AMERICAN ELECTRIC POWER CO INC (AEP) Factsheet
AMERICAN ELECTRIC POWER CO INC (AEP) Stock Analysis
Analysis from 10-Q filed 2025-10-29. Data as of Q1 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 6.5%. FCF margin 11.6%. D/E 1.6x. Source: 10-Q filed 2025-10-29.
| Metric | Value | Context |
|---|---|---|
| ROIC | 6.5% | Below expectations |
| FCF Margin | 11.6% | Healthy cash flow |
| Debt/Equity | 1.6x | Elevated debt |
ROIC 6.5% — Top 50% of sector peers. FCF margin 11.6% — Top 50%.
Explore AMERICAN ELECTRIC POWER CO INC: Earnings History | Filings | ROIC Analysis
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for AEP: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: AMERICAN ELECTRIC POWER CO INC earns 6.5% ROIC, Top 50% in Utilities
ROIC TTM 6.5%, sector median 5.4%, Top 50%. DuPont: NOPAT margin 23.7% × asset turnover 0.2x. Gross margin 67.5%. Operating margin 24.0%. Source: 10-Q filed 2025-10-29.
| Metric | AEP | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 6.5% | Warning | Above sector median of 5.4% |
| Return on Equity (ROE) | 12.1% | Adequate | Moderate equity returns |
| Gross Margin | 67.5% | Excellent | Strong pricing power |
| Operating Margin | 24.0% | Excellent | Efficient operations |
Cash Flow: AMERICAN ELECTRIC POWER CO INC generates $2.6B FCF at 11.6% margin, positive NaN/8 quarters
FCF TTM $2.6B. FCF margin 11.6%, Top 50%. OCF/Net income 1.9x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-29.
| Metric | AEP | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 11.6% | Good | Healthy cash generation |
| Free Cash Flow (TTM) | $2.6B | Good | Positive cash generation |
| OCF/Net Income | 1.9x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: AMERICAN ELECTRIC POWER CO INC at 1.6x leverage
Debt/Equity 1.6x. Total debt $50.2B, cash & investments $549.0M. Source: 10-Q filed 2025-10-29.
| Metric | AEP | Rating | Context |
|---|---|---|---|
| Debt to Equity | 1.6x | Warning | Elevated leverage |
| Net Cash Position | $-49.7B | Warning | Net debt position |
Valuation: AMERICAN ELECTRIC POWER CO INC trades at 19.3x earnings
P/E 19.3x. EV/Sales 5.2x. FCF yield 3.7%. Dividend yield 2.9%. Source: 10-Q filed 2025-10-29.
| Metric | AEP | Rating | Context |
|---|---|---|---|
| P/E Ratio | 19.3x | Adequate | Reasonable valuation |
| EV/Sales | 5.2x | Adequate | Growth premium priced in |
| FCF Yield | 3.7% | Adequate | Lower cash yield |
| Dividend Yield | 2.9% | Adequate | Growth focus over income |
Capital Allocation: AMERICAN ELECTRIC POWER CO INC returns 2.9% shareholder yield
Total shareholder yield 2.9% (div 2.9%). Capital returned $2.0B TTM. Source: 10-Q filed 2025-10-29.
| Metric | AEP | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 2.9% | Adequate | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $2.0B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 6.5% | Top 50% | 1.2x above |
| Free Cash Flow Margin | 11.6% | Top 50% | - |
| Gross Margin | 67.5% | Top 50% | 1.2x above |
| Operating Margin | 24.0% | Top 50% | 1.1x above |
| Return on Equity (ROE) | 12.1% | Top 50% | 1.3x above |
| P/E Ratio | 19.3x | N/A | - |
Financial Scorecard
| Metric | AEP | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 6.5% | Warning | Top 50% of sector (median: 5.4%) |
| Free Cash Flow Margin | 11.6% | Good | Top 50% of sector (median: 0.0%) |
| Gross Margin | 67.5% | Excellent | Top 50% of sector (median: 57.0%) |
| Debt to Equity Ratio | 157.8% | Warning | High financial leverage |
| P/E Ratio (Price-to-Earnings) | 19.3x | Adequate | Fair value |
| Free Cash Flow Yield | 3.7% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is AMERICAN ELECTRIC POWER CO INC's Return on Invested Capital (ROIC)?
AMERICAN ELECTRIC POWER CO INC (AEP) has a trailing twelve-month Return on Invested Capital (ROIC) of 6.5%. Sector median 5.4%. Source: 10-Q filed 2025-10-29.
Q: What is AMERICAN ELECTRIC POWER CO INC's Free Cash Flow Margin?
AMERICAN ELECTRIC POWER CO INC (AEP) has a free cash flow margin of 11.6%, generating $2.6 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-29.
Q: What is AMERICAN ELECTRIC POWER CO INC's P/E ratio and how does it compare to peers?
AMERICAN ELECTRIC POWER CO INC (AEP) trades at a P/E ratio of 19.3x, which is above the sector median of N/A. EV/Sales 5.2x. FCF yield 3.7%. Source: 10-Q filed 2025-10-29.
Q: Does AMERICAN ELECTRIC POWER CO INC pay a dividend?
AMERICAN ELECTRIC POWER CO INC (AEP) currently pays a dividend yield of 2.9%. Total shareholder yield (dividend + buybacks) 2.9%. Source: 10-Q filed 2025-10-29.
Q: How much debt does AMERICAN ELECTRIC POWER CO INC have?
AMERICAN ELECTRIC POWER CO INC (AEP) has a debt-to-equity ratio of 1.6x with total debt of $50.2 billion. Net debt $49.7 billion. Source: 10-Q filed 2025-10-29.
Q: What is AMERICAN ELECTRIC POWER CO INC's revenue and earnings growth?
AMERICAN ELECTRIC POWER CO INC (AEP) grew revenue by 11.3% year-over-year. EPS +30.4% YoY. Source: 10-Q filed 2025-10-29.
Q: How does AMERICAN ELECTRIC POWER CO INC compare to competitors in Utilities?
Compared to other companies in Utilities, AMERICAN ELECTRIC POWER CO INC (AEP) shows: ROIC 6.5%, sector median 5.4% (Top 50%). FCF margin 11.6%, sector median 0.0% (Top 50%). Gross margin 67.5%, 10.5pp above sector median. These rankings are based on MetricDuck's analysis of all Utilities companies with available SEC filings.
Q: What warning signs should I watch for with AMERICAN ELECTRIC POWER CO INC?
Quantitative warning flags for AMERICAN ELECTRIC POWER CO INC (AEP): 1) debt/equity 1.6x (above 1.5x threshold). Source: 10-Q filed 2025-10-29.
Data Source: Data sourced from 10-Q filed 2025-10-29. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.