A Business at a Glance
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AMERICAN ELECTRIC POWER CO INC
AEP
$72.9B
Mkt Cap
$135.54
+0.46%
AMERICAN ELECTRIC POWER CO INC (AEP) has a current P/E ratio of 20.4, compared to its historical median P/E of 16.6. The stock is currently considered Fair based on its historical valuation range.
AMERICAN ELECTRIC POWER CO INC (AEP) has a 5-year average return on invested capital (ROIC) of 5.9%. This is below average and may indicate limited pricing power.
AMERICAN ELECTRIC POWER CO INC (AEP) has a market capitalization of $73.9B. It is classified as a large-cap stock.
Yes, AMERICAN ELECTRIC POWER CO INC (AEP) pays a dividend with a trailing twelve-month yield of 2.74%.
Based on historical P/E analysis, AMERICAN ELECTRIC POWER CO INC (AEP) appears fair. The current P/E of 20.4 is 23% above its historical median of 16.6. The estimated fair value CAGR (P/E method) is 6.1%.
AMERICAN ELECTRIC POWER CO INC (AEP) operates in the Electric Services industry, within the Utilities sector.
AMERICAN ELECTRIC POWER CO INC (AEP) reported annual revenue of $21.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
American Electric Power (AEP) is a vertically integrated utility company operating across an 11-state footprint with regulated generation, transmission, and distribution segments serving residential, commercial, and industrial customers. The company earns revenue through rate-regulated utility operations under cost-of-service models, with transmission and distribution assets generating stable, long-term returns supported by constructive regulatory frameworks that reduce regulatory lag. AEP's business model is capital-intensive, requiring substantial multi-year infrastructure investment to support system reliability and load growth, funded through a combination of operating cash flows, debt, and equity financing while maintaining investment-grade credit ratings. The company's competitive moat derives from its ultra-high voltage transmission backbone spanning multiple interconnects (PJM, SPP, MISO, ERCOT), which attracts large industrial and data center customers seeking reliable power supply, and from its regulatory relationships enabling timely cost recovery and ROE improvement. Key customer segments include data processors and hyperscalers (Google, AWS, Meta), industrial manufacturers, and traditional residential and commercial classes, with significant growth concentrated in Texas, Ohio, Indiana, and Oklahoma driven by electrification, AI-driven demand, and manufacturing reshoring. The company maintains a diversified generation portfolio including natural gas, solar, wind, storage, and nuclear evaluation, with transmission investments representing a substantial portion of capital deployment and strategic focus.
【Accelerating infrastructure deployment】 Management expects to execute a substantially expanded capital plan driven by unprecedented contracted load growth of 63 GW by 2030, with transmission investments totaling $33 billion representing 42% of the $78 billion five-year capital plan and positioning AEP to strengthen the nation's electric transmission backbone. The company is advancing generation capacity additions across a balanced portfolio while maintaining flexibility through competitive RFPs and targeted acquisitions, with particular focus on gas-fired generation and continued evaluation of nuclear solutions to meet rapidly growing demand. Management remains focused on affordability, forecasting up to $16 billion in cost offsets for existing customers from large load contracts, and expects to achieve approximately 9.5% regulated earned ROE by 2030 through disciplined regulatory execution and reduced regulatory lag. Operating cash flows are projected to exceed $47 billion over the five-year period, supporting the expanded capital program while maintaining balance sheet strength aligned with FFO-to-debt targets of 14%-15% for both rating agencies.
