AEE

Ameren

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Utilities

industry

Utilities - Regulated Electric

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/07/26

Business Summary

Ameren operates as a regulated electric utility, generating cash through state-approved rates that allow it to earn a return on invested capital deployed into transmission, distribution, and generation assets. Its moat is rooted in monopoly service territories, high infrastructure replacement costs, and regulatory frameworks that limit competition. Revenue visibility comes from rate-based capital investments that expand its asset base and support predictable earnings streams. The business converts heavy capital expenditure into long-duration, utility-scale cash flows, trading explosive growth for regulated stability.

VALUATION

P/E

21.2

Market Cap ($M USD)

$31,386

Forward P/E

19.4

PEG

1.7

PRICE TO SALES

3.5

PRICE TO BOOK

2.3

EV / EBITDA

12.7

5-Year Average P/E

DIVIDEND

Yield

2.50%

Annual Payout

$3.00

Payout Ratio

52.80%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

6.40%

Financial Health & Profitability

Earnings Per Share

$5.38

Next Year EPS Growth Estimate

$5.84

Next Year Revenue Growth Estimate

5.90%

Return on Equity (ROE)

10.90%

Operating Margin

23.00%

Debt-to-Equity

1.5

Piotroski F-Score

7

Altman Z-Score

1

Return on Invested Capital (ROIC)

6.60%%

Current Ratio

0.7

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 21.2x earnings and 19.4x forward earnings with a PEG of 1.7, AEE is priced as a stable but unspectacular regulated utility, not a bargain. The market is assigning a moderate premium to its earnings base despite a modest 5.90% ROE and 6.60% ROIC, suggesting limited economic value creation. The Piotroski F-Score of 7 signals solid operational health, yet the Altman Z-Score of 1 is a clear financial stress warning, tempering any valuation comfort. This is not a distressed valuation, nor is it a growth multiple—it’s a middle-of-the-road price attached to a balance sheet that demands monitoring. The market is not obviously mispricing it; it is pricing it cautiously.

AI Exposure / Tech Reliance

As a regulated electric utility, AEE operates in a capital-intensive but technologically evolving industry where AI-driven grid optimization and load forecasting can enhance efficiency. Utilities are natural beneficiaries of rising electricity demand from AI data centers, which structurally supports long-term load growth. However, adaptation is incremental rather than transformational, meaning tech tailwinds improve returns gradually rather than explosively.

The Bull Case

A value or GARP investor could justify owning AEE based on its operational stability and financial discipline. A Piotroski F-Score of 7 indicates strong accounting quality and improving fundamentals, while a 10.90% operating margin in a regulated industry reflects steady cost control. ROIC at 6.60% modestly exceeds its 5.90% ROE, indicating acceptable capital allocation in a sector not known for high spreads. The forward P/E of 19.4 versus a trailing 21.2 implies incremental earnings acceleration, and with a 1.5 yield supported by a dividend per share of 2.50% and a payout ratio listed at $3.00, income-focused investors may view the stock as a stable compounding vehicle. Institutional Ownership at $117.77 suggests strong professional sponsorship, reinforcing the perception of stability.

The Bear Case

The red flags are structural and cannot be ignored. A PEG of 1.7 implies investors are paying a premium relative to expected growth, yet Return on Equity is only 5.90%, signaling limited shareholder return efficiency. Debt/Equity at 23.00% combined with a weak Current Ratio of 0.7 points to constrained liquidity flexibility, and the Altman Z-Score of 1 reinforces financial vulnerability under stress. Short interest at 6.40% indicates a measurable bearish presence, and with a Mean Consensus Target Price of 2.07 relative to a Market Cap of $31,386, expectations appear muted. This is a leveraged, regulated entity priced for stability but lacking a strong margin of safety.

Market Sentiment & Smart Money

Short Interest %

3.70%

Analyst Consensus

2.07

Average Analyst Price Target

$117.77

Institutional Ownership %

85.50%

1-Year Beta

0.14

Insider Buying % (6 Mo)

0.30%%

Distance to 52-Week High

98.20%%

Distance to 52-Week Low

121.60%%