AEP Stock Analysis: American Electric Power | NASDAQ
Utilities - Regulated Electric | NASDAQ, USA | Market Cap: 64.947m USD | 12M Return: 8.7% | US0255371017 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 468M
EPS Trend: 93.7%
Qual. Beats: -1
Rev. Trend: 96.1%
Qual. Beats: 0
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: 3.14b 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: 1.04 (AQ_t 0.14 / 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 = -3.23 (Cap -4..+1) = AA |
As of October 03, 2026, the stock is trading at USD 119.57 with a total of 5,531,786 shares traded. Over the past week, the price has changed by +1.03%, over one month by -3.24%, over three months by -13.02% and over the past year by +8.65%.
Current recommended Stop Loss: 115.00 (which is 3.8% or 2.3 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 | 143 | 19.6% |
P/E Trailing = 20.6401
P/E Forward = 17.2414
P/S = 2.8497
P/B = 2.0093
P/EG = 2.004
Revenue TTM = 22.5b USD
EBIT TTM = 4.98b USD
EBITDA TTM = 8.60b USD
Long Term Debt = 48.0b USD (from longTermDebt, last quarter)
Short Term Debt = 4.94b USD (from shortTermDebt, last quarter)
Debt = 54.2b USD (from shortLongTermDebtTotal, last quarter) + Leases 662.0m
Net Debt = 53.6b USD (calculated: Debt 54.2b - CCE 603.0m)
Enterprise Value = 119b USD (64.9b + Debt 54.2b - CCE 603.0m)
Interest Coverage Ratio = 2.29 (Ebit TTM 4.98b / Interest Expense TTM 2.18b)
EV/FCF = 13.23x (Enterprise Value 119b / FCF TTM 8.96b)
FCF Yield = 7.56% (FCF TTM 8.96b / Enterprise Value 119b)
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 = 0.97 (Enterprise Value 119b / Total Assets 122b)
Interest Expense / Debt = 4.03% (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 = 1.68 (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 = 6.28% (EBIT 4.98b / Capital Employed (Equity 31.4b + L.T.Debt 48.0b))
RoIC = 4.02% (NOPAT 4.49b / Invested Capital 112b)
WACC = 4.81% (E(64.9b)/V(119b) * Re(5.79%) + D(54.2b)/V(119b) * Rd(4.03%) * (1-Tc(0.10)))
Discount Rate = 5.79% (= 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 544.4m; 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=1.91 | Chg30d=+0.00% | Revisions=+55% | Analysts=13
EPS current Year (2026-12-31): EPS=6.38 | Chg30d=+0.10% | Revisions=+44% | GrowthEPS=+6.9% | GrowthRev=+7.7%
EPS next Year (2027-12-31): EPS=6.86 | Chg30d=+0.05% | Revisions=+44% | GrowthEPS=+7.4% | GrowthRev=+6.7%
[Analyst] Revisions Ratio: +61% (up=17, down=3)