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AES

S&P 500
Neutral · 48/100

AES Corporation

Utilities
Independent Power Producers & Energy Traders

$14.70

0.3%

Updated Today 5:06 AM ET

Price — Past Year

▲ Up 39.0% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$10.48B

P/E

7.78x

Forward P/E (est.)

7.44x

ROE

34.4%

Revenue Growth

3.0%

EPS Growth

4.5%

Profit Margin

10.8%

FCF Yield

6.5%

Debt / Equity

7.36x

ROIC

Interest Coverage

Current Ratio

0.73x

Dividend Yield

4.8%

Implied Growth (rev. DCF)

Rating Score

48/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what AES's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. AES trades near $14.70, above its 50-day average ($14.54) and 200-day average ($14.36). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 52 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. AES's is $0.06 (~0.4% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month AES found buyers near $14.57 (support) and sellers near $14.74 (resistance); its 52-week range is $10.02–$17.65. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 1.1× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

AES Corporation (AES) is a large-cap company in the Independent Power Producers & Energy Traders industry, part of the Utilities sector of the S&P 500, with a market value around $10.48B.

In its latest reported year it generated about $12.23B in revenue and $910.00M in net profit.

Our model rates AES Neutral (48/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

2.4%

Revenue moved from $11.14B in 2021 to $12.23B in 2025, a 2.4% compound annual growth rate. The most recent year was roughly flat (3.0%) year over year. Slower, mature growth is common for established businesses.

Profitability
Research

Gross Margin

18.1%

Operating Margin

13.2%

Net Margin

7.4%

ROE

34.4%

AES Corporation keeps about 10.8% of each sales dollar as net profit, with a 18.1% gross margin and 13.2% operating margin. Return on equity is 34.4%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research

Total Debt

Net Debt

Net Debt / EBITDA

Debt / Equity

7.36x

Leverage: debt-to-equity is 7.4x, with a current ratio of 0.7x. That is elevated leverage, which raises risk if earnings or rates move against it.

Cash Flow Analysis
Research

Operating CF

$4.31B

Free Cash Flow

-$1.62B

FCF Margin

-13.3%

In the latest year AES Corporation produced about $4.31B of operating cash flow but negative free cash flow as it invested heavily. That is a free-cash-flow yield of about 6.5% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.

Valuation Analysis
Research

P/E

7.78x

P/S

0.86x

P/B

2.52x

EV / EBITDA

AES trades at 7.8x trailing earnings (about 7.4x on estimated forward earnings), 0.9x sales, and 2.5x book value. That is an undemanding multiple — potentially cheap if the business is stable.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
7.8xCheap
Forward P/E
7.4xCheap
P/S ratio
0.9xCheap
Revenue growth
3.0%Weak
EPS growth
4.5%Weak
Gross margin
18.1%Weak
Net margin
10.8%Strong
ROE
34.4%Strong

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How AES stacks up against its Utilities peers — valuation, profitability, and growth versus the sector median.

In the Utilities sector (31 S&P 500 companies), AES ranks #22 of 31 by our overall rating. It trades at a discount versus the sector on earnings (7.8x P/E vs. 22.2x median) with a higher return on equity (34.4% vs. 10.4%) and slower revenue growth (3.0% vs. 9.0%).

P/E vs sector

7.8x

median 22.2x

ROE vs sector

34.4%

median 10.4%

Growth vs sector

3.0%

median 9.0%

Sector rank

#22

of 31 by rating

CompanyP/ERev Gr.Rating
AESThis stock7.8x3.0%Neutral· 48
NRG122.9x10.6%Weak· 15
PNW19.4x4.8%Neutral· 50
LNT23.5x9.0%Neutral· 57
EVRG22.2x-42.6%Neutral· 43
NI23.4x15.7%Neutral· 57
CMS21x12.7%Neutral· 54
AWK22.3x8.1%Neutral· 55
Utilities median22.2x9.0%54/100

Valuation vs. quality map

sector medianNRGPNWLNTEVRGNICMSAWKAESP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Utilities companies by sub-industry and size. Sector median is across all 31 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$6.96$11.14

vs. $14.70 today · expected CAGR -14%-5%

Metric20262027202820292030
Revenue$12.60B$12.98B$13.37B$13.77B$14.18B
Net income$882.00M$908.46M$935.71M$963.78M$992.70M
EPS$1.24$1.27$1.31$1.35$1.39
Share price (low)$6.18$6.37$6.56$6.76$6.96
Share price (high)$9.89$10.19$10.50$10.81$11.14
CAGR (low–high)-58% / -33%-34% / -17%-24% / -11%-18% / -7%-14% / -5%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for AES:

  • Strong return on equity (34.4%) shows capital is put to work well.
  • Healthy free-cash-flow yield (~6.5%) funds buybacks and dividends.
  • Pays a 4.8% dividend on top of any price gains.
Bear Case

The case against AES:

  • Elevated leverage (debt/equity 7.4x) adds financial risk.
  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Balance-sheet risk — debt/equity of 7.4x magnifies the impact of higher rates or weaker earnings.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the picture is mixed: AES Corporation is a large-cap utilities business growing at a mature pace, with modest profitability, and a heavier debt load to watch. It trades at 7.8x earnings, which our model scores Neutral (48/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

AES — frequently asked questions

Is AES a good stock to buy?

We don't give buy or sell advice. Our model rates AES Corporation Neutral (48/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is AES's rating on The Stocks School?

AES Corporation currently scores 48/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does AES's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from AES Corporation's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for AES calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this AES analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell AES. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.