AEP American Electric Power Company, Inc. - Fundamental Analysis
NEUTRAL
AEP Stock | Fundamental Analysis & Investment Insights
NYSE
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Utilities
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Utilities - Regulated Electric
Current Price
$115.81
Analyst Target
$128.97
+11.4% Upside
52W High
$124.8
52W Low
$89.91
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
The Advanced Deterministic Scorecard shows a weak Piotroski F-Score of 4/9, indicating borderline financial health, while the Altman Z-Score is astronomically high at 124543023411.2, suggesting no distress risk. Despite solid profitability and sector-relative valuation, elevated debt levels, weak liquidity ratios, and bearish insider activity offset strong dividend yield and revenue growth. The stock trades above both Graham and intrinsic value estimates, limiting margin of safety, while analyst target implies upside but lacks consensus strength. Mixed signals across valuation, sentiment, and technicals support a neutral stance.
Key Strengths
Strong revenue growth of 10.90% YoY, outpacing sector average of 9.16%
High profitability with 17.23% net margin and 25.89% operating margin
Attractive dividend yield of 3.28% with sustainable 54.47% payout ratio
Altman Z-Score of 124543023411.2 indicates virtually no bankruptcy risk
ROE of 12.92% exceeds sector average of 9.78%, reflecting efficient equity use
Key Risks
Piotroski F-Score of 4/9 signals weak financial health and operational instability
Poor liquidity with current ratio of 0.69 and quick ratio of 0.42, below safe thresholds
Debt/Equity of 1.52 is high and in line with sector, limiting financial flexibility
Insider selling activity: $3.37M in net sales over last 6 months, signaling bearish sentiment
Technical trend score of 0/100 indicates bearish price momentum near-term
AI Fair Value Estimate
Based on comprehensive analysis
$93.42
-19.3% below current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare AEP against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations