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American Electric Power Co Inc AEP

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Stock XNAS Rating as of
$88.60 +0.35 (0.40%)
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As of Delayed Price Closed
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Company Report

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American Electric Power Earnings: Data Center Demand Drives 10.5% Growth in Commercial Demand

Andrew Bischof

We are reaffirming our $90 per share fair value estimate after American Electric Power reported first-quarter operating earnings of $1.27 per share, compared with $1.11 in the prior-year period. AEP reaffirmed its 2024 per share earnings guidance range of $5.53 to $5.73, in line with our expectations. Our 6% annual earnings growth outlook remains unchanged, at the low end of management's 6% to 7% guidance through 2028.

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Price vs Fair Value

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AEP is trading at a 2% discount.
Price
$88.60
Fair Value
$35.00
Uncertainty
Low
1-Star Price
$859.50
5-Star Price
$94.00
Economic Moat
Wydgs
Capital Allocation
Rrdnldqm

Bulls Say, Bears Say

Bulls

Investments in transmission, distribution and renewable energy during the next several years should support earnings growth.

Bears

AEP has struggled to earn its regulatory allowed returns at some of its regulated utilities.

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News

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Trading Information

Previous Close Price
$88.25
Day Range
$87.95–89.28
52-Week Range
$69.38–92.88
Bid/Ask
$87.87 / $89.30
Market Cap
$46.70 Bil
Volume/Avg
3.3 Mil / 3.8 Mil

Key Statistics

Price/Earnings (Normalized)
16.41
Price/Sales
2.40
Dividend Yield (Trailing)
3.86%
Dividend Yield (Forward)
3.97%
Total Yield
3.86%

Company Profile

American Electric Power is one of the largest regulated utilities in the United States, providing electricity generation, transmission, and distribution to more than 5 million customers in 11 states. About 42% of AEP's of capacity is coal, with the remainder from a mix of natural gas (27%), renewable energy and hydro (21%), nuclear (8%), and demand response (2%). Vertically integrated utilities, transmission and distribution, and generation and marketing support earnings.
Sector
Utilities
Industry
Utilities - Regulated Electric
Stock Style Box
Mid Value
Total Number of Employees
16,800
Website
https://www.aep.com

Competitors

Valuation

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Metric
AEP
D
DUK
Price/Earnings (Normalized)
 16.4125.9517.74
Price/Book Value
 1.811.681.64
Price/Sales
 2.402.912.66
Price/Cash Flow
 7.457.478.03
Price/Earnings
AEP
D
DUK

Financial Strength

Metric
AEP
D
DUK
Quick Ratio
 0.270.110.25
Current Ratio
 0.541.040.74
Interest Coverage
 2.452.632.57
Quick Ratio
AEP
D
DUK

Profitability

Metric
AEP
D
DUK
Return on Assets (Normalized)
 2.96%2.77%0.49%
Return on Equity (Normalized)
 11.46%11.17%1.85%
Return on Invested Capital (Normalized)
 6.24%5.97%2.77%
Return on Assets
AEP
D
DUK
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Utilities - Regulated Electric Industry Comparables

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Morningstar Rating for Stocks
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Economic Moat
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NextEra Energy IncGkmzxdcqpmLrzlty$144.1 Bil
SO
Southern CoPtqpwxttzfYtjgj$82.9 Bil
DUK
Duke Energy CorpDmvrwnykqLdkpp$77.3 Bil
NGG
National Grid PLC ADRBnjwkbpqhQbd$50.1 Bil
PCG
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D
Dominion Energy IncKkltwtyvZzntgfm$43.1 Bil
EXC
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PEG
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ED
Consolidated Edison IncQpqlxcwkFjp$33.0 Bil

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