Stock Analysis
American Electric Power Company, Inc.AEP
P/E 29.08×· 5Y range 14.91–209.17×· 69th percentile of history
Sector: Utilities · Industry: Electric Services
AnalystsBuy28 analystsP/E 29.1× sits at the 69th percentile of its 5.089664613278576-year history.
Cash covers 1% of debt · FY 2025.
PMP Verdict
Mixed fundamentals, fairly valued
Strengths
- Quality97
- Growth75
Risks
- Financial Health18
- Profitability50
Mixed picture — no clear quality or value edge.
Market context
+2.3% today· Z 2.5σ· AEP rose 2.32% in low volume, driven by general sector interest in utility dividend stocks.
Bull Case
- ✓Piotroski F-Score 7/9 — high earnings quality
- ✓Revenue CAGR 65.7% — durable top-line growth
Why is AEP moving?
SectorAEP rose 2.32% in low volume, driven by general sector interest in utility dividend stocks.
Profile
Strong earnings quality and growth; financial health lags behind.
How is each axis scored?
- Valuation57/100 · Moderate
- P/E vs own history (69th pct)5/25
- FCF yield (6.2%)20/25
- P/S (3.0x)20/25
- EV/EBIT (21.8x)12/25
- Growth75/100 · Strong
- Revenue CAGR (65.7%)25/25
- Net income CAGR (87.3%)25/25
- EPS CAGR 5Y (n/a)0/25
- Fwd implied growth (62.7%)25/25
- Profitability50/100 · Moderate
- ROIC (5.4%)5/25
- ROE (7.6%)5/25
- Net margin (10.4%)20/25
- Operating margin (23.0%)20/25
- Financial Health18/100 · Weak
- Altman Z (0.96)3/25
- Current ratio (0.45)0/25
- Interest coverage (2.3x)10/25
- Net cash / debt (D/A 40%)5/25
- Quality97/100 · Strong
- Piotroski F (7/9)22/25
- Beneish M (-2.64)25/25
- FCF conversion (180%)25/25
- Margin stability (σ 4.4%)25/25
- Moat62/100 · Moderate
- ROIC >12% years (0/9 yrs)0/25
- Median gross margin (57.3%)25/25
- FCF-positive years (7/7 yrs)25/25
- Worst-year net margin (worst 3.7%)12/25
Risk Flags
- ⚠Altman Z 1.0 — distress-zone balance sheet
- ⚠Interest coverage 2.3× — thin debt cushion
About American Electric Power Company, Inc.
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. Show more
About 39% of AEP's capacity is coal, with the remainder from a mix of natural gas (28%), renewable energy and hydro (23%), nuclear (7%), and demand response (3%). Vertically integrated utilities, transmission and distribution, and generation and marketing support earnings.
Headquarters: COLUMBUS, OH · Employees: 17,581 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
57CP/E (TTM)29.1xC
Grade C: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 14.9x–209.2x · 69th pct
P/FCF155.6xD
Grade D: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield6.2%A
Grade A: ValueTTM (OCF − CapEx) / Market Cap — vs own 5Y history: -2.5%–12.9% · 49th pct
P/S (TTM)3.04xB
Grade B: FairPrice / TTM Revenue (own statements) — vs own 5Y history: 1.9x–18.3x · 59th pct
EV/EBIT21.8xC
Grade C: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 19.0x–224.3x · 24th pct
EV/Sales5.4xC
Grade C: ExpensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E17.9xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio2.22xA
Grade A: FairPrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio2.50C
Grade C: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield3.02%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio65.2%C
Grade C: HighDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
50CROIC5.4%D
Grade D: LowNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE7.6%D
Grade D: WeakReturn on Equity. Neg. equity = heavy buybacks
ROA2.7%D
Grade D: WeakReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin10.4%A
Grade A: HighNet Income / Revenue
Operating Margin23.0%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin23.0%D
Grade D: LowGross Profit / Revenue
FCF Margin18.8%A
Grade A: HighFCF / Revenue
True FCF Margin18.8%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
75B+Revenue CAGR65.7%A
Grade A: HighCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR87.3%A
Grade A: HighCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)—
Compound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth62.7%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)+9.0%C
Grade C: DilutiveShare count change over 5Y
SBC / Net Income—
Stock-based comp/Net income. >30% = dilution risk
SBC / Revenue—
TTM stock-based comp / TTM Revenue
Financial Health
18EAltman Z-Score0.96D
Grade D: DistressBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio0.45xD
Grade D: LowCurrent Assets/Liabilities
Quick Ratio0.36xD
Grade D: Low(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage2.3xD
Grade D: RiskyEBIT/Interest. >10 Strong
Debt Repayment10.6yD
Grade D: SlowYears to repay net debt via FCF
Net Debt/EBIT8.6xD
Grade D: HighLeverage. <2x Low, >4x High
Debt/Equity1.47xC
Grade C: MedDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.01xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
97A+Piotroski F-Score7/9A
Grade A: StrongFinancial strength 0–9. >7 Strong
Beneish M-Score-2.64A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion180.0%A
Grade A: StrongFCF / Net Income
Margin Stability4.4%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue15.0%C
Grade C: AverageTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.19xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Ferneau Kelly J Filed | Ferneau Kelly J | Tax withholding | -362 | |
