American Electric Power Co Inc (AEP)
Utilities · Electric Utilities · US stock · S&P 500 component
$130.64
▲ +3.25 (2.55%)
Fair valueFair
$120 −7.9% to fair value
$60fair band $102–$146$180
Day's range
$127.96 – $131.04
52-week range
$112.54 – $140.58
About American Electric Power Co Inc
American Electric Power is a large regulated electric utility holding company that generates, transmits and distributes electricity to customers in many states across the central and eastern United States. It owns one of the biggest transmission networks in the country. Revenue comes mainly from rates approved by state and federal regulators, which are intended to recover costs and provide an allowed return on the utility assets it builds.
Revenue of $22.4 billion was recorded for the latest twelve months; sales expanded at 3.7% a year across three years. American Electric Power Co Inc converts that into an operating margin of 24.0%. Return on invested capital comes to 6%. Leverage, measured as net debt to EBITDA, is 9.5 times. Shareholders receive a dividend, yielding 2.9%, and the X-Ray Score is 58 out of 100.
Price chart
52-wk range $112.54 – $140.58Volume 3,449,279Daily, split-adjusted
Vitals
Market cap$71.5B
52-week range$112.54 – $140.58
Volume (last day)3,449,279
P/E (TTM)18.6
EBIT / EV yield4.4%
Free-cash-flow yield3.6%
Dividend yield2.9%
Revenue (TTM)$22.4B
Net income (TTM)$3.8B
Operating margin24.0%
Return on capital5.8%
Debt incl. leases$51.8B
Cash & securities$516M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$120middle half of models $109 – $126
Fair
−7.9% to fair value
Average of the 14 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $131
Undervalued < $102Fair $102 – $146Overvalued > $146
P/E multiple
$130
P/B multiple
$124
P/S multiple
$119
EV/EBITDA multiple
$113
EV/EBIT multiple
$136
EV/revenue multiple
$124
10-year DCF, EBITDA exit
$108
5-year DCF, EBITDA exit
$127
10-year DCF, revenue exit
$96
5-year DCF, revenue exit
$118
10-year DCF, growth exit
$74
5-year DCF, growth exit
$90
Dividend discount, stable
$215
Dividend discount, multi-stage · not used
$455
Earnings power value
$111
Growth the price implies
7.6%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Utilities peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Fair
52/100
Priced about in line with its sector.
See the numbers →
EBIT / EV yield4.4%
Free-cash-flow yield3.6%
Fair value vs price0.9×
Growth
Fair
65/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)3.7%
EPS growth (3y)14.0%
Growth consistency90%
Profitability
Fair
62/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital5.8%
Operating margin24.0%
Financial health
Fair
51/100
Balance sheet is in typical shape for its sector.
See the numbers →
Piotroski F-Score7 / 9
Net debt / EBITDA9.5×
Interest cover2.6×
Dividends
Fair
58/100
Dividend is typical for its sector.
See the numbers →
Dividend yield2.9%
Dividends vs free cash flow80%
Dividend growth6.9%
Quarterly results: last 6 quarters
-5.8%
Dec '24
+10.7%
Mar '25
+9.2%
Jun '25
+9.9%
Sep '25
+11.7%
Dec '25
+6.9%
Mar '26
Revenue against the same quarter a year earlier. Latest quarter revenue $6.0B, diluted EPS $1.60.
Compare with peers
EIX Edison International71 ES Eversource Energy65 EXC Exelon Corp62 DUK Duke Energy CORP58Other Electric Utilities companies by X-Ray Score.
SWOT analysis: American Electric Power Co Inc
Strengthsinside the company
- Earnings per share have compounded at 14.0% a year over three years.
- Passes 7 of the 9 Piotroski tests, which points to improving profitability, funding and efficiency.
Weaknessesinside the company
- Return on invested capital is only 5.8% (median 5.5% for industry peers), so the business earns little above its cost of capital.
- Net debt is 9.5x EBITDA, above the 3x level that lenders usually watch.
- Operating profit covers interest only 2.6x.
- Altman Z-score of 0.8 is in the zone linked with financial distress in past studies.
Opportunitiesvaluation and setting
- Revenue growth picked up to 9.5% last year from 3.7% a year over three years.
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- Heavy debt makes profits sensitive to interest rates and refinancing conditions.
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
- Our Market Compass rates the backdrop for Utilities as unfavourable.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare AEP with peers and sector
Medians of 14 Electric Utilities peers and of 30 Utilities stocks in our universe.
Largest peers (X-Ray Score): SO 45, DUK 58, CEG 49, ETR 43, VST 53, EXC 62.