| Metric | Target | Period |
|---|---|---|
| Operating earnings per share | $6.15–$6.45 | FY2026 |
| Operating earnings growth rate (CAGR) | 7%–9% annually | 2026–2030 |
| Long-term operating earnings CAGR | greater than 9% | 2026–2030 |
| Five-year capital plan | $78 billion | 2026–2030 |
| Five-year rate base CAGR | 11% | 2026–2030 |
| Contracted load growth | 63 GW | by 2030 |
| Transmission investment forecast | $33 billion | 2026–2030 |
| Generation capital outlook | $24 billion | 2026–2030 |
| Regulated earned ROE | approximately 9.5% | by 2030 |
| Operating cash flows | over $47 billion | five-year period (2026–2030) |
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 22.4B | 21.9B | 19.7B | 19.0B | 19.6B | 16.8B |
| Net Income | 3.7B | 3.6B | 3.0B | 2.2B | 2.3B | 2.5B |
| EPS | $6.78 | $6.66 | $5.58 | $4.24 | $4.49 | $4.96 |
| Free Cash Flow | 4.7B | 3.5B | 6.4B | 4.9B | -1.4B | -1.8B |
| ROIC | 6.5% | 6.8% | 6.2% | 5.2% | 5.7% | 5.8% |
| Gross Margin | - | 67.9% | 69.9% | 65.3% | 63.9% | - |
| Debt/Equity | 1.61 | 1.59 | 1.70 | 1.73 | 1.74 | 1.63 |
| Dividends/Share | $3.72 | $3.74 | $3.57 | $3.37 | $3.17 | $3.00 |
| Operating Income | 5.4B | 5.3B | 4.3B | 3.6B | 3.5B | 3.4B |
| Operating Margin | 24.0% | 24.3% | 21.8% | 18.7% | 17.7% | 20.3% |
| ROE | 11.5% | 12.3% | 11.4% | 9.0% | 10.0% | 11.6% |
| Shares Outstanding | 545M | 538M | 532M | 521M | 514M | 502M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 16.4B | 16.5B | 16.4B | 15.4B | 16.2B | 15.6B | 14.9B | 16.8B | 19.6B | 19.0B | 19.7B | 21.9B | 22.4B |
| Gross Margin | N/A | N/A | N/A | 35.7% | 78.8% | N/A | N/A | N/A | 63.9% | 65.3% | 69.9% | 67.9% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | N/A | N/A | N/A | 8.9B | 10.1B | N/A | N/A | N/A | 9.1B | 8.8B | 9.5B | 9.5B | 9.5B |
| EBIT | 3.1B | 3.3B | 1.2B | 3.5B | 2.7B | 2.6B | 3.0B | 3.4B | 3.5B | 3.6B | 4.3B | 5.3B | 5.4B |
| Op. Margin | 19.1% | 20.3% | 7.1% | 22.9% | 16.6% | 16.7% | 20.0% | 20.3% | 17.7% | 18.7% | 21.8% | 24.3% | 24.0% |
| Net Income | 1.6B | 2.0B | 611M | 1.9B | 1.9B | 1.9B | 2.2B | 2.5B | 2.3B | 2.2B | 3.0B | 3.6B | 3.7B |
| Net Margin | 10.0% | 12.4% | 3.7% | 12.4% | 11.9% | 12.3% | 14.7% | 14.8% | 11.7% | 11.6% | 15.0% | 16.4% | 16.3% |
| Non-Recurring | 0 | 0 | 0 | 87M | 71M | 0 | 0 | 0 | -116M | -93M | 143M | 66M | 66M |
| Returns on Capital | |||||||||||||
| ROIC | 5.6% | 5.9% | 3.0% | 5.7% | 5.8% | 5.5% | 5.7% | 5.8% | 5.7% | 5.2% | 6.2% | 6.8% | 6.5% |