Berntsen Robert Filed | Berntsen Robert | Tax withholding | -1425 | |
Sauvage Joseph G Filed | Sauvage Joseph G | Grant / award | 0 | |
Roberts Daryl Filed | Roberts Daryl | Grant / award | 0 | |
Stoddard Daniel G. Filed | Stoddard Daniel G. | Grant / award | 0 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Meyers Charles J Filed | Meyers Charles J | Grant / award | -379 | |
McCarthy Margaret M Filed | McCarthy Margaret M | Grant / award | 0 | |
Tucker Sara Martinez Filed | Tucker Sara Martinez | Grant / award | 0 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
62BROIC >12% Years0/9 yrsD
Grade D: WeakShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)57.3%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years7/7 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor3.7%C
Grade C: ModerateWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$4.37
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$1.11
Cash & short-term investments per share (Finnhub)
Book Value / Share$59.05
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$45.64B
Total debt obligations (short + long term)
Cash & Equiv.$417.00M
Cash and short-term investments
Net Debt$45.22B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$31.14B
Shareholders' equity (book value)
Asset / Liability1.39xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$69.21B
Current Market Capitalization
Beta0.47B
Grade B: DefensivePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: American Electric Power Company, Inc. (AEP)
AEP is up 2.29% at the last close — AEP rose 2.32% in low volume, driven by general sector interest in utility dividend stocks.. American Electric Power Company, Inc. meets 7 of 9 Piotroski F-Score criteria, placing its fundamental strength in the top tier of US-listed stocks. Altman Z-Score of 0.96 is below the 1.81 distress threshold — an elevated financial-risk flag. Beneish M-Score of -2.64 suggests a low likelihood of earnings manipulation.
- Revenue has compounded at roughly 66% annually, with net income growing about 87% per year — a strong growth profile.
- American Electric Power Company, Inc. converts about 19% of revenue into free cash flow — strong cash generation.
- Takes ~10.6 years to repay net debt from free cash flow.
- The stock currently yields 3.0% in dividends.
See how AEP ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all AEP moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 16 | Regular | 127.02 | +2.20% | 2.43 |
| Oct 16 | After-hours | 127.14 | +2.29% | 2.55 |
| Oct 15 | Regular | 124.32 | -1.44% | -2.04 |
| Oct 15 | After-hours | 123.54 | -2.05% | -2.82 |
| Oct 12 | After-hours | 124.88 | +1.69% | 2.02 |
Frequently Asked Questions about AEP
What is the current American Electric Power Company, Inc. (AEP) stock price?
AEP is trading at $127.14 at the last market close, up 2.29% on the session. PreMarketPrice tracks AEP pre-market, intraday and after-hours prices.
Is AEP stock a buy right now?
PreMarketPrice's quantitative model rates American Electric Power Company, Inc.'s financial health at 18/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is AEP stock overvalued?
American Electric Power Company, Inc. trades at a trailing P/E of 29.1 and our valuation score rates it 57/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does American Electric Power Company, Inc. report earnings?
No confirmed earnings date is currently scheduled for AEP. The Earnings section lists recent reports and updates as dates are announced.
What sector does American Electric Power Company, Inc. operate in?
American Electric Power Company, Inc. operates in the Utilities sector, within the Electric Services industry. The Related Stocks section lists sector peers for comparison.
What does American Electric Power Company, Inc. do?
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 American Electric Power Company, Inc. (AEP) Stock
American Electric Power Company, Inc. (AEP) is a US-listed stock operating in the Utilities sector, specifically the Electric Services industry. As of the latest update, American Electric Power Company, Inc. is trading at $127.14, up 2.29% on the day with a market capitalization of $69.2 billion. The financial health score for AEP is 18/100, which indicates poor financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for AEP stock.
AEP Stock Analysis & Key Metrics
On PreMarketPrice, you can track American Electric Power Company, Inc. (AEP) across multiple dimensions:
- Pre-market price & movement: Real-time AEP stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for AEP with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for American Electric Power Company, Inc. across multiple reporting periods.
- Financial health score: A composite score of 18/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for AEP.
- Sector peers: Compare AEP against 6 other utilities stocks on key financial metrics.
Is AEP a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate American Electric Power Company, Inc. (AEP) as an investment. The financial health score of 18/100 suggests poor financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.American Electric Power Company, Inc. (AEP) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.