August 01, 2025 a 08:00 am
AEP: Fundamental Ratio Analysis - American Electric Power Company, Inc.
American Electric Power Company, Inc. is a longstanding leader in the utilities sector, providing a diverse portfolio of power generation through multiple segments. With a focus on retail and wholesale distribution, the company has incorporated sustainable energy practices alongside traditional methods. As it navigates the evolving energy landscape, AEP remains a stable option for long-term investors.
Fundamental Rating
Currently rated at a B-, AEP's overall score reflects moderate financial health with strong Return on Equity offset by challenges in Debt to Equity ratio.
| Category | Score | Visualization |
|---|---|---|
| Discounted Cash Flow | 4 | |
| Return on Equity | 5 | |
| Return on Assets | 1 | |
| Debt to Equity | 1 | |
| Price to Earnings | 3 | |
| Price to Book | 1 |
Historical Rating
Examining the historical scores, there have been consistent evaluations with minimal changes, indicating stability in financial performance.
| Date | Overall Score | DCF | ROE | ROA | D/E | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-07-31 | 3 | 4 | 5 | 1 | 1 | 3 | 1 |
| N/A | 0 | 4 | 5 | 1 | 1 | 3 | 1 |
Analyst Price Targets
With a consensus price target of $115, analysts signal a positive outlook for AEP, expecting stable performance in line with its historical support.
| High | Low | Median | Consensus |
|---|---|---|---|
| $116 | $114 | $115 | $115 |
AEP Stock Chart showcasing price trends over time.
Analyst Sentiment
Consensus among analysts is predominantly positive, indicating confidence in AEP’s consistent performance and return potential.
| Recommendation | Count | Distribution |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 19 | |
| Hold | 14 | |
| Sell | 1 | |
| Strong Sell | 0 |
Conclusion
American Electric Power Company, Inc. showcases a stable investment opportunity with consistent historical performance and a strong Buy consensus among analysts. The company’s diversified energy mix offers resilience against market shifts, although its low scores in Debt to Equity and Return on Assets reflect potential financial vulnerabilities. Investors seeking reliable returns in the utilities sector may find AEP appealing, given its robust market presence and strategic growth initiatives.