Stock Analysis Report

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Executive Summary

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

Snowflake Analysis

Reasonable growth potential and slightly overvalued.

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

Stable Share Price: AES is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AES's weekly volatility (6%) has been stable over the past year.

Market Performance

7 Day Return




US Renewable Energy


US Market

1 Year Return




US Renewable Energy


US Market

Return vs Industry: AES exceeded the US Renewable Energy industry which returned 28% over the past year.

Return vs Market: AES exceeded the US Market which returned 36.2% over the past year.

Shareholder returns

7 Day-2.1%-4.1%-0.4%
30 Day-3.2%-15.9%-2.9%
90 Day24.5%6.2%5.0%
1 Year59.8%54.5%32.0%28.0%39.1%36.2%
3 Year165.2%139.5%68.7%55.1%48.4%39.0%
5 Year186.4%138.2%164.5%119.6%116.5%92.4%

Long-Term 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


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


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AES ($25.99) is trading below our estimate of fair value ($37.25)

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

Price To Earnings Ratio

PE vs Industry: AES is poor value based on its PE Ratio (401.9x) compared to the US Renewable Energy industry average (78.6x).

PE vs Market: AES is poor value based on its PE Ratio (401.9x) compared to the US market (21.5x).

Price to Earnings Growth Ratio

PEG Ratio: AES is poor value based on its PEG Ratio (17.7x)

Price to Book Ratio

PB vs Industry: AES is overvalued based on its PB Ratio (6.6x) compared to the US Renewable Energy industry average (2.5x).

Next Steps

Future Growth

How is AES forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AES's forecast earnings growth (22.7% per year) is above the savings rate (2%).

Earnings vs Market: AES's earnings (22.7% per year) are forecast to grow faster than the US market (19.2% per year).

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

Revenue vs Market: AES's revenue (4.7% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: AES's revenue (4.7% 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 (28%)

Next Steps

Past Performance

How has AES performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AES has a large one-off loss of $1.1B impacting its December 31 2020 financial results.

Growing Profit Margin: AES's current net profit margins (0.4%) are lower than last year (3%).

Past Earnings Growth Analysis

Earnings Trend: AES's earnings have grown by 7.6% per year over the past 5 years.

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

Earnings vs Industry: AES had negative earnings growth (-85.8%) over the past year, making it difficult to compare to the Renewable Energy industry average (-70.2%).

Return on Equity

High ROE: AES's Return on Equity (3.1%) is considered low.

Next Steps

Financial Health

How is AES's financial position?

Financial Position Analysis

Short Term Liabilities: AES's short term assets ($5.4B) exceed its short term liabilities ($5.4B).

Long Term Liabilities: AES's short term assets ($5.4B) do not cover its long term liabilities ($24.5B).

Debt to Equity History and Analysis

Debt Level: AES's debt to equity ratio (414.2%) is considered high.

Reducing Debt: AES's debt to equity ratio has increased from 327.2% to 414.2% over the past 5 years.

Debt Coverage: AES's debt is not well covered by operating cash flow (13.9%).

Interest Coverage: AES's interest payments on its debt are well covered by EBIT (3x coverage).

Balance Sheet

Next Steps


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


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AES's dividend (2.32%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: AES's dividend (2.32%) is low compared to the top 25% of dividend payers in the US market (3.64%).

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 8 years.

Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (886.5%), 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 covered by earnings (53.5% payout ratio).

Next Steps


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


Average management tenure


Andres Ricardo Gluski Weilert (62 yo)





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

CEO Compensation Analysis

Compensation vs Market: Andres Ricardo's total compensation ($USD11.47M) is about average for companies of similar size in the US market ($USD10.58M).

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

Leadership Team

Andres Ricardo Gluski Weilert
$ 33.1m
Gustavo Duarte Pimenta
Executive VP & CFO2.33yrsUS$2.51m0.011%
$ 1.9m
Bernerd Da Santos
Executive VP6.25yrsUS$2.59m0.035%
$ 6.0m
Letitia Mendoza
Executive VP & Chief Human Resources Officer6.17yrsUS$1.73m0.023%
$ 3.9m
Lisa Krueger
Senior VP and President of US SBU & Utilities SBU2.5yrsUS$1.57m0.0032%
$ 553.9k
Leonardo Moreno
Senior VP of Corporate Strategy & Investment and Chief Commercial Officerno datano data0.0042%
$ 736.2k
Sanjeev Addala
Chief Information Digital Officer & Senior VP2.42yrsno datano data
Ahmed Pasha
Vice President of Investor Relations14yrsno datano data
Paul Freedman
Executive VP3.08yrsno data0.0068%
$ 1.2m
Julian Jose Marques
Senior VP & President of South America SBU2.42yrsUS$2.33mno data
Annmarie Reynolds
Chief Commercial Officer - US10.08yrsno datano data
Margaret Tigre
Chief Tax Officer & Senior VP7.92yrsno datano data


Average Tenure


Average Age

Experienced Management: AES's management team is seasoned and experienced (6.2 years average tenure).

Board Members

Andres Ricardo Gluski Weilert
$ 33.1m
John Morse
Chairman & Lead Independent Director2.92yrsUS$461.00k0.0016%
$ 286.5k
James Miller
Independent Director7.75yrsUS$290.00k0%
$ 0
Alain Monie
Independent Director3.67yrsUS$285.00k0.00020%
$ 34.7k
Janet Davidson
Independent Director2.08yrsUS$275.00k0%
$ 0
Holly Koeppel
Independent Director5.92yrsUS$282.25k0%
$ 0
Moises Naim
Independent Director7.92yrsUS$275.00k0%
$ 0
Tarun Khanna
Independent Director11.92yrsUS$290.00k0.00064%
$ 111.1k
Teresa Sebastian
Independent Director0.17yrno datano data
Julia Laulis
Independent Director0.92yrUS$300.00kno data


Average Tenure


Average Age

Experienced Board: AES's board of directors are considered experienced (4.8 years average tenure).


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 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$17.364b
  • Shares outstanding: 668.11m
  • Website: https://www.aes.com

Number of Employees


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


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
AESBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDJun 1991
A1ES34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 SHS UNSPONBRBRLJan 2020
AESU.UOTCPK (Pink Sheets LLC)UnitsUSUSDMar 2021


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 Analysis2021/03/07 23:15
End of Day Share Price2021/03/05 00:00
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.