| ROE | 9.9% | 11.8% | 3.5% | 10.5% | 10.1% | 9.9% | 11.0% | 11.6% | 10.0% | 9.0% | 11.4% | 12.3% | 11.5% |
| ROA | 2.8% | 3.4% | 1.0% | 3.0% | 2.8% | 2.7% | 2.8% | 3.0% | 2.5% | 2.3% | 3.0% | 3.3% | 3.1% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 4.6B | 4.7B | 4.5B | 4.3B | 5.2B | 4.3B | 3.8B | 3.8B | 5.3B | 5.0B | 6.8B | 6.9B | 7.0B |
| Free Cash Flow | 4.5B | 4.7B | 4.4B | 4.3B | 5.2B | 3.4B | 3.8B | -1.8B | -1.4B | 4.9B | 6.4B | 3.5B | 4.7B |
| Owner Earnings | 3.0B | 3.1B | 2.8B | 2.3B | 2.9B | 2.1B | 1.3B | 1.1B | 2.2B | 2.0B | 3.6B | 3.6B | 3.4B |
| CapEx | 65M | 5.3M | 108M | 6.8M | 15M | 918M | 0 | 5.7B | 6.7B | 155M | 399M | 3.5B | 2.3B |
| Maint. CapEx | 1.6B | 1.7B | 1.7B | 2.0B | 2.3B | 2.2B | 2.5B | 2.7B | 3.1B | 2.9B | 3.1B | 3.3B | 3.6B |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | N/A | 2.9B | 3.6B | 0 | 0 | 128M | 0 |
| D&A | 1.6B | 1.7B | 1.7B | 2.0B | 2.3B | 2.2B | 2.5B | 2.7B | 3.1B | 2.9B | 3.1B | 3.3B | 3.6B |
| CapEx/OCF | 1.4% | 0.1% | 2.4% | 0.2% | N/A | 21.5% | 163.0% | 147.4% | 126.2% | 147.2% | 5.9% | 49.7% | 33.1% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 998M | 1.1B | 1.1B | 1.2B | 1.3B | 1.4B | 1.4B | 1.5B | 1.6B | 1.8B | 1.9B | 2.0B | 2.0B |
| Dividend Yield | 5.9% | 5.6% | 5.0% | 4.7% | N/A | 4.0% | 4.1% | 4.3% | 3.9% | 4.4% | 4.2% | 3.5% | 2.7% |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 20M | 10M | 10M | N/A | N/A | 10M | 10M | 10M | 63M | 51M | 53M | 53M | 53M |
| Debt Repayment | 1.8B | 2.4B | 1.8B | 3.1B | 2.8B | 1.2B | 1.3B | 3.0B | 2.3B | 2.2B | 2.7B | 3.6B | 3.6B |
| Balance Sheet | |||||||||||||
| Net Debt | 19.3B | 19.8B | 21.6B | 22.4B | 24.9B | 30.1B | 33.8B | 36.0B | 40.9B | 43.1B | 45.3B | 49.1B | 50.6B |
| Cash & Equiv. | 163M | 176M | 211M | 215M | 234M | 247M | 393M | 403M | 509M | 330M | 203M | 197M | 516M |
| Long-Term Debt | 16.0B | 17.7B | 17.4B | 19.4B | 21.6B | 25.1B | 29.0B | 31.3B | 34.3B | 37.7B | 39.3B | 44.1B | 46.9B |
| Debt/Equity | 1.18 | 1.14 | 1.26 | 1.25 | 1.33 | 1.56 | 1.68 | 1.63 | 1.74 | 1.73 | 1.70 | 1.59 | 1.61 |
| Interest Coverage | 3.6 | 3.8 | 1.3 | 3.9 | 2.7 | 2.4 | 2.6 | 2.8 | 2.5 | 2.0 | 2.3 | 2.6 | 80.4 |
| Equity | 16.8B | 17.9B | 17.4B | 18.3B | 19.0B | 19.6B | 20.6B | 22.4B | 23.9B | 25.2B | 26.9B | 31.1B | 31.8B |
| Total Assets | 59.5B | 61.7B | 63.5B | 64.7B | 68.8B | 75.9B | 80.8B | 87.7B | 93.4B | 96.7B | 103.1B | 114.5B | 117.8B |
