The AES Corporation
Find Ratings ReportsAES CORP (THE)'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. Even though sales decreased, the net income has increased. AES CORP (THE) has very weak liquidity. Currently, the Quick Ratio is 0.39 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.09% 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 ($mil) | 2968.0 | 3060.0 |
EBITDA ($mil) | 722.0 | 758.0 |
EBIT ($mil) | 430.0 | 505.0 |
Net Income ($mil) | -94.0 | -903.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 2191.0 | 2640.0 |
Total Assets ($mil) | 44799.0 | 38363.0 |
Total Debt ($mil) | 28276.0 | 24560.0 |
Equity ($mil) | 2488.0 | 2437.0 |
Profitability | Q4 FY23 | Q4 FY22 |
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Gross Profit Margin | 26.48 | 26.67 |
EBITDA Margin | 24.32 | 24.77 |
Operating Margin | 14.49 | 16.5 |
Sales Turnover | 0.28 | 0.33 |
Return on Assets | 0.55 | -1.42 |
Return on Equity | 9.73 | -22.4 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.68 | 1.18 |
Debt/Capital | 0.92 | 0.91 |
Interest Expense | 353.0 | 304.0 |
Interest Coverage | 1.22 | 1.66 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 669.69 | 668.74 |
Div / share | 0.17 | 0.16 |
EPS | -0.15 | -1.35 |
Book value / share | 3.72 | 3.64 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 7029279.0 | 8588535.0 |
HOLD. AES CORP (THE)'s P/E ratio indicates a significant premium compared to an average of 18.74 for the Utilities subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 4.05 indicates a discount versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 1.98. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, AES CORP (THE) proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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AES 46.97 | Peers 18.74 | AES 3.41 | Peers 8.50 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. AES is trading at a significant 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. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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AES 7.26 | Peers 14.78 | AES 0.10 | Peers 1.44 | |||||||||||||||||||||
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. |
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. AES trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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AES 4.05 | Peers 1.98 | AES 136.78 | Peers 132.20 | |||||||||||||||||||||
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. |
Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. AES is expected to keep pace with its peers on the basis of earnings growth. |
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Price/Sales |
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Sales Growth |
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AES 0.79 | Peers 2.49 | AES 0.40 | Peers 1.95 | |||||||||||||||||||||
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 subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. AES significantly trails its peers on the basis of sales growth. |
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