AEP Stock Analysis: American Electric Power | NASDAQ
Utilities - Regulated Electric | NASDAQ, USA | Market Cap: 69.526m USD | 12M Return: 15.1% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 524M
EPS Trend: 93.7%
Qual. Beats: -1
Rev. Trend: 96.1%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
American Electric Power Company, Inc. (AEP) is a U.S. electric public utility holding company headquartered in Columbus, Ohio, that generates, transmits, and distributes electricity to retail and wholesale customers. Founded in 1906 and listed on NASDAQ since 1970, AEP operates through four segments: Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing. Its generation portfolio includes coal and lignite, nuclear, natural gas, renewable, hydro, solar, and wind sources, supported by an extensive grid of distribution and transmission lines and a sizable regulated owned generating capacity base.
As a Large Cap member of the Utilities sector (GICS Sub Industry: Electric Utilities), AEP operates in a capital-intensive, rate-regulated industry where returns are largely determined by regulators in the states it serves. The mix of regulated transmission and distribution assets alongside merchant-style generation and marketing activities is typical of multi-state U.S. electric utilities that combine stable, rate-based earnings with exposure to competitive wholesale power markets.
- Regulated rate base growth targets 9% supporting EPS expansion
- Transmission Holdco invests billions in grid modernization
- Data center load growth accelerates retail electricity demand
| Net Income: 3.14b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 5.38 > 1.0 |
| NWC/Revenue: -31.18% < 20% (prev -24.48%; Δ -6.69% < -1%) |
| CFO/TA 0.06 > 3% & CFO 7.61b > Net Income 3.14b |
| Net Debt (53.6b) to EBITDA (8.60b): 6.23 < 3 |
| Current Ratio: 0.50 > 1.5 & < 3 |
| Outstanding Shares: last quarter (550.6m) vs 12m ago 2.65% < -2% |
| Gross Margin: 48.98% > 18% (prev 33.24%; Δ 15.73% > 0.5%) |
| Asset Turnover: 19.64% > 50% (prev 19.41%; Δ 0.23% > 0%) |
| Interest Coverage Ratio: 2.29 > 6 (EBIT TTM 4.98b / Interest Expense TTM 2.18b) |
| A: -0.06 (Total Current Assets 7.13b - Total Current Liabilities 14.2b) / Total Assets 122b |
| B: 0.13 (Retained Earnings 16.0b / Total Assets 122b) |
| C: 0.04 (EBIT TTM 4.98b / Avg Total Assets 115b) |
| D: 0.36 (Book Value of Equity 32.1b / Total Liabilities 88.2b) |
| Altman-Z'' = 0.72 = B |
| DSRI: 1.01 (Receivables 3.04b/2.80b, Revenue 22.5b/20.9b) |
| GMI: 0.68 (GM 33.24% / 48.98%) |
| AQI: 1.08 (AQ_t 0.15 / AQ_t-1 0.13) |
| SGI: 1.08 (Revenue 22.5b / 20.9b) |
| TATA: -0.04 (NI 3.14b - CFO 7.61b) / TA 122b) |
| Beneish M = -3.21 (Cap -4..+1) = AA |
As of August 04, 2026, the stock is trading at USD 128.32 with a total of 4,880,551 shares traded. Over the past week, the price has changed by -3.94%, over one month by -5.63%, over three months by -4.02% and over the past year by +15.12%.
Current recommended Stop Loss: 123.10 (which is 4.1% or 1.9 ATR below the current price).
American Electric Power has received a consensus analysts rating of 3.29. Therefore, it is recommended to hold AEP.
- StrongBuy: 2
- Buy: 4
- Hold: 14
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 145.7 | 13.5% |
P/E Trailing = 19.1574
P/E Forward = 20.284
P/S = 3.0993
P/B = 2.2135
P/EG = 2.2046
Revenue TTM = 22.5b USD
EBIT TTM = 4.98b USD
EBITDA TTM = 8.60b USD
Long Term Debt = 44.1b USD (from longTermDebt, last fiscal year)
Short Term Debt = 4.94b USD (from shortTermDebt, last quarter)
Debt = 54.2b USD (from shortLongTermDebtTotal, last quarter) + Leases 667.0m
Net Debt = 53.6b USD (calculated: Debt 54.2b - CCE 603.0m)
Enterprise Value = 123b USD (69.5b + Debt 54.2b - CCE 603.0m)
Interest Coverage Ratio = 2.29 (Ebit TTM 4.98b / Interest Expense TTM 2.18b)
EV/FCF = 13.74x (Enterprise Value 123b / FCF TTM 8.96b)
FCF Yield = 7.28% (FCF TTM 8.96b / Enterprise Value 123b)
FCF Margin = 39.78% (FCF TTM 8.96b / Revenue TTM 22.5b)
Net Margin = 13.95% (Net Income TTM 3.14b / Revenue TTM 22.5b)
Gross Margin = 48.98% ((Revenue TTM 22.5b - Cost of Revenue TTM 11.5b) / Revenue TTM)
Gross Margin QoQ = 70.56% (prev 64.82%)
Tobins Q-Ratio = 1.01 (Enterprise Value 123b / Total Assets 122b)
Interest Expense / Debt = 4.02% (Interest Expense 2.18b / Debt 54.2b)
Taxrate = 9.87% (350.4m / 3.55b)
NOPAT = 4.49b (EBIT 4.98b * (1 - 9.87%))
Current Ratio = 0.50 (Total Current Assets 7.13b / Total Current Liabilities 14.2b)
Debt / Equity = 1.69 (Debt 54.2b / totalStockholderEquity, last quarter 32.1b)
Debt / EBITDA = 6.23 (Net Debt 53.6b / EBITDA 8.60b)
Debt / FCF = 5.98 (Net Debt 53.6b / FCF TTM 8.96b)
Total Stockholder Equity = 31.4b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.74% (Net Income 3.14b / Total Assets 122b)
RoE = 10.01% (Net Income TTM 3.14b / Total Stockholder Equity 31.4b)
RoCE = 6.60% (EBIT 4.98b / Capital Employed (Equity 31.4b + L.T.Debt 44.1b))
RoIC = 4.02% (NOPAT 4.49b / Invested Capital 112b)
WACC = 4.76% (E(69.5b)/V(124b) * Re(5.65%) + D(54.2b)/V(124b) * Rd(4.02%) * (1-Tc(0.10)))
Discount Rate = 5.65% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 57.80 | Cagr: 1.92%
[DCF] Terminal Value 77.97% ; FCFF base≈6.23b ; Y1≈7.14b ; Y5≈10.5b
[DCF] Fair Price = 192.3 (EV 158b - Net Debt 53.6b = Equity 105b / Shares 544.1m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 93.72 | EPS CAGR: 6.59% | SUE: -2.09 | # QB: -1
Revenue Correlation: 96.08 | Revenue CAGR: 5.79% | SUE: 0.42 | # QB: 0
EPS current Quarter (2026-09-30): EPS=1.90 | Chg30d=-3.19% | Revisions=+18% | Analysts=14
EPS current Year (2026-12-31): EPS=6.35 | Chg30d=-0.08% | Revisions=+0% | GrowthEPS=+6.4% | GrowthRev=+6.3%
EPS next Year (2027-12-31): EPS=6.85 | Chg30d=-0.16% | Revisions=+50% | GrowthEPS=+7.8% | GrowthRev=+7.2%
[Analyst] Revisions Ratio: +31% (up=9, down=4)