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AI Spotlight on AEP
Company Description
American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States.It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments.The company generates electricity using coal and lignite, natural gas, nuclear, hydro, solar, wind, and other energy sources.
It also supplies and markets electric power at wholesale to other electric utility companies, rural electric cooperatives, municipalities, and other market participants.American Electric Power Company, Inc.was incorporated in 1906 and is headquartered in Columbus, Ohio.
Market Data
Last Price | 107.64 |
Change Percentage | 1.27% |
Open | 106.7 |
Previous Close | 106.29 |
Market Cap ( Millions) | 57395 |
Volume | 3406856 |
Year High | 107.84 |
Year Low | 79.16 |
M A 50 | 96.6 |
M A 200 | 95.95 |
Financial Ratios
FCF Yield | -1.68% |
Dividend Yield | 3.36% |
ROE | 11.19% |
Debt / Equity | 169.85% |
Net Debt / EBIDTA | 562.00% |
Price To Book | 2.12 |
Price Earnings Ratio | 19.33 |
Price To FCF | -59.4 |
Price To sales | 2.9 |
EV / EBITDA | 12.7 |
News
- Feb -20 - Duke Energy: Murky Outlook Warrants Caution
- Feb -19 - Indiana Michigan Power Receives Order in Large Load Settlement
- Feb -13 - American Electric's Q4 Earnings In Line, Revenues Increase Y/Y
- Feb -13 - American Electric Power Company (AEP) Q4 2024 Earnings Call Transcript
- Feb -13 - AEP (AEP) Reports Q4 Earnings: What Key Metrics Have to Say
- Feb -13 - American Electric Power (AEP) Q4 Earnings Match Estimates
- Feb -13 - AEP Reports 2024 Earnings Results
- Feb -12 - Sleep Like A King, Earn Like A Pro: 2 Big Dividend Ideas For Income And Wealth
- Feb -10 - American Electric Power to Post Q4 Earnings: What's in Store?
- Feb -04 - AVA or AEP: Which Is the Better Value Stock Right Now?
- Feb -03 - AEP Named One of America's Most JUST Companies for Fifth Consecutive Year
- Jan -28 - DeepSeek: Why REITs And Utilities Loved The News
- Jan -26 - American Electric Power: Charge Up Your Portfolio With Durable Assets
- Jan -21 - AEP Declares Quarterly Dividend on Common Stock
- Jan -17 - AEP Seeking Grants To Assist With Advanced Nuclear Site Exploration in Indiana and Virginia
- Jan -16 - Will AEP (AEP) Beat Estimates Again in Its Next Earnings Report?
- Jan -13 - American Electric Power Is Attractive Going Forward, Analyst Double-Upgrades Stock
- Jan -09 - AEP Secures Minority Equity Interest Investment in Ohio and Indiana & Michigan Transmission Companies
- Jan -07 - Want More Passive Income in 2025? Consider This ETF and 2 Rock-Solid Dividend Stocks.
- Jan -07 - AEP Names Seasoned Energy Executive Trevor Mihalik Executive Vice President & Chief Financial Officer
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> Vertically Integrated Utilities
Expected Growth : 3.2 %
What the company do ?
Vertically Integrated Utilities from American Electric Power Company, Inc. refers to the company's ability to generate, transmit, and distribute electricity, providing a seamless and efficient energy experience to customers.
Why we expect these perspectives ?
AEP's vertically integrated utilities segment growth is driven by increasing demand for electricity, investments in grid modernization and renewable energy, and favorable regulatory environments. Additionally, AEP's focus on cost management and operational efficiency has enabled the company to maintain a strong financial position, supporting its growth rate of 3.2%.
Segment nΒ°2 -> Transmission and Distribution Utilities
Expected Growth : 2.8 %
What the company do ?
Transmission and Distribution Utilities from American Electric Power Company, Inc. refers to the infrastructure and systems that transport and deliver electricity from power plants to consumers.
Why we expect these perspectives ?
AEP's Transmission and Distribution Utilities segment growth of 2.8% is driven by increasing demand for electricity, investments in grid modernization and resiliency, and favorable regulatory environments. Additionally, the integration of renewable energy sources and energy storage solutions contribute to the segment's growth.
Segment nΒ°3 -> Generation & Marketing
Expected Growth : 3.5 %
What the company do ?
Generation & Marketing from American Electric Power Company, Inc. refers to the production and sale of electricity to customers, including wholesale and retail markets.
