(AEP) American Electric Power - Overview
Sector: Utilities | Industry: Utilities - Regulated Electric | Exchange: NASDAQ (USA) | Market Cap: 70.119m USD | Total Return: 31.9% in 12m
Avg Turnover: 473M
EPS Trend: 96.4%
Qual. Beats: 1
Rev. Trend: 91.1%
Qual. Beats: 1
Warnings
Altman Z'' 0.65 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
American Electric Power Company, Inc. (AEP) is a major electric public utility holding company headquartered in Columbus, Ohio. The firm operates a diverse portfolio focused on the generation, transmission, and distribution of electricity across several U.S. states. Its infrastructure includes approximately 38,000 miles of transmission lines and 252,000 miles of distribution lines, supported by 25,000 MW of regulated generating capacity.
The company utilizes a multi-fuel generation strategy, incorporating coal, nuclear, natural gas, and an expanding array of renewable sources such as wind and solar. As a regulated utility, AEP operates within a business model where rates and capital investment returns are overseen by state and federal commissions, providing a predictable revenue framework often sought in the Electric Utilities sector. The transmission segment remains a core growth driver, as the national grid requires ongoing modernization to integrate new energy sources and improve reliability.
Investors can further evaluate the companys financial health and valuation metrics on ValueRay. American Electric Power continues to manage the transition from legacy fossil fuel assets toward a cleaner energy mix while maintaining its role as a critical provider of wholesale and retail energy services.
- Regulated rate base growth drives long-term earnings per share expansion
- Capital investment in transmission infrastructure increases guaranteed utility returns
- Regulatory rate case outcomes determine regional revenue and margin stability
- Transition from coal to renewable generation impacts long-term capital expenditure
- Interest rate fluctuations influence borrowing costs for capital intensive utility projects
| Net Income: 3.65b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 6.49 > 1.0 |
| NWC/Revenue: -26.94% < 20% (prev -40.59%; Δ 13.65% < -1%) |
| CFO/TA 0.06 > 3% & CFO 7.01b > Net Income 3.65b |
| Net Debt (51.9b) to EBITDA (8.70b): 5.97 < 3 |
| Current Ratio: 0.53 > 1.5 & < 3 |
| Outstanding Shares: last quarter (547.1m) vs 12m ago 2.32% < -2% |
| Gross Margin: 40.39% > 18% (prev 0.32%; Δ 4.01k% > 0.5%) |
| Asset Turnover: 19.95% > 50% (prev 19.60%; Δ 0.35% > 0%) |
| Interest Coverage Ratio: 2.46 > 6 (EBITDA TTM 8.70b / Interest Expense TTM 2.09b) |
| A: -0.05 (Total Current Assets 6.62b - Total Current Liabilities 12.6b) / Total Assets 118b |
| B: 0.13 (Retained Earnings 15.8b / Total Assets 118b) |
| C: 0.05 (EBIT TTM 5.13b / Avg Total Assets 111b) |
| D: 0.23 (Book Value of Equity 19.4b / Total Liabilities 84.8b) |
| Altman-Z'' = 0.65 = B |
| DSRI: 1.05 (Receivables 2.97b/2.62b, Revenue 22.2b/20.5b) |
| GMI: 0.78 (GM 40.39% / 31.57%) |
| AQI: 1.01 (AQ_t 0.14 / AQ_t-1 0.14) |
| SGI: 1.08 (Revenue 22.2b / 20.5b) |
| TATA: -0.03 (NI 3.65b - CFO 7.01b) / TA 118b) |
| Beneish M = -3.15 (Cap -4..+1) = AA |
As of May 25, 2026, the stock is trading at USD 131.59 with a total of 3,280,306 shares traded.
Over the past week, the price has changed by +5.15%,
over one month by -1.62%,
over three months by +0.12% and
over the past year by +31.92%.
