AI Spotlight on AEE
Company Description
Ameren Corporation, together with its subsidiaries, operates as a public utility holding company in the United States.It operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission.The company engages in the rate-regulated electric generation, transmission, and distribution activities; and rate-regulated natural gas distribution and transmission businesses.
It primarily generates electricity through coal, nuclear, and natural gas, as well as renewable sources, such as hydroelectric, wind, methane gas, and solar.The company serves residential, commercial, and industrial customers.Ameren Corporation was founded in 1881 and is headquartered in St. Louis, Missouri.
Market Data
Last Price | 94.2 |
Change Percentage | 0.10% |
Open | 94 |
Previous Close | 94.11 |
Market Cap ( Millions) | 25145 |
Volume | 1686932 |
Year High | 96.74 |
Year Low | 67.03 |
M A 50 | 91.4 |
M A 200 | 82.37 |
Financial Ratios
FCF Yield | -6.71% |
Dividend Yield | 2.85% |
ROE | 9.82% |
Debt / Equity | 154.32% |
Net Debt / EBIDTA | 522.75% |
Price To Book | 2.12 |
Price Earnings Ratio | 22.17 |
Price To FCF | -14.9 |
Price To sales | 3.44 |
EV / EBITDA | 12.43 |
News
- Jan -17 - Ameren Corporation Fourth Quarter 2024 Earnings Webcast Feb. 14, 2025
- Jan -14 - Regional grid operator selects Ameren to lead critical grid infrastructure projects in Missouri and Illinois
- Dec -19 - Ameren Missouri delivers generation projects that support residential customers, businesses and diversifies portfolio
- Dec -16 - Steven Vondran joins Ameren board of directors
- Dec -09 - Ameren (AEE) Up 6.6% Since Last Earnings Report: Can It Continue?
- Dec -07 - Ameren: Getting Difficult To Justify The Valuation
- Nov -19 - Are Utilities Stocks Lagging Ameren (AEE) This Year?
- Nov -08 - Ameren Corporation (AEE) Q3 2024 Earnings Call Transcript
- Nov -07 - Ameren Q3 Earnings Miss Estimates, Revenues Increase Y/Y
- Nov -07 - Compared to Estimates, Ameren (AEE) Q3 Earnings: A Look at Key Metrics
- Nov -06 - Ameren (AEE) Q3 Earnings and Revenues Miss Estimates
- Nov -06 - Ameren Announces Third Quarter 2024 Results
- Oct -31 - Is Ameren (AEE) Stock Outpacing Its Utilities Peers This Year?
- Oct -31 - Ameren announces milestones in reliable energy investments
- Oct -16 - Markets Turn Volatile: 5 Defensive Stocks to Buy
- Oct -15 - Is Ameren (AEE) Outperforming Other Utilities Stocks This Year?
- Oct -15 - ETR or AEE: Which Utility Electric Power Stock Is the Better Option?
- Oct -11 - Ameren Corporation Directors Declare Quarterly Dividend
- Oct -10 - Ameren Corporation Third Quarter 2024 Earnings Webcast Nov. 7, 2024
- Sep -30 - Ameren Missouri Announces Pricing of Green First Mortgage Bonds due 2055
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> Ameren Missouri
Expected Growth : 5.8 %
What the company do ?
Ameren Missouri is a subsidiary of Ameren Corporation, providing electricity and natural gas to 1.2 million customers in Missouri.
Why we expect these perspectives ?
Ameren Missouri's 5.8% growth is driven by increasing electricity demand from industrial and commercial customers, investments in grid modernization and renewable energy, and rate base growth from infrastructure upgrades. Additionally, the segment benefits from a constructive regulatory environment and a strong economy in the Missouri region.
Segment nΒ°2 -> Ameren Illinois Electric Distribution
Expected Growth : 5.5 %
What the company do ?
Ameren Illinois Electric Distribution, a subsidiary of Ameren Corporation, provides electric energy to 1.2 million customers across 60,000 square miles in central and southern Illinois.
Why we expect these perspectives ?
Ameren Illinois Electric Distribution's 5.5% growth is driven by increasing electricity demand from residential and commercial customers, investments in grid modernization and infrastructure upgrades, and favorable regulatory policies. Additionally, the segment benefits from a strong economy in Illinois, leading to higher energy consumption and a growing customer base.
Segment nΒ°3 -> Ameren Illinois Natural Gas
Expected Growth : 5.2 %
What the company do ?
