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AEE vs FE

AEE
Ameren Corporation
NEUTRAL
Price
$102.32
Market Cap
$27.68B
Sector
Utilities
AI Confidence
72%
FE
FirstEnergy Corp.
BEARISH
Price
$49.41
Market Cap
$28.58B
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
AEE
19.79
FE
28.07
Forward P/E
AEE
19.09
FE
16.77
P/B Ratio
AEE
2.17
FE
2.28
P/S Ratio
AEE
3.21
FE
1.92
EV/EBITDA
AEE
13.51
FE
11.51

Profitability

Gross Margin
AEE
47.1%
FE
66.87%
Operating Margin
AEE
34.0%
FE
26.63%
Profit Margin
AEE
16.34%
FE
6.84%
ROE
AEE
11.39%
FE
9.2%
ROA
AEE
2.93%
FE
3.72%

Growth

Revenue Growth
AEE
24.8%
FE
20.7%
Earnings Growth
AEE
38.2%
FE
--

Financial Health

Debt/Equity
AEE
1.56
FE
1.93
Current Ratio
AEE
0.93
FE
0.56
Quick Ratio
AEE
0.46
FE
0.39

Dividends

Dividend Yield
AEE
2.76%
FE
3.76%
Payout Ratio
AEE
53.85%
FE
100.0%

AI Verdict

AEE NEUTRAL

Ameren Corporation (AEE) shows a weak financial health profile with a Piotroski F-Score of 4/9, indicating borderline stability, and lacks an Altman Z-Score, limiting distress risk assessment. Despite solid profitability metrics and strong recent earnings growth, the company faces concerns around liquidity, high leverage, and bearish insider activity. Valuation is near peer average, supported by analyst buy consensus and a reasonable dividend, but technical trend and insider selling suggest caution. The stock trades above the Graham Number of $74.13 but below the growth-based intrinsic value of $152.51, reflecting moderate premium expectations.

Strengths
Strong operating and gross margins (34.00% and 47.10%, respectively), above sector average
Robust year-over-year earnings growth of 38.20% and Q/Q EPS surge of +114.9%
Dividend yield of 2.76% is attractive within the regulated utilities space
Risks
Piotroski F-Score of 4/9 indicates weak financial health, particularly concerning liquidity and leverage
Debt/Equity ratio of 1.56 is high, though in line with sector average of 1.75
Current Ratio (0.93) and Quick Ratio (0.46) suggest near-term liquidity pressure
FE BEARISH

FirstEnergy Corp (FE) exhibits significant valuation misalignment, trading at $49.41 despite a Graham Number of $29.28 and an Intrinsic Value of $12.32. While the Piotroski F-Score of 4/9 indicates stable health, the company faces severe liquidity pressure with a current ratio of 0.56 and a high debt-to-equity ratio of 1.93. Most concerning is the 100% dividend payout ratio and the divergence between strong revenue growth (20.7%) and negative YoY EPS growth (-20.9%). The combination of bearish insider sentiment and a weak technical trend suggests the current price is unsustainable.

Strengths
Strong top-line revenue growth (20.7% YoY)
High gross margins (66.87%) typical of regulated utilities
Positive 1-year price performance (+21.6%)
Risks
Unsustainable dividend payout ratio of 100%
Severe valuation premium over Graham and Intrinsic value estimates
Negative YoY EPS growth (-20.9%) despite revenue increases

Compare Another Pair

AEE vs FE: Head-to-Head Comparison

This page compares Ameren Corporation (AEE) and FirstEnergy Corp. (FE) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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