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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ameren Corp.

Entergy Corp.

FirstEnergy Corp.

The AES Corp.

Evergy, Inc.

Alliant Energy Corp.

PPL Corp.

Avangrid, Inc.

CMS Energy Corp.

Vistra Corp.

CenterPoint Energy, Inc.

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 5.06%, its profits have fallen by -4.1%
At the current price, the company has a high dividend yield of 372.1

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.

3.72%

-0.66

49.82%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.59%

EBIT Growth (5y)

-3.60%

EBIT to Interest (avg)

2.16

Debt to EBITDA (avg)

6.63

Net Debt to Equity (avg)

6.42

Sales to Capital Employed (avg)

0.39

Tax Ratio

18.74%

Dividend Payout Ratio

29.33%

Pledged Shares

Institutional Holding

100.00%

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

2.15

EV to EBIT

20.30

EV to EBITDA

11.95

EV to Capital Employed

1.16

EV to Sales

3.09

PEG Ratio

Dividend Yield

372.12%

ROCE (Latest)

5.69%

ROE (Latest)

22.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

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

5What is working for the Company

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

DIVIDEND PER SHARE(HY)

Highest at USD 7.14

-9What is not working for the Company

NET PROFIT(HY)

At USD 590.67 MM has Grown at -35.3%

RAW MATERIAL COST(Y)

Grown by 16.29% (YoY

NET SALES(Q)

Lowest at USD 2,855 MM

PRE-TAX PROFIT(Q)

Lowest at USD -130 MM

EPS(Q)

Lowest at USD -0.15

Here's what is working for The AES Corp.

Operating Cash Flow

Highest at USD 3,594 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at 507.53 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 15.29 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at USD 7.14

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Depreciation

Highest at USD 354 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.

Pre-Tax Profit

At USD -130 MM has Fallen at -179.75%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 590.67 MM has Grown at -35.3%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Net Sales

Lowest at USD 2,855 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Pre-Tax Profit

Lowest at USD -130 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

EPS

Lowest at USD -0.15

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 16.29% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales