AEP Utilities

American Electric Power Company, Inc.

$129.86-0.36%

Price as of close on Nov 3, 2026 · Financials updated Oct 6, 2026

Basics

Sector: Utilities
Industry: Utilities - Regulated Electric
Country: United States
Market cap: 70.7B USD
Enterprise value: 121.4B USD
Full-time employees: 17,581

Overall health

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings
Drawback: higher risk than most peers: less short-term liquidity (current ratio 0.50 vs a peer median of 1.03) and more debt relative to equity (1.65× vs a peer median of 1.19×)higher risk: less liquidity (current ratio 0.50 vs peers 1.03) and more debt vs equity (1.65× vs peers 1.19×)
About average: profitability and growth

Ranks #257 of 348 utilities companies (bottom 27%)

See how it ranks against its peers

Worth knowing

Operating margin at a 6-year high. 24% in 2025, the best of the last 6 years.
American Electric Power kept 24% of revenue as operating profit in 2025, its highest in the 6 years of filings we have.
Profits growing faster than sales. Since 2022: revenue +11%, operating profit +53%.
Since 2022, American Electric Power's revenue grew 11% while operating profit grew 53%: each extra dollar of sales is adding more profit.
Profit is backed by cash. Free cash flow is 132% of reported profit.
American Electric Power's free cash flow is 132% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.

StockQuotient Score

40/ 100

Oct 5 40 → Nov 4 40

Valuation

Is the price right?

34/100

Weak

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why

Weaker than most peers on:

▼ EBITDA yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield4.6%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score -0.08Sector median: 0.0485 · MAD: 0.0319

EBITDA yield7.0%

SEC filings · 12 months to Jun 2026Reported value50% base weight · Z-score -0.65Sector median: 0.0859 · MAD: 0.0250

Free cash flow yield6.1%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingReported value20% base weight · Z-score 0.00Sector median: 0.0000 · MAD: 0.0000

Other data (not scored)

Book yield45.4%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.6310 · MAD: 0.2684

Growth

Is it growing?

54/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Mixed versus peers:

▲ Revenue growth
▲ 3-yr revenue
▼ EPS growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth-14.0%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.88Sector median: 0.0172 · MAD: 0.1791

3-year revenue growth5.4%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score 0.65Sector median: 0.0196 · MAD: 0.0523

Revenue growth9.7%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.05Sector median: 0.0254 · MAD: 0.0681

Profitability

Does it earn well?

50/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Helped by:

▲ Operating margin

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin23.0%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.50Sector median: 0.1864 · MAD: 0.0865

Return on assets2.7%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.02Sector median: 0.0266 · MAD: 0.0124

Return on invested capital4.9%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.14Sector median: 0.0524 · MAD: 0.0237

Other data (not scored)

Gross margin46.4%

Yahoo Finance fallback · SEC figure unavailable or out of date · trailing 12 monthsReported valueInformational · 0% composite weightSector median: 0.3581 · MAD: 0.1545

Return on equity10.1%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0807 · MAD: 0.0381

Risk

Debt, liquidity, price swings

Higher

Higher relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ Current ratio
▼ Debt / equity

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta0.47

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score -0.06Sector median: 0.4590 · MAD: 0.1730

Current ratio0.50×

SEC filings · latest balance sheetReported value33% base weight · Z-score -1.46Sector median: 1.0330 · MAD: 0.3620

Debt / equity1.65×

SEC filings · latest balance sheetReported value33% base weight · Z-score -0.86Sector median: 1.1925 · MAD: 0.5265

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about American Electric Power

Is American Electric Power getting weaker?: Its latest SEC filing (Jul 30, 2026) showed no major changes. Its overall score is unchanged at 40/100 since Oct 28, 2026.
How is American Electric Power valued vs its peers?: Priced higher than most peers relative to what it earns. Valuation scores 34/100 against 360 utilities peers. EBITDA yield 7.0% vs a peer median of 8.6% (weaker than 70% of peers).EBITDA yield 7.0% vs peers 8.6% (weaker than 70% of peers).
Is American Electric Power growing?: At about the same pace as its peers. Growth scores 54/100 against 360 utilities peers. Revenue growth 9.7% vs a peer median of 2.5% (stronger than 78% of peers).Revenue growth 9.7% vs peers 2.5% (stronger than 78% of peers). Earnings per share growth -14.0% vs a peer median of 1.7% (weaker than 71% of peers).Earnings per share growth -14.0% vs peers 1.7% (weaker than 71% of peers).
How profitable is American Electric Power?: About as profitable as its peers. Profitability scores 50/100 against 360 utilities peers. Operating margin 23.0% vs a peer median of 18.6% (stronger than 67% of peers).Operating margin 23.0% vs peers 18.6% (stronger than 67% of peers).
How risky is American Electric Power?: Higher risk relative to 360 utilities peers, judged on debt, liquidity and share-price swings. Current ratio 0.50× vs a peer median of 1.03× (weaker than 91% of peers).Current ratio 0.50× vs peers 1.03× (weaker than 91% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Jul 30, 2026 · compared with the quarter ended Mar 31, 2026

No major changes

	Previous quarter	Latest quarter	Change
Revenue (12 months)	22.4B USD	22.8B USD	+1.6%
Net income (12 months)	3.8B USD	3.3B USD	−14.3%
Operating margin	24.0%	23.0%	−1.0 pts
Free cash flow (12 months)	2.6B USD	4.3B USD	+65.1%
Debt	51.1B USD	52.8B USD	+3.4%
Cash	306.0M USD	375.0M USD	+22.5%
Shares outstanding	544.1M	544.4M	+0.1%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Industry: Utilities - Regulated Electric · 29 companies

Valuations in Utilities - Regulated Electric are above their usual range since 2016.

