|AEP Overview
AEP

AMERICAN ELECTRIC POWER CO INC

Utilities • CIK: 0000004904

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Market Cap
$60.05B
P/E (TTM)
16.4x
Rev Growth (TTM)
+8.4%
Net Margin (TTM)
18.6%
FCF Yield (TTM)
11.4%
FCF Margin (TTM)
32.3%

LATEST EARNINGS

Q4 FY2025
1 day ago
View source
Revenue
Net Income
EPS
  • Full-year GAAP earnings increased to $6.70 per share from $5.60 in the prior year.
  • Full-year operating earnings increased to $5.97 per share from $5.62 in the prior year.
  • Incremental load demand doubled to 56 GW by 2030, all backed by signed agreements.
  • Identified opportunities for $5 billion to $8 billion of incremental investment beyond the five-year capital plan.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$6.9B
Q3 '25
$2.2B+77%
Q2 '25
$1.2B-16%
FCF Margin
TTM32.3%
Q3 '2536.0%+50%
Sector: 3.7%Top 25%
OCF Margin32.3%
OCF/NI1.73x
CapEx Coverage
FCF Yield11.4%
FCF Growth (2Y)+58%
Cash Conversion Cycle
-94 days
DSO: 46+DIO: 0DPO: 140

Capital Allocation & Returns

Balanced
Total Shareholder YieldEst.
Est.3.4%
Div Yield3.4%
+
Est. Buyback4.8%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)3.4%
FCF Payout Ratio29.3%
Free Cash Flow (TTM)$6.9B
Capital Return / FCF29.1%
Est. Dividends Paid (TTM)$2.0B
Estimated: Buyback data estimated from FCF. Actual repurchase data not available for this company.
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
6.8%
Stable
-0.1% YoY-1.5%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
23.9%
8Q: 21.2%
Asset Turnover
0.20x
8Q: 0.20x
Leverage (1+D/E)
2.53x
D/E: 1.53x
DuPont: 12.2%6.8% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
0.26x
8Q:0.33x
-24.0%
Invested Cap Turn
0.28x
8Q:0.37x
-27.9%
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024Q4 2023
Revenue
$21.3B
$6.0B18.2%
$5.1B6.9%
$5.5B16.3%
$4.7B13.4%
$5.4B18.4%
$4.6B8.9%
$5.0B9.8%
$4.6B
Operating Income
$5.3B
$1.5B8.7%
$1.4B8.9%
$1.3B17.2%
$1.1B18.9%
$1.4B97.6%
$683.9M41.7%
$1.2B88.1%
$623.4M
Net Income
$4.0B
$972.0M20.7%
$1.2B53.2%
$800.2M16.2%
$955.3M0.4%
$959.6M182.0%
$340.3M66.1%
$1.0B198.4%
$336.2M
Operating Cash Flow
$6.9B
$2.5B101.4%
$1.2B15.8%
$1.4B16.1%
$1.7B20.5%
$2.2B48.6%
$1.5B1.4%
$1.4B7.9%
$1.3B
Free Cash Flow
$6.9B
$2.2B77.0%
$1.2B15.8%
$1.4B15.8%
$1.7B20.7%
$2.2B48.6%
$1.5B1.4%
$1.4B8.0%
$1.3B
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
16.4x
Volatile
8Q: 67.3x-5254%
Valuation Lenses
Earnings
16.4x
vs sector
Cash Flow
6.6x
EV/FCF vs
Growth-Adj
0.4xPEG
Undervalued for growth
Quality-Adj
2.4P/E per %ROIC
ROIC: 6.8%
Shareholder Returns
Dividend
3.4%
Buyback
Total Yield
3.4%
Market Cap$60.05B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
92/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 10%
28.9%
8Q:
Return on Invested Capital (ROIC)Top 25%
6.8%
8Q:
Flat
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 23.9%
Asset Turnover: 0.20x

Earnings Quality

Cash Conversion

1.73x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin68.4%

Capital Efficiency

Invested Capital Turnover0.28x

Working Capital

Cash Conversion Cycle-94 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
68/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
8.4%
OpInc Growth YoY
12.6%
EPS Growth YoY
37.9%
FCF 3Y CAGR
58.0%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
68.4%
Operating
24.9%
Above Avg in sector
Net
18.6%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+13.7 pts
FCF: 32.3% | Net: 18.6%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Leveraged
Net Debt / EBITDA
Net Debt: $45.06B
Interest Coverage
Leverage Metrics
Debt-to-Equity
1.53x
Balance sheet risk & solvency analysis