Ameren AEE
Ameren Corporation is a utility holding that, through its subsidiaries, generates, transmits, and distributes electricity and natural gas to residential, commercial, and industrial customers in Missouri and Illinois, operating under a regulated business model. Ameren is a regulated utility with a leveraged balance sheet (Net Debt/EBITDA of 5.57) and negative free cash flow conversion (-45.68%), which limits its appeal despite a sustainable dividend (payout 51.41%) and earnings growth of 11.90%. Valuation (P/E 17.87) is in line with the sector, but negative FCF yield and declining revenue (-6.20%) warrant caution.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Ameren Corporation is a utility holding that, through its subsidiaries, generates, transmits, and distributes electricity and natural gas to residential, commercial, and industrial customers in Missouri and Illinois, operating under a regulated business model. Ameren is a regulated utility with a leveraged balance sheet (Net Debt/EBITDA of 5.57) and negative free cash flow conversion (-45.68%), which limits its appeal despite a sustainable dividend (payout 51.41%) and earnings growth of 11.90%. Valuation (P/E 17.87) is in line with the sector, but negative FCF yield and declining revenue (-6.20%) warrant caution.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.0 |
| Quality / Moat | 4.0 |
| Valuation | 4.6 |
| Growth | 4.1 |
| Dividend | 7.4 |
| Momentum | 5.4 |
| Risk & Context | 8.0 |
OVERALL SCORE: 5.9/10
Context and risks
Ameren operates under a regulated model in Missouri and Illinois, where tariff reviews can be adverse. The rise in 10-year yields (5.11%) pressures the multiple of a long-duration utility, but the engine already modulates this effect by P/E and leverage; the additional adjustment reflects the specific regulatory risk of its jurisdictions.
News considered in the analysis
- Ameren (AEE) Stock May Be Fairly Valued Despite Infrastructure Jobs Study — Análisis de valoración sin información nueva; no afecta a las perspectivas de beneficios.
- Ameren (AEE) Could Be a Great Choice — Opinión genérica de Zacks sin catalizador concreto.
- Is Ameren Stock Underperforming the S&P 500? — Comparativa de rendimiento sin implicación para la valoración fundamental.
- Top Stock Reports for Cisco, Lam Research & Thermo Fisher — Listado de informes sin relación con Ameren.
- After Plunging 6% in 4 Weeks, Here's Why the Trend Might Reverse for Ameren (AEE) — Análisis técnico de corto plazo; sin información fundamental nueva.
Verdict: Hold; the stock is at the 15th percentile of its 52-week range and the dividend provides support, but negative cash generation and high leverage limit upside potential.
Main risk: The main risk is the combination of high leverage (Net Debt/EBITDA of 5.57) with a rising rate environment, which makes debt refinancing more expensive and compresses the valuation of a long-duration utility.
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