The AES Corporation

Valuation Analysis

About the Company

The AES Corporation, together with its subsidiaries, operates as a power generation and utility company. It operates through four segments: Renewables, Utilities, Energy Infrastructure, and New Energy Technologies. The company owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries; owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market, as well as investments in technologies to support leading-edge greener energy solutions. It uses various fuels and technologies to generate electricity, such as solar, hydro, wind, co

The AES Corporation Stock at a Glance

The AES Corporation (AES) is currently trading at $14.68 with a market capitalization of $10.5B. The trailing P/E ratio stands at 7.65x, with a forward P/E of 6.17x. The 52-week range spans from $10.02 to $17.65; the current price is 16.8% below the yearly high. Year-over-year revenue growth stands at +8.7%. The net profit margin stands at 10.82%.

💰 Dividend

The AES Corporation pays an annual dividend of $0.70 per share, representing a yield of 4.77%. The payout ratio stands at 36.66%.

📊 Analyst Rating

8 analysts rate The AES Corporation (AES) on consensus: Hold. The average price target is $15.00, implying +2.18% from the current price. Analyst price targets range from $15.00 to $15.00.

The AES Corporation: The Investment Case in Detail

The AES Corporation (AES) operates in the Utilities — specifically Utilities - Diversified — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Earnings growth of 951.1% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

The debt-to-equity ratio of 259.6% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn.

Valuation in Context

With a PEG ratio of 0.81, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity.

What to Watch Next

• The forward P/E of 6.17x is meaningfully below the trailing 7.65x — analysts expect earnings to step up; the next earnings release is the test.
• The dividend yield near 4.77% combined with a payout ratio of 36.66% leaves room for further hikes — a track record of consecutive raises is a strong income signal.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, higher leverage relative to equity.

Trading Data

💵 Dividend Info

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