Market Cap
US$8.8b
Last Updated
2020/04/08 06:27 UTC
Data Sources
Company Financials +
Executive Summary
The AES Corporation operates as a diversified power generation and utility company.
Rewards
Risk Analysis
+ 1 more risk
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
3.4%
AES
-0.2%
US Renewable Energy
2.4%
US Market
1 Year Return
-26.7%
AES
-14.5%
US Renewable Energy
-10.0%
US Market
Return vs Industry: AES underperformed the US Renewable Energy industry which returned -14.5% over the past year.
Return vs Market: AES underperformed the US Market which returned -10% over the past year.
Shareholder returns
| AES | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.4% | -0.2% | 2.4% |
| 30 Day | -9.3% | -18.1% | -11.0% |
| 90 Day | -34.7% | -21.3% | -19.4% |
| 1 Year | -24.4%-26.7% | -11.6%-14.5% | -8.1%-10.0% |
| 3 Year | 30.2%16.4% | 22.7%9.7% | 17.3%9.6% |
| 5 Year | 19.5%-0.9% | -1.2%-24.5% | 36.1%21.1% |
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
1 day ago | Simply Wall St
Has The AES Corporation (NYSE:AES) Been Employing Capital Shrewdly?1 week ago | Simply Wall St
How Does AES's (NYSE:AES) P/E Compare To Its Industry, After The Share Price Drop?3 weeks ago | Simply Wall St
Chairman & Lead Independent Director John Morse Just Bought Shares In The AES Corporation (NYSE:AES)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 ($13.23) is trading below our estimate of fair value ($27.31)
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 (29.1x) compared to the Renewable Energy industry average (23.5x).
PE vs Market: AES is poor value based on its PE Ratio (29.1x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: AES is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: AES is overvalued based on its PB Ratio (2.9x) compared to the US Renewable Energy industry average (1.5x).
Next Steps
Future Growth
How is AES forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
23.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AES's forecast earnings growth (23.3% per year) is above the savings rate (1.7%).
Earnings vs Market: AES's earnings (23.3% per year) are forecast to grow faster than the US market (13.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AES's revenue (3.9% per year) is forecast to grow slower than the US market (7% per year).
High Growth Revenue: AES'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: AES's Return on Equity is forecast to be high in 3 years time (25%)
Next Steps
Past Performance
How has AES performed over the past 5 years?
-14.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AES has a large one-off loss of $322.0M impacting its December 31 2019 financial results.
Growing Profit Margin: AES's current net profit margins (3%) are lower than last year (9.2%).
Past Earnings Growth Analysis
Earnings Trend: AES's earnings have declined by -14.5% 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 (-69.3%) over the past year, making it difficult to compare to the Renewable Energy industry average (-10.1%).
Return on Equity
High ROE: AES's Return on Equity (9%) is considered low.
Next Steps
Financial Health
How is AES's financial position?
Financial Position Analysis
Short Term Liabilities: AES's short term assets ($5.2B) exceed its short term liabilities ($5.1B).
Long Term Liabilities: AES's short term assets ($5.2B) do not cover its long term liabilities ($23.3B).
Debt to Equity History and Analysis
Debt Level: AES's debt to equity ratio (380.1%) is considered high.
Reducing Debt: AES's debt to equity ratio has increased from 281.9% to 380.1% over the past 5 years.
Debt Coverage: AES's debt is not well covered by operating cash flow (11.9%).
Interest Coverage: AES's interest payments on its debt are not well covered by EBIT (2.9x coverage).
Balance Sheet
Next Steps
Dividend
What is AES's current dividend yield, its reliability and sustainability?
4.33%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AES's dividend (4.33%) is higher than the bottom 25% of dividend payers in the US market (1.93%).
High Dividend: AES's dividend (4.33%) is low compared to the top 25% of dividend payers in the US market (5.46%).
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 7 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (120%), 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 (38.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.3yrs
Average management tenure
CEO
Andrés Ricardo Gluski Weilert (61yo)
8.58s
Tenure
US$10,827,886
Compensation
Mr. Andrés Ricardo Gluski Weilert has been the Chief Executive Officer and President of The AES Corporation since September 30, 2011. Mr. Weilert served as the President of AES Gener S.A. He served as the ...
CEO Compensation Analysis
Compensation vs Market: Andrés Ricardo's total compensation ($USD10.83M) is above average for companies of similar size in the US market ($USD7.52M).
Compensation vs Earnings: Andrés Ricardo's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 8.58yrs | US$10.83m | 0.22% $19.1m | |
| Executive VP & CFO | 1.42yrs | US$2.36m | 0.0084% $743.2k | |
| Executive VP & COO | 5.33yrs | US$3.29m | 0.027% $2.3m | |
| Senior VP of Global HR & Internal Communication and Chief Human Resources Officer | 5.25yrs | US$1.78m | 0.018% $1.6m | |
| Senior VP & President of South America SBU | 1.5yrs | US$2.33m | no data | |
| Senior VP of Corporate Strategy & Investment and Chief Commercial Officer | no data | no data | 0.0043% $374.7k | |
| Chief Information Digital Officer & Senior VP | 1.5yrs | no data | no data | |
| Vice President of Investor Relations | 13.08yrs | no data | no data | |
| Senior VP | 2.17yrs | no data | 0.0029% $255.9k | |
| Chief Financial Officer of Generation | 8.42yrs | no data | no data |
5.3yrs
Average Tenure
50.5yo
Average Age
Experienced Management: AES's management team is seasoned and experienced (5.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 8.58yrs | US$10.83m | 0.22% $19.1m | |
| Chairman & Lead Independent Director | 2yrs | US$467.10k | 0.0016% $145.1k | |
| Independent Director | 6.83yrs | US$270.00k | no data | |
| Independent Director | 2.25yrs | US$260.00k | no data | |
| Independent Director | 2.75yrs | US$275.84k | 0.00020% $17.6k | |
| Independent Director | 1.17yrs | US$348.11k | no data | |
| Independent Director | 5yrs | US$283.09k | no data | |
| Independent Director | 7yrs | US$270.84k | no data | |
| Independent Director | 6.33yrs | US$290.84k | no data | |
| Independent Director | 11yrs | US$263.84k | 0.00065% $57.2k |
5.7yrs
Average Tenure
62yo
Average Age
Experienced Board: AES's board of directors are considered experienced (5.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AES 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$8.795b
- Shares outstanding: 664.77m
- 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 |
| AESCHF | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | Jun 1991 |
| AES * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jun 1991 |
| A1ES34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 1 REPR 1 SHS UNSPON | BR | BRL | Jan 2020 |
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 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. It uses a range of fuels to generate electricity, including natural gas, coal, pet coke, diesel, and oil, as well as renewables, such as hydro, solar, wind, energy storage, biomass, and landfill gas. The company owns and/or operates a generation portfolio of approximately 31,792 megawatts. It has operations in the United States, El Salvador, Chile, Colombia, Argentina, Brazil, Mexico, Central America, the Caribbean, Europe, and Asia. The company was formerly known as Applied Energy Services, Inc. and changed its name to The AES Corporation in April 2000. The AES Corporation was founded in 1981 and is headquartered in Arlington, Virginia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/08 06:27 |
| End of Day Share Price | 2020/04/07 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.