Ameren (AEE) AI Stock Analysis

• Market Cap: $31.33B
• Dividend Yield: 2.86%
• Average Volume (3M): 1.83M
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.17
• Revenue Growth: 22.71%
• EPS Growth: 22.86%
• Country: US
• Employees: 8,981
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.78
• Shares Outstanding: 276,424,530
• 10 Day Avg. Volume: 1,930,791
• 30 Day Avg. Volume: 1,833,223
• PEG Ratio: 0.87
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 3.07
• P/FCF Ratio: -34.85
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 5.81
• Enterprise Value/Gross Profit: 15.24
• Enterprise Value/Ebitda: 13.08
• 1Y Price Target: $114.20
• Price Target Upside: 0.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 5.36
• Revenue Forecast (FY): $9.05B

• Rating: 67 Neutral
• Price Target: $122.00 ▲(7.65% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is driven primarily by stable profitability and improving operating cash flow, but constrained by persistently negative free cash flow and elevated, rising leverage. Technicals are supportive with a clear uptrend and positive momentum, while valuation is middling due to a relatively high P/E despite a moderate dividend yield. Earnings call commentary adds support via affirmed guidance and visible rate-base growth plans, tempered by execution, financing, and regulatory risks.

Positive Factors

Strong Regulated Profitability

Consistently high net and EBITDA margins reflect the structural earnings stability of a regulated utility with recoverable costs and allowed returns. These durable margins support steady cash flow generation, rate-case economics, and the ability to fund reliability and capital programs over the medium term.

Improving Operating Cash Generation

Material improvement in operating cash flow signals stronger underlying cash earnings that can underpin capital spending and service obligations. Higher OCF reduces near-term refinancing pressure, improves coverage metrics, and provides a more sustainable base to support the company’s multiyear investment plan.

Rate‑base Growth and Executed Large‑load Wins

A large, approved capital program and executed ESAs create structural growth in regulated rate base, which typically earns regulated returns. This profile supports multi‑year EPS growth targets and provides predictable long‑term revenue drivers tied to approved investments and contracted load additions.

Negative Factors

Elevated and Rising Leverage

Substantially higher leverage limits financial flexibility and raises sensitivity to rising interest costs and capital‑markets conditions. Persistent high debt levels increase refinancing and coverage risk while the company scales capex, constraining maneuverability during adverse market or regulatory outcomes.

Consistently Negative Free Cash Flow

Ongoing negative free cash flow despite rising operating cash generation means the business relies on external funding to cover capex. Over time this can pressure credit metrics, force periodic equity or debt issuance, and dilute returns if investment execution or rate recovery lags expectations.

Execution, Financing and Regulatory Risk

The sizable investment program depends on timely project execution, customer ramps on ESAs, and regulatory approvals. Large planned equity and debt raises increase dilution and market‑dependence; any delays, cancellations or adverse regulatory changes could materially alter expected returns and the timing of rate recovery.

Ameren Business Overview & Revenue Model

Company Description

Ameren Corporation, together with its subsidiaries, operates as a public utility holding company in the United States. It operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. The company engages in the rate-regulated electric generation, transmission, and distribution activities; and rate-regulated natural gas distribution and transmission businesses. It primarily generates electricity through coal, nuclear, and natural gas, as well as renewable sources, such as hydroelectric, wind, methane gas, and solar. The company serves residential, commercial, and industrial customers. Ameren Corporation was founded in 1881 and is headquartered in St. Louis, Missouri.

How the Company Makes Money

Ameren generates revenue primarily through the sale of electricity and natural gas to residential, commercial, and industrial customers. The company operates under regulated frameworks that allow it to earn returns on its investments in infrastructure, such as power plants, transmission lines, and gas distribution systems. Key revenue streams include electricity sales, natural gas sales, and various utility services such as energy efficiency programs and renewable energy credits. Additionally, Ameren may benefit from partnerships with state governments and regulatory bodies that support clean energy initiatives and infrastructure investments, further contributing to its earnings through incentives and grants.

Ameren Financial Statement Overview

Summary

Solid regulated-utility profitability (net margins ~13%–17%, EBITDA margins ~40%–46%) and improving operating cash flow ($1.7B in 2020 to $3.35B in 2025) support earnings stability. Offsetting this, leverage is elevated and rising (debt-to-equity ~1.4–1.55; total debt up to ~$19.8B in 2025) and free cash flow remains consistently negative (including -$775M in 2025), indicating ongoing reliance on external financing amid heavy capex.

Income Statement

Profitability is a clear strength, with consistently solid net profit margins (~13%–17%) and strong EBITDA margins (~40%–46%) over the period, which is typical of a stable regulated utility. Net income has generally trended higher versus earlier years, supporting steady earnings quality. The main weakness is uneven top-line momentum: revenue growth has been volatile and turned sharply negative in 2025 (-1.775), despite modest growth in 2024 and a strong year in 2022.

Balance Sheet

The balance sheet shows steady equity growth (about $8.9B in 2020 to $13.4B in 2025), and returns on equity remain fairly stable around ~10%–11% in recent years—supportive of regulated-utility economics. The key risk is leverage: debt-to-equity remains elevated around ~1.4–1.55 and total debt has risen meaningfully (about $11.6B in 2020 to $19.8B in 2025), which can pressure financial flexibility if rates or funding needs increase.

