NYSE:AES

Stock Analysis Report

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

AESIndustryMarket
7 Day2.3%0.9%0.4%
30 Day2.7%1.2%-1.1%
90 Day-4.9%10.5%-0.5%
1 Year13.0%9.3%22.9%18.9%9.3%6.9%
3 Year53.2%36.3%64.9%41.1%45.8%36.4%
5 Year43.4%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

Valuation

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

company3.3%marketbottom25%1.4%markettop25%3.7%industryaverage3.2%forecastin3Years3.6%

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

SellUS$91,50004 Sep 19
Julian Nebreda
EntityIndividual
Shares6,000
Max PriceUS$15.25
BuyUS$3,050,00014 Aug 19
ValueAct Capital Management L.P.
EntityCompany
Shares200,000
Max PriceUS$15.25
BuyUS$41,581,02013 May 19
ValueAct Capital Management L.P.
EntityCompany
Shares2,582,000
Max PriceUS$16.11
BuyUS$481,25028 Dec 18
ValueAct Capital Management L.P.
EntityCompany
Shares35,000
Max PriceUS$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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AESNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1991
AESDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1991
0H6GLSE (London Stock Exchange)YesCommon StockGBUSDJun 1991
AES *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:30
End of Day Share Price2019/10/18 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.