June 03, 2025 a 11:43 am
AEP: Fundamental Ratio Analysis - American Electric Power Company, Inc.
American Electric Power Company, Inc. remains a significant player in the utilities sector, leveraging various energy sources for electricity generation. The company's diverse energy mix positions it to manage market fluctuations, though it faces risks associated with regulatory changes and environmental policies.
Fundamental Rating
The fundamental analysis of AEP reflects a stable financial position with a balanced score across key metrics. Notably, the company exhibits strong returns in equity and assets, while its debt ratios suggest moderate leverage.
| Category | Score | Visualization |
|---|---|---|
| Discounted Cash Flow | 4 | |
| Return on Equity | 4 | |
| Return on Assets | 3 | |
| Debt to Equity | 2 | |
| Price to Earnings | 2 | |
| Price to Book | 2 |
Historical Rating
Analyzing historical ratings provides insights into AEP's consistent performance with recent score stability but indicating areas for financial strategy adjustments.
| Date | Overall Score | DCF | ROE | ROA | D/E | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-06-02 | 3 | 4 | 4 | 3 | 2 | 2 | 2 |
| Previous | 0 | 4 | 4 | 3 | 2 | 2 | 2 |
Analyst Price Targets
Price targets reflect a cautiously optimistic outlook with minor variance between high and low estimates, aligning with the median expectation.
| High | Low | Median | Consensus |
|---|---|---|---|
| 115 | 114 | 114.5 | 114.5 |
Analyst Sentiment
The current consensus is largely positive with a majority preferring a 'Buy' stance, supported by favorable returns across the board.
| Recommendation | Count | Visualization |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 15 | |
| Hold | 10 | |
| Sell | 1 | |
| Strong Sell | 0 |
Conclusion
American Electric Power Company, Inc. presents a balance between stable utility functions and moderate growth prospects. Its diversified energy portfolio and strategic focus on sustainable energy provide significant opportunities for consistent returns. However, regulatory and environmental challenges pose potential risks. The overall analyst sentiment supports a Buy recommendation with narrow price target ranges suggesting confidence in forecasted earnings. It remains prudent to assess industry trends for any systemic impacts on AEP's long-term resilience.