Cash Flow

Operating cash generation has improved over time (about $1.7B in 2020 to $3.35B in 2025), which is a positive signal for underlying cash earnings. However, free cash flow is consistently negative each year (including -$775M in 2025) and free cash flow relative to net income remains negative, indicating ongoing heavy capital spending and reliance on external funding to cover the gap. Coverage trends improved versus earlier years but remain mixed, limiting the cash flow profile.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.80B	7.62B	7.50B	7.96B	6.39B
Gross Profit	2.60B	3.65B	3.47B	3.34B	2.99B
EBITDA	3.69B	3.54B	3.41B	3.18B	2.81B
Net Income	1.46B	1.18B	1.15B	1.07B	990.00M
Balance Sheet
Total Assets	48.48B	44.60B	40.83B	37.90B	35.73B
Cash, Cash Equivalents and Short-Term Investments	13.00M	7.00M	25.00M	250.00M	16.00M
Total Debt	19.83B	18.72B	16.51B	15.10B	13.61B
Total Liabilities	34.95B	32.35B	29.35B	27.27B	25.91B
Stockholders Equity	13.40B	12.11B	11.35B	10.51B	9.70B
Cash Flow
Free Cash Flow	-775.00M	-1.65B	-1.21B	-1.12B	-1.86B
Operating Cash Flow	3.35B	2.76B	2.56B	2.26B	1.66B
Investing Cash Flow	-4.14B	-4.46B	-3.80B	-3.37B	-3.53B
Financing Cash Flow	884.00M	1.75B	1.29B	1.17B	1.72B

Ameren Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 113.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEE, the sentiment is Positive. The current price of 113.33 is above the 20-day moving average (MA) of 109.36, above the 50-day MA of 104.67, and above the 200-day MA of 100.52, indicating a bullish trend. The MACD of 2.46 indicates Negative momentum. The RSI at 70.51 is Negative, neither overbought nor oversold. The STOCH value of 82.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AEE.

Ameren Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEE	67 Neutral	$31.33B	18.55	11.41%	2.86%	22.71%	22.86%
PPL	67 Neutral	$28.74B	21.95	8.15%	3.13%	8.42%	32.48%
CMS	66 Neutral	$23.94B	19.63	12.33%	3.10%	10.96%	-0.77%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
FE	64 Neutral	$29.36B	25.33	8.17%	3.94%	7.64%	48.61%
ES	63 Neutral	$28.06B	14.75	10.84%	4.54%	13.12%	―
DTE	62 Neutral	$30.78B	17.94	12.16%	3.45%	19.42%	-9.68%

Ameren Corporate Events

Ameren Issues $400 Million Senior Notes for Utilities

On March 4, 2026, Ameren Corporation issued $400 million of 5.00% Senior Notes due 2036, accessing long-term debt markets to support its regulated utility operations and capital needs. The notes were sold under an existing shelf registration, and Ameren received approximately $396.6 million in net proceeds before expenses, reflecting continued investor demand for its credit and potentially reinforcing its balance sheet and funding flexibility.

The transaction underscores Ameren’s reliance on capital markets to finance infrastructure and other long-duration utility investments, which are critical to its service obligations and regulatory commitments. By locking in fixed-rate funding over a 10-year horizon, Ameren may better align its financing structure with asset lifecycles, potentially stabilizing funding costs and offering greater visibility for bondholders and other stakeholders.

The most recent analyst rating on (AEE) stock is a Buy with a $127.00 price target. To see the full list of analyst forecasts on Ameren stock, see the AEE Stock Forecast page.

Ameren Highlights 2025 Earnings Strength and Long-Term Growth

Ameren reported strong 2025 results on Feb. 11, 2025, with GAAP diluted EPS rising to $5.35 from $4.42 in 2024 and adjusted EPS increasing to $5.03 from $4.63, reflecting higher earnings on infrastructure investments, new electric rates and weather-driven retail sales at Ameren Missouri, partly offset by higher interest and operations and maintenance expenses. The utility affirmed its 2026 earnings guidance of $5.25 to $5.45 per share and issued a 6% to 8% annual EPS growth outlook for 2026–2030, anchored by a planned $31.8 billion infrastructure program that is expected to drive roughly 10.6% compound annual rate base growth and support continued value creation for customers, communities and shareholders.

The most recent analyst rating on (AEE) stock is a Hold with a $110.00 price target. To see the full list of analyst forecasts on Ameren stock, see the AEE Stock Forecast page.

Ameren Adds Veteran Nuclear Leader to Board of Directors

On February 6, 2026, Ameren Corporation’s board elected veteran nuclear executive Timothy S. Rausch as a director, with his term to begin on March 1, 2026 and run until the company’s 2026 annual shareholder meeting. He will join the Finance Committee and the Nuclear, Operations and Environmental Sustainability Committee and receive standard non-employee director compensation.

Ameren announced the move publicly on February 9, 2026, highlighting Rausch’s long track record leading nuclear generation at major U.S. utilities including Tennessee Valley Authority, Talen Energy, PPL, Exelon Nuclear and FirstEnergy. The appointment underscores Ameren’s emphasis on nuclear generation as a core part of its long-term resource strategy to support reliability, resilience and affordability for its electric customers.

The most recent analyst rating on (AEE) stock is a Hold with a $116.00 price target. To see the full list of analyst forecasts on Ameren stock, see the AEE Stock Forecast page.

Ameren Elects Jamie Engstrom to Board of Directors

On December 12, 2025, Ameren Corporation announced the election of Jamie L. Engstrom to its Board of Directors, effective January 1, 2026. Engstrom, currently the Global Chief Information Officer at Caterpillar Inc., will also join Ameren’s Audit and Risk Committee and the Cybersecurity and Digital Technology Committee. Her extensive experience in information systems and digital transformations is expected to enhance Ameren’s strategic focus on technology and risk management, benefiting customers, shareholders, and the board.

The most recent analyst rating on (AEE) stock is a Hold with a $108.00 price target. To see the full list of analyst forecasts on Ameren stock, see the AEE Stock Forecast page.