(AEP) American Electric Power - Overview
Stock: Electricity, Transmission, Distribution, Generation
| Risk 5d forecast | |
|---|---|
| Volatility | 18.9% |
| Relative Tail Risk | -3.52% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.14 |
| Alpha | 24.84 |
| Character TTM | |
|---|---|
| Beta | -0.012 |
| Beta Downside | -0.082 |
| Drawdowns 3y | |
|---|---|
| Max DD | 23.36% |
| CAGR/Max DD | 0.85 |
EPS (Earnings per Share)
Revenue
Description: AEP American Electric Power February 25, 2026
American Electric Power (AEP) is a vertically integrated electric utility that generates, transmits, and distributes electricity across the United States. Its operations span four segments-Vertically Integrated Utilities, Transmission & Distribution Utilities, AEP Transmission HoldCo, and Generation & Marketing-leveraging a diversified generation mix that includes coal, nuclear, natural gas, renewables, hydro, solar, and wind. The company maintains roughly 252,000 circuit miles of distribution lines, 38,000 circuit miles of transmission lines, and 25,000 MW of regulated owned generating capacity.
In its most recent fiscal year (2023), AEP reported adjusted earnings per share of $5.46 and a dividend yield of about 3.5%, reflecting its commitment to stable cash flow for shareholders. Capital expenditures rose to $5.2 billion, driven largely by investments in grid modernization and renewable-energy projects, while regulated earnings grew 4% year-over-year, supported by inflation-linked rate cases. The broader utility sector is being shaped by the Inflation Reduction Act’s clean-energy incentives and a gradual shift toward decarbonization, which is prompting AEP to accelerate its renewable-capacity additions and demand-response programs.
For a deeper dive into AEP’s valuation metrics and how its strategic initiatives stack up against peers, consider exploring the analysis on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income: 3.58b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 6.75 > 1.0 |
| NWC/Revenue: -33.34% < 20% (prev -36.25%; Δ 2.92% < -1%) |
| CFO/TA 0.06 > 3% & CFO 6.94b > Net Income 3.58b |
| Net Debt (49.97b) to EBITDA (8.79b): 5.69 < 3 |
| Current Ratio: 0.45 > 1.5 & < 3 |
| Outstanding Shares: last quarter (520.2m) vs 12m ago -2.10% < -2% |
| Gross Margin: 31.81% > 18% (prev 0.31%; Δ 3150 % > 0.5%) |
| Asset Turnover: 19.77% > 50% (prev 19.32%; Δ 0.45% > 0%) |
| Interest Coverage Ratio: 2.61 > 6 (EBITDA TTM 8.79b / Interest Expense TTM 2.03b) |
Altman Z'' 0.58
| A: -0.06 (Total Current Assets 6.05b - Total Current Liabilities 13.31b) / Total Assets 117.25b |
| B: 0.13 (Retained Earnings 15.44b / Total Assets 117.25b) |
| C: 0.05 (EBIT TTM 5.30b / Avg Total Assets 110.16b) |
| D: 0.22 (Book Value of Equity 19.00b / Total Liabilities 84.99b) |
| Altman-Z'' Score: 0.58 = B |
Beneish M -2.94
| DSRI: 1.00 (Receivables 2.87b/2.63b, Revenue 21.78b/19.92b) |
| GMI: 0.98 (GM 31.81% / 31.30%) |
| AQI: 1.12 (AQ_t 0.15 / AQ_t-1 0.14) |
| SGI: 1.09 (Revenue 21.78b / 19.92b) |
| TATA: -0.03 (NI 3.58b - CFO 6.94b) / TA 117.25b) |
| Beneish M-Score: -2.94 (Cap -4..+1) = A |
What is the price of AEP shares?
Over the past week, the price has changed by +4.08%, over one month by +13.12%, over three months by +9.81% and over the past year by +27.16%.
