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Ameren (AEE)
NYSE:AEE

Ameren (AEE) AI Stock Analysis

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Ameren

(NYSE:AEE)

Rating:72Outperform
Price Target:
$107.00
▲( 11.11% Upside)
Ameren's overall stock score reflects strong financial performance and positive earnings call insights, underpinned by strategic growth plans and investments. However, technical analysis suggests mixed signals, and valuation metrics hint at potential overvaluation. The positive earnings outlook and robust strategic planning are key drivers of the score.
Positive Factors
Capital Expenditure Plan
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.
Growth Strategy
The revised Preferred Resource Plan includes additional investment and generation capacity, with 1.8GW added by 2030, supporting Ameren's long-term growth strategy.
Regulatory Environment
Missouri legislative bill proposals are likely to support Ameren's initiatives, reducing regulatory lag and improving cash recovery of investments.
Negative Factors
Equity Needs
Management added +$4.4bn of capital to its plan while only adding ~$300mm of incremental equity (~7% of incremental CapEx).
Stock Valuation
Shares of AEE have been one of the best performers since the middle of 2024, re-rating nearly ~19% and now trade at ~12-13% premium on 2027 EPS.
Tariff Impact
Management expects the broader impact of tariffs to be minimal with ~2% exposure on its $26.3bn capital plan.

Ameren (AEE) vs. SPDR S&P 500 ETF (SPY)

Ameren Business Overview & Revenue Model

Company DescriptionAmeren 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 MoneyAmeren Corporation generates revenue primarily through the sale of electricity and natural gas to its customers. The company's key revenue streams include electricity sales from its generation and distribution operations, and natural gas sales from its distribution network. Revenue is further bolstered by regulated utility rates approved by state regulatory commissions, which ensure a reasonable return on investment for infrastructure and operational costs. Ameren's earnings are influenced by factors such as energy consumption patterns, regulatory decisions, and its ability to efficiently manage operational costs. Additionally, the company may engage in partnerships or initiatives focused on sustainable energy solutions, which can contribute to its revenue through innovation and efficiency improvements.

Ameren Financial Statement Overview

Summary
Ameren demonstrates strong profitability and operational efficiency, with steady revenue growth and effective cost management. The balance sheet reflects low financial leverage and solid equity utilization, although maintaining a balance between debt and equity is essential. However, challenges in generating free cash flow due to high capital expenditures need attention.
Income Statement
85
Very Positive
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.
Balance Sheet
78
Positive
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.
Cash Flow
72
Positive
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
7.90B7.62B7.50B7.96B6.39B5.79B
Gross Profit
4.88B3.65B3.47B3.34B2.99B2.86B
EBIT
1.57B1.52B1.56B1.51B1.33B1.30B
EBITDA
3.58B3.54B3.40B3.18B2.81B2.53B
Net Income Common Stockholders
1.21B1.18B1.15B1.07B990.00M871.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
23.00M7.00M25.00M250.00M8.00M139.00M
Total Assets
45.66B44.60B40.83B37.90B35.73B32.03B
Total Debt
17.00M18.72B16.51B15.10B13.61B11.58B
Net Debt
-6.00M18.71B16.48B15.09B13.60B11.44B
Total Liabilities
33.32B32.35B29.35B27.27B25.91B22.95B
Stockholders Equity
12.22B12.11B11.35B10.51B9.70B8.94B
Cash FlowFree Cash Flow
-1.81B-1.56B-1.21B-1.12B-1.86B-1.57B
Operating Cash Flow
1.82B2.76B2.56B2.26B1.66B1.73B
Investing Cash Flow
-4.64B-4.46B-3.80B-3.37B-3.53B-3.33B
Financing Cash Flow
1.96B1.75B1.29B1.17B1.72B1.73B

Ameren Technical Analysis

Technical Analysis Sentiment
Negative
Last Price96.30
Price Trends
50DMA
98.21
Negative
100DMA
96.42
Negative
200DMA
91.14
Positive
Market Momentum
MACD
-0.46
Positive
RSI
45.44
Neutral
STOCH
44.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEE, the sentiment is Negative. The current price of 96.3 is below the 20-day moving average (MA) of 97.69, below the 50-day MA of 98.21, and above the 200-day MA of 91.14, indicating a neutral trend. The MACD of -0.46 indicates Positive momentum. The RSI at 45.44 is Neutral, neither overbought nor oversold. The STOCH value of 44.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
PPPPL
74
Outperform
$25.63B25.897.00%3.01%5.62%30.02%
AEAEE
72
Outperform
$26.64B21.3610.23%2.82%8.96%3.75%
DTDTE
72
Outperform
$28.29B18.4113.28%3.10%11.16%20.94%
ESES
71
Outperform
$23.31B27.405.63%4.57%10.82%
FEFE
70
Neutral
$24.30B22.408.69%4.04%7.92%1.54%
CNCNP
67
Neutral
$24.52B25.269.22%2.21%4.76%4.08%
64
Neutral
$8.54B10.244.67%4.36%4.12%-13.19%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AEE
Ameren
96.30
27.31
39.59%
CNP
Centerpoint Energy
37.57
8.82
30.68%
DTE
DTE Energy
136.32
27.14
24.86%
FE
FirstEnergy
42.11
4.89
13.14%
ES
Eversource Energy
63.46
9.29
17.15%
PPL
PPL
34.67
7.03
25.43%

Ameren Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: -1.82%|
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

Private Placements and FinancingBusiness Operations and StrategyRegulatory Filings and Compliance
Ameren Enters Forward Sale Agreements with Major Banks
Neutral
May 14, 2025

On May 12, 2025, Ameren entered into forward sale agreements with major financial institutions including Goldman Sachs, JPMorgan Chase, Barclays, and Wells Fargo, involving the sale of Base Shares and Option Shares. These agreements, part of a broader strategy to manage stock issuance and pricing, allow Ameren to settle by issuing shares or through cash or net share settlements by January 15, 2027. The initial forward sale price is set at $91.885 per share, subject to adjustments based on interest rates and expected dividends. The agreements also include provisions for acceleration and settlement adjustments based on market conditions and corporate actions. The transactions, which were part of a registered public offering, were executed under a Registration Statement effective since October 13, 2023.

The most recent analyst rating on (AEE) stock is a Buy with a $91.00 price target. To see the full list of analyst forecasts on Ameren stock, see the AEE Stock Forecast page.

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.

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.