| Metric | AEP | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 58 | 51 | 50 |
| Valuation | 52 | 49 | 49 |
| Growth | 65 | 53 | 53 |
| Profitability | 62 | 53 | 49 |
| Financial health | 51 | 55 | 52 |
| Dividends | 58 | 49 | 53 |
Sector leaders: highest X-Ray Score in Utilities
AEP ranks #7 of 31 in Utilities and #5 of 15 in Electric Utilities by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for AEP
Each factor is rated by where AEP stands among the 31 Utilities stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 8 Good · 8 Average · 4 Bad of 20
Growth: 1 · 2 · 0
Profitability: 3 · 1 · 0
Financial strength: 1 · 1 · 2
Valuation: 2 · 2 · 1
Cash flow: 1 · 1 · 1
Efficiency: 0 · 1 · 0
| Factor | AEP | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +3.7% | Average beats 58% | +3.4% | – | – |
| Revenue growth, last year | +9.5% | Average beats 48% | +9.6% | +9.5% | ≈ In line |
| EPS growth, 3 years a year | +14.0% | Good beats 72% | +8.1% | – | – |
| Profitability | |||||
| Operating margin | 24.0% | Average beats 62% | 22.9% | 20.3% | ▲ Better |
| Net margin | 16.9% | Good beats 75% | 14.4% | 14.8% | ▲ Better |
| Return on invested capital | 5.8% | Good beats 82% | 5.5% | – | – |
| Return on equity | 11.9% | Good beats 82% | 10.1% | 11.0% | ≈ In line |
| Financial strength | |||||
| Net debt / EBITDA | 9.5x | Bad beats 8% | 5.8x | 6.6x | ▼ Worse |
| Interest cover | 2.6x | Average beats 60% | 2.5x | 2.5x | ≈ In line |
| Current ratio | 0.53 | Bad beats 15% | 0.78 | 0.46 | ≈ In line |
| Piotroski F-score | 7 / 9 | Good beats 87% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 18.8x | Good beats 79% | 21.8x | 17.9x | ≈ In line |
| Price / book | 2.2x | Average beats 34% | 2.1x | 2.0x | ≈ In line |
| Price / sales | 3.2x | Average beats 42% | 2.9x | 2.5x | ▼ Worse |
| EV / EBITDA | 23.0x | Bad beats 5% | 14.0x | 13.4x | ▼ Worse |
| Free cash flow yield | 3.6% | Good beats 94% | -4.9% | 10.8% | ▼ Worse |
| Cash flow | |||||
| Free cash flow margin | 11.6% | Good beats 75% | -9.1% | 25.0% | ▼ Worse |
| Cash from operations / net income | 1.85 | Bad beats 27% | 2.20 | 2.26 | ▼ Worse |
| Accruals (lower is better) | −2.7% | Average beats 34% | −3.3% | – | – |
| Efficiency | |||||
| Days sales outstanding | 48 days | Average beats 38% | 44 days | 48 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 5 Good · ● 6 Average · ● 3 BadCash quality
Earnings backed by cashAverage
Free-cash-flow yieldGood
Risk models
Altman Z''Average
Piotroski F-ScoreGood
Growth
EPS growth (3y)Good
Revenue growth (3y)Average
Growth consistencyGood
Balance sheet
Current ratioBad
Net debt / EBITDABad
Interest coverAverage
Valuation
Fair value vs priceBad
EBIT / EV yieldAverage
Profitability
Return on invested capitalGood
Operating marginAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 57/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $16.8B | $19.6B | $19.5B | $20.0B | $21.9B |
| Operating income | $3.4B | $3.5B | $3.6B | $4.3B | $5.3B |
| Net income | $2.5B | $2.3B | $2.2B | $3.0B | $3.7B |
| Operating cash flow | $3.8B | $5.3B | $5.0B | $6.8B | $6.9B |
| Operating margin | 20.3% | 17.7% | 18.3% | 21.6% | 24.3% |
| Free cash flow | – | – | $4.9B | $6.4B | $3.5B |
| Diluted EPS | $4.96 | $4.49 | $4.24 | $5.58 | $6.66 |
Fiscal years, from SEC filings.
Technical summary
Daily
Strongly bullish
12 bullish · 1 neutral · 3 bearish
Weekly
Strongly bullish
10 bullish · 1 neutral · 1 bearish
Monthly
Strongly bullish
7 bullish · 1 neutral · 0 bearish
Moving averages (daily)
| SMA 10 | 126.0 | Bullish |
| EMA 10 | 126.2 | Bullish |
| SMA 20 | 123.0 | Bullish |
| EMA 20 | 124.4 | Bullish |
| SMA 50 | 122.9 | Bullish |
| EMA 50 | 124.1 | Bullish |
| SMA 100 | 126.6 | Bullish |
| EMA 100 | 125.0 | Bullish |
| SMA 200 | 126.5 | Bullish |
| EMA 200 | 123.6 | Bullish |
Oscillators (daily)
| RSI (14) | 69.72 | Neutral |
| MACD (12, 26) | 1.67 | Bullish |
| Momentum (12) | 7.37 | Bullish |
| Stochastic %K (14) | 96.78 | Bearish |
| Williams %R (14) | -3.22 | Bearish |
| CCI (20) | 153.1 | Bearish |
Pivot points (classic, last session)
S3 125.6 | S2 126.8 | S1 128.7 | Pivot 129.9 | R1 131.8 | R2 133.0 | R3 134.9 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
3.80 USD
Yield on today's price
2.91%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.9500 | |
| 0.9500 | |
| 0.9500 | |
| 0.9500 | |
| 0.9300 | |
| 0.9300 | |
| 0.9300 | |
| 0.9300 | |
| 0.8800 | |
| 0.8800 | |
| 0.8800 | |
| 0.8800 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold AEP
| ETF | Share of the fund |
|---|---|
| XLU Utilities Select Sector SPDR | 5.24% |
| FUTY Fidelity MSCI Utilities Index | 4.53% |
| VPU Vanguard Utilities | 4.45% |
| IDU iShares U.S. Utilities | 4.30% |
| GQGU The Advisors’ Inner Circle Fund III | 3.21% |
| IFRA iShares U.S. Infrastructure | 2.01% |
| IGF iShares Global Infrastructure | 1.98% |
| EMLP First Trust North American Energy Infr... | 1.65% |
The eight funds with the largest weight in AEP among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
AEP SEC filings
8-KSEC EDGAR
Director or officer change
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change
8-KSEC EDGAR
Entered a material agreement; Other events
424B5SEC EDGAR
424B5
424B5SEC EDGAR
424B5
10-QSEC EDGAR
Quarterly report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.