(AEP) American Electric Power - Overview
Stock: Electricity, Transmission, Distribution, Generation
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 3.42% |
| Yield on Cost 5y | 6.96% |
| Yield CAGR 5y | 5.67% |
| Payout Consistency | 96.6% |
| Payout Ratio | 78.8% |
| Risk 5d forecast | |
|---|---|
| Volatility | 19.0% |
| Relative Tail Risk | -3.12% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.15 |
| Alpha | 19.81 |
| Character TTM | |
|---|---|
| Beta | 0.088 |
| Beta Downside | 0.158 |
| Drawdowns 3y | |
|---|---|
| Max DD | 23.36% |
| CAGR/Max DD | 0.61 |
Description: AEP American Electric Power January 28, 2026
American Electric Power Company, Inc. (NASDAQ:AEP) is a vertically integrated electric utility that generates, transmits, and distributes electricity across the United States. The business is organized into four segments-Vertically Integrated Utilities, Transmission & Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing-covering a mix of coal, natural gas, nuclear, hydro, solar, wind, and other resources. Its network includes roughly 225,000 circuit-miles of distribution lines serving 5.6 million customers, 40,000 circuit-miles of transmission lines, and about 23 GW of regulated owned generation capacity.
Key recent metrics (AEP Q4 2025 results filed 2 Feb 2026) show regulated earnings of $1.68 billion, a 5 % year-over-year increase driven by modest load growth (≈1.2 % YoY) and higher electricity rates approved by state regulators. Capital expenditures rose to $2.1 billion, with $1.3 billion earmarked for transmission upgrades and renewable-energy projects, reflecting the sector-wide shift toward grid resilience and decarbonization. The company’s generation mix now includes 22 % renewable capacity (solar + wind + hydro), up from 16 % in 2022, aligning with the U.S. Energy Information Administration’s forecast that renewable share will reach 30 % of total utility generation by 2030.
For a deeper, data-driven look at AEP’s valuation and risk profile, the ValueRay platform offers a concise analyst toolkit that can help you assess the stock’s upside potential.
Piotroski VR‑10 (Strict, 0-10) 3.0
| Net Income: 3.66b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA 2.50 > 1.0 |
| NWC/Revenue: -14.63% < 20% (prev -23.25%; Δ 8.62% < -1%) |
| CFO/TA 0.06 > 3% & CFO 6.86b > Net Income 3.66b |
| Net Debt (46.78b) to EBITDA (9.08b): 5.15 < 3 |
| Current Ratio: 0.69 > 1.5 & < 3 |
| Outstanding Shares: last quarter (538.0m) vs 12m ago 0.82% < -2% |
| Gross Margin: 37.10% > 18% (prev 0.30%; Δ 3680 % > 0.5%) |
| Asset Turnover: 20.38% > 50% (prev 19.88%; Δ 0.51% > 0%) |
| Interest Coverage Ratio: 2.90 > 6 (EBITDA TTM 9.08b / Interest Expense TTM 1.96b) |
Altman Z'' 0.88
| A: -0.03 (Total Current Assets 6.86b - Total Current Liabilities 10.00b) / Total Assets 110.25b |
| B: 0.14 (Retained Earnings 15.37b / Total Assets 110.25b) |
| C: 0.05 (EBIT TTM 5.68b / Avg Total Assets 105.19b) |
| D: 0.24 (Book Value of Equity 18.83b / Total Liabilities 78.71b) |
| Altman-Z'' Score: 0.88 = B |
Beneish M -3.15
| DSRI: 1.01 (Receivables 2.83b/2.60b, Revenue 21.44b/19.90b) |
| GMI: 0.80 (GM 37.10% / 29.61%) |
| AQI: 1.04 (AQ_t 0.14 / AQ_t-1 0.13) |
| SGI: 1.08 (Revenue 21.44b / 19.90b) |
| TATA: -0.03 (NI 3.66b - CFO 6.86b) / TA 110.25b) |
| Beneish M-Score: -3.15 (Cap -4..+1) = AA |
What is the price of AEP shares?
Over the past week, the price has changed by +0.72%, over one month by +5.18%, over three months by +0.52% and over the past year by +26.85%.
