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Market Cap

US$18.5b

Last Updated

2021/04/11 22:02 UTC

Data Sources

Company Financials +

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

2.4%

AES

-0.9%

US Renewable Energy

2.1%

US Market


1 Year Return

88.3%

AES

56.2%

US Renewable Energy

56.3%

US Market

Return vs Industry: AES exceeded the US Renewable Energy industry which returned 56.2% over the past year.

Return vs Market: AES exceeded the US Market which returned 56.3% over the past year.


Shareholder returns

AESIndustryMarket
7 Day2.4%-0.9%2.1%
30 Day-2.6%-5.2%2.4%
90 Day8.9%-12.4%6.1%
1 Year94.7%88.3%61.0%56.2%59.1%56.3%
3 Year170.7%144.4%72.0%57.7%65.7%55.1%
5 Year196.3%146.4%173.7%126.7%122.3%97.6%

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

Valuation

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

28.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AES ($27.72) is trading below our estimate of fair value ($38.57)

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 (428.7x) compared to the US Renewable Energy industry average (223.8x).

PE vs Market: AES is poor value based on its PE Ratio (428.7x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: AES is poor value based on its PEG Ratio (18.9x)


Price to Book Ratio

PB vs Industry: AES is overvalued based on its PB Ratio (7x) compared to the US Renewable Energy industry average (2.8x).


Future Growth

How is AES forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

22.7%

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 (18.6% per year).

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

Revenue vs Market: AES's revenue (4.2% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: AES's revenue (4.2% 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 (30.5%)


Past Performance

How has AES performed over the past 5 years?

7.6%

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 (-31.3%).


Return on Equity

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


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


Dividend

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

2.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AES's dividend (2.17%) is higher than the bottom 25% of dividend payers in the US market (1.26%).

High Dividend: AES's dividend (2.17%) is low compared to the top 25% of dividend payers in the US market (3.5%).


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 well covered by earnings (37% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Andres Ricardo Gluski Weilert (62 yo)

9.58yrs

Tenure

US$11,468,027

Compensation

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 ($USD11.47M) is about average for companies of similar size in the US market ($USD10.98M).

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 seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: AES's board of directors are considered experienced (4.9 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 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$18.520b
  • Shares outstanding: 668.11m
  • Website: https://www.aes.com

Number of Employees


Location

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

Listings


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 Analysis2021/04/11 22:02
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
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.