American Electric Power Company Inc.
Find Ratings ReportsAMERICAN ELECTRIC POWER CO's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. AMERICAN ELECTRIC POWER CO has very weak liquidity. Currently, the Quick Ratio is 0.25 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 5.63% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 4577.2 | 4881.1 |
EBITDA ($mil) | 1409.7 | 1446.1 |
EBIT ($mil) | 628.7 | 660.1 |
Net Income ($mil) | 336.2 | 384.3 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 593.3 | 744.0 |
Total Assets ($mil) | 96684.0 | 93469.4 |
Total Debt ($mil) | 43814.1 | 40625.7 |
Equity ($mil) | 25289.2 | 23939.3 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 30.8 | 29.63 |
EBITDA Margin | 30.79 | 29.62 |
Operating Margin | 13.74 | 13.52 |
Sales Turnover | 0.2 | 0.21 |
Return on Assets | 2.28 | 2.46 |
Return on Equity | 8.73 | 9.64 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.53 | 0.65 |
Debt/Capital | 0.63 | 0.63 |
Interest Expense | 460.9 | 394.4 |
Interest Coverage | 1.36 | 1.67 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 526.19 | 513.87 |
Div / share | 0.88 | 0.83 |
EPS | 0.63 | 0.74 |
Book value / share | 48.06 | 46.59 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 4063227.0 | 3669725.0 |
BUY. This stock's P/E ratio indicates a premium compared to an average of 18.74 for the Utilities subsector and a discount compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 1.70 indicates a significant discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 1.98. The current price-to-sales ratio is well below the S&P 500 average and is also below the subsector average, indicating a discount.
Price/Earnings |
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Price/Cash Flow |
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AEP 19.31 | Peers 18.74 | AEP 8.59 | Peers 8.50 | |||||||||||||||||||||
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation. AEP is trading at a valuation on par with its peers. |
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. AEP is trading at a valuation on par to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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AEP 13.75 | Peers 14.78 | AEP 0.60 | Peers 1.44 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. AEP is trading at a valuation on par with its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. AEP trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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AEP 1.70 | Peers 1.98 | AEP -5.78 | Peers 132.20 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. AEP is trading at a discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, AEP is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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AEP 2.27 | Peers 2.49 | AEP -3.35 | Peers 1.95 | |||||||||||||||||||||
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. AEP is trading at a valuation on par with its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. AEP significantly trails its peers on the basis of sales growth. |
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