Ameren Corp (AEE) stock analysis

P/E below its 5-year median

Ameren's P/E of 19.9 is below its own 5-year median of 20.8.

P/E above the industry

Ameren's P/E of 19.9 is above the Combination Electric and Gas, and Other Utility median of 19.2.

EV/EBITDA above its 5-year median

Ameren's EV/EBITDA of 13.9 is above its 5-year median of 13.6.

P/B above the industry

Ameren's price-to-book of 2.29 is above the Combination Electric and Gas, and Other Utility median of 1.74.

Trading above fair value

The share price of $113.28 is above our fair value estimate of $104.50.

Margin of safety under 20%

The price is 8.4% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 3.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 8.9% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 3.8% over the last twelve months; the Combination Electric and Gas, and Other Utility median is 5.2%.

Guidance unchanged

The latest outlook (2026 earnings guidance range, Jul 30, 2026) was maintained, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity

Needs positive equity and five years of results.

Return on capital under 10%

Return on invested capital was 5.9%, below the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

High debt

Debt is 159% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 130% five years ago to 159%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 14.9% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 2.6 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.53 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.91; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Ameren paid dividends worth 2.6% of the share price over the last twelve months.

Yield below Treasuries

The 2.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Ameren yields 2.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.