andrés Ricardo Gluski Weilert has been the Chief Executive Officer and President of The AES Corporation since September 30, 2011. Mr. Weilert served as the President of AES Gener S.A. He served as the ...
CEO Compensation Analysis
Compensation vs. Market: Andrés Ricardo's total compensation ($USD9.76M) is about average for companies of similar size in the US market ($USD11.18M).
Compensation vs Earnings: Andrés Ricardo's compensation has been consistent with company performance over the past year.
Management Age and Tenure
3.2yrs
Average Tenure
49yo
Average Age
Experienced Management: AES's management team is considered experienced (3.2 years average tenure).
Board Age and Tenure
5.2yrs
Average Tenure
62yo
Average Age
Experienced Board: AES's board of directors are considered experienced (5.2 years average tenure).
Insider Trading
Insider Buying: AES insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 6,000 |
| Max Price | US$15.25 |
| Entity | Company |
| Shares | 200,000 |
| Max Price | US$15.25 |
| Entity | Company |
| Shares | 2,582,000 |
| Max Price | US$16.11 |
| Entity | Company |
| Shares | 35,000 |
| Max Price | US$13.75 |
Ownership Breakdown
Management Team
Julian Jose Marques (52yo)
Senior VP & President of South America SBU
- Tenure: 1yrs
- Compensation: US$2.12m
Andrés Ricardo Gluski Weilert (61yo)
President
- Tenure: 8.1yrs
- Compensation: US$9.76m
Ahmed Pasha
Vice President of Investor Relations
- Tenure: 12.6yrs
Gustavo Duarte Pimenta (41yo)
Executive VP & CFO
- Tenure: 0.9yrs
Bernerd Da Santos (55yo)
COO & Executive VP
- Tenure: 4.8yrs
- Compensation: US$2.42m
Tish Mendoza (43yo)
Senior VP of Human Resources & Business Services and Chief Human Resources Officer
- Tenure: 4.8yrs
- Compensation: US$1.52m
Paul Freedman (49yo)
Senior VP
- Tenure: 1.7yrs
Sanjeev Addala (53yo)
Chief Information Digital Officer & Senior VP
- Tenure: 1yrs
Sarah Blake (44yo)
VP & Controller
- Tenure: 0yrs
Leo Moreno (39yo)
Senior VP of Corporate Strategy & Investment and Chief Commercial Officer
- Tenure: 0yrs
Board Members
Jay Morse (72yo)
Chairman & Lead Independent Director
- Tenure: 1.5yrs
- Compensation: US$467.10k
Jim Miller (70yo)
Independent Director
- Tenure: 6.3yrs
- Compensation: US$270.00k
Jeff Ubben (58yo)
Independent Director
- Tenure: 1.8yrs
- Compensation: US$365.00k
Alain Monié (68yo)
Independent Director
- Tenure: 2.3yrs
- Compensation: US$270.84k
Janet Davidson (63yo)
Independent Director
- Tenure: 0.7yrs
Holly Koeppel (60yo)
Independent Director
- Tenure: 4.5yrs
- Compensation: US$267.25k
Moisés Naím (67yo)
Independent Director
- Tenure: 6.5yrs
- Compensation: US$260.00k
Andrés Ricardo Gluski Weilert (61yo)
President
- Tenure: 8.1yrs
- Compensation: US$9.76m
Chuck Harrington (60yo)
Independent Director
- Tenure: 5.8yrs
- Compensation: US$290.84k
Tarun Khanna (52yo)
Independent Director
- Tenure: 10.5yrs
- Compensation: US$275.84k
Company Information
The AES Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: The AES Corporation
- Ticker: AES
- Exchange: NYSE
- Founded: 1981
- Industry: Independent Power Producers and Energy Traders
- Sector: Utilities
- Market Cap: US$10.874b
- Shares outstanding: 663.85m
- Website: https://www.aes.com
Number of Employees
Location
- The AES Corporation
- 4300 Wilson Boulevard
- 11th Floor
- Arlington
- Virginia
- 22203
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AES | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jun 1991 |
| AES | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 1991 |
| 0H6G | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jun 1991 |
| AES * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jun 1991 |
Biography
The AES Corporation operates as a diversified power generation and utility company. It owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and ot ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/19 23:30 |
| End of Day Share Price | 2019/10/18 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.