AEP Stock Analysis: American Electric Power | NASDAQ
Utilities - Regulated Electric | NASDAQ, USA | Market Cap: 70.429m USD | 12M Return: 10.1% | US0255371017 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 414M
EPS Trend: 94.2%
Qual. Beats: 1
Rev. Trend: 98.1%
Qual. Beats: 1
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 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 that generates, transmits, and distributes electricity to retail and wholesale customers across multiple states. The company operates through four main segments: Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing. Its generation portfolio is diversified across coal and lignite, nuclear, natural gas, renewable, hydro, solar, and wind sources, and it also owns and invests in extensive transmission infrastructure while engaging in retail energy supply and wholesale trading activities. Founded in 1906 and headquartered in Columbus, Ohio, AEP is classified within the Utilities sector and the Electric Utilities sub-industry, reflecting its regulated business model that combines regulated utility operations with competitive generation and energy marketing activities. As a large-cap utility, AEPs revenue is largely shaped by state and federal rate regulation, capital-intensive infrastructure investment, and the ongoing transition toward cleaner generation sources.
- approvals drive regulated ROE and earnings growth
- Transmission expansion projects boost rate base and revenue
- Coal plant retirements accelerate renewable capital spending
| Net Income: 3.36b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 1.47 > 1.0 |
| NWC/Revenue: -31.90% < 20% (prev -14.63%; Δ -17.27% < -1%) |
| CFO/TA 0.06 > 3% & CFO 7.50b > Net Income 3.36b |
| Net Debt (55.1b) to EBITDA (9.04b): 6.09 < 3 |
| Current Ratio: 0.51 > 1.5 & < 3 |
| Outstanding Shares: last quarter (550.1m) vs 12m ago 2.25% < -2% |
| Gross Margin: 42.90% > 18% (prev 37.10%; Δ 5.81% > 0.5%) |
| Asset Turnover: 19.79% > 50% (prev 19.45%; Δ 0.34% > 0%) |
| Interest Coverage Ratio: 2.32 > 6 (EBIT TTM 5.28b / Interest Expense TTM 2.28b) |
| A: -0.06 (Total Current Assets 7.84b - Total Current Liabilities 15.3b) / Total Assets 126b |
| B: 0.13 (Retained Earnings 16.7b / Total Assets 126b) |
| C: 0.04 (EBIT TTM 5.28b / Avg Total Assets 118b) |
| D: 0.36 (Book Value of Equity 32.9b / Total Liabilities 91.6b) |
| Altman-Z'' = 0.72 = B |
| DSRI: 1.13 (Receivables 3.49b/2.83b, Revenue 23.3b/21.4b) |
| GMI: 0.86 (GM 37.10% / 42.90%) |
| AQI: 0.97 (AQ_t 0.13 / AQ_t-1 0.14) |
| SGI: 1.09 (Revenue 23.3b / 21.4b) |
| TATA: -0.03 (NI 3.36b - CFO 7.50b) / TA 126b) |
| Beneish M = -3.00 (Cap -4..+1) = A |
As of November 02, 2026, the stock is trading at USD 130.21 with a total of 4,593,907 shares traded. Over the past week, the price has changed by +0.40%, over one month by +9.15%, over three months by +2.68% and over the past year by +10.14%.
Current recommended Stop Loss: 127.00 (which is 2.5% or 1.4 ATR below the current price).
American Electric Power has received a consensus analysts rating of 4.21. Therefore, it is recommended to buy AEP.
- StrongBuy: 13
- Buy: 3
- Hold: 8
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 141.5 | 8.7% |
P/E Trailing = 21.134
P/E Forward = 18.622
P/S = 2.9827
P/B = 2.1299
P/EG = 2.7771
Revenue TTM = 23.3b USD
EBIT TTM = 5.28b USD
EBITDA TTM = 9.04b USD
Long Term Debt = 49.9b USD (from longTermDebt, last quarter)
Short Term Debt = 4.65b USD (from shortTermDebt, last quarter)
Debt = 55.8b USD (from shortLongTermDebtTotal, last quarter) + Leases 679.0m
Net Debt = 55.1b USD (calculated: Debt 55.8b - CCE 670.0m)
Enterprise Value = 126b USD (70.4b + Debt 55.8b - CCE 670.0m)
Interest Coverage Ratio = 2.32 (Ebit TTM 5.28b / Interest Expense TTM 2.28b)
EV/FCF = 20.89x (Enterprise Value 126b / FCF TTM 6.01b)
FCF Yield = 4.79% (FCF TTM 6.01b / Enterprise Value 126b)
FCF Margin = 25.74% (FCF TTM 6.01b / Revenue TTM 23.3b)
Net Margin = 14.38% (Net Income TTM 3.36b / Revenue TTM 23.3b)
Gross Margin = 42.90% ((Revenue TTM 23.3b - Cost of Revenue TTM 13.3b) / Revenue TTM)
Gross Margin QoQ = 26.52% (prev 70.56%)
Tobins Q-Ratio = 1.00 (Enterprise Value 126b / Total Assets 126b)
Interest Expense / Debt = 4.08% (Interest Expense 2.28b / Debt 55.8b)
Taxrate = 9.54% (357.8m / 3.75b)
NOPAT = 4.78b (EBIT 5.28b * (1 - 9.54%))
Current Ratio = 0.51 (Total Current Assets 7.84b / Total Current Liabilities 15.3b)
Debt / Equity = 1.70 (Debt 55.8b / totalStockholderEquity, last quarter 32.9b)
Debt / EBITDA = 6.09 (Net Debt 55.1b / EBITDA 9.04b)
Debt / FCF = 9.17 (Net Debt 55.1b / FCF TTM 6.01b)
Total Stockholder Equity = 32.0b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.84% (Net Income 3.36b / Total Assets 126b)
RoE = 10.49% (Net Income TTM 3.36b / Total Stockholder Equity 32.0b)
RoCE = 6.45% (EBIT 5.28b / Capital Employed (Equity 32.0b + L.T.Debt 49.9b))
RoIC = 4.18% (NOPAT 4.78b / Invested Capital 114b)
WACC = 4.67% (E(70.4b)/V(126b) * Re(5.44%) + D(55.8b)/V(126b) * Rd(4.08%) * (1-Tc(0.10)))
Discount Rate = 5.44% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 63.84 | Cagr: 1.66%
[DCF] Terminal Value 77.97% ; FCFF base≈5.06b ; Y1≈5.80b ; Y5≈8.54b
[DCF] Fair Price = 134.8 (EV 129b - Net Debt 55.1b = Equity 73.4b / Shares 544.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 94.21 | EPS CAGR: 6.30% | SUE: 2.08 | # QB: 1
Revenue Correlation: 98.06 | Revenue CAGR: 6.91% | SUE: 1.14 | # QB: 1
EPS current Quarter (2027-03-31): EPS=1.74 | Chg30d=+2.01% | Revisions=+0% | Analysts=7
EPS current Year (2026-12-31): EPS=6.43 | Chg30d=+0.73% | Revisions=+57% | GrowthEPS=+7.7% | GrowthRev=+8.5%
EPS next Year (2027-12-31): EPS=6.89 | Chg30d=+0.42% | Revisions=+40% | GrowthEPS=+7.1% | GrowthRev=+5.0%
[Analyst] Revisions Ratio: +67% (up=6, down=0)