American Electric Power Company Inc
Exchange: NASDAQSector: UtilitiesIndustry: Utilities - Regulated Electric
American Electric Power is committed to improving our customers' lives with reliable, affordable power. We expect to invest $72 billion from 2026 through 2030 to enhance service for customers and support the growing energy needs of our communities. Our nearly 17,000 employees operate and maintain the nation's largest electric transmission system with approximately 40,000 line miles, along with more than 252,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 31,000 megawatts of diverse owned and contracted generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio.
Did you know?
Net income compounded at 10.9% annually over 6 years.
Current Price
$132.68
+0.77%GoodMoat Value
$116.34
12.3% overvaluedProfile
Valuation (TTM)
Market Cap$71.02B
P/E19.84
EV$67.98B
P/B—
Shares Out535.27M
P/Sales3.25
Revenue$21.88B
EV/EBITDA7.74
American Electric Power Company Inc (AEP) Stock Analysis
GoodMoat Analysis
American Electric Power is a regulated electric utility with a durable, state-granted monopoly moat, but it fails the initial quality gate for a value investor due to negative free cash flow and a valuation above its estimated fair value. The stock is currently priced at a premium to its GoodMoat Target.
Read full analysis
American Electric Power Company Inc (AEP) is a major regulated electric utility operating in 11 states, providing a classic essential service. Its primary competitive advantage, or moat, stems from regulatory barriers. As a regulated utility, it holds monopoly or duopoly positions in its service territories, protected by hard-to-obtain licenses and permits that grant it exclusive rights to operate and earn a government-approved return on its capital investments. This aligns with Section 1, Moat Criterion #5. However, applying the GoodMoat Decision Framework (Section 6), the stock fails the initial Moat & Quality Gate. While it possesses a regulatory moat, key quality indicators are weak. Specifically, the company shows a Free Cash Flow Yield of -7.2%, which is unfavourable against the framework's threshold for positive and growing FCF. Furthermore, the current price of $128.3 is approximately 10% above the provided GoodMoat Target of $116.34, indicating an unfavourable or marginal margin of safety. For a value investor, this combination—a business with a strong regulatory moat but weak cash generation trading at a premium to estimated fair value—suggests the stock is not currently attractive for further investigation unless seeking a pure defensive, income-oriented holding despite the valuation. The negative FCF is a significant quality hurdle that must be understood before any valuation assessment. Analysis based on data as of 2024-05-15.
Market Cap$71.02B
Current Price$132.68
P/E Ratio19.84
Forward P/E—
PEG Ratio-1.55
EPS$6.66
Book Value—
P/B Ratio—
AEP Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Cash: 268M
Revenue
15.6B
FY19
14.9B
FY20
16.8B
FY21
19.6B
FY22
19.0B
FY23
19.7B
FY24
21.9B
FY25
Net Income
1.9B
FY19
2.2B
FY20
2.5B
FY21
2.3B
FY22
2.2B
FY23
3.0B
FY24
3.6B
FY25
AEP 52-Week Range
$96.28
$134.15
50-Day MA: $127.29200-Day MA: $115.59
Did you know?
Net income compounded at 10.9% annually over 6 years.
American Electric Power Company Inc (AEP) Financial Summary
American Electric Power Company Inc (AEP) is a Utilities company in the Utilities - Regulated Electric industry, listed on NASDAQ. The stock currently trades at $132.68 with a market capitalization of $71.02B.
Key valuation metrics include a P/E ratio of 19.84, and EPS of $6.66. The company reports a profit margin of 16.4%.
AEP Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $71.02B |
| P/E Ratio | 19.84 |
| EPS | $6.66 |
| P/S Ratio | 3.25 |
| EV/EBITDA | 7.74 |
| Dividend Yield | 2.83% |
| Profit Margin | 16.4% |
AEP Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $15.56B | $1.92B |
| FY20 | $14.92B | $2.20B |
| FY21 | $16.79B | $2.49B |
| FY22 | $19.64B | $2.31B |
| FY23 | $18.98B | $2.21B |
| FY24 | $19.72B | $2.97B |
| FY25 | $21.88B | $3.58B |
American Electric Power Company Inc (AEP) Valuation
Based on GoodMoat's DCF model, American Electric Power Company Inc has a fair value estimate of $116.34. At the current price of $132.68, the stock appears 14.0% overvalued relative to our intrinsic value estimate.
AEP Quality Indicators
American Electric Power Company Inc maintains a profit margin of 16.4% and an operating margin of 24.3%.
About American Electric Power Company Inc
American Electric Power is committed to improving our customers' lives with reliable, affordable power. We expect to invest $72 billion from 2026 through 2030 to enhance service for customers and support the growing energy needs of our communities. Our nearly 17,000 employees operate and maintain the nation's largest electric transmission system with approximately 40,000 line miles, along with more than 252,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 31,000 megawatts of diverse owned and contracted generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio.
AEP Free Cash Flow
American Electric Power Company Inc generated $-4.96B in trailing twelve-month free cash flow, representing an FCF yield of -6.99%. This low FCF yield may reflect heavy reinvestment or growth spending.
AEP Shares Outstanding
American Electric Power Company Inc has 0.54 billion shares outstanding at a share price of $132.68, giving it a market capitalization of $71.02B.
AEP Recent Insider Trades
Recent insider transactions at American Electric Power Company Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Ulrich Phillip R. (Executive Vice President) | SELL | 4,106 | $542320.48 |
| Ferneau Kelly J (Executive Vice President) | SELL | 1,351 | $177602.46 |
| FOWKE BENJAMIN G S III | SELL | 5,000 | $575350.00 |