AEP American Electric Power Company, Inc. - Fundamental Analysis
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AEP Stock | Fundamental Analysis & Investment Insights
NASDAQ
Utilities
Utilities - Regulated Electric
Current Price
Live
$129.94
Analyst Target
$130.03
+0.1%
Upside
52W High
$130.07
52W Low
$97.46
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Feb 14, 2026
Market cap
$70.28B
P/E
18.97
ROE
12.5%
Profit margin
16.4%
Debt/Equity
1.6
Dividend yield
3.01%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
78%
Analysis Accuracy
AEP's Piotroski F-Score of 4/9 indicates weak financial health, signaling potential distress in operational efficiency and profitability trends. The absence of an Altman Z-Score raises concern about bankruptcy risk, especially given a high debt/equity ratio of 1.60 and extremely low current and quick ratios (0.46 and 0.25). While the company trades at a premium to its Graham Number ($94.2) and intrinsic value ($47.95), its strong revenue growth (13.2% YoY) and defensive dividend yield (3.01%) offer some appeal. However, declining earnings (−13.4% YoY) and negative Q/Q earnings growth (−12.3%) undermine long-term sustainability. Analysts remain bullish with a 'buy' recommendation, but insider selling activity and technical weakness temper conviction.
Key Strengths
Strong revenue growth of 13.2% YoY, outpacing sector average
Defensive dividend yield of 3.01% with a 56.16% payout ratio, indicating sustainability
High gross margin (47.52%) and operating margin (22.84%) reflect operational efficiency
Trading near 52-week high ($130.07), suggesting market confidence in near-term outlook
Analyst consensus remains 'buy' with 18 analysts covering the stock
Key Risks
Piotroski F-Score of 4/9 indicates weak financial health and deteriorating operational metrics
Extremely low current and quick ratios (0.46 and 0.25) signal liquidity stress
Debt/Equity ratio of 1.60 is elevated, especially for a regulated utility
Negative earnings growth (−13.4% YoY) and Q/Q decline (−12.3%) raise concerns about profitability
Insider selling activity (5 transactions, $2.43M) suggests internal skepticism
AI Fair Value Estimate
Based on comprehensive analysis
$94.2
-27.5% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
58
Moderate
55
58
65
42
70
AI Verdict
neutral
Key drivers: Mixed financial health signals (Piotroski F-Score 4/9), High revenue growth but declining earnings, Strong dividend and sector-leading margins, Weak liquidity and elevated leverage, Bearish insider activity and technical trend
Confidence
78%
Value
55/100
Ref P/E, PEG, Graham Number
Positives
- P/E of 18.97 is below sector average (24.19)
- Graham Number of $94.2 provides a defensive floor
- Trading at 1.38x Graham Number, suggesting modest premium
Watchpoints
- Current price ($129.94) is 38% above Graham Number
- Intrinsic value estimate ($47.95) is significantly below current price
- No PEG ratio available, limiting growth-adjusted valuation
Future
58/100
Ref Growth rates
Positives
- 13.2% YoY revenue growth exceeds sector average
- Recent quarters show mixed but generally positive earnings surprises (avg +5.58%)
- Strong forward-looking growth in utility infrastructure investments
Watchpoints
- Earnings growth is negative (-13.4% YoY)
- Q/Q earnings growth is -12.3%, indicating worsening trend
- No PEG ratio limits confidence in growth sustainability
Past
65/100
Ref Historical trends
Positives
- 25 quarters of consistent earnings delivery with 14 beats (56%)
- Average earnings surprise of +5.58% over last 4 quarters
- Long-term price appreciation: +99.3% over 5 years
Watchpoints
- Recent earnings decline (−13.4% YoY) breaks historical trend
- Most recent Q/Q EPS growth is −34.6%, signaling deterioration
- 2020 and 2023 saw negative surprises, indicating volatility
Health
42/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Profit margin (16.36%) and ROE (12.49%) are above sector average
- Operating margin (22.84%) is strong for the sector
- No reported Altman Z-Score, but Piotroski F-Score is a proxy for health
Watchpoints
- Piotroski F-Score of 4/9 is in the 'weak' range (0–3) for financial health
- Current ratio (0.46) and quick ratio (0.25) are dangerously low
- Debt/Equity of 1.60 is above sector average (1.76), indicating leverage risk
Dividend
70/100
Ref Yield, Payout
Positives
- 3.01% dividend yield is attractive for utilities
- Payout ratio of 56.16% is sustainable and below 70% threshold
- 5-year dividend growth history is stable (implied by track record)
Watchpoints
- Dividend strength score is only 50/100, indicating moderate quality
- Recent earnings decline may pressure future increases
- No explicit 5-year average yield provided
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$129.94
Analyst Target
$130.03
Upside/Downside
+0.1%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for AEP and closest competitors.