Ameren Illinois Natural Gas, a subsidiary of Ameren Corporation, provides natural gas services to customers in Illinois, ensuring reliable and efficient energy delivery.
Why we expect these perspectives ?
Ameren Illinois Natural Gas' 5.2% growth is driven by increasing demand for natural gas in the Midwest, infrastructure investments, and rate base growth. Additionally, the segment benefits from a strong regulatory environment, allowing for timely recovery of costs and investments. Furthermore, Ameren's focus on grid modernization and customer growth initiatives also contribute to the segment's growth.
Segment nΒ°4 -> Ameren Transmission
Expected Growth : 6.2 %
What the company do ?
Ameren Transmission, a subsidiary of Ameren Corporation, operates and develops electric transmission infrastructure to ensure reliable and efficient energy delivery.
Why we expect these perspectives ?
Ameren Transmission's 6.2% growth is driven by increasing demand for reliable and efficient energy transmission, strategic investments in grid modernization, and a strong regulatory environment supporting infrastructure development. Additionally, the company's focus on renewable energy integration and transmission system upgrades contributes to its growth momentum.
Ameren Corporation Products
Product Range | What is it ? |
---|---|
Electricity | Ameren Corporation generates and distributes electricity to residential, commercial, and industrial customers across Illinois and Missouri. |
Natural Gas | Ameren Corporation provides natural gas services to customers in Illinois, offering a safe and reliable supply of natural gas for heating, cooking, and other uses. |
Transmission Services | Ameren Corporation operates a high-voltage transmission system, connecting power plants to the grid and ensuring reliable transmission of electricity across the Midwest. |
Distribution Services | Ameren Corporation provides distribution services, delivering electricity and natural gas to customers through a network of power lines, substations, and pipelines. |
Renewable Energy | Ameren Corporation invests in renewable energy sources, such as wind and solar power, to reduce carbon emissions and promote sustainability. |
Energy Efficiency Programs | Ameren Corporation offers energy efficiency programs, providing customers with incentives and resources to reduce energy consumption and lower their energy bills. |
Ameren Corporation's Porter Forces
Threat Of Substitutes
Ameren Corporation operates in the utility industry, which has a moderate threat of substitutes. While there are alternative energy sources available, such as solar and wind power, they are not yet widely adopted and are often more expensive than traditional energy sources.
Bargaining Power Of Customers
Ameren Corporation's customers have limited bargaining power due to the lack of alternative energy providers in the region. This gives the company a degree of pricing power and reduces the risk of customer defection.
Bargaining Power Of Suppliers
Ameren Corporation's suppliers, such as fuel providers, have some bargaining power due to the company's dependence on them. However, the company's size and scale of operations give it some negotiating power to mitigate this risk.
Threat Of New Entrants
The utility industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to challenge Ameren Corporation's market position.
Intensity Of Rivalry
Ameren Corporation operates in a moderately competitive industry, with several other utility companies operating in the region. While there is some competition, the company's strong brand and established customer base help to mitigate the risk of rivalry.
Capital Structure
Value | |
---|---|
Debt Weight | 59.26% |
Debt Cost | 3.97% |
Equity Weight | 40.74% |
Equity Cost | 6.16% |
WACC | 4.86% |
Leverage | 145.44% |
Ameren Corporation : Quality Control
Ameren Corporation passed 2 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
Company | Rational |
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LNT | Alliant Energy Corporation operates as a utility holding company that provides regulated electricity and natural gas services. It operates through three segments: Utility Electric Operations, Utility Gas Operations, and Utility β¦ |
CMS | CMS Energy Corporation operates as an energy company primarily in Michigan. The company operates through three segments: Electric Utility; Gas Utility; and Enterprises. The Electric Utility segment is involved in β¦ |
CNP | CenterPoint Energy, Inc. operates as a public utility holding company in the United States. The company operates through Electric and Natural Gas segments. The Electric segment includes electric transmission and β¦ |
PNW | Pinnacle West Capital Corporation, through its subsidiary, Arizona Public Service Company, provides retail and wholesale electric services primarily in the state of Arizona. The company engages in the generation, transmission, β¦ |
PPL | PPL Corporation, a utility holding company, delivers electricity and natural gas in the United States and the United Kingdom. The company operates through two segments: Kentucky Regulated and Pennsylvania Regulated. β¦ |