1.27%
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33.27%
20.32%
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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

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

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.

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.

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.

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.

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%

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. …
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 …
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 …
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 …
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 …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
107.64$
Current Price
107.64$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

ValueQualityYieldMomentumVolatilityGrowth
Company A-Score: 6.70Peer Group Average: 6.30Leader: 3.30

Peers Group Analysis

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