AEP Stock Analysis: American Electric Power | NASDAQ
Utilities - Regulated Electric | NASDAQ, USA | Market Cap: 75.462m USD | 12M Return: 37.6% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 756M
EPS Trend: 96.4%
Qual. Beats: 1
Rev. Trend: 91.1%
Qual. Beats: 1
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 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 headquartered in Columbus, Ohio, that generates, transmits, and distributes electricity to retail and wholesale customers. Founded in 1906 and listed on NASDAQ since 1970, AEP operates through four segments: Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing. Its generation portfolio includes coal and lignite, nuclear, natural gas, renewable, hydro, solar, and wind sources, supported by an extensive grid of distribution and transmission lines and a sizable regulated owned generating capacity base.
As a Large Cap member of the Utilities sector (GICS Sub Industry: Electric Utilities), AEP operates in a capital-intensive, rate-regulated industry where returns are largely determined by regulators in the states it serves. The mix of regulated transmission and distribution assets alongside merchant-style generation and marketing activities is typical of multi-state U.S. electric utilities that combine stable, rate-based earnings with exposure to competitive wholesale power markets.
- Regulated rate base growth targets 9% supporting EPS expansion
- Transmission Holdco invests billions in grid modernization
- Data center load growth accelerates retail electricity demand
| Net Income: 3.65b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 7.74 > 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 31.57%; Δ 8.82% > 0.5%) |
| Asset Turnover: 19.95% > 50% (prev 19.60%; Δ 0.35% > 0%) |
| Interest Coverage Ratio: 2.46 > 6 (EBIT TTM 5.13b / 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: 0.38 (Book Value of Equity 31.8b / Total Liabilities 84.8b) |
| Altman-Z'' = 0.81 = B |
| DSRI: 1.05 (Receivables 2.97b/2.62b, Revenue 22.2b/20.5b) |
| GMI: 0.78 (GM 31.57% / 40.39%) |
| 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 = -3.12 (Cap -4..+1) = AA |
As of July 05, 2026, the stock is trading at USD 138.51 with a total of 8,803,300 shares traded. Over the past week, the price has changed by +1.10%, over one month by +9.66%, over three months by +5.41% and over the past year by +37.59%.
Current recommended Stop Loss: 135.00 (which is 2.5% or 1.4 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 | 144.8 | 4.5% |
P/E Trailing = 20.5467
P/E Forward = 21.7391
P/S = 3.3639
P/B = 2.3724
P/EG = 2.5425
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 = 127b USD (75.5b + Debt 52.4b - CCE 549.0m)
Interest Coverage Ratio = 2.46 (Ebit TTM 5.13b / Interest Expense TTM 2.09b)
EV/FCF = 16.64x (Enterprise Value 127b / FCF TTM 7.65b)
FCF Yield = 6.01% (FCF TTM 7.65b / Enterprise Value 127b)
FCF Margin = 34.54% (FCF TTM 7.65b / 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 = 1.08 (Enterprise Value 127b / Total Assets 118b)
Interest Expense / Debt = 3.98% (Interest Expense 2.09b / Debt 52.4b)
Taxrate = 1.24% (47.5m / 3.82b)
NOPAT = 5.07b (EBIT 5.13b * (1 - 1.24%))
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 = 6.78 (Net Debt 51.9b / FCF TTM 7.65b)
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 = 4.65% (NOPAT 5.07b / Invested Capital 109b)
WACC = 4.87% (E(75.5b)/V(128b) * Re(5.53%) + D(52.4b)/V(128b) * Rd(3.98%) * (1-Tc(0.01)))
Discount Rate = 5.53% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 60.0 | Cagr: 1.94%
[DCF] Terminal Value 75.44% ; FCFF base≈7.65b ; Y1≈7.69b ; Y5≈8.14b
[DCF] Fair Price = 137.4 (EV 127b - Net Debt 51.9b = Equity 74.7b / Shares 544.1m; r=8.35% [WACC [floored]]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: 96.40 | EPS CAGR: 8.02% | SUE: 1.09 | # 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=+0.09% | Revisions=-25% | Analysts=16
EPS next Quarter (2026-09-30): EPS=1.96 | Chg30d=+0.19% | Revisions=+18% | Analysts=16
EPS current Year (2026-12-31): EPS=6.36 | Chg30d=+0.01% | Revisions=+50% | GrowthEPS=+6.5% | GrowthRev=+7.7%
EPS next Year (2027-12-31): EPS=6.86 | Chg30d=+0.02% | Revisions=+31% | GrowthEPS=+7.9% | GrowthRev=+5.9%
[Analyst] Revisions Ratio: +27% (up=29, down=16)