American Electric Power Company, Inc. Fundamental Analysis (NASDAQ: AEPPZ)
American Electric Power Company, Inc. Fundamental Analysis (NASDAQ: AEPPZ)
American Electric Power Company, Inc. (NASDAQ: AEPPZ) shows moderate financial fundamentals with a PE ratio of 21.63, profit margin of 13.95%, and ROE of 10.01%. The company generates N/A in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AEPPZ's fundamental strength across five key dimensions:
Efficiency Score
WeakAEPPZ struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAEPPZ trades at attractive valuation levels.
Growth Score
ModerateAEPPZ shows steady but slowing expansion.
Financial Health Score
WeakAEPPZ carries high financial risk with limited liquidity.
Profitability Score
WeakAEPPZ struggles to sustain strong margins.
Key Financial Metrics
Is AEPPZ Expensive or Cheap?
P/E Ratio
AEPPZ trades at 21.63 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AEPPZ's PEG of -1.45 indicates potential undervaluation.
Price to Book
The market values American Electric Power Company, Inc. at 2.13 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.79 times EBITDA. This is generally considered low.
How Well Does AEPPZ Make Money?
Net Profit Margin
For every $100 in sales, American Electric Power Company, Inc. keeps $13.95 as profit after all expenses.
Operating Margin
Core operations generate 28.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.01 in profit for every $100 of shareholder equity.
ROA
American Electric Power Company, Inc. generates $2.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $16.46 in free cash annually.
FCF Yield
AEPPZ converts 13.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.66
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.50
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How AEPPZ Stacks Against Its Sector Peers
| Metric | AEPPZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.63 | 20.43 | Neutral |
| ROE | 10.01% | 1037.00% | Weak |
| Net Margin | 13.95% | -667.00% (disorted) | Strong |
| Debt/Equity | 1.66 | 1.68 | Neutral |
| Current Ratio | 0.50 | 1.72 | Weak Liquidity |
| ROA | 2.58% | 4578092.00% | Weak |
AEPPZ outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews American Electric Power Company, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Income
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Income
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Income