American Electric Power (AEP) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

American Electric Power

NasdaqGS•Utilities•Utilities - Regulated Electric

$120.88+0.18(<0.01%)Market open

Market Cap

$66.18B

P/E

20.3x

P/S

2.9x

P/B

2.0x

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, nuclear, natural gas, renewable, hydro, solar, wind, and other energy sources; owns, operates, maintains, and invests in transmission infrastructure; and engages in the retail supply, and wholesale energy trading and marketing businesses. It operates approximately 252,000 circuit miles of distribution lines; 38,000 circuit miles of transmission lines; and 25,000 MWs of regulated owned generating capacity. American Electric Power Company, Inc. was incorporated in 1906 and is headquartered in Columbus, Ohio.

How this company scores

GoodMetricSide Score: 63/100

Strongest: Cash & Earnings Quality (23/25); weakest: Balance Sheet & Red Flags (10/25).

Profitability15/25

Growth15/25

Balance Sheet & Red Flags10/25

Cash & Earnings Quality23/25

Strengths

Rising free cash flowStrong marginsCash-backed earningsConsistent growth

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 20.3x5y range 14.9x – 23.4x

Currently near its 20-quarter median.

P/S · 2.9x5y range 2.0x – 3.2x

Currently near its 20-quarter median.

P/B · 2.0x5y range 1.5x – 2.2x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Margin Pressure

Watch

Operating margins declined 7.6% — watch for continued compression, which may signal competitive or cost pressure.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $66.18B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $22.79B
Q. Revenue: $5.45B
TTM EBITDA: $8.62B
TTM Op. Income: $5.24B
Q. Op. Income: $1.25B
TTM Net Income: $3.26B
Q. Net Income: $747.00M
EPS: $1.31
Shares Out.: $544.16M

$22.79B in TTM revenue grew 10.3% YoY, reaching $5.45B last quarter. TTM EBITDA of $8.62B and TTM operating income of $5.24B show growth is flowing through to the bottom line. TTM net income of $3.26B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 70.6%
EBITDA Margin: 39.6%
Op. Margin: 22.9%
Net Margin: 13.7%

Op. margin of 22.9% is down 4.6% YoY — costs are rising relative to revenue. Net margin at 13.7% and gross margin of 70.6% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 2 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 20.3x
P/S Ratio: 2.9x
P/B Ratio: 2.0x

At 20.3x P/E, the stock trades within typical market levels. P/S of 2.9x and P/B of 2.0x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 4 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $121.57B
Cash: $375.00M
Long-Term Debt: $47.99B
Book Value: $33.29B
D/E Ratio: 1.4
Debt/EBITDA: 22.2

With $121.57B in assets and $47.99B in long-term debt, D/E is 1.4and book value is $33.29B — moderate leverage. Across the last 8 quarters, debt/equity has risen for 2 consecutive quarters — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $1.90B
TTM Free Cash Flow: $4.29B
FCF Margin: 18.8%
FCF / Net Income: 1.3

TTM FCF of $4.29B on $1.90B in operating cash flow. The FCF / Net Income ratio of 1.3x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 33% — an improving trend.