| Total Liabilities | 42.7B | 43.8B | 46.0B | 46.4B | 49.6B | 55.9B | 59.9B | 64.9B | 69.2B | 71.4B | 76.1B | 82.2B | 84.7B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 7.4B | 8.4B | 7.9B | 8.6B | 9.3B | 9.9B | 10.7B | 11.7B | 12.3B | 12.8B | 13.9B | 15.4B | 15.8B |
| Working Capital | -3.5B | -3.0B | -3.5B | -4.0B | -4.5B | -6.2B | -5.6B | -4.6B | -6.5B | -5.5B | -7.2B | -7.3B | -6.0B |
| Current Assets | 4.5B | 4.1B | 6.0B | 4.3B | 4.1B | 4.1B | 4.4B | 7.8B | 6.8B | 6.1B | 5.8B | 6.1B | 6.6B |
| Current Liabilities | 8.0B | 7.1B | 9.5B | 8.3B | 8.6B | 10.3B | 9.9B | 12.4B | 13.3B | 11.6B | 13.0B | 13.3B | 12.6B |
| Per Share Data | |||||||||||||
| EPS | 3.34 | 4.17 | 1.24 | 3.88 | 3.90 | 3.88 | 4.42 | 4.96 | 4.49 | 4.24 | 5.58 | 6.66 | 6.78 |
| Owner EPS | 6.14 | 6.24 | 5.73 | 4.61 | N/A | 4.15 | 2.68 | 2.22 | 4.19 | 3.91 | 6.77 | 6.63 | 6.18 |
| Book Value | 34.39 | 36.45 | 35.31 | 37.10 | N/A | 39.65 | 41.29 | 44.72 | 46.50 | 48.48 | 50.67 | 57.93 | 58.35 |
| Cash Flow/Share | 9.41 | 9.67 | 9.18 | 8.66 | N/A | 8.62 | 7.70 | 7.65 | 10.29 | 9.62 | 12.80 | 12.92 | 13.29 |
| Dividends/Share | 2.03 | 2.15 | 2.27 | 2.39 | 2.53 | 2.71 | 2.84 | 3.00 | 3.17 | 3.37 | 3.57 | 3.74 | 3.72 |
| Shares Out. | 489.2M | 490.9M | 492.7M | 492.9M | N/A | 495.1M | 497.8M | 501.6M | 513.9M | 520.8M | 531.7M | 537.5M | 545.2M |
| Valuation | |||||||||||||
| P/E Ratio | 12.5 | 9.8 | 36.3 | 14.2 | 14.9 | 19.4 | 15.2 | 15.2 | 18.8 | 17.7 | 15.9 | 17.2 | 20.0 |
| P/FCF | 4.5 | 4.2 | 5.0 | 6.4 | N/A | 11.1 | 8.7 | N/A | N/A | 8.0 | 7.4 | 17.7 | 15.7 |
| EV/EBIT | 12.7 | 12.0 | 36.3 | 14.1 | N/A | N/A | N/A | 21.5 | 24.0 | 22.9 | 21.4 | 20.7 | 23.1 |
| Price/Book | 1.2 | 1.1 | 1.3 | 1.5 | N/A | N/A | N/A | 1.7 | 1.8 | 1.5 | 1.8 | 2.0 | 2.3 |
| Price/Sales | 1.0 | 1.2 | 1.4 | 1.6 | N/A | N/A | N/A | 2.1 | 2.2 | 2.1 | 2.3 | 2.6 | 3.3 |
| FCF Yield | 22.3% | 23.7% | 19.9% | 15.7% | N/A | N/A | N/A | -4.8% | -3.2% | 12.4% | 13.6% | 5.7% | 6.4% |
| Market Cap | 20.4B | 20.0B | 22.2B | 27.1B | N/A | N/A | N/A | 37.9B | 43.4B | 39.0B | 47.2B | 61.7B | 73.9B |
| Avg. Price | 34.80 | 38.80 | 45.44 | 51.47 | 53.52 | 68.74 | 70.23 | 71.13 | 82.71 | 76.49 | 85.58 | 105.66 | 135.54 |
| Year-End Price | 41.61 | 40.83 | 45.04 | 55.03 | 57.92 | 75.35 | 67.15 | 75.49 | 84.41 | 74.92 | 88.69 | 114.76 | 135.54 |
AMERICAN ELECTRIC POWER CO INC passes 5 of 9 quality checks, suggesting mixed fundamentals.
