Ameren Corporation Stock Fair Value – Ameren Missouri Launches First Mortgage Bonds Due 2054
January 4, 2024
🌥️Trending News
Ameren Missouri has recently launched its first mortgage bonds due in 2054. This marks a significant milestone for the company, as it continues to expand its financial portfolio. It is a subsidiary of Ameren Corporation ($NYSE:AEE), one of the largest publicly-owned utilities in the United States. The company provides services to customers ranging from residential to commercial and industrial.
The new mortgage bonds offer a long-term investment option, allowing investors to lock in an interest rate for the entire duration of the bonds. With a maturity date of 2054, investors will have plenty of time to benefit from the investment. This offering will further strengthen the financial standing of Ameren Missouri and position it for future growth.
Stock Price
On Wednesday, AMEREN CORPORATION stock opened at $74.0 and closed at $73.7, down by 0.4% from previous closing price of 74.0. This decline came after the company announced the launch of its first mortgage bonds due in 2054. The proceeds from the sale of these bonds will be used to refinance existing debt and for general corporate purposes.
The launch of these mortgage bonds is part of Ameren Missouri’s ongoing efforts to enhance its financial flexibility and to ensure sustainable operations. It also indicates the company’s commitment to prudent fiscal management and to providing its customers with reliable service at a reasonable cost. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ameren Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 7.93k | 1.16k | 14.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ameren Corporation. More…
| Operations | Investing | Financing |
| 2.69k | -3.57k | 939 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ameren Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 39.6k | 28.43k | 42 |
Key Ratios Snapshot
Some of the financial key ratios for Ameren Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.1% | 7.4% | 23.7% |
| FCF Margin | ROE | ROA |
| -10.8% | 10.8% | 3.0% |
Analysis – Ameren Corporation Stock Fair Value
GoodWhale has conducted an analysis of AMAREN CORPORATION’s financials, and our proprietary Valuation Line has calculated the intrinsic value of AMEREN CORPORATION share to be around $93.2. This suggests that the stock is undervalued by 20.9%, as it is currently trading at $73.7. This presents an attractive investment opportunity for those looking to capitalize on potential upside. More…
Peers
The electric utility industry is highly competitive, with companies vying for market share. Ameren Corp is no different, competing against Alliant Energy Corp, National Grid PLC, and PG&E Corp. All four companies are large, publicly traded utilities with a presence in multiple states. Ameren Corp has a slight advantage in that it is the largest electric utility in Missouri and Illinois. This gives Ameren Corp a larger customer base and more revenue than its competitors.
– Alliant Energy Corp ($NASDAQ:LNT)
Alliant Energy Corp is a utility company that provides electric and natural gas service to customers in Wisconsin and Iowa. As of 2022, the company had a market cap of $13.87 billion and a return on equity of 10.06%. Alliant Energy Corp is headquartered in Madison, Wisconsin.
– National Grid PLC ($LSE:NG.)
National Grid PLC is a holding company that engages in the transmission and distribution of electricity and gas. It operates through the following segments: Electricity Transmission, Gas Transmission, Gas Distribution, and US Regulated. The Electricity Transmission segment owns and operates high voltage electricity transmission networks in England and Wales. The Gas Transmission segment owns and operates the high pressure gas national transmission system in Great Britain. The Gas Distribution segment owns and operates gas distribution networks in Great Britain. The US Regulated segment provides electricity and gas distribution services in upstate New York, Massachusetts, and Rhode Island. National Grid was founded on April 6, 1990 and is headquartered in London, the United Kingdom.
– PG&E Corp ($NYSE:PCG)
PG&E Corporation, together with its subsidiaries, engages in the sale and delivery of electricity and natural gas to residential, commercial, industrial, and agricultural customers in northern and central California, the United States. It generates electricity from hydro, nuclear, fossil fuel, and renewable sources. As of December 31, 2020, the company owned and operated approximately 23,400 miles of gas transmission and distribution pipelines, and approximately 71,300 miles of electric transmission and distribution lines. It also owned approximately 5,800 miles of natural gas gathering pipelines. PG&E Corporation was founded in 1852 and is headquartered in San Francisco, California.
Summary
AMEREN Corporation is a utility holding company based in Missouri, USA. The company recently issued its first mortgage bonds due 2054 to raise funds for its investment activities. Analysts suggest that investors should be mindful of the company’s large debt load, as well as its exposure to regulatory and environmental risks. Additionally, investors should consider the company’s performance in the past year, which saw a steady increase in its earnings and revenues, as well as a healthy dividend yield.
