The AES Corp

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AES : NYSE : Utilities
$11.93 up 0.02 | 0.17%
Today's Range: 11.87 - 12.06
Avg. Daily Volume: 5283400.0
01/18/17 - 4:01 PM ET

Financial Analysis


AES CORP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. AES CORP has weak liquidity. Currently, the Quick Ratio is 0.75 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 19.20% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)3542.03522.0
EBITDA ($mil)939.0903.0
EBIT ($mil)648.0620.0
Net Income ($mil)175.0180.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)2212.02231.0
Total Assets ($mil)37108.037000.0
Total Debt ($mil)20831.020698.0
Equity ($mil)2882.03567.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin27.6426.92
EBITDA Margin26.5125.63
Operating Margin18.2917.6
Sales Turnover0.360.4
Return on Assets-0.711.61
Return on Equity4.2617.07
Debt Q3 FY16 Q3 FY15
Current Ratio1.281.11
Debt/Capital0.880.85
Interest Expense354.0365.0
Interest Coverage1.831.7


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)659.18674.46
Div / share0.110.1
EPS0.260.26
Book value / share4.375.29
Institutional Own % n/a n/a
Avg Daily Volume5322000.04871297.0

Valuation


HOLD. This stock's P/E ratio indicates a premium compared to an average of 58.08 for the Independent Power Producers & Energy Traders industry and a significant premium compared to the S&P 500 average of 25.49. For additional comparison, its price-to-book ratio of 2.65 indicates valuation on par with the S&P 500 average of 2.84 and a premium versus the industry average of 1.85. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, AES CORP proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AES 64.33 Peers 58.08   AES 2.71 Peers 10.72

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

AES is trading at a premium to its peers.

 

Discount. 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.

AES is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AES 10.53 Peers 23.87   AES 0.51 Peers 0.38

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

AES is trading at a significant discount to its peers.

 

Premium. 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.

AES trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AES 2.65 Peers 1.85   AES -79.55 Peers -5918.26

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AES is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

AES is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AES 0.57 Peers 1.74   AES -10.22 Peers 23.02

Discount. 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.

AES is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AES significantly trails its peers on the basis of sales growth

 

 

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