American Electric Power Company Inc
NASDAQ:AEP
Intrinsic Value
American Electric Power Co., Inc. engages in the business of generation, transmission and distribution of electricity. [ Read More ]
The intrinsic value of one
AEP
stock under the Base Case scenario is
108.24
USD.
Compared to the current market price of 86.86 USD,
American Electric Power Company Inc
is
Undervalued by 20%.
AEP could be a value trap.A value trap occurs when a stock looks inexpensive based on fundamental analysis but fails to reach its intrinsic valuation over time, often due to underlying issues not reflected in quantitative data.
Scrutinize beyond numbers; assess long-term potential.
American Electric Power Company Inc's market capitalization is 45.7B USD.
AEP stock price is 86.86 USD.
AEP stock price (86.86 USD) is 20% less than its Intrinsic Value (108.24 USD).
AEP stock price (86.86 USD) is 50% less than its Relative Value (175.18 USD). Open Relative Valuation
AEP has positive three-year average ROE (Return on Equity): 10%. The company is efficient at transforming stockholders' equity into net income.
AEP's ROIC (Return on Invested Capital) has increased in the last 3 years from 4% to 4%.
AEP's ROE (Return on Equity) for the past 12 months is positive and is equal to 9%.
AEP's ROE (Return on Equity) has decreased in the last 3 years from 11% to 9%.
AEP's Revenue has dropped by 3% over the past 12 months.
AEP has positive Net Income for the last twelve months.
AEP's Revenue is forecast to grow at a rate of 5% per year over the next 3 years.
AEP's ROIC (Return on Invested Capital) for the past 12 months is very low and is equal to 4%.
AEP's Revenue has been growing by 8% per year for the last 3 years.
AEP's long-term assets (97B USD) exceed its long-term liabilties (71B USD).
AEP has positive Operating Income for the last twelve months.
AEP has a very low three-year average ROIC (Return on Invested Capital): 4%. The company is not efficient at using invested capital to generate operating income.
AEP's D/E (Debt to Equity) is equal to 1.6.
AEP's short-term liabilties (12B USD) exceed its short-term assets (6B USD).
AEP has positive Gross Profit for the last twelve months.
AEP has negative Free Cash Flow for the last twelve months.
AEP's Altman Z-Score is very low and is equal to 0.83.
AEP has positive Net Debt. This means that the company has more debt (40B USD) than cash and short-term investments (544m USD).
AEP generates enough operating income (4B USD) to cover interest payments on its debt (2B USD).
Valuation Backtest
American Electric Power Company Inc
Run backtest to discover the historical profit from buying and selling
AEP
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
American Electric Power Company Inc
Balance Sheet Decomposition
American Electric Power Company Inc
| Current Assets | 6.1B |
| Cash & Short-Term Investments | 544.4m |
| Receivables | 2.4B |
| Other Current Assets | 3.1B |
| Non-Current Assets | 90.6B |
| PP&E | 77.3B |
| Intangibles | 52.5m |
| Other Non-Current Assets | 13.2B |
| Current Liabilities | 11.6B |
| Accounts Payable | 2B |
| Accrued Liabilities | 525.9m |
| Short-Term Debt | 2.8B |
| Other Current Liabilities | 6.2B |
| Non-Current Liabilities | 59.8B |
| Long-Term Debt | 37.7B |
| Other Non-Current Liabilities | 22.2B |
Earnings Waterfall
American Electric Power Company Inc
|
Revenue
|
19B
USD
|
|
Cost of Revenue
|
-6.6B
USD
|
|
Gross Profit
|
12.4B
USD
|
|
Operating Expenses
|
-8.7B
USD
|
|
Operating Income
|
3.7B
USD
|
|
Other Expenses
|
-1.5B
USD
|
|
Net Income
|
2.2B
USD
|
Free Cash Flow Analysis
American Electric Power Company Inc
AEP Profitability Score
Profitability Due Diligence
American Electric Power Company Inc's profitability score is 49/100. The higher the profitability score, the more profitable the company is.
Score
American Electric Power Company Inc's profitability score is 49/100. The higher the profitability score, the more profitable the company is.
AEP Solvency Score
Solvency Due Diligence
American Electric Power Company Inc's solvency score is 22/100. The higher the solvency score, the more solvent the company is.
Score
American Electric Power Company Inc's solvency score is 22/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
AEP Price Targets Summary
American Electric Power Company Inc
According to Wall Street analysts, the average 1-year price target for
AEP
is 88.04 USD
with a low forecast of 73.73 USD and a high forecast of 103.95 USD.
Ownership
AEP Insider Trading
Buy and sell transactions by insiders
| Period | Sold | Bought | Net |
|---|---|---|---|
| 3 Months |
|
|
|
| 6 Months |
|
|
|
| 9 Months |
|
|
|
| 12 Months |
|
|
|
Shareholder Return
AEP Price
American Electric Power Company Inc
| Average Annual Return | 6.58% |
| Standard Deviation of Annual Returns | 11.03% |
| Max Drawdown | -33% |
| Market Capitalization | 45.7B USD |
| Shares Outstanding | 526 590 016 |
| Percentage of Shares Shorted | 1.78% |
Company Profile
American Electric Power Company Inc
Country
Industry
Market Cap
Dividend Yield
Description
American Electric Power Co., Inc. engages in the business of generation, transmission and distribution of electricity. The company is headquartered in Columbus, Ohio and currently employs 16,688 full-time employees. The service areas of the Company's public utility subsidiaries cover the states of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia. The firm's segments include Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing. AEP's vertically integrated utility operations are engaged in the generation, transmission and distribution of electricity for sale to retail and wholesale customers. Transmission and Distribution Utilities segment consists of the transmission and distribution of electricity for sale to retail and wholesale customers. The AEP Transmission Holdco segment develops, constructs and operates transmission facilities. The Generation & Marketing segment conducts marketing, risk management and retail activities.
Contact
IPO
Employees
Officers
The intrinsic value of one
AEP
stock under the Base Case scenario is
108.24
USD.
Compared to the current market price of 86.86 USD,
American Electric Power Company Inc
is
Undervalued by 20%.
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