AES Corp
Exchange: NYSESector: UtilitiesIndustry: Utilities - Diversified
The AES Corporation is a Fortune 500 global power company. We provide affordable, sustainable energy to 14 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce is committed to operational excellence and meeting the world's changing power needs. Our 2019 revenues were $10 billion, and we own and manage $34 billion in total assets.
Did you know?
Pays a 4.92% dividend yield.
Current Price
$14.30
+0.70%GoodMoat Value
$24.64
72.3% undervaluedProfile
Valuation (TTM)
Market Cap$10.18B
P/E11.19
EV$38.29B
P/B2.51
Shares Out712.12M
P/Sales0.83
Revenue$12.23B
EV/EBITDA10.70
AES Corp (AES) Stock Analysis
GoodMoat Analysis
AES Corp, a global power generation and utility company, presents a complex case. While it operates in a regulated industry with high barriers to entry, its financial quality metrics are weak, and it fails the initial Moat & Quality Gate of the investment framework, making further valuation analysis less relevant for a value investor.
Read full analysis
AES Corp is a global power generation and utility company operating in a sector characterized by significant regulatory barriers and scale advantages, which can form a competitive moat. Applying the GoodMoat framework's Moat Identification section, AES likely scores points for Regulatory Barriers and Scale Privilege due to its regulated operations and large infrastructure footprint. However, the critical next step is the Quality Indicators assessment, where AES shows significant weaknesses. Key data points include a negative Free Cash Flow Yield of -16.2%, a very high Debt/Equity ratio of 7.5, and modest Revenue Growth YoY of 4.7%. These metrics would likely result in multiple 'Weak' ratings in Section 2, particularly for Free Cash Flow, Balance Sheet, and Revenue Growth. According to the Decision Framework's Step 1: The Moat & Quality Gate, a business with a Moat Score below 5 or multiple 'Weak' Quality ratings should not proceed to valuation analysis. Given the evident financial strain, AES fails this initial gate. While the GoodMoat Target of $24.64 suggests a significant potential margin of safety relative to the current $14.06 price, this valuation signal is secondary for a value investor if the underlying business quality is unfavourable. The high dividend yield of 5.00% and low P/E of 11.0 are overshadowed by the fundamental concerns regarding cash flow and leverage. Analysis based on data as of 2024-05-15.
Market Cap$10.18B
Current Price$14.30
P/E Ratio11.19
Forward P/E—
PEG Ratio-0.35
EPS$1.26
Book Value$5.71
P/B Ratio2.51
AES Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 28.4B
Revenue
10.2B
FY19
9.7B
FY20
11.1B
FY21
12.6B
FY22
12.7B
FY23
12.3B
FY24
12.2B
FY25
Net Income
303M
FY19
46M
FY20
—
FY21
—
FY22
249M
FY23
1.7B
FY24
910M
FY25
AES 52-Week Range
$9.27
$17.28
50-Day MA: $14.99200-Day MA: $13.60
Did you know?
Profit margin stands at 7.4%.
AES Corp (AES) Financial Summary
AES Corp (AES) is a Utilities company in the Utilities - Diversified industry, listed on NYSE. The stock currently trades at $14.30 with a market capitalization of $10.18B.
Key valuation metrics include a P/E ratio of 11.19, price-to-book ratio of 2.51, and EPS of $1.26. The company reports a profit margin of 7.4% and return on equity of 22.4%.
AES Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $10.18B |
| P/E Ratio | 11.19 |
| EPS | $1.26 |
| P/B Ratio | 2.51 |
| P/S Ratio | 0.83 |
| EV/EBITDA | 10.70 |
| Dividend Yield | 4.92% |
| Profit Margin | 7.4% |
| Return on Equity | 22.4% |
| Debt/Equity | 7.51 |
AES Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $10.19B | $303.00M |
| FY20 | $9.66B | $46.00M |
| FY21 | $11.14B | $-409.00M |
| FY22 | $12.62B | $-546.00M |
| FY23 | $12.67B | $249.00M |
| FY24 | $12.28B | $1.68B |
| FY25 | $12.23B | $910.00M |
AES Corp (AES) Valuation
Based on GoodMoat's DCF model, AES Corp has a fair value estimate of $24.64. At the current price of $14.30, the stock appears 42.0% undervalued relative to our intrinsic value estimate.
AES Quality Indicators
AES Corp maintains a profit margin of 7.4% and an operating margin of 10.5%. Return on equity stands at 22.4%. The current ratio is 0.77. Debt-to-equity ratio is 7.51.
About AES Corp
The AES Corporation is a Fortune 500 global power company. We provide affordable, sustainable energy to 14 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce is committed to operational excellence and meeting the world's changing power needs. Our 2019 revenues were $10 billion, and we own and manage $34 billion in total assets.
AES Free Cash Flow
AES Corp generated $-1.62B in trailing twelve-month free cash flow, representing an FCF yield of -15.94%. This low FCF yield may reflect heavy reinvestment or growth spending.
AES Shares Outstanding
AES Corp has 0.71 billion shares outstanding at a share price of $14.30, giving it a market capitalization of $10.18B.