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Ameren (AEE)
NYSE:AEE
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Ameren
(NYSE:AEE)
76Outperform
Positive Factors
Capital Expenditure
Ameren Corporation's new five-year capital expenditure plan for 2025-29 is set at $26.3 billion, which is a 20% increase from the previous plan, indicating a strong commitment to growth and investment.
Market Confidence
The analyst recommendation remains 'Outperform' with a raised price target to $105, reflecting increased market confidence in Ameren's strategic plans and future performance.
Negative Factors
Risk-Reward Balance
Shares of AEE have been one of the best performers since the middle of 2024, re-rating nearly ~17%. This significant outperformance may negatively skew the risk-reward into the call.
Ameren (AEE) vs. S&P 500 (SPY)
Market Cap
$26.50B
Dividend Yield2.77%
Average Volume (3M)1.89M
Price to Earnings (P/E)22.2
Beta (1Y)0.25
Revenue Growth1.64%
EPS Growth1.04%
CountryUS
Employees8,981
SectorUtilities
Sector Strength87
IndustryRegulated Electric
Share Statistics
EPS (TTM)4.42
Shares Outstanding270,157,650
10 Day Avg. Volume1,403,261
30 Day Avg. Volume1,888,844
Financial Highlights & Ratios
PEG Ratio21.38
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.62
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit11.72
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$104.20Price Target Upside4.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Ameren Business Overview & Revenue Model
Company DescriptionAmeren Corporation (AEE) is a public utility company headquartered in St. Louis, Missouri. It operates through its subsidiaries to provide electric and natural gas services. The company serves approximately 2.4 million electric and 900,000 natural gas customers across Missouri and Illinois. Ameren is involved in the generation, transmission, and distribution of electricity, as well as the distribution of natural gas, positioning itself as a key player in the energy sector in the Midwest United States.
How the Company Makes MoneyAmeren makes money primarily through the sale of electricity and natural gas to residential, commercial, and industrial customers. Its revenue model is built on regulated utility operations, which ensures a stable and predictable income stream due to state-regulated rates that allow for the recovery of costs and a return on investment. A significant portion of its earnings comes from electric operations, including the generation, transmission, and distribution of electricity. Additionally, Ameren earns revenue from its natural gas distribution services. The company's financial performance is influenced by regulatory decisions, fuel costs, weather conditions, and economic factors affecting energy demand. Ameren's strategic investments in infrastructure and renewable energy projects also contribute to its revenue by enhancing service reliability and meeting sustainability goals.
Ameren Financial Statement Overview
Summary
Ameren exhibits strong profitability and operational efficiency with solid revenue growth and effective cost management. The balance sheet shows low financial leverage and effective equity utilization, though maintaining a balance between debt and equity is crucial. Cash flow analysis highlights the need for better capital expenditure management to improve free cash flow.Income Statement
Ameren's income statement shows strong financial performance. The TTM (Trailing-Twelve-Months) gross profit margin is 61.8%, indicating effective cost management. The net profit margin has consistently improved, reaching 15.3% in TTM, reflecting solid profitability. Revenue growth is positive, with a 3.7% increase from the previous year, highlighting a steady upward trajectory. The EBIT margin stands at 19.9% and the EBITDA margin at 45.3%, both demonstrating robust operational efficiency.85
Very Positive
Balance Sheet
The balance sheet reveals a stable financial position with some areas of concern. The debt-to-equity ratio is low at 0.0014 in TTM, indicating low leverage and financial stability. However, the equity ratio is moderate at 26.8%, suggesting moderate reliance on debt to finance assets. ROE is strong at 9.9% in TTM, showcasing effective utilization of equity to generate profits. While the company's equity base is strong, maintaining a balance between debt and equity is crucial.78
Positive
Cash Flow
Cash flow analysis indicates mixed results. The operating cash flow to net income ratio is 1.51 in TTM, showing a solid ability to convert profits into cash. However, the free cash flow remains negative at -$1.813 billion in TTM, mainly due to high capital expenditures. Free cash flow to net income ratio is negative, reflecting challenges in generating free cash flow despite profitability, which could impact future investments.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.62B | 7.50B | 7.96B | 6.39B | 5.79B | Gross Profit |
| 3.65B | 3.47B | 3.34B | 2.99B | 2.86B | EBIT |
| 1.52B | 1.56B | 1.51B | 1.33B | 1.30B | EBITDA |
| 3.54B | 3.40B | 3.18B | 2.81B | 2.53B | Net Income Common Stockholders |
| 1.18B | 1.15B | 1.07B | 990.00M | 871.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 7.00M | 25.00M | 250.00M | 8.00M | 139.00M | Total Assets |
| 44.60B | 40.83B | 37.90B | 35.73B | 32.03B | Total Debt |
| 18.72B | 16.51B | 15.10B | 13.61B | 11.58B | Net Debt |
| 18.71B | 16.48B | 15.09B | 13.60B | 11.44B | Total Liabilities |
| 32.35B | 29.35B | 27.27B | 25.91B | 22.95B | Stockholders Equity |
| 12.11B | 11.35B | 10.51B | 9.70B | 8.94B |
| Cash Flow | Free Cash Flow | |||
| -1.56B | -1.21B | -1.12B | -1.86B | -1.57B | Operating Cash Flow |
| 2.76B | 2.56B | 2.26B | 1.66B | 1.73B | Investing Cash Flow |
| -4.46B | -3.80B | -3.37B | -3.53B | -3.33B | Financing Cash Flow |
| 1.75B | 1.29B | 1.17B | 1.72B | 1.73B |
Ameren Technical Analysis
Positive
99.48
Price Trends
98.61
Positive
95.19
Positive
89.57
Positive
Market Momentum
0.23
Negative
54.22
Neutral
77.43
Neutral
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 99.48 is above the 20-day moving average (MA) of 97.80, above the 50-day MA of 98.61, and above the 200-day MA of 89.57, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 54.22 is Neutral, neither overbought nor oversold. The STOCH value of 77.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AEE.