AMERICAN ELECTRIC POWER CO INC trades at 20.4x trailing earnings, compared to its 15-year median P/E of 16.6x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 20.9x vs a median of 8.0x. The company's 5-year average ROIC is 5.9% with a gross margin of 66.7%. Total shareholder yield (dividends) is 2.7%. At current prices, the estimated annualized return to fair value is +98.4%.
AMERICAN ELECTRIC POWER CO INC (AEP) has a net profit margin of 16.4%. This is a healthy margin.
AMERICAN ELECTRIC POWER CO INC (AEP) generated $3.5 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
AMERICAN ELECTRIC POWER CO INC (AEP) has a debt-to-equity ratio of 1.59. This indicates higher leverage, which may increase financial risk.
AMERICAN ELECTRIC POWER CO INC (AEP) reported earnings per share (EPS) of $6.66 in its most recent fiscal year.
AMERICAN ELECTRIC POWER CO INC (AEP) has a return on equity (ROE) of 12.3%. This indicates moderate shareholder returns.
AMERICAN ELECTRIC POWER CO INC (AEP) has a 5-year average gross margin of 66.7%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for AMERICAN ELECTRIC POWER CO INC (AEP), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
AMERICAN ELECTRIC POWER CO INC (AEP) has a book value per share of $57.93, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects to execute a substantially expanded capital plan driven by unprecedented contracted load growth of 63 GW by 2030, with transmission investments totaling $33 billion representing 42% of the $78 billion five-year capital plan and positioning AEP to strengthen the nation's electric transmission backbone. The company is advancing generation capacity additions across a balanced portfolio while maintaining flexibility through competitive RFPs and targeted acquisitions, with particular focus on gas-fired generation and continued evaluation of nuclear solutions to meet rapidly growing demand. Management remains focused on affordability, forecasting up to $16 billion in cost offsets for existing customers from large load contracts, and expects to achieve approximately 9.5% regulated earned ROE by 2030 through disciplined regulatory execution and reduced regulatory lag. Operating cash flows are projected to exceed $47 billion over the five-year period, supporting the expanded capital program while maintaining balance sheet strength aligned with FFO-to-debt targets of 14%-15% for both rating agencies.
Based on recent SEC filings and earnings calls, AMERICAN ELECTRIC POWER CO INC (AEP) has provided the following forward guidance: Operating earnings per share: $6.15–$6.45 (FY2026); Operating earnings growth rate (CAGR): 7%–9% annually (2026–2030); Long-term operating earnings CAGR: greater than 9% (2026–2030); Five-year capital plan: $78 billion (2026–2030); Five-year rate base CAGR: 11% (2026–2030), plus 5 additional metrics.
Operating earnings per share (FY2026): “reaffirming our full year 2026 operating earnings guidance range of $6.15-$6.45 per share”
Operating earnings growth rate (CAGR) (2026–2030): “reaffirming our premium operating earnings growth rate of 7%-9% for 2026 through 2030”
Long-term operating earnings CAGR (2026–2030): “increase our expected long-term operating earnings CAGR to now greater than 9%”
Five-year capital plan (2026–2030): “today we are increasing our five-year capital plan to $78 billion, up from the prior $72 billion”
Five-year rate base CAGR (2026–2030): “which now drives an expected 11% five-year rate base CAGR”
Contracted load growth (by 2030): “We now have an incremental contracted total of 63 GW expected by 2030”
Transmission investment forecast (2026–2030): “our transmission investment forecast now totals $33 billion, representing 42% of the overall $78 billion capital plan”
Generation capital outlook (2026–2030): “we have expanded our generation capital outlook by $3 billion to $24 billion through 2030”
No recent press releases.