The AES Corp. (AES) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

The AES Corp.

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FirstEnergy Corp.

Vistra Corp.

Why is The AES Corp. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate -3.60% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 9.03% signifying low profitability per unit of total capital (equity and debt)

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 3,594 MM
DEBT-EQUITY RATIO (HY) Lowest at 507.53 %
INVENTORY TURNOVER RATIO(HY) Highest at 15.29 times

With ROCE of 5.69%, it has a very attractive valuation with a 1.16 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 3.02%, its profits have fallen by -4.1%
At the current price, the company has a high dividend yield of 372.1

Underperformed the market in the last 1 year

The stock has generated a return of 3.02% in the last 1 year, much lower than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to The AES Corp. should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is The AES Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

The AES Corp.

44.83%

-0.63

49.66%

S&P 500

22.24%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.83%

EBIT Growth (5y)

-4.77%

EBIT to Interest (avg)

2.16

Debt to EBITDA (avg)

6.63

Net Debt to Equity (avg)

6.42

Sales to Capital Employed (avg)

0.36

Tax Ratio

18.74%

Dividend Payout Ratio

53.52%

Pledged Shares

Institutional Holding

97.44%

ROCE (avg)

9.03%

ROE (avg)

19.78%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.76

EV to EBIT

20.04

EV to EBITDA

11.55

EV to Capital Employed

1.15

EV to Sales

3.24

PEG Ratio

Dividend Yield

4.14%

ROCE (Latest)

5.75%

ROE (Latest)

7.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 4,962 MM

PRE-TAX PROFIT(Q)

At USD 281 MM has Grown at 284.93%

NET PROFIT(Q)

At USD 526 MM has Grown at 273.05%

RAW MATERIAL COST(Y)

Fallen by -32.05% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 393.01 %

OPERATING PROFIT MARGIN(Q)

Highest at 32 %

-1What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 25.83%

Here's what is working for The AES Corp.

Pre-Tax Profit

At USD 281 MM has Grown at 284.93%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 526 MM has Grown at 273.05%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Cash Flow

Highest at USD 4,962 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Operating Profit Margin

Highest at 32 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Debt-Equity Ratio

Lowest at 393.01 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -32.05% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 433 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for The AES Corp.

Dividend Payout Ratio

Lowest at 25.83%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)