Ameren Risk Analysis
Ameren disclosed 19 risk factors in its most recent earnings report. Ameren reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ameren Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $26.50B | 22.19 | 10.08% | 2.77% | 1.64% | 1.04% | |
73 Outperform | $28.30B | 20.15 | 12.32% | 3.11% | -1.13% | 0.16% | |
70 Neutral | $24.87B | 22.96 | 8.69% | 3.98% | 7.92% | 1.54% | |
69 Neutral | $21.60B | 25.91 | 5.56% | 4.90% | -0.08% | ― | |
69 Neutral | $26.67B | 30.13 | 7.00% | 2.90% | 5.62% | 30.02% | |
67 Neutral | $25.45B | 26.21 | 9.22% | 2.15% | 4.76% | 4.08% | |
63 Neutral | $8.48B | 11.89 | 5.79% | 4.37% | 3.17% | -10.89% |
* Utilities Sector Average
Performance Comparison
AEE
Ameren
99.48
27.72
38.63%
CNP
Centerpoint Energy
38.99
10.35
36.14%
DTE
DTE Energy
136.36
27.42
25.17%
FE
FirstEnergy
43.09
5.46
14.51%
ES
Eversource Energy
58.83
1.57
2.74%
PPL
PPL
36.17
8.99
33.08%
Ameren Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 1.42%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call was largely positive, highlighting strong financial performance, legislative support, and significant growth in data center demand. While there are some concerns about tariffs and tax credit transferability, the overall outlook remains optimistic due to robust strategic planning and sound financial management.Q1-2025 Updates
Positive Updates
Strong Earnings Growth
First quarter 2025 earnings of $1.07 per share, up from $1.02 per share in the first quarter of 2024.
Positive Legislative Developments in Missouri
Missouri General Assembly and Governor enacted comprehensive energy legislation, including Senate Bill 4, which supports utility infrastructure investment and economic development.
Significant Data Center Growth
Signed construction agreements with data center developers representing 2.3 gigawatts of future demand, an increase of 500 megawatts from the previous call.
Avoidance of Customer Outages
Investments in smart technology prevented more than 114,000 customer outages in the first quarter of 2025.
Strong Economic Development
Supported nearly a dozen projects in the first quarter, bringing over $700 million of capital investment and over 1,000 jobs.
Robust Five-Year Growth Plan
Expectation of a 6% to 8% compound annual earnings growth rate from 2025 through 2029, driven by a 9.2% compound annual rate base growth.
Financing Progress
Completed over 80% of 2025 debt financings and secured equity needs with minimal additional issuance expected.
Negative Updates
Exposure to Tariffs
Potential exposure to tariffs on materials, notably in battery projects, with an estimated impact of about 2% on the $26 billion capital plan.
Uncertainty in Tax Credit Transferability
Concerns over changes in tax credit transferability which could impact customer bill savings and the affordability of new projects.
Company Guidance
During the first quarter of 2025, Ameren reported earnings of $1.07 per share, up from $1.02 per share in the first quarter of 2024, with key drivers outlined in their presentation. The company expects 2025 earnings per share to range between $4.85 and $5.05. Ameren continues to make strategic investments in energy infrastructure, enhancing the reliability and resiliency of service for its 2.5 million electric and over 900,000 natural gas customers. Notably, they have prevented over 114,000 customer outages through smart switching technology. The company has signed agreements with data center developers for approximately 2.3 gigawatts of future demand and expects 5.5% compound annual sales growth from 2025 to 2029, driven by increasing data center demand. Additionally, Ameren has secured financing for most of its 2025 debt needs and plans to issue about $600 million in common equity this year. The Missouri Public Service Commission has approved a $355 million annual revenue increase, and new electric rates are scheduled to take effect on June 1. Ameren's strategic plan aims for a 6% to 8% compound annual earnings growth rate from 2025 to 2029, supported by a robust $63 billion investment pipeline over the next decade.Ameren Corporate Events
Executive/Board Changes
Ameren Director Noelle K. Eder Resigns
Neutral
Apr 28, 2025
On April 22, 2025, Noelle K. Eder informed Ameren Corporation’s Board of Directors of her resignation as a director, effective May 6, 2025. Her departure is due to personal reasons related to a change in her primary employment requiring her to live outside the United States, and not due to any disagreements with the company.
Spark’s Take on AEE Stock
According to Spark, TipRanks’ AI Analyst, AEE is a Outperform.
Ameren’s stock is supported by strong financial performance, particularly in revenue growth and debt management. The positive earnings call and strategic infrastructure investments provide a promising outlook, despite some liquidity concerns and regulatory challenges. The technical indicators show a stable trend, and the valuation is reasonable, with a decent dividend yield. Overall, Ameren presents a balanced risk-reward profile with a positive long-term growth trajectory.
To see Spark’s full report on AEE stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.