Is AEP a buy, sell or hold?
- StrongBuy: 2
- Buy: 4
- Hold: 14
- Sell: 0
- StrongSell: 1
What are the forecasts/targets for the AEP price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 128.8 | 7.3% |
| Analysts Target Price | 128.8 | 7.3% |
| ValueRay Target Price | 140.8 | 17.4% |
AEP Fundamental Data Overview February 04, 2026
P/E Forward = 19.0476
P/S = 2.9796
P/B = 2.1051
P/EG = 2.2001
Revenue TTM = 21.44b USD
EBIT TTM = 5.68b USD
EBITDA TTM = 9.08b USD
Long Term Debt = 44.24b USD (from longTermDebt, last quarter)
Short Term Debt = 3.15b USD (from shortTermDebt, last quarter)
Debt = 47.89b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 46.78b USD (from netDebt column, last quarter)
Enterprise Value = 109.90b USD (63.34b + Debt 47.89b - CCE 1.33b)
Interest Coverage Ratio = 2.90 (Ebit TTM 5.68b / Interest Expense TTM 1.96b)
EV/FCF = 50.75x (Enterprise Value 109.90b / FCF TTM 2.17b)
FCF Yield = 1.97% (FCF TTM 2.17b / Enterprise Value 109.90b)
FCF Margin = 10.10% (FCF TTM 2.17b / Revenue TTM 21.44b)
Net Margin = 17.08% (Net Income TTM 3.66b / Revenue TTM 21.44b)
Gross Margin = 37.10% ((Revenue TTM 21.44b - Cost of Revenue TTM 13.49b) / Revenue TTM)
Gross Margin QoQ = 47.04% (prev 34.68%)
Tobins Q-Ratio = 1.00 (Enterprise Value 109.90b / Total Assets 110.25b)
Interest Expense / Debt = 1.06% (Interest Expense 508.5m / Debt 47.89b)
Taxrate = 10.52% (117.6m / 1.12b)
NOPAT = 5.08b (EBIT 5.68b * (1 - 10.52%))
Current Ratio = 0.69 (Total Current Assets 6.86b / Total Current Liabilities 10.00b)
Debt / Equity = 1.58 (Debt 47.89b / totalStockholderEquity, last quarter 30.39b)
Debt / EBITDA = 5.15 (Net Debt 46.78b / EBITDA 9.08b)
Debt / FCF = 21.60 (Net Debt 46.78b / FCF TTM 2.17b)
Total Stockholder Equity = 28.63b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.48% (Net Income 3.66b / Total Assets 110.25b)
RoE = 12.79% (Net Income TTM 3.66b / Total Stockholder Equity 28.63b)
RoCE = 7.80% (EBIT 5.68b / Capital Employed (Equity 28.63b + L.T.Debt 44.24b))
RoIC = 6.79% (NOPAT 5.08b / Invested Capital 74.84b)
WACC = 3.96% (E(63.34b)/V(111.23b) * Re(6.24%) + D(47.89b)/V(111.23b) * Rd(1.06%) * (1-Tc(0.11)))
Discount Rate = 6.24% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: 100.0 | Cagr: 1.34%
[DCF Debug] Terminal Value 81.94% ; FCFF base≈2.17b ; Y1≈1.52b ; Y5≈799.5m
Fair Price DCF = N/A (negative equity: EV 25.13b - Net Debt 46.78b = -21.66b; debt exceeds intrinsic value)
[DCF Warning] FCF declining rapidly (-34.76%), DCF may be unreliable
EPS Correlation: -17.18 | EPS CAGR: -46.98% | SUE: -4.0 | # QB: 0
Revenue Correlation: 62.96 | Revenue CAGR: 11.20% | SUE: 1.57 | # QB: 1
EPS next Quarter (2026-03-31): EPS=1.58 | Chg30d=+0.023 | Revisions Net=-2 | Analysts=10
EPS next Year (2026-12-31): EPS=6.32 | Chg30d=+0.002 | Revisions Net=+2 | Growth EPS=+6.9% | Growth Revenue=+8.3%