American Electric Power (AEP)
NASDAQ:AEP
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American Electric Power
(NASDAQ:AEP)
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Rating:77Outperform
Price Target:
$154.00
â–²(15.22% Upside)
Action:ReiteratedDate:04/30/26
The score is driven by a strong earnings-call outlook (guidance beat/reaffirmation and premium long-term growth targets backed by contracted load and capital visibility) and supportive technical uptrend. Financial performance remains solid but is tempered by data inconsistency in 2025 balance-sheet/margin items and weaker operating cash flow vs. net income; valuation is reasonable rather than compelling.
Positive Factors
Large, Visible Capital Plan
A $72B five-year capital plan that drives ~10% rate-base CAGR gives durable, regulated earnings growth potential. Steady, sanctioned infrastructure investment expands the rate base over multiple years, underpinning allowed returns and long-term revenue visibility for the utility.
Negative Factors
Balance Sheet Data Uncertainty
Reported 2025 leverage metrics diverge sharply from historical utility-level leverage, creating uncertainty about true indebtedness. Unclear balance-sheet data hampers assessment of financial flexibility and credit risk, making medium-term funding and covenant exposure harder to forecast.
Read all positive and negative factors
Positive Factors
Negative Factors
Large, Visible Capital Plan
A $72B five-year capital plan that drives ~10% rate-base CAGR gives durable, regulated earnings growth potential. Steady, sanctioned infrastructure investment expands the rate base over multiple years, underpinning allowed returns and long-term revenue visibility for the utility.
Read all positive factors
American Electric Power (AEP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$73.08B
Dividend Yield3.25%
Average Volume (3M)3.13M
Price to Earnings (P/E)16.7
Beta (1Y)-0.01
Revenue Growth10.46%
EPS Growth19.64%
CountryUS
Employees16,330
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)1.19
Shares Outstanding543,563,500
10 Day Avg. Volume2,387,742
30 Day Avg. Volume3,130,227
Financial Highlights & Ratios
PEG Ratio0.88
Price to Book (P/B)1.92
Price to Sales (P/S)2.75
P/FCF Ratio8.78
Enterprise Value/Market Cap1.68
Enterprise Value/Revenue5.65
Enterprise Value/Gross Profit17.76
Enterprise Value/Ebitda14.00
Forecast
1Y Price Target
$140.94Price Target Upside5.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)6.34
Revenue Forecast (FY)$23.30B
American Electric Power Business Overview & Revenue Model
Company Description
American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through Vertic...
How the Company Makes Money
AEP primarily makes money through regulated utility operations. Its regulated electric utilities earn revenue by charging approved rates to deliver electricity to customers; these rates are set through state public utility commission processes and...
American Electric Power Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows revenue contributions from each business unit, indicating which segments are growing or declining and influencing overall financial health.
Shows revenue contributions from each business unit, indicating which segments are growing or declining and influencing overall financial health.
Data provided by:
The Fly
The FlyAmerican Electric Power Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong positive momentum: AEP exceeded 2025 earnings guidance, delivered robust sales and shareholder returns, doubled contracted incremental load to 56 GW (backed by agreements), reaffirmed 2026 guidance and a premium long-term growth outlook, and identified incremental capital opportunities beyond a conservative $72B plan. Management emphasized transmission scale, regulatory wins, improved ROE, and healthy near-term credit metrics. Key risks discussed include timing/execution of load connections (dependent on RTO/state reforms), additional capital and financing needs as the plan expands, increased reliability and financing costs, and potential supply chain/labor constraints. Overall, the positives (growth, contracted load, regulatory progress, and financial outperformance) substantially outweigh the operational and timing risks mentioned.Positive Updates
Exceeded 2025 Earnings Guidance
2025 operating earnings of $5.97 per share, above the high end of guidance ($5.75–$5.95); Q4 2025 operating earnings of $1.19 per share.
Negative Updates
Increased Reliability Spending and Higher Operating Costs
2025 results were partially offset by additional spending on system reliability, higher depreciation tied to a growing capital base, and elevated interest expense.
Read all updates
Q4-2025 Updates
Positive
Negative
Exceeded 2025 Earnings Guidance
2025 operating earnings of $5.97 per share, above the high end of guidance ($5.75–$5.95); Q4 2025 operating earnings of $1.19 per share.
