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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#1708
Positioning
Market Dominance
Transportation, Communications, Electric, Gas, And Sanitary Services
Utilities
$66.0B
Nicholas K. Akins
American Electric Power Company, Inc. engages in the generation, transmission, and distribution of electricity in the United States. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. The company generates electricity using coal and lignite, natural gas, nuclear, hydro, solar, wind, and other energy sources.
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Dates updated upon official exchange announcement.
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UGP ULTRAPAR HOLDINGS INC | 79 | 90 | 95 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$TNK TEEKAY TANKERS LTD. | 78 | 94 | 97 | 82 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$DHT DHT Holdings, Inc. | 75 | 84 | 88 | 78 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$STNG Scorpio Tankers Inc. | 75 | 86 | 95 | 74 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NAT NORDIC AMERICAN TANKERS Ltd | 75 | 82 | 88 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMX AMERICA MOVIL SAB DE CV/ | 74 | 86 | 81 | 68 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PAC Pacific Airport Group | 73 | 94 | 80 | 78 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GSL Global Ship Lease, Inc. | 73 | 82 | 94 | 81 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$TRMD TORM plc | 73 | 86 | 94 | 65 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$VIV TELEFONICA BRASIL S.A. | 73 | 82 | 90 | 78 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AEP AMERICAN ELECTRIC POWER CO INC | 52 | 43 | 51 | 56 | 17.3x | 21.1x | 12.6% | 3.5% | 67.0% | 25.3% | 18.6% | 31.3% | 3.3% | 147.0x | $66.0B | ||
| SECTOR BENCH | - | - | - | - | - | 16.9x | 6.1x | 11.9% | 3.2% | 52.6% | 14.8% | 7.7% | 4.2% | 1.4% | 1.3x | - | REF |
AMERICAN ELECTRIC POWER CO INC (AEP) receives a "Hold" rating with a composite score of 51.9/100. It ranks #1708 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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In-line with peers — no strong momentum signal
Fair valuation relative to peers
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Transportation, Communications, Electric, Gas, And Sanitary Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for AEP.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 43 | 44 | -1NEUTRAL |
| MOMENTUM | 56 | 59 | -3NEUTRAL |
| VALUATION | 51 | 57 | -6DRAG |
| INVESTMENT | 26 | 14 | +12ALPHA |
| STABILITY | 89 | 92 | -3NEUTRAL |
| SHORT INT | 33 | 25 | +8ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 11.2% vs WACC 3.2% (spread +8.0%)
GM 67% vs sector 53%, OM 25% vs sector 15%
Capital turnover 0.47x
Rev growth 31%, 10yr history
Interest coverage 10.5x, Net debt/EBITDA 8.7x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate AMERICAN ELECTRIC POWER CO INC (AEP) as a Hold with a composite score of 51.9/100 at a current price of $132.80. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
AMERICAN ELECTRIC POWER CO INC holds a top-quartile position (#0 of 50) within the Transportation, Communications, Electric, Gas, And Sanitary Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 51.9/100 places it at rank #1708 in our full universe.
Narrow
Medium
Standard
Fair Value
Gross margins of 67% signal strong pricing power.
Stable competitive position in a defensive sector.
Leverage of 147% D/E amplifies downside risk.
Vulnerability to macroeconomic shocks and interest rate volatility.
AMERICAN ELECTRIC POWER CO INC represents a hold based on multi-factor quantitative performance.
Our model assigns AMERICAN ELECTRIC POWER CO INC a Hold rating, with a composite score of 51.9/100 and 3 out of 5 stars. Ranked #1708 of 7,333 stocks, AEP presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
AEP's quality score of 43/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 12.6% (sector avg: 11.9%), gross margins of 67.0% (sector avg: 52.6%), net margins of 18.6% (sector avg: 7.7%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
AEP's value score of 51/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 17.27x, an EV/EBITDA of 21.11x, a P/B ratio of 2.17x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
AMERICAN ELECTRIC POWER CO INC's investment score of 26/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 31.3% vs. a sector average of 4.2% and a return on assets of 3.5% (sector: 3.2%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
AEP demonstrates moderate momentum with a score of 56/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 31.3% year-over-year, while a beta of 0.08 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
AMERICAN ELECTRIC POWER CO INC earns an excellent stability score of 89/100, reflecting low price volatility and a conservatively managed balance sheet. Key stability metrics include a beta of 0.08 and a debt-to-equity ratio of 147.00x (sector avg: 1.3x). Stocks with this level of stability tend to act as portfolio anchors, providing downside protection during market corrections while still participating in broad market advances.
AMERICAN ELECTRIC POWER CO INC's short interest score of 33/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include elevated leverage (D/E: 147.00x). At $66.0B (large-cap), AEP carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
AEP pays a solid dividend yield of 3.3%, contributing an income component to total returns. This compares to a sector average dividend yield of 1.4%. This moderate yield suggests a balance between returning capital to shareholders and retaining earnings for reinvestment — a common profile among quality compounders.
AMERICAN ELECTRIC POWER CO INC is a large-cap company in the Transportation, Communications, Electric, Gas, And Sanitary Services sector, ranked #0 of 50 in its sector (100th percentile) and #1708 of 7,333 overall (77th percentile). Key comparisons include ROE of 12.6% exceeding the 11.9% sector median and operating margins of 25.3% above the 14.8% sector average. This top-quartile standing reflects exceptional competitive strength relative to Transportation, Communications, Electric, Gas, And Sanitary Services peers.
While AEP currently exhibits a HOLD profile, superior opportunities exist within the TRANSPORTATION, COMMUNICATIONS, ELECTRIC, GAS, AND SANITARY SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Transportation, Communications, Electric, Gas, And Sanitary Services Alpha →Quant Factor Profile
Key factor gap
Stability (89) vs Investment (26) — closing this gap could shift the rating.
EV/EBITDA 245% ABOVE SECTOR MEDIAN
ROE 5% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 27% ABOVE SECTOR MEDIAN (FAVORABLE)
Above 50MA
37.18%
Net New Highs
+51081
About AMERICAN ELECTRIC POWER CO INC 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 Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. The company generates electricity using coal and lignite, natural gas, nuclear, hydro
Southwestern Electric Power Co. (SWEPCO) announced a new data center investment from Amazon that company leaders describe as the most significant economic development win Northwest Louisiana has seen in a generation. This investment brings new utility infrastructure upgrades that will deliver meaningful, long‑term benefits for SWEPCO customers while also supporting Amazon's data center operations.
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