The AES Corp

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AES : NYSE : Utilities
$11.745 up 0.38 | 3.3%
Today's Range: 11.36 - 11.83
Avg. Daily Volume: 5957300.0
05/24/17 - 3:59 PM ET

Financial Analysis


AES CORP's gross profit margin for the first quarter of its fiscal year 2017 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 0.87 which 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 decreased by 6.56% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)3492.03271.0
EBITDA ($mil)830.0751.0
EBIT ($mil)539.0461.0
Net Income ($mil)-24.0126.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)2440.02107.0
Total Assets ($mil)36508.036900.0
Total Debt ($mil)20334.020557.0
Equity ($mil)2991.03201.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin25.3224.43
EBITDA Margin23.7622.95
Operating Margin15.4414.09
Sales Turnover0.380.37
Return on Assets-3.50.78
Return on Equity-5.049.9
Debt Q1 FY17 Q1 FY16
Current Ratio1.221.06
Debt/Capital0.870.87
Interest Expense348.0342.0
Interest Coverage1.551.35


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)660.11659.0
Div / share0.120.11
EPS-0.040.2
Book value / share4.534.86
Institutional Own % n/a n/a
Avg Daily Volume5845313.05315059.0

Valuation


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 2.53 indicates a discount versus the S&P 500 average of 3.04 and a premium versus the industry average of 1.65. 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 NM Peers 31.26   AES 2.57 Peers 5.50

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

AES's P/E is negative making this valuation measure meaningless.

 

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 9.44 Peers 19.42   AES NA Peers 0.57

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.

 

Neutral. 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AES 2.53 Peers 1.65   AES -152.17 Peers 215.55

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.

 

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

However, AES is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AES 0.55 Peers 1.72   AES 1.73 Peers 15.05

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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