AES Corp (AES) stock analysis

P/E above its 5-year median

AES's P/E of 11.8 is above its own 5-year median of 8.9.

P/E below the industry

AES's P/E of 11.8 is below the Electric, Gas, and Sanitary Services median of 20.2.

EV/EBITDA above its 5-year median

AES's EV/EBITDA of 547.6 is above its 5-year median of 15.6.

P/B below the industry

AES's price-to-book of 1.86 is below the Electric, Gas, and Sanitary Services median of 1.96.

Trading below fair value

The share price of $14.92 is below our fair value estimate of $19.62.

Margin of safety over 20%

The price is 24.0% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -1.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth not accelerating

Net income grew -45.8% over the last twelve months, against a 5-year average of 81.7% a year.

Growing slower than the industry

Revenue grew -0.4% over the last twelve months; the Electric, Gas, and Sanitary Services median is 7.7%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 18.1% over the last twelve months, against 18.8% a year earlier.

Return on equity under 15%

Return on equity was 19.5% over the last twelve months and averaged 10.5% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

AES's return on equity of 19.5% is above the Electric, Gas, and Sanitary Services median of 9.4%.

Earnings grew over 5 years

Net income grew 81.7% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 7.4% over the last twelve months, against a 5-year average of 3.0%.

Net margin below the industry

AES's net margin of 7.4% is below the Electric, Gas, and Sanitary Services median of 11.1%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest coverage

Interest expense is not reported separately.

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

Current assets are 0.86 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.38; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

AES paid dividends worth 3.5% of the share price over the last twelve months.

Yield below Treasuries

The 3.5% 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; AES yields 3.5%.

Dividend not cut

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

Covered by earnings

Dividends take 55.1% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.