American Electric Power Company, Inc. AEP
Composite 45/100; the shares have moved about 20% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Balance-sheet strength ranks 16/100 — a strong mark against it.
Income ranks 71/100 — a moderate point in its favour. Growth ranks 64/100 — a moderate point in its favour. Quality ranks 50/100 — a slight point in its favour.
Balance-sheet strength ranks 16/100 — a strong mark against it. Momentum ranks 43/100 — a slight mark against it. Valuation ranks 49/100 — a slight mark against it.
What the company does American Electric Power (AEP) is a regulated electric utility holding company engaged in generation, transmission, and distribution across 11 states. It operates 252,000 circuit miles of distribution lines, 38,000 miles of transmission lines, and 25,000 MW of regulated generating capacity, serving retail and wholesale customers with a diversified energy mix including coal, nuclear, gas, renewables, hydro, and solar.
Key financials AEP reports ROE 12.6%, ROA 3.2%, and ROCE 4.9%, with gross/operating/net margins of 47.2%/23.7%/16.3%. Revenue and EPS growth stand at 10.2% and 6.7%, respectively. Debt/Equity is 1.61x, net debt/EBITDA 5.86x, and interest coverage 2.46x. The dividend yield is 3.0% with a 65.5% payout ratio.
Stock health The stock shows mixed momentum: -7.04% over 3 months, +6.40% over 6 months, and +13.46% over 12 months, with a -10.04% drawdown from its 52-week high. RSI(14) is 35.70, indicating potential oversold conditions. Sideravia’s overall score is 44.0 (average quality, fairly valued), with strength (16.2) as a notable weakness.
Price vs fair value AEP trades at a **discount of 14.70%** to the analyst mean target of 145.10. - AEP secures 13 GW of gas turbines to support growth plans (Utility Dive) - Board appointments signal strategic leadership changes (Simply Wall St.) - Recent dividend coverage highlights income appeal (24/7 Wall St.) - Federal financing focus on baseload and transmission may benefit AEP’s infrastructure (POWER Magazine)
Looking forward Forward P/E of 20.83 and EV/EBITDA of 13.15 suggest moderate valuation relative to earnings power. Growth initiatives in generation and transmission, alongside regulatory support, may drive long-term value. However, high leverage and weak strength metrics warrant caution.
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Data as of 2026-09-03, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.