Why we expect these perspectives ?
AEP's Generation & Marketing segment growth is driven by increasing demand for renewable energy, strategic investments in wind and solar projects, and a strong focus on customer acquisition and retention. Additionally, favorable regulatory policies and a growing commercial and industrial customer base contribute to the 3.5% growth rate.
Segment nΒ°4 -> American Electric Power Transmission Holdco
Expected Growth : 3.1 %
What the company do ?
American Electric Power Transmission Holdco is a subsidiary of American Electric Power Company, Inc., operating transmission facilities and providing transmission services.
Why we expect these perspectives ?
AEP Transmission Holdco's 3.1% growth is driven by increasing demand for reliable and efficient transmission infrastructure, strategic investments in grid modernization, and favorable regulatory environments. Additionally, AEP's focus on renewable energy integration and grid resilience contributes to the segment's growth.
Segment nΒ°5 -> Corporate and Other
Expected Growth : 2.5 %
What the company do ?
Corporate and Other from American Electric Power Company, Inc. refers to the company's non-utility operations, including its transmission and distribution services.
Why we expect these perspectives ?
AEP's Corporate and Other segment growth of 2.5% is driven by increased transmission revenue, higher transmission investment returns, and cost savings from operational efficiencies. Additionally, the segment benefits from AEP's focus on grid modernization and renewable energy integration, leading to higher demand for transmission services.
American Electric Power Company, Inc. Products
Product Range | What is it ? |
---|---|
Electricity Generation | American Electric Power Company, Inc. generates electricity through various sources including fossil fuels, nuclear, and renewable energy sources. |
Transmission and Distribution | The company owns and operates a vast network of transmission and distribution lines, substations, and other infrastructure to deliver electricity to customers. |
Energy Efficiency Programs | AEP offers various energy efficiency programs to help customers reduce their energy consumption and lower their energy bills. |
Renewable Energy Solutions | AEP provides renewable energy solutions, including wind and solar power, to customers seeking clean and sustainable energy options. |
Grid Modernization | AEP invests in grid modernization initiatives to improve the reliability, efficiency, and resilience of its grid infrastructure. |
American Electric Power Company, Inc.'s Porter Forces
Threat Of Substitutes
The threat of substitutes for American Electric Power Company, Inc. 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 American Electric Power Company, Inc. 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 American Electric Power Company, Inc. is medium due to the presence of multiple suppliers of fuel and equipment. However, the high demand for these inputs and the lack of substitutes reduce the bargaining power of suppliers.
Threat Of New Entrants
The threat of new entrants for American Electric Power Company, Inc. is low due to the high barriers to entry in the industry, including the need for significant capital investment and regulatory approvals.
Intensity Of Rivalry
The intensity of rivalry for American Electric Power Company, Inc. is high due to the presence of multiple competitors in the industry and the need to compete on price and service to attract and retain customers.
Capital Structure
Value | |
---|---|
Debt Weight | 63.33% |
Debt Cost | 3.95% |
Equity Weight | 36.67% |
Equity Cost | 6.45% |
WACC | 4.86% |
Leverage | 172.73% |
American Electric Power Company, Inc. : Quality Control
American Electric Power Company, Inc. passed 2 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
Company | Rational |
---|---|
PEG | Public Service Enterprise Group Incorporated, through its subsidiaries, operates as an energy company primarily in the Northeastern and Mid-Atlantic United States. It operates through two segments, PSE&G and PSEG Power. β¦ |
ED | Consolidated Edison, Inc., through its subsidiaries, engages in the regulated electric, gas, and steam delivery businesses in the United States. It offers electric services to approximately 3.5 million customers in β¦ |
DUK | Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and β¦ |
EIX | Edison International, through its subsidiaries, generates and distributes electric power. It delivers electricity to 15 million residential, commercial, industrial, public authorities, agricultural, and other customers across Southern, Central, and Coastal β¦ |
SO | The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity. It operates through Gas Distribution Operations, Gas Pipeline Investments, Wholesale Gas Services, and Gas Marketing β¦ |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
π₯
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Duke Energy
A-Score
1-Year Total Return ->
π₯
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PSEG
A-Score
1-Year Total Return ->
π₯
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American Electric Power
A-Score
1-Year Total Return ->
4
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Southern
A-Score
1-Year Total Return ->
5
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ConEd
A-Score
1-Year Total Return ->
6
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