Overview Dividends

(AEP) American Electric Power - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US0255371017

Electricity, Transmission, Distribution, Generation

AEP EPS (Earnings per Share)

EPS Growth (3Y CAGR): -55.79%
EPS Trend (3Y Correlation): -25.4%

AEP Revenue

Revenue Growth (3Y CAGR): -2.96%
Revenue Trend (3Y Correlation): 11.6%

Description: AEP American Electric Power

American Electric Power Company, Inc. (AEP) is a vertically integrated U.S. utility that generates, transmits, and distributes electricity to both retail and wholesale customers. Its business is organized into four segments: Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing. The firm’s generation mix includes coal, lignite, natural gas, nuclear, hydro, solar, wind, and other sources, and it also conducts wholesale energy trading.

Key operational metrics (as of the latest 10-K) show roughly 225,000 circuit miles of distribution lines serving 5.6 million customers, about 40,000 circuit miles of high-voltage transmission lines, and 23,000 MW of regulated owned generation capacity. AEP’s regulated earnings per share (EPS) have historically been insulated from commodity price swings, but its non-regulated generation and trading arms are increasingly exposed to natural-gas price volatility and the broader shift toward renewable energy-trends that are accelerating as states adopt stricter carbon-reduction targets and as the U.S. Federal Energy Regulatory Commission (FERC) moves toward more market-based pricing for transmission services.

For a deeper quantitative assessment of AEP’s valuation dynamics and how its exposure to renewable-energy policy and gas-price risk compares to peers, you may find a focused analysis on ValueRay worthwhile.

AEP Stock Overview

Market Cap in USD	62,592m
Sub-Industry	Electric Utilities
IPO / Inception	1970-01-02

AEP Stock Ratings

Growth Rating	78.5%
Fundamental	57.7%
Dividend Rating	63.5%
Return 12m vs S&P 500	4.75%
Analyst Rating	3.29 of 5

AEP Dividends

Dividend Yield 12m	3.16%
Yield on Cost 5y	4.85%
Annual Growth 5y	5.89%
Payout Consistency	96.5%
Payout Ratio	61.4%

AEP Growth Ratios

Growth Correlation 3m	32.5%
Growth Correlation 12m	87.1%
Growth Correlation 5y	73.6%
CAGR 5y	15.58%
CAGR/Max DD 3y (Calmar Ratio)	0.61
CAGR/Mean DD 3y (Pain Ratio)	2.05
Sharpe Ratio 12m	1.18
Alpha	10.57
Beta	0.464
Volatility	18.30%
Current Volume	2989.4k
Average Volume 20d	3190k
Stop Loss	114.2 (-3.1%)
Signal	0.02

Piotroski VR‑10 (Strict, 0-10) 4.0

Net Income (3.65b TTM) > 0 and > 6% of Revenue (6% = 1.26b TTM)

FCFTA 0.02 (>2.0%) and ΔFCFTA 2.73pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -24.48% (prev -17.76%; Δ -6.72pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.06 (>3.0%) and CFO 6.57b > Net Income 3.65b (YES >=105%, WARN >=100%)

Net Debt (46.40b) to EBITDA (8.89b) ratio: 5.22 <= 3.0 (WARN <= 3.5)

Current Ratio 0.55 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (536.4m) change vs 12m ago 1.19% (target <= -2.0% for YES)

Gross Margin 33.24% (prev 29.47%; Δ 3.78pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 20.17% (prev 19.84%; Δ 0.33pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 2.85 (EBITDA TTM 8.89b / Interest Expense TTM 1.94b) >= 6 (WARN >= 3)

Altman Z'' 0.75

(A) -0.05 = (Total Current Assets 6.32b - Total Current Liabilities 11.44b) / Total Assets 107.78b

(B) 0.14 = Retained Earnings (Balance) 14.90b / Total Assets 107.78b

(D) 0.24 = Book Value of Equity 18.37b / Total Liabilities 76.81b

Total Rating: 0.75 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 57.67

1. Piotroski 4.0pt = -1.0

2. FCF Yield 1.97% = 0.99

3. FCF Margin 10.24% = 2.56

4. Debt/Equity 1.56 = 1.39

5. Debt/Ebitda 5.22 = -2.50

6. ROIC - WACC (= 4.42)% = 5.53

7. RoE 13.18% = 1.10

8. Rev. Trend 11.63% = 0.87

9. EPS Trend -25.40% = -1.27

What is the price of AEP shares?

