-0.85%
-16.86%
-25.22%
-35.79%
-33.37%
-49.45%
-45.84%
AI Spotlight on AES
Company Description
The AES Corporation operates as a diversified power generation and utility company.It owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries.The company also owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market.
It uses a range of fuels and technologies to generate electricity, including coal, gas, hydro, wind, solar, and biomass; and renewables, such as energy storage and landfill gas.The company owns and/or operates a generation portfolio of approximately 31,459 megawatts.It has operations in the United States, Puerto Rico, El Salvador, Chile, Colombia, Argentina, Brazil, Mexico, Central America, the Caribbean, Europe, and Asia.
The company was formerly known as Applied Energy Services, Inc.and changed its name to The AES Corporation in April 2000.The AES Corporation was incorporated in 1981 and is headquartered in Arlington, Virginia.
Market Data
| Last Price | 11 |
| Change Percentage | -0.85% |
| Open | 11.18 |
| Previous Close | 11.09 |
| Market Cap ( Millions) | 7821 |
| Volume | 21782996 |
| Year High | 22.21 |
| Year Low | 10.81 |
| M A 50 | 12.62 |
| M A 200 | 16.64 |
Financial Ratios
| FCF Yield | -72.94% |
| Dividend Yield | 6.30% |
| ROE | 32.46% |
| Debt / Equity | 895.20% |
| Net Debt / EBIDTA | 1010.39% |
| Price To Book | 2.38 |
| Price Earnings Ratio | 8.19 |
| Price To FCF | -1.37 |
| Price To sales | 0.64 |
| EV / EBITDA | 12.97 |
News
- Jan -29 - AI and Data Centers Gobbling Electricity: 4 High-Yield Dividend Utility Stock Bargains
- Jan -28 - AES Announces Fourth Quarter & Full Year 2024 Financial Review Conference Call to be Held on Friday, February 28, 2025 at 10:00 a.m. ET
- Jan -27 - 5 of the Most Undervalued S&P 500 Stocks Also Pay High-Yield Dividends
- Jan -27 - AES Corp.: What I Got Wrong (And Right)
- Jan -24 - 6 Upcoming Dividend Increases
- Jan -12 - 3 High-Yield Dividend Stocks Wall Street Thinks Will Soar 41% or More in 2025
- Jan -08 - Retire in Comfort: 3 Utility Stocks That Keep Your Paychecks Flowing
- Jan -05 - MEGI: Deep Discount Returns With Market Volatility
- Jan -04 - 5 Relatively Secure And Cheap Dividend Stocks, Yields Up To 8% (January 2025)
- Jan -04 - 5 High-Yield Infrastructure Stocks Looking Cheap On The Dip
- Dec -22 - 3 Buy-Rated Monthly-Pay High-Yield Dividend Stocks Are Our Top January Picks
- Dec -17 - Last Call for 2024 Rate Cuts: Grab These 6% and Higher Yielding S&P 500 Stocks Now
- Dec -12 - 3 Stocks to Keep an Eye on After Dividend Hike Announcement
- Dec -11 - My Top 2 Stock Picks For A 2025 Rebound
- Dec -07 - 5 Relatively Secure And Cheap Dividend Stocks For December 2024: Yields Up To 9%
- Dec -06 - AES Announces 2% Increase in Quarterly Dividend
- Dec -06 - Xenon Showcases New Long-Term Azetukalner Data from X-TOLE OLE Study in FOS at AES 2024
- Dec -04 - AES Announces Pricing of $500 Million Fixed-to-Fixed Reset Rate Junior Subordinated Notes in Public Offering
- Dec -04 - NeuroPace to Showcase the RNS System at the 2024 American Epilepsy Society (AES) Annual Meeting
- Dec -04 - AES Announces Public Offering of Fixed-to-Fixed Reset Rate Junior Subordinated Notes
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Energy Infrastructure Strategic Business Unit
Expected Growth : 6 %
What the company do ?
The Energy Infrastructure Strategic Business Unit of The AES Corporation focuses on developing, constructing, and operating energy infrastructure projects, including power generation, transmission, and distribution assets.
Why we expect these perspectives ?
AES' Energy Infrastructure Strategic Business Unit growth is driven by increasing demand for clean energy, expansion into new markets, and strategic acquisitions. The unit's focus on renewable energy sources, energy storage, and grid modernization also positions it for growth. Additionally, government incentives and regulations supporting the transition to a low-carbon economy further boost the unit's prospects.
Segment n°2 -> Utilities Strategic Business Unit
Expected Growth : 5 %
What the company do ?
The Utilities Strategic Business Unit of The AES Corporation focuses on generating and distributing electricity to end-users, providing reliable and efficient energy solutions.
Why we expect these perspectives ?
AES Corporation's Utilities Strategic Business Unit growth is driven by increasing demand for renewable energy, grid modernization, and energy storage. Additionally, strategic acquisitions, expansion into new markets, and cost savings initiatives contribute to the 5% growth rate. Furthermore, investments in digital technologies and customer-centric solutions enhance operational efficiency and customer satisfaction, supporting long-term growth.
Segment n°3 -> Renewables Strategic Business Unit
Expected Growth : 7 %
What the company do ?
The Renewables Strategic Business Unit from The AES Corporation focuses on developing and operating renewable energy projects, including wind, solar, and energy storage, to provide clean energy solutions.
Why we expect these perspectives ?
AES' Renewables Strategic Business Unit's 7% growth is driven by increasing demand for clean energy, declining renewable technology costs, and favorable government policies. Additionally, the unit's diversified portfolio of wind, solar, and energy storage projects, as well as its strategic partnerships and acquisitions, contribute to its growth momentum.
Segment n°4 -> Eliminations
Expected Growth : 0 %
What the company do ?
AES Corporation's Eliminations refer to the consolidation and elimination of intercompany transactions and balances between its subsidiaries, ensuring accurate financial reporting.
Why we expect these perspectives ?
AES Corporation's eliminations segment shows 0% growth, driven by stagnant revenue from intercompany transactions, lack of new business opportunities, and absence of cost savings initiatives. Additionally, the company's focus on renewable energy and decarbonization efforts has not led to significant eliminations growth.
Segment n°5 -> Corporate and Other
Expected Growth : 4 %
What the company do ?
Corporate and Other from The AES Corporation refers to the company's headquarters and other non-operating units that provide support functions, but do not generate revenue.
Why we expect these perspectives ?
The 4% growth in Corporate and Other segment of The AES Corporation is driven by increasing demand for renewable energy solutions, strategic acquisitions, and expansion into new markets. Additionally, cost savings initiatives and operational efficiencies have contributed to the growth. Furthermore, the company's focus on energy storage and grid modernization has also driven revenue growth in this segment.
Segment n°6 -> New Energy Technologies Strategic Business Unit
Expected Growth : 8 %
What the company do ?
The New Energy Technologies Strategic Business Unit from The AES Corporation focuses on developing and investing in innovative clean energy solutions, including energy storage, solar, and wind power.
Why we expect these perspectives ?
AES's New Energy Technologies Strategic Business Unit is driven by increasing demand for renewable energy, declining costs of solar and wind power, and growing adoption of energy storage solutions. Additionally, government incentives and policies supporting clean energy transition, such as tax credits and renewable portfolio standards, contribute to the unit's 8% growth.
The Aes Corporation Products
| Product Range | What is it ? |
|---|---|
| Generation | AES generates electricity from a diverse portfolio of fuels, including coal, gas, hydro, wind, and solar. |
| Distribution | AES owns and operates distribution networks that deliver electricity to customers. |
| Renewable Energy | AES develops and operates renewable energy projects, including wind, solar, and hydroelectric power. |
| Energy Storage | AES provides energy storage solutions to help utilities and companies manage energy demand and supply. |
| Energy Efficiency | AES offers energy efficiency solutions to help customers reduce energy consumption and costs. |
| Electric Vehicle Charging | AES provides electric vehicle charging infrastructure and services. |
The AES Corporation's Porter Forces
Threat Of Substitutes
The threat of substitutes for AES Corporation is medium due to the availability of alternative energy sources such as solar and wind power. However, the high cost of switching to these alternatives and the lack of infrastructure in some areas reduce the threat.
Bargaining Power Of Customers
The bargaining power of customers for AES Corporation is low due to the lack of alternative energy providers in many areas and the high cost of switching to alternative providers.
Bargaining Power Of Suppliers
The bargaining power of suppliers for AES Corporation is medium due to the availability of multiple suppliers for fuel and other inputs. However, the high cost of switching to alternative suppliers and the lack of substitutes for some inputs reduce the bargaining power of suppliers.
Threat Of New Entrants
The threat of new entrants for AES Corporation is low due to the high barriers to entry in the energy industry, including the need for significant capital investment and regulatory approvals.
Intensity Of Rivalry
The intensity of rivalry for AES Corporation is high due to the competitive nature of the energy industry and the presence of multiple competitors in the market.
Strength
Weaknesses
Opportunities
Threats
Capital Structure
| Value | |
|---|---|
| Debt Weight | 87.09% |
| Debt Cost | 3.95% |
| Equity Weight | 12.91% |
| Equity Cost | 9.31% |
| WACC | 4.64% |
| Leverage | 674.42% |
The AES Corporation : Quality Control
The AES Corporation passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| MGEE | MGE Energy, Inc., through its subsidiaries, operates as a public utility holding company primarily in Wisconsin. It operates through Regulated Electric Utility Operations; Regulated Gas Utility Operations; Nonregulated Energy Operations; … |
| NWE | NorthWestern Corporation, doing business as NorthWestern Energy, provides electricity and natural gas to residential, commercial, and various industrial customers. The company operates through Electric and Natural Gas segments. It generates, … |
| AVA | Avista Corporation, together with its subsidiaries, operates as an electric and natural gas utility company. It operates in two segments, Avista Utilities and AEL&P. The Avista Utilities segment provides electric … |
| BKH | Black Hills Corporation, through its subsidiaries, operates as an electric and natural gas utility company in the United States. It operates in two segments, Electric Utilities and Gas Utilities. The … |
| OTTR | Otter Tail Corporation, together with its subsidiaries, engages in electric utility, manufacturing, and plastic pipe businesses in the United States. The company's Electric segment produces, transmits, distributes, and sells electric … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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NorthWestern
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Avista
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Black Hills
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4
Otter Tail
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5
MGE Energy
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1-Year Total Return ->
6