Updated 2026-02-13
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
AEP
American Electric Power Company, Inc.
Primary
|
+99.3% | +60.8% | +33.0% | +17.9% | +10.9% | +8.4% |
|
SRE
Sempra
Peer
|
+78.7% | +26.0% | +13.8% | +20.0% | +6.7% | +4.2% |
|
D
Dominion Energy, Inc.
Peer
|
+7.3% | +13.6% | +16.3% | +7.6% | +1.7% | +5.4% |
|
DUK
Duke Energy Corporation
Peer
|
+60.5% | +28.8% | +13.3% | +2.4% | +1.5% | +2.1% |
|
EXC
Exelon Corporation
Peer
|
+74.8% | +15.9% | +17.8% | +4.9% | +1.1% | +3.3% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
18.97
Forward P/E
19.05
PEG Ratio
N/A
P/B Ratio
2.26
P/S Ratio
3.21
EV/Revenue
5.59
EV/EBITDA
13.58
Market Cap
$70.28B
Profitability
Profit margins and return metrics
Profit Margin
16.36%
Operating Margin
22.84%
Gross Margin
47.52%
ROE
12.49%
ROA
3.17%
Growth
Revenue and earnings growth rates
Revenue Growth
+13.2%
Earnings Growth
-13.4%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
-12.3%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
1.6
High debt
Current Ratio
0.46
Weak
Quick Ratio
0.25
Poor
Cash/Share
$0.77
Quarterly Earnings History
EPS performance vs analyst estimates
2026-05-06
$N/A
2026-02-12
$1.19
+4.3% surprise
2025-10-29
$1.82
-0.4% surprise
2025-07-30
$1.43
+12.8% surprise
Utilities Sector Comparison
Comparing AEP against 21 companies in the Utilities sector
(0 bullish, 18 neutral, 3 bearish)
P/E Ratio
18.97
This Stock
vs
24.26
Sector Avg
-21.8%
(Discount)
Return on Equity (ROE)
12.49%
This Stock
vs
-7.2%
Sector Avg
-273.5%
(Below Avg)
Profit Margin
16.36%
This Stock
vs
10.62%
Sector Avg
+54.2%
(Superior)
Debt to Equity
1.6
This Stock
vs
1.76
Sector Avg
-9.5%
(Lower)
Revenue Growth
13.2%
This Stock
vs
6.94%
Sector Avg
+90.2%
(Fast Growth)
Current Ratio
0.46
This Stock
vs
0.88
Sector Avg
-48.1%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
AEP
American Electric Power...
|
NEUTRAL | $70.28B | 18.97 | 12.5% | 16.4% | $129.94 | |
|
SRE
Sempra
|
NEUTRAL | $60.41B | 28.48 | 6.8% | 15.8% | $92.55 | |
|
D
Dominion Energy, Inc.
|
NEUTRAL | $52.2B | 19.98 | 9.2% | 16.8% | $61.13 | |
|
DUK
Duke Energy Corporation
|
NEUTRAL | $92.71B | 18.77 | 9.9% | 16.0% | $119.22 | |
|
EXC
Exelon Corporation
|
NEUTRAL | $45.18B | 16.03 | 10.3% | 11.6% | $44.73 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-12-31 | STODDARD DANIEL G. | Director | Stock Award | 346 | $39,897 |
| 2025-12-12 | FOWKE BENJAMIN G S III | Director | Sale | 5,000 | $575,350 |
| 2025-11-14 | FOWKE BENJAMIN G S III | Director | Sale | 5,000 | $607,900 |
| 2025-10-10 | FOWKE BENJAMIN G S III | Director | Sale | 5,000 | $587,600 |
| 2025-10-02 | FERNEAU KELLY J. | Officer | Sale | 1,006 | $112,672 |
| 2025-09-30 | STODDARD DANIEL G. | Director | Stock Award | 355 | $39,938 |
| 2025-09-12 | FOWKE BENJAMIN G S III | Director | Sale | 5,000 | $543,250 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
18 analysts
Wells Fargo
2026-02-13
Overweight
Overweight
Mizuho
2026-02-13
Neutral
Neutral
Wolfe Research
2026-02-13
Peer Perform
Outperform
Barclays
2026-01-22
Equal-Weight
Equal-Weight
Wells Fargo
2026-01-20
Overweight
Overweight
B of A Securities
2026-01-12
Buy
Neutral
UBS
2025-12-17
Sell
Sell
JP Morgan
2025-12-12
Neutral
Neutral
Jefferies
2025-11-17
Hold
Buy
Citigroup
2025-10-31
Neutral
Neutral
Past News Coverage
Recent headlines mentioning AEP from our newsroom.
Newest → oldest
No matching news yet.