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 | 145 | 10.2% |
P/E Forward = 20.202
P/S = 3.1257
P/B = 2.2053
P/EG = 2.3634
Revenue TTM = 22.2b USD
EBIT TTM = 5.13b USD
EBITDA TTM = 8.70b USD
Long Term Debt = 46.9b USD (from longTermDebt, last quarter)
Short Term Debt = 4.35b USD (from shortTermDebt, last quarter)
Debt = 52.4b USD (from shortLongTermDebtTotal, last quarter) + Leases 667.0m
Net Debt = 51.9b USD (calculated: Debt 52.4b - CCE 549.0m)
Enterprise Value = 122b USD (70.1b + Debt 52.4b - CCE 549.0m)
Interest Coverage Ratio = 2.46 (Ebit TTM 5.13b / Interest Expense TTM 2.09b)
EV/FCF = 19.76x (Enterprise Value 122b / FCF TTM 6.18b)
FCF Yield = 5.06% (FCF TTM 6.18b / Enterprise Value 122b)
FCF Margin = 27.87% (FCF TTM 6.18b / Revenue TTM 22.2b)
Net Margin = 16.49% (Net Income TTM 3.65b / Revenue TTM 22.2b)
Gross Margin = 40.39% ((Revenue TTM 22.2b - Cost of Revenue TTM 13.2b) / Revenue TTM)
Gross Margin QoQ = 64.82% (prev 9.10%)
Tobins Q-Ratio = 1.04 (Enterprise Value 122b / Total Assets 118b)
Interest Expense / Debt = 3.98% (Interest Expense 2.09b / Debt 52.4b)
Taxrate = 4.77% (44.0m / 922.0m)
NOPAT = 4.89b (EBIT 5.13b * (1 - 4.77%))
Current Ratio = 0.53 (Total Current Assets 6.62b / Total Current Liabilities 12.6b)
Debt / Equity = 1.65 (Debt 52.4b / totalStockholderEquity, last quarter 31.8b)
Debt / EBITDA = 5.97 (Net Debt 51.9b / EBITDA 8.70b)
Debt / FCF = 8.40 (Net Debt 51.9b / FCF TTM 6.18b)
Total Stockholder Equity = 30.8b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.29% (Net Income 3.65b / Total Assets 118b)
RoE = 11.86% (Net Income TTM 3.65b / Total Stockholder Equity 30.8b)
RoCE = 6.61% (EBIT 5.13b / Capital Employed (Equity 30.8b + L.T.Debt 46.9b))
RoIC = 4.47% (NOPAT 4.89b / Invested Capital 109b)
WACC = 4.85% (E(70.1b)/V(123b) * Re(5.65%) + D(52.4b)/V(123b) * Rd(3.98%) * (1-Tc(0.05)))
Discount Rate = 5.65% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 60.0 | Cagr: 1.94%
[DCF] Terminal Value 75.44% ; FCFF base≈6.18b ; Y1≈6.20b ; Y5≈6.57b
[DCF] Fair Price = 92.41 (EV 102b - Net Debt 51.9b = Equity 50.3b / Shares 544.1m; r=8.35% [WACC [floored]]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: 96.40 | EPS CAGR: 8.02% | SUE: 0.88 | # QB: 1
Revenue Correlation: 91.05 | Revenue CAGR: 4.71% | SUE: 1.10 | # QB: 1
EPS current Quarter (2026-06-30): EPS=1.50 | Chg30d=-5.13% | Revisions=-8% | Analysts=16
EPS next Quarter (2026-09-30): EPS=1.96 | Chg30d=-0.55% | Revisions=+17% | Analysts=16
EPS current Year (2026-12-31): EPS=6.36 | Chg30d=-0.11% | Revisions=+62% | GrowthEPS=+6.5% | GrowthRev=+7.8%
EPS next Year (2027-12-31): EPS=6.86 | Chg30d=-0.11% | Revisions=+56% | GrowthEPS=+7.9% | GrowthRev=+5.4%
[Analyst] Revisions Ratio: +62%