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%
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: 0−DPO: 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
| Metric | TTM | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $21.3B | $6.0B↑18.2% | $5.1B↓6.9% | $5.5B↑16.3% | $4.7B↓13.4% | $5.4B↑18.4% | $4.6B↓8.9% | $5.0B↑9.8% | $4.6B |
Operating Income | $5.3B | $1.5B↑8.7% | $1.4B↑8.9% | $1.3B↑17.2% | $1.1B↓18.9% | $1.4B↑97.6% | $683.9M↓41.7% | $1.2B↑88.1% | $623.4M |
Net Income | $4.0B | $972.0M↓20.7% | $1.2B↑53.2% | $800.2M↓16.2% | $955.3M↓0.4% | $959.6M↑182.0% | $340.3M↓66.1% | $1.0B↑198.4% | $336.2M |
Operating Cash Flow | $6.9B | $2.5B↑101.4% | $1.2B↓15.8% | $1.4B↓16.1% | $1.7B↓20.5% | $2.2B↑48.6% | $1.5B↑1.4% | $1.4B↑7.9% | $1.3B |
Free Cash Flow | $6.9B | $2.2B↑77.0% | $1.2B↓15.8% | $1.4B↓15.8% | $1.7B↓20.7% | $2.2B↑48.6% | $1.5B↑1.4% | $1.4B↑8.0% | $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