Ameren (AEE) AI Stock Analysis

• Market Cap: $29.30B
• Dividend Yield: 2.86%
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.18
• 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: 270,494,900
• 10 Day Avg. Volume: 2,083,455
• 30 Day Avg. Volume: 1,657,176
• 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: 1.71
• Enterprise Value/Revenue: 5.71
• Enterprise Value/Gross Profit: 14.97
• Enterprise Value/Ebitda: 12.84
• 1Y Price Target: $114.20
• Price Target Upside: 3.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 5.36
• Revenue Forecast (FY): $9.07B

• Rating: 68 Neutral
• Price Target: $119.00 ▲(8.13% Upside)
• Action: Downgraded Date: 02/14/26
• Date: Action: Downgraded 02/14/26

The score is primarily driven by steady regulated-utility profitability and a positive earnings outlook (affirmed guidance, long-term EPS CAGR targets, and large-load agreements). The main constraints are financial structure and cash flow—high/rising leverage and consistently negative free cash flow tied to heavy capex—while technicals are supportive but look overbought, and valuation is reasonable with a solid dividend yield.

Positive Factors

Stable regulated profitability and margins

Ameren’s persistent net margins (~13%–17%) and EBITDA margins (~40%–46%) reflect durable regulated utility economics. These steady margins support earnings quality, predictable cash generation and the company’s ability to sustain dividend policy and fund ongoing grid investments over the multi-year planning horizon.

Improving operating cash generation

Operating cash flow rising from roughly $1.7B to $3.35B demonstrates stronger underlying cash earnings, which bolsters the firm’s ability to service debt and fund portions of capital spending. Improved OCF provides a more sustainable base for dividends and reduces but does not eliminate external funding needs.

Clear multi-year growth plan and load wins

Management’s affirmed guidance, reiterated 6%–8% EPS CAGR, large five‑year capital plan and signed 2.2 GW of ESAs provide structural visibility into rate‑base growth and future revenue. Regulatory approvals and signed customer agreements underpin multi-year earnings and infrastructure-driven growth prospects.

Negative Factors

Elevated and rising leverage

Significantly higher debt and an elevated debt-to-equity ratio reduce financial flexibility and increase sensitivity to interest rates and refinancing conditions. Over a multi-year horizon, this constrains capacity to absorb cost overruns or slower rate-base recovery without additional equity or rate actions.

Persistently negative free cash flow

Recurring negative free cash flow driven by heavy capital spending means the business must rely on external financing to fund growth and dividends. Persistent FCF deficits increase reliance on debt and equity markets, raising dilution and financing risk across the multi-year investment program.

Execution and financing risks from large capex plan

The materially larger $31.8B capital plan requires substantial near-term financing and timely project execution. Planned equity issuance and notable debt raises create dilution and funding risk if projects are delayed or regulatory outcomes shift, making the growth profile contingent on execution and market access.

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

Strong, utility-like profitability (net margins ~13%–17%, EBITDA margins ~40%–46%) and improving operating cash flow support earnings quality. Offsetting this, leverage is elevated and rising (debt-to-equity ~1.4–1.55; total debt up to ~$19.8B) and free cash flow is persistently negative (e.g., -$775M in 2025), implying ongoing dependence on external financing for capital spending.

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: 110.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 110.05 is above the 20-day moving average (MA) of 105.81, above the 50-day MA of 102.42, and above the 200-day MA of 99.82, indicating a bullish trend. The MACD of 2.10 indicates Negative momentum. The RSI at 67.31 is Neutral, neither overbought nor oversold. The STOCH value of 62.45 is Neutral, 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	68 Neutral	$29.30B	20.25	11.41%	2.86%	22.71%	22.86%
PPL	68 Neutral	$27.23B	25.05	8.15%	3.13%	8.42%	32.48%
CMS	66 Neutral	$23.02B	21.31	12.33%	3.10%	10.96%	-0.77%
ES	66 Neutral	$26.93B	15.72	10.84%	4.54%	13.12%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
FE	64 Neutral	$28.27B	27.73	8.17%	3.94%	7.64%	48.61%
DTE	62 Neutral	$29.64B	20.23	12.16%	3.45%	19.42%	-9.68%

Ameren Corporate Events

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.