AES

The AES Corporation

Fundamental data last updated:October 12, 2026

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company profile

SECTOR

Utilities

industry

Independent Power Producers

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

The AES Corporation operates as a diversified power generation and utility company. It owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. The company also owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market. It uses a range of fuels and technologies to generate electricity, including coal, gas, hydro, wind, solar, and biomass; and renewables, such as energy storage and landfill gas. The company owns and/or operates a generation portfolio of approximately 31,459 megawatts. It has operations in the United States, Puerto Rico, El Salvador, Chile, Colombia, Argentina, Brazil, Mexico, Central America, the Caribbean, Europe, and Asia. The company was formerly known as Applied Energy Services, Inc. and changed its name to The AES Corporation in April 2000. The AES Corporation was incorporated in 1981 and is headquartered in Arlington, Virginia.

 


Analyze AES on TradingView

VALUATION

P/E

7.85

Market Cap ($M USD)

$10.48B

Forward P/E

5.74

PEG

0.16

PRICE TO SALES

0.84

PRICE TO BOOK

2.38

EV / EBITDA

10.61

5-Year Average P/E

Free Cash Flow Yield

-14.11%

DCF Value

$-63.11

Graham Number

$16.13

Price to FCF

-7.09

EV to FCF

-26.96

Earnings Yield

12.73%

FCF Yield

-14.11%

DIVIDEND

Yield

4.79%

Annual Payout

$0.70

Payout Ratio

37.44%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.87

Next Year EPS Growth Estimate

$2.56

Next Year Revenue Growth Estimate

$13.23B

Return on Equity (ROE)

28.87%

FREE CASH FLOW

Operating Margin

16.47%

Debt-to-Equity

4.40

Piotroski F-Score

5

Altman Z-Score

0.49

Return on Invested Capital (ROIC)

4.63%

Current Ratio

0.73

Quick Ratio

0.65

Net Debt to EBITDA

7.83

Interest Coverage

1.45

Gross Profit margin

19.31%

FCF PER SHARE

$-2.07

REVENUE PER SHARE

$17.46

Analyze AES on TradingView

Gainseekers Quantitative Analysis

Summary

The market seems to be heavily discounting AES, as evidenced by its trading price significantly below both its DCF value and Graham Number. The Forward P/E of 5.60 suggests a bargain, especially when paired with an impressive Earnings Yield of 13.06%. However, the Altman Z-score of 0.49 raises red flags about financial distress, indicating potential solvency issues. Despite these concerns, the low PEG ratio of 0.15 implies robust growth expectations relative to its price, hinting at a potential mispricing by the market.

AI Exposure / Tech Reliance

In the diversified utilities sector, AES is strategically positioned to leverage AI and modern technology to optimize energy distribution and enhance grid efficiency. This adaptability is crucial as the industry evolves towards smart grids and renewable integration. AES's ability to innovate could provide a competitive edge in an increasingly tech-driven landscape.

The Bull Case

For the value-driven investor, AES presents a compelling opportunity. The company boasts a strong ROIC of 4.60%, indicating efficient capital use, while a Piotroski F-Score of 5 suggests moderate financial health. Its operating margin of 16.43% underscores solid pricing power, and a reasonable payout ratio of 37.44% ensures dividend sustainability. These metrics collectively paint a picture of a company with the potential for stable returns and capital appreciation.

The Bear Case

Despite some strengths, AES faces significant structural risks. The company's high Debt/Equity ratio of 4.40 and Net Debt to EBITDA of 7.87 highlight a concerning leverage level, which could strain financial flexibility. Additionally, the negative FCF Yield and Price to FCF ratio indicate poor cash flow generation, raising questions about its ability to fund operations without external financing. These factors, combined with a low Current Ratio of 0.73, suggest liquidity challenges that could hinder growth.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$18.25

Institutional Ownership %

1-Year Beta

0.96

Insider Buying % (6 Mo)

Distance to 52-Week High

20.11%

Distance to 52-Week Low

32.49%

EARNINGS SURPRISE %

34.00%

50-DAY SMA

$14.38

200-DAY SMA

$14.23

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.