67% of months since 2016 were valued lower than now.
24% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +18% and earnings +20% (medians): prices and earnings moved broadly together.
Median price-to-sales is +1% vs the whole market, against a usual +1%.

2016Shaded: most expensive fifth of its range2026

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Operating margin	20.3%	17.7%	18.3%	21.6%	24.3%	▲ 2.8 pts
Net margin	14.8%	11.7%	11.4%	14.9%	16.9%	▲ 2.0 pts
Return on assets (ROA)	2.8%	2.5%	2.3%	2.9%	3.2%	▲ 0.3 pts
Return on equity (ROE)	11.1%	9.6%	8.8%	11.0%	11.9%	▲ 0.8 pts
Free cash flow margin	—	—	25.0%	32.1%	16.0%	▼ 16 pts
Current ratio	0.63×	0.51×	0.53×	0.44×	0.45×	▲ 2.1%
Debt to equity	1.61×	1.71×	1.70×	1.68×	1.57×	▼ 6.5%
Interest coverage	2.84×	2.49×	1.97×	2.31×	2.63×	▲ 14%

AEP price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings

Drawback: higher risk than most peers: less short-term liquidity (current ratio 0.50 vs a peer median of 1.03) and more debt relative to equity (1.65× vs a peer median of 1.19×)higher risk: less liquidity (current ratio 0.50 vs peers 1.03) and more debt vs equity (1.65× vs peers 1.19×)

About average: profitability and growth

Ranks #257 of 348 utilities companies (bottom 27%)

See how it ranks against its peers

Worth knowing

Operating margin at a 6-year high. 24% in 2025, the best of the last 6 years.

American Electric Power kept 24% of revenue as operating profit in 2025, its highest in the 6 years of filings we have.

Profits growing faster than sales. Since 2022: revenue +11%, operating profit +53%.

Since 2022, American Electric Power's revenue grew 11% while operating profit grew 53%: each extra dollar of sales is adding more profit.

Profit is backed by cash. Free cash flow is 132% of reported profit.

American Electric Power's free cash flow is 132% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.

Questions investors ask about American Electric Power

Is American Electric Power getting weaker?

Its latest SEC filing (Jul 30, 2026) showed no major changes. Its overall score is unchanged at 40/100 since Oct 28, 2026.

How is American Electric Power valued vs its peers?

Priced higher than most peers relative to what it earns. Valuation scores 34/100 against 360 utilities peers. EBITDA yield 7.0% vs a peer median of 8.6% (weaker than 70% of peers).EBITDA yield 7.0% vs peers 8.6% (weaker than 70% of peers).

Is American Electric Power growing?

At about the same pace as its peers. Growth scores 54/100 against 360 utilities peers. Revenue growth 9.7% vs a peer median of 2.5% (stronger than 78% of peers).Revenue growth 9.7% vs peers 2.5% (stronger than 78% of peers). Earnings per share growth -14.0% vs a peer median of 1.7% (weaker than 71% of peers).Earnings per share growth -14.0% vs peers 1.7% (weaker than 71% of peers).

How profitable is American Electric Power?

About as profitable as its peers. Profitability scores 50/100 against 360 utilities peers. Operating margin 23.0% vs a peer median of 18.6% (stronger than 67% of peers).Operating margin 23.0% vs peers 18.6% (stronger than 67% of peers).

How risky is American Electric Power?

Higher risk relative to 360 utilities peers, judged on debt, liquidity and share-price swings. Current ratio 0.50× vs a peer median of 1.03× (weaker than 91% of peers).Current ratio 0.50× vs peers 1.03× (weaker than 91% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

22.4B USD

22.8B USD

+1.6%

Net income (12 months)

3.8B USD

3.3B USD

−14.3%

Operating margin

24.0%

23.0%

−1.0 pts

Free cash flow (12 months)

2.6B USD

4.3B USD

+65.1%

Debt

51.1B USD

52.8B USD

+3.4%

Cash

306.0M USD

375.0M USD

+22.5%

Shares outstanding

544.1M

544.4M

+0.1%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Operating margin

20.3%

17.7%

18.3%

21.6%

24.3%

▲ 2.8 pts

Net margin

14.8%

11.7%

11.4%

14.9%

16.9%

▲ 2.0 pts

Return on assets (ROA)

2.8%

2.5%

2.3%

2.9%

3.2%

▲ 0.3 pts

Return on equity (ROE)

11.1%

9.6%

8.8%

11.0%

11.9%

▲ 0.8 pts

Free cash flow margin

—

25.0%

32.1%

16.0%

▼ 16 pts

Current ratio

0.63×

0.51×

0.53×

0.44×

0.45×

▲ 2.1%

Debt to equity

1.61×

1.71×

1.70×

1.68×

1.57×

▼ 6.5%

Interest coverage

2.84×

2.49×

1.97×

2.31×

2.63×

▲ 14%