American Electric Power AEP
American Electric Power is a regulated electric utility that generates, transmits, and distributes electricity to over 5 million customers across 11 US states, with a business model based on regulated assets that generate stable cash flows. AEP shows fragile financial health with net debt/EBITDA of 5.86 and liquidity of 0.50, but its regulated business and a 3.21% dividend with 65.51% payout offer stability; earnings growth falls 43.20%, weighing on its appeal.
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.
American Electric Power is a regulated electric utility that generates, transmits, and distributes electricity to over 5 million customers across 11 US states, with a business model based on regulated assets that generate stable cash flows. AEP shows fragile financial health with net debt/EBITDA of 5.86 and liquidity of 0.50, but its regulated business and a 3.21% dividend with 65.51% payout offer stability; earnings growth falls 43.20%, weighing on its appeal.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.2 |
| Quality / Moat | 3.7 |
| Valuation | 4.3 |
| Growth | 3.5 |
| Dividend | 7.1 |
| Momentum | 6.5 |
| Risk & Context | 7.9 |
OVERALL SCORE: 5.7/10
Context and risks
AEP has net debt/EBITDA of 5.86 and a current ratio of 0.50, making it vulnerable to rising rates. The 10-year Treasury yield at 5.17% increases refinancing costs and pressures its balance sheet, though its regulated business partially mitigates the impact.
News considered in the analysis
- 4 Utility Stocks With Reliable Dividends and a Massive New Growth Engine — Menciona a AEP como utility con dividendos fiables y potencial de crecimiento por demanda de IA, pero es un listículo sin datos específicos de la empresa.
- What an AI Slowdown Would Mean for Energy Stocks — Un posible frenazo en el capex de IA reduciría la demanda eléctrica esperada, afectando a utilities como AEP, pero es especulativo y no específico.
Verdict: Hold; high debt and rate sensitivity limit upside, though the dividend and regulated business provide support.
Main risk: High leverage (net debt/EBITDA of 5.86) and exposure to rising rates, which make refinancing more expensive and pressure negative free cash flow conversion.
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