American Electric Power Company, Inc.

Electric Services

AEPStrained9 of 11 basics passed

$123.00

+0.56%

Market cap $67.0B

$123.00

+0.56%

Market cap $67.0B

American Electric Power is one of the largest regulated utilities in the United States, providing electricity generation, transmission, and distribution to more than 5 million customers in 11 states.

It is a $67.0B utility company. Revenue grew 10.3% over the last year, it keeps 10¢ of every dollar of sales as profit, and its net debt equals ~10.6 years of free cash flow. It trades at 21.3× earnings — around the middle of its own history.

Website: aep.com
Location: Columbus, OH
Employees: 17 581
Sector: Utilities
Founded: 1958

Share price · 3 years

$74.23 → $123.00+65.7%

price only — dividends excluded

Key facts · TTM

Revenue: total sales; $22.8B
Profit: keeps 10¢ of every $1 sold; $2.38B
Free cash flow: cash left after running the business; $4.29B
Net debt: debt minus cash on hand; $45.2B
P/E: years of profit in the price; 21.3
EPS: earnings per share, TTM; $4.43
Dividend: pays out 65% of profit · 48% of FCF; 3.06%
Shares: up 9% since 2016 — dilution; 537.5M
Volatility: beta vs the market — under 1 swings less; 0.47

Revenue, last 9 years

52-week range

Low $113.70$123.00High $138.69

Today's price is 37% of the way from the year's low to its high.

P/E vs its history5y

22.7×median 21.3×

Higher than 60% of past days — around the middle of its own history.

Valuation vs own history

P/E

22.7×

40%

P/S

2.9×

34%

EV/EBITDA

22.6×

66%

P/B

2.0×

42%

FCF yield

6.3%

39%

Share of the last ~5 years that was pricier than today (in line with its own history). Based on the daily valuation record.

Insider activity · 90 days

-$250Knet selling

Purchases$0

Sales$250K

Insiders trading, last 14d0 buy · 0 sell

Standing in Utilities

Size$67.0Btop 16%
Revenue growth+4%top 49%
Net margin14%top 51%
Return on equity10%top 56%
P/E21.3×top 62%
Dividend yield3.06%top 65%

Ranked against 44 Utilities companies with a full CV — for P/E, lower ranks higher.

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Strong growth and quality; Health lags behind.

Valuation65

P/E vs own history60th pct · 5/25
FCF yield6.4% · 20/25
P/S3.0x · 20/25
EV/EBITDA13.6x · 20/25

Growth82

Revenue CAGR65.7% · 25/25
Net income CAGR87.3% · 25/25
EPS CAGR ~5Y8.3% · 12/25
Fwd implied growth19.1% · 20/25

Profitability57

ROIC4.1% · 5/25
ROE10.0% · 12/25
Net margin10.4% · 20/25
Operating margin23.5% · 20/25

Health18

Altman Z0.74 · 3/25
Current ratio0.50 · 0/25
Interest coverage3.1x · 10/25
Net cash / debtD/A 40% · 5/25

Quality97

Piotroski F7/9 · 22/25
Beneish M-2.65 · 25/25
FCF conversion180% · 25/25
Margin stabilityσ 4.4% · 25/25

Moat62

ROIC >12% years0/9 yrs · 0/25
Median gross margin57.3% · 25/25
FCF-positive years7/7 yrs · 25/25
Worst-year net marginworst 3.7% · 12/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

FY2025Financial
Best year on record
$3.12B net income
FY2016Financial
Profitable every year on record
9 consecutive profitable years in our data
FY2016Financial
Revenue already above $10B
$16.4B in first reported year
FY2016Financial
Positive free cash flow every year since
9-year streak
Aug 31, 2004Acquisition
American Electric Power Company's $10 billion acquisition of the Central and South West…
1958Founded
The American Gas and Electric Company, which would be renamed American Electric Power in 1958, was incorporated in 1906
1953Milestone
American Electric Power was the first utility to utilize 345 kV transmission lines which took place in 1953

Achievements

Verifiable track record, straight from the reported numbers.

