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AES

AESNYSE:AES Stock Report

Last Price

US$22.95

Market Cap

US$15.3b

7D

-0.5%

1Y

-15.3%

Updated

21 Jan, 2022

Data

Company Financials +
AES fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance2/6
Financial Health3/6
Dividends3/6

AES Stock Overview

The AES Corporation operates as a diversified power generation and utility company.

AES Competitors

NextEra Energy

NYSE:NEE

US$163.9b

Enbridge

TSX:ENB

CA$105.9b

Enel

BIT:ENEL

€70.2b

Duke Energy

NYSE:DUK

US$78.7b

Price History & Performance

Summary of all time highs, changes and price drops for AES
Historical stock prices
Current Share PriceUS$22.95
52 Week HighUS$29.07
52 Week LowUS$22.46
Beta0.83
1 Month Change-2.63%
3 Month Change-7.94%
1 Year Change-15.31%
3 Year Change44.52%
5 Year Change101.32%
Change since IPO600.40%

Recent News & Updates

Jan 12
Is Now The Time To Look At Buying The AES Corporation (NYSE:AES)?

Is Now The Time To Look At Buying The AES Corporation (NYSE:AES)?

Let's talk about the popular The AES Corporation ( NYSE:AES ). The company's shares received a lot of attention from a...

Dec 17
Are Investors Undervaluing The AES Corporation (NYSE:AES) By 46%?

Are Investors Undervaluing The AES Corporation (NYSE:AES) By 46%?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of The AES Corporation...

Dec 16

Re-Rating In AES Stock Is Imminent

AES trades at a discount compared to utility peers. AES deserves a valuation premium due to its above-average characteristics. I believe that a re-rating in AES stock is imminent.

Shareholder Returns

AESUS Renewable EnergyUS Market
7D-0.5%-2.4%-4.0%
1Y-15.3%-19.6%6.6%

Return vs Industry: AES exceeded the US Renewable Energy industry which returned -19.6% over the past year.

Return vs Market: AES underperformed the US Market which returned 6.6% over the past year.

Price Volatility

Is AES's price volatile compared to industry and market?
AES volatility
AES Average Weekly Movement3.5%
Renewable Energy Industry Average Movement7.2%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: AES is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: AES's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19818,162Andres Ricardo Gluski Weilerthttps://www.aes.com

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 other intermediaries. The company also owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market.

AES Fundamentals Summary

How do AES's earnings and revenue compare to its market cap?
AES fundamental statistics
Market CapUS$15.30b
Earnings (TTM)US$537.00m
Revenue (TTM)US$10.93b

28.5x

P/E Ratio

1.4x

P/S Ratio


Dividends

2.8%

Current Dividend Yield

74%

Payout Ratio

Does AES pay a reliable dividends?

See AES dividend history and benchmarks
When do you need to buy AES by to receive an upcoming dividend?
AES dividend dates
Ex Dividend DateJan 31 2022
Dividend Pay DateFeb 15 2022
Days until Ex dividend9 days
Days until Dividend pay date24 days

Does AES pay a reliable dividends?

See AES dividend history and benchmarks

Valuation

Is AES undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AES ($22.95) is trading below our estimate of fair value ($51.33)

Significantly Below Fair Value: AES is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AES is good value based on its PE Ratio (28.5x) compared to the US Renewable Energy industry average (66x).

PE vs Market: AES is poor value based on its PE Ratio (28.5x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: AES is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: AES is overvalued based on its PB Ratio (6.3x) compared to the US Renewable Energy industry average (2.3x).


Future Growth

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

23.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AES's forecast earnings growth (23% per year) is above the savings rate (2%).

Earnings vs Market: AES's earnings (23% per year) are forecast to grow faster than the US market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AES's revenue (3.6% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: AES's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AES's Return on Equity is forecast to be high in 3 years time (25.6%)


Past Performance

How has AES performed over the past 5 years?

9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AES has a large one-off loss of $990.0M impacting its September 30 2021 financial results.

Growing Profit Margin: AES became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AES's earnings have grown by 9.1% per year over the past 5 years.

Accelerating Growth: AES has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AES has become profitable in the last year, making it difficult to compare its past year earnings growth to the Renewable Energy industry (-10.5%).


Return on Equity

High ROE: AES's Return on Equity (13.3%) is considered low.


Financial Health

How is AES's financial position?


Financial Position Analysis

Short Term Liabilities: AES's short term assets ($5.7B) exceed its short term liabilities ($4.7B).

Long Term Liabilities: AES's short term assets ($5.7B) do not cover its long term liabilities ($24.5B).


Debt to Equity History and Analysis

Debt Level: AES's net debt to equity ratio (316.4%) is considered high.

Reducing Debt: AES's debt to equity ratio has reduced from 357.2% to 343.6% over the past 5 years.

Debt Coverage: AES's debt is not well covered by operating cash flow (10.2%).

Interest Coverage: AES's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Dividend

What is AES current dividend yield, its reliability and sustainability?

2.75%

Current Dividend Yield


Upcoming Dividend Payment

TodayJan 22 2022Ex Dividend DateJan 31 2022Dividend Pay DateFeb 15 202215 days from Ex DividendBuy in the next 9 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: AES's dividend (2.75%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: AES's dividend (2.75%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

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 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.7%), AES's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AES's dividends in 3 years are forecast to be well covered by earnings (36.7% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Andres Ricardo Gluski Weilert (63 yo)

10.33yrs

Tenure

US$11,468,027

Compensation

Mr. Andres Ricardo Gluski Weilert has been the Chief Executive Officer, President and Director of The AES Corporation since September 30, 2011. He served as the President of AES Gener S.A. He served as the...


CEO Compensation Analysis

Compensation vs Market: Andres Ricardo's total compensation ($USD11.47M) is about average for companies of similar size in the US market ($USD11.42M).

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


Leadership Team

Experienced Management: AES's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: AES's board of directors are considered experienced (6.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

The AES Corporation's 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
  • Implied Market Cap: US$15.301b
  • Shares outstanding: 666.71m
  • Website: https://www.aes.com

Number of Employees


Location

  • The AES Corporation
  • 4300 Wilson Boulevard
  • 11th Floor
  • Arlington
  • Virginia
  • 22203
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:34
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.