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 | 133 | 0.4% |
| Analysts Target Price | 133 | 0.4% |
AEP Fundamental Data Overview February 24, 2026
P/E Forward = 18.1159
P/S = 3.1985
P/B = 2.0313
P/EG = 2.3459
Revenue TTM = 21.78b USD
EBIT TTM = 5.30b USD
EBITDA TTM = 8.79b USD
Long Term Debt = 44.13b USD (from longTermDebt, last quarter)
Short Term Debt = 4.84b USD (from shortTermDebt, last quarter)
Debt = 50.24b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 49.97b USD (from netDebt column, last quarter)
Enterprise Value = 119.72b USD (69.97b + Debt 50.24b - CCE 488.0m)
Interest Coverage Ratio = 2.61 (Ebit TTM 5.30b / Interest Expense TTM 2.03b)
EV/FCF = 17.57x (Enterprise Value 119.72b / FCF TTM 6.81b)
FCF Yield = 5.69% (FCF TTM 6.81b / Enterprise Value 119.72b)
FCF Margin = 31.28% (FCF TTM 6.81b / Revenue TTM 21.78b)
Net Margin = 16.43% (Net Income TTM 3.58b / Revenue TTM 21.78b)
Gross Margin = 31.81% ((Revenue TTM 21.78b - Cost of Revenue TTM 14.85b) / Revenue TTM)
Gross Margin QoQ = 9.10% (prev 47.04%)
Tobins Q-Ratio = 1.02 (Enterprise Value 119.72b / Total Assets 117.25b)
Interest Expense / Debt = 1.06% (Interest Expense 534.5m / Debt 50.24b)
Taxrate = 18.44% (136.8m / 742.0m)
NOPAT = 4.32b (EBIT 5.30b * (1 - 18.44%))
Current Ratio = 0.45 (Total Current Assets 6.05b / Total Current Liabilities 13.31b)
Debt / Equity = 1.61 (Debt 50.24b / totalStockholderEquity, last quarter 31.14b)
Debt / EBITDA = 5.69 (Net Debt 49.97b / EBITDA 8.79b)
Debt / FCF = 7.33 (Net Debt 49.97b / FCF TTM 6.81b)
Total Stockholder Equity = 29.68b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.25% (Net Income 3.58b / Total Assets 117.25b)
RoE = 12.06% (Net Income TTM 3.58b / Total Stockholder Equity 29.68b)
RoCE = 7.18% (EBIT 5.30b / Capital Employed (Equity 29.68b + L.T.Debt 44.13b))
RoIC = 5.63% (NOPAT 4.32b / Invested Capital 76.80b)
WACC = 3.78% (E(69.97b)/V(120.21b) * Re(5.87%) + D(50.24b)/V(120.21b) * Rd(1.06%) * (1-Tc(0.18)))
Discount Rate = 5.87% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: -33.33 | Cagr: -0.35%
[DCF] Terminal Value 80.82% ; FCFF base≈6.81b ; Y1≈4.47b ; Y5≈2.04b
[DCF] Fair Price = 27.84 (EV 65.03b - Net Debt 49.97b = Equity 15.06b / Shares 540.9m; r=5.90% [WACC]; 5y FCF grow -40.0% → 2.90% )
EPS Correlation: 39.97 | EPS CAGR: -0.66% | SUE: 0.60 | # QB: 0
Revenue Correlation: 49.04 | Revenue CAGR: 3.47% | SUE: 0.55 | # QB: 0
EPS next Quarter (2026-03-31): EPS=1.56 | Chg7d=-0.029 | Chg30d=-0.006 | Revisions Net=-1 | Analysts=8
EPS current Year (2026-12-31): EPS=6.33 | Chg7d=+0.002 | Chg30d=+0.010 | Revisions Net=+5 | Growth EPS=+6.0% | Growth Revenue=+6.8%
EPS next Year (2027-12-31): EPS=6.82 | Chg7d=-0.002 | Chg30d=+0.014 | Revisions Net=+8 | Growth EPS=+7.8% | Growth Revenue=+6.1%
[Analyst] Revisions Ratio: -0.20 (2 Up / 3 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = 2.8% (Discount Rate 7.9% - Earnings Yield 5.1%)
[Growth] Growth Spread = -2.5% (Analyst 0.4% - Implied 2.8%)