Ameren Corporation
Ameren Corporation Fundamental Analysis
Ameren Corporation (AEE) shows moderate financial fundamentals with a PE ratio of 20.70, profit margin of 16.55%, and ROE of 11.48%. The company generates $9.0B in annual revenue with weak year-over-year growth of 1.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 29.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AEE's fundamental strength across five key dimensions:
Efficiency Score
WeakAEE struggles to generate sufficient returns from assets.
Valuation Score
ModerateAEE shows balanced valuation metrics.
Growth Score
WeakAEE faces weak or negative growth trends.
Financial Health Score
WeakAEE carries high financial risk with limited liquidity.
Profitability Score
WeakAEE struggles to sustain strong margins.
Key Financial Metrics
Is AEE Expensive or Cheap?
P/E Ratio
AEE trades at 20.70 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AEE's PEG of 6.77 indicates potential overvaluation.
Price to Book
The market values Ameren Corporation at 2.25 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.78 times EBITDA. This is generally considered low.
How Well Does AEE Make Money?
Net Profit Margin
For every $100 in sales, Ameren Corporation keeps $16.55 as profit after all expenses.
Operating Margin
Core operations generate 23.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.48 in profit for every $100 of shareholder equity.
ROA
Ameren Corporation generates $3.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ameren Corporation generates strong operating cash flow of $3.41B, reflecting robust business health.
Free Cash Flow
Ameren Corporation generates weak or negative free cash flow of $-815.46M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.95 in free cash annually.
FCF Yield
AEE converts -2.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.77
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.49
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.48
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How AEE Stacks Against Its Sector Peers
| Metric | AEE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.70 | 19.20 | Neutral |
| ROE | 11.48% | 1033.00% | Weak |
| Net Margin | 16.55% | 9191.00% | Weak |
| Debt/Equity | 1.48 | 6.63 | Strong (Low Leverage) |
| Current Ratio | 0.66 | 1.68 | Weak Liquidity |
| ROA | 3.00% | -237.00% (disorted) | Weak |
AEE outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ameren Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.74%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
31.41%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
17.21%
Industry Style: Defensive, Dividend, Income
High Growth