#8 largest of 44 Utilities companies by market cap

$10 000 invested in 2021 would be worth ~$13 927 today — price return only

$21.9B revenue in FY2025

Revenue up 10.3% year over year

Profitable 9 years in a row

Positive free cash flow 9 years in a row

17 581 employees

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

High gross margin (41.9%)
Revenue growing 10.3% year over year
Strong cash conversion — FCF is 18.8% of revenue
Piotroski F-Score 7/9 — fundamentally strong checklist

Watch-outs

Altman Z-Score 0.74 — elevated financial-distress risk
Net debt would take ~12.4 years of free cash flow to repay
Net debt equals ~10.6 years of free cash flow

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

9 of 11 checks passed

Revenue growing — the company sells more than a year ago+10.3% YoY
Profitable — makes more than it spends$2.38B TTM
Profit growing — earnings are higher than last year+14.0% YoY
Generates cash — cash left after running and investing$4.29B TTM
Debt under control — could handle its obligations~10.6y of cash flow to repay
Established company — not a micro-cap — lower blow-up risk$67.0B market cap
Not printing shares — share count not ballooning — you keep your slice+8.9% shares over ~5y
Proven track record — years of profitability behind it9/9 profitable years
Financially stable — balance sheet not near distressAltman Z 0.7 — distress
Pays a dividend — returns cash to shareholdersyield 3.06%
Valuation not extreme — price not wildly above earningsP/E 21.3

Peer comparisonAmerican Electric Power Company, Inc. vs 6 largest utilities peers — cap, P/E, growth and margin side by sideOpen ▾

Company	Market cap	P/E	Revenue growth	Net margin	Profile
AEP this company	$67.0B	21.3	+10.3%	10.4%	Strained
NEE NextEra Energy, Inc.	$161.3B	17.4	+10.8%	32.4%	Strained
CEG Constellation Energy Corporation	$105.8B	30.5	+26.0%	11.1%	Strained
SO The Southern Company	$99.1B	21.3	+6.4%	15.4%	Strained
DUK Duke Energy Corporation	$90.9B	17.3	+6.3%	15.8%	Strained
WMB Williams Companies Inc.	$89.2B	29.0	+8.7%	25.2%	Strained
KMI Kinder Morgan, Inc.	$72.4B	20.9	+12.5%	19.3%	Strained

Head-to-head: AEP vs NEE · AEP vs CEG · AEP vs SO

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 6Buy 10Hold 12

Appendix · Financial records

The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.

Profit & lossRevenue $22.8B · net income $2.38B (TTM)Open ▾

Profit & loss

Revenue and profit over the company's career — the income statement, visualised.

How FY2025 revenue flows to profit

RevenueNet income

Revenue (TTM)

$22.8B

YoY 10.3%

Net income (TTM)

$2.38B

Margin 10.4%

Gross margin

41.9%

Operating margin

23.5%

P/E ratio

21.3

Dividend yield

3.06%

Income statement — full detail

Figures in USD billions · EPS in USD

	2020	2021	2022	2023	2024	2025
Revenue	14.9	2.9	19.6	19.0	19.7	21.9
Gross profit	—	—	19.3	17.1	4.3	5.3
Operating income (EBIT)	3.0	0.4	3.5	3.6	4.3	5.3
Net income	2.2	0.3	2.3	2.2	2.5	3.1
EPS (diluted)	4.42	—	4.49	4.24	4.66	5.81

Cash flowFree cash flow $4.29B · operating cash flow $7.69B (TTM)Open ▾

Cash flow statement

Cash generated by the business and what is left after investment — year by year.

Operating cash flowFree cash flow

Free cash flow (TTM)

$4.29B

Margin 18.8%

Operating cash flow (TTM)

$7.69B

FCF margin

18.8%

Cash flow statement — full detail

Figures in USD billions

	2020	2021	2022	2023	2024	2025
Operating cash flow	3.8	0.6	5.3	5.0	6.8	6.9
Capital expenditure	—	—	-1.6	-2.2	-0.0	-3.5
Free cash flow	3.8	0.6	3.7	2.9	6.8	3.5
FCF margin	25.7%	19.9%	18.9%	15.1%	34.5%	16.0%

Balance sheetAssets $114B · net debt $45.2B (FY2025)Open ▾

Balance sheet

How the balance sheet is built — what it owns versus how it is financed.

How $114B of assets is financed

73%

27%

Liabilities $82.2B — borrowed moneyEquity $31.1B — owners' stake

Cash vs debt

Total debt $45.6B − cash $417M = net debt $45.2B

Cash on hand covers 1% of debt.

Altman Z-Score

0.74

Distress zone

Debt repayment

12.4 yrs

Years of free cash flow to clear net debt

Interest coverage

3.1x

EBIT ÷ interest expense

ROE

10.0%

Profit per $1 of equity

Balance sheet — full detail

Figures in USD billions

	2020	2021	2022	2023	2024	2025
Cash & equivalents	0.6	0.6	0.7	0.5	0.4	0.4
Total assets	80.8	87.7	93.5	96.7	103.1	114.5
Total liabilities	59.9	64.9	69.3	71.4	76.1	82.2
Total debt	31.5	33.9	37.7	40.5	41.8	45.6
Equity	20.6	22.4	23.9	25.2	26.9	31.1
Net debt	30.9	33.3	37.0	39.9	41.4	45.2

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of AEP on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $123.00 · market cap $67.0B.