Read all positive updates
Company Guidance
AEP reaffirmed its 2026 operating earnings guidance of $6.15–$6.45 per share (midpoint $6.30) after reporting 2025 operating earnings of $5.97 per share (Q4 $1.19) that exceeded the prior $5.75–$5.95 range; management also reiterated a premium long‑term earnings growth target of 7%–9% (9% expected CAGR for 2026–2030) and highlighted a $72 billion five‑year capital plan (10% rate‑base CAGR) with $5–$8 billion of confirmed/endorsed incremental generation and transmission upside. Other financial and operational metrics underpinning the guidance include a year‑end FFO/debt above target (S&P 15.2%, Moody’s just under 14% vs. a 14%–15% target), a 2025 earned regulated ROE of 9.1% (up 30 bps vs. two years prior, with a path to ~9.5%), total system sales >200 million MWh, retail sales +7.5% (C&I ~+10%, residential ~+3%), revenues +8.3%, 56 GW of contracted incremental load by 2030 (up from 28 GW) including 36 GW of ERCOT LOAs, ~180 GW in the development queue, over 10 GW of secured turbine capacity with manufacturers, and a $2.65 billion Bloom fuel‑cell purchase with a 20‑year offtake — all supporting the company’s confidence in its near‑ and long‑term outlook.American Electric Power Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 21.78B | 19.92B | 19.38B | 19.31B | 16.62B |
| Gross Profit | 6.93B | 6.36B | 5.62B | 4.87B | 4.67B |
| EBITDA | 8.79B | 8.09B | 7.21B | 7.10B | 6.75B |
| Net Income | 3.58B | 2.97B | 2.21B | 2.31B | 2.49B |
Balance Sheet | |||||
| Total Assets | 117.25B | 103.08B | 96.68B | 93.40B | 87.67B |
| Cash, Cash Equivalents and Short-Term Investments | 488.00M | 418.30M | 544.40M | 697.00M | 623.80M |
| Total Debt | 50.24B | 45.76B | 43.61B | 41.58B | 36.66B |
| Total Liabilities | 84.99B | 76.09B | 71.40B | 69.35B | 64.99B |
| Stockholders Equity | 31.14B | 26.94B | 25.25B | 23.89B | 22.43B |
Cash Flow | |||||
| Free Cash Flow | 6.81B | 6.66B | -2.49B | -1.48B | -1.92B |
| Operating Cash Flow | 6.94B | 6.80B | 5.01B | 5.29B | 3.84B |
| Investing Cash Flow | -9.12B | -7.60B | -6.27B | -7.75B | -6.43B |
| Financing Cash Flow | 2.20B | 659.20M | 1.08B | 2.57B | 2.61B |
American Electric Power Technical Analysis
Positive
133.66
Price Trends
130.62
Positive
123.55
Positive
117.30
Positive
Market Momentum
1.42
Positive
54.64
Neutral
45.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEP, the sentiment is Positive. The current price of 133.66 is above the 20-day moving average (MA) of 132.11, above the 50-day MA of 130.62, and above the 200-day MA of 117.30, indicating a bullish trend. The MACD of 1.42 indicates Positive momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 45.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AEP.
American Electric Power Risk Analysis
American Electric Power disclosed 44 risk factors in its most recent earnings report. American Electric Power 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
American Electric Power Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $73.08B | 16.71 | 12.06% | 3.25% | 10.46% | 19.64% | |
74 Outperform | $85.81B | 21.62 | 7.66% | 4.03% | -7.05% | 38.24% | |
71 Outperform | $98.45B | 18.33 | 9.69% | 3.61% | 6.19% | 11.06% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
61 Neutral | $105.41B | 22.16 | 12.50% | 3.40% | 10.58% | -1.88% | |
59 Neutral | $48.10B | 15.92 | 9.87% | 3.68% | 5.34% | 11.60% | |
56 Neutral | $54.94B | 16.69 | 10.77% | 4.59% | 16.62% | 27.30% |
* Utilities Sector Average
AEP
American Electric Power
134.44
30.37
29.19%
D
Dominion Energy
62.50
10.10
19.27%
DUK
Duke Energy
126.51
9.33
7.96%
EXC
Exelon
47.02
2.02
4.49%
NGG
National Grid Transco
85.98
17.31
25.21%
SO
Southern Co
93.51
4.96
5.60%
American Electric Power Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
American Electric Power Shareholders Expand Authorized Common Stock
Positive
Apr 29, 2026
At its April 28, 2026 annual meeting, American Electric Power shareholders approved an amendment to increase authorized common shares from 600 million to 900 million, potentially expanding the company’s flexibility for future equity issuance...
Executive/Board Changes
American Electric Power Announces Planned Board Member Departure
Neutral
Feb 17, 2026
On February 13, 2026, American Electric Power disclosed that board member Henry P. Linginfelter informed the Board he would not stand for re-election at the company’s 2026 annual meeting of shareholders. The company emphasized that Linginfel...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.