As of October 21, 2025, the stock is trading at USD 117.82 with a total of 2,989,386 shares traded.
Over the past week, the price has changed by +0.87%, over one month by +10.06%, over three months by +9.44% and over the past year by +21.96%.

Is American Electric Power a good stock to buy?

Neither. Based on ValueRay´s Fundamental Analyses, American Electric Power is currently (October 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 57.67 and therefor a neutral outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of AEP is around 126.90 USD . This means that AEP is currently overvalued and has a potential downside of 7.71%.

Is AEP a buy, sell or hold?

American Electric Power has received a consensus analysts rating of 3.29. Therefor, it is recommend to hold AEP.

Strong Buy: 2
Buy: 4
Hold: 14
Sell: 0
Strong Sell: 1

What are the forecasts/targets for the AEP price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	116.2	-1.3%
Analysts Target Price	116.2	-1.3%
ValueRay Target Price	137	16.3%

Last update: 2025-10-13 02:04

AEP Fundamental Data Overview

Market Cap USD = 62.59b (62.59b USD * 1.0 USD.USD)
P/E Trailing = 17.1613
P/E Forward = 18.1159
P/S = 3.0287
P/B = 2.0313
P/EG = 2.3459
Beta = 0.464
Revenue TTM = 20.92b USD
EBIT TTM = 5.53b USD
EBITDA TTM = 8.89b USD
Long Term Debt = 41.31b USD (from longTermDebt, last quarter)
Short Term Debt = 4.80b USD (from shortTermDebt, last quarter)
Debt = 46.62b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 46.40b USD (from netDebt column, last quarter)
Enterprise Value = 108.78b USD (62.59b + Debt 46.62b - CCE 439.3m)
Interest Coverage Ratio = 2.85 (Ebit TTM 5.53b / Interest Expense TTM 1.94b)
FCF Yield = 1.97% (FCF TTM 2.14b / Enterprise Value 108.78b)
FCF Margin = 10.24% (FCF TTM 2.14b / Revenue TTM 20.92b)
Net Margin = 17.45% (Net Income TTM 3.65b / Revenue TTM 20.92b)
Gross Margin = 33.24% ((Revenue TTM 20.92b - Cost of Revenue TTM 13.96b) / Revenue TTM)
Gross Margin QoQ = 34.68% (prev 33.32%)
Tobins Q-Ratio = 1.01 (Enterprise Value 108.78b / Total Assets 107.78b)
Interest Expense / Debt = 1.05% (Interest Expense 490.7m / Debt 46.62b)
Taxrate = -24.19% (negative due to tax credits) (-250.9m / 1.04b)
NOPAT = 6.86b (EBIT 5.53b * (1 - -24.19%)) [negative tax rate / tax credits]
Current Ratio = 0.55 (Total Current Assets 6.32b / Total Current Liabilities 11.44b)
Debt / Equity = 1.56 (Debt 46.62b / totalStockholderEquity, last quarter 29.87b)
Debt / EBITDA = 5.22 (Net Debt 46.40b / EBITDA 8.89b)
Debt / FCF = 21.65 (Net Debt 46.40b / FCF TTM 2.14b)
Total Stockholder Equity = 27.69b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.39% (Net Income 3.65b / Total Assets 107.78b)
RoE = 13.18% (Net Income TTM 3.65b / Total Stockholder Equity 27.69b)
RoCE = 8.01% (EBIT 5.53b / Capital Employed (Equity 27.69b + L.T.Debt 41.31b))
RoIC = 9.40% (NOPAT 6.86b / Invested Capital 72.98b)
WACC = 4.98% (E(62.59b)/V(109.22b) * Re(7.72%) + D(46.62b)/V(109.22b) * Rd(1.05%) * (1-Tc(-0.24)))
Discount Rate = 7.72% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: 100.0 | Cagr: 1.19%
[DCF Debug] Terminal Value 72.00% ; FCFE base≈2.14b ; Y1≈1.51b ; Y5≈793.2m
Fair Price DCF = 28.53 (DCF Value 15.26b / Shares Outstanding 534.8m; 5y FCF grow -34.76% → 3.0% )
EPS Correlation: -25.40 | EPS CAGR: -55.79% | SUE: -4.0 | # QB: 0
Revenue Correlation: 11.63 | Revenue CAGR: -2.96% | SUE: 0.42 | # QB: 0

Additional Sources for AEP Stock

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Fund Manager Positions: Dataroma | Stockcircle