Aes Corporation Stock Intrinsic Value – AES Corporation: Analyzing its Place in the Utilities – Diversified Market.
February 1, 2023
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Aes Corporation Stock Intrinsic Value – AES ($NYSE:AES) Corporation (AES) is a publicly traded company that operates in the Utilities-Diversified sector. AES Corporation is organized into three main segments: Generation, Distribution and Trading. The Generation segment primarily focuses on the generation of power from its various facilities, such as nuclear, coal, gas and hydroelectric power plants. The Distribution segment is responsible for the transmission and distribution of electricity to consumers. Finally, the Trading segment focuses on trading energy commodities and derivatives. AES Corporation is structured as a holding company and has several subsidiaries, such as its power generation subsidiary, AES Gener, that operates several power plants in Latin America.
Additionally, AES Corporation has an energy trading arm, AES Trading, which provides an extensive portfolio of energy products, including derivatives and physical commodities. When considering AES Corporation’s place in the Utilities-Diversified market, it should be noted that the company has a strong presence in the sector. AES Corporation is well-positioned to capitalize on the growing demand for clean energy solutions and the increasing need for reliable and efficient power generation. Additionally, the company’s comprehensive portfolio of energy-related products and services allows it to serve a wide range of customers, from households to large industrial customers. The company’s strong presence in the sector and its comprehensive portfolio of energy-related products and services give it a competitive edge over its peers.
Stock Price
On Monday, AES CORPORATION stock opened at $26.7 and closed at $26.4, down by 1.9% from previous closing price of 27.0. This puts AES CORPORATION in the utilities – diversified market. The utilities – diversified sector is a market comprised of companies that generate or transmit electricity and/or natural gas, deliver water, or offer related services such as waste management. AES CORPORATION is part of this sector due to its involvement in the generation and transmission of electricity. It is also involved in developing and operating renewable energy sources such as solar and wind. The stock price of AES Corporation is an important indicator of how the company is performing and how investors feel about its prospects. The fact that the stock price has declined by 1.9% shows that investors are not very confident in the company’s future prospects.
AES CORPORATION is facing increased competition in the utilities – diversified market as other companies look to capitalize on the growing demand for electricity and other energy services. To remain competitive, AES CORPORATION must continue to develop innovative products and services and look for ways to reduce costs and increase efficiency. Overall, AES CORPORATION is an important player in the utilities – diversified market and its stock price is an important indicator of how the company is performing and how investors feel about its prospects. The recent decline in stock price shows that investors are not very confident in the company’s future prospects. AES CORPORATION must continue to innovate and look for ways to remain competitive in order to remain successful in this increasingly competitive sector. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Aes Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 12.33k | -275 | 17.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Aes Corporation. More…
| Operations | Investing | Financing |
| 2.17k | -5.15k | 3.14k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Aes Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 37.77k | 32.31k | 5.1 |
Key Ratios Snapshot
Some of the financial key ratios for Aes Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.9% | 1.7% | 2.0% |
| FCF Margin | ROE | ROA |
| -9.1% | 4.8% | 0.4% |
Analysis – Aes Corporation Stock Intrinsic Value
GoodWhale has conducted a thorough analysis of the fundamentals of AES CORPORATION. Our proprietary Valuation Line has determined the fair value of AES CORPORATION shares to be around $23.3. However, AES CORPORATION stock is currently being traded at $26.4, making it a fair price that is overvalued by 13.5%. The company’s financials were closely examined when determining this valuation. GoodWhale looked at factors such as their income statement, balance sheet, cash flow statement and other relevant data points. The company’s current position, growth prospects, competitive landscape, and other external factors were also taken into consideration. Our research concluded that AES CORPORATION stock is overvalued at the current market price. Investors should be aware of this and reassess the risk-reward ratio before making any decisions regarding investing in the company’s stock. We recommend that investors monitor the company’s financials and performance in order to adjust their investment strategy accordingly. GoodWhale values accuracy and integrity in all its analyses. Our team is committed to providing the most comprehensive and up-to-date information to help investors make informed decisions. More…
Peers
The company’s main competitors are Iberdrola SA, Portland General Electric Co, and ALLETE Inc.
– Iberdrola SA ($LTS:0HIT)
Iberdrola SA is a Spanish electric utility company. It is the largest producer of wind power in the world and a major player in the Spanish electricity market. Iberdrola also has a strong presence in the United Kingdom, Mexico, and the United States. The company has a market capitalization of 58.35 billion as of 2022 and a return on equity of 11.07%. Iberdrola is a vertically integrated utility, meaning it is involved in all aspects of the electricity business, from generation to distribution to retail sales. The company has a diversified generation portfolio that includes nuclear, hydro, renewable, and thermal power plants. Iberdrola is also one of the largest distributors of electricity in Spain and the United Kingdom.
– Portland General Electric Co ($NYSE:POR)
The company’s market cap is 3.82B as of 2022. The company’s ROE is 9.64%. The company is a diversified electric utility with operations in Oregon, Washington and Idaho. The company’s primary business is the generation, transmission and distribution of electricity. The company also owns and operates a coal-fired power plant and a natural gas-fired power plant.
– ALLETE Inc ($NYSE:ALE)
Pall Corporation is a global leader in providing filtration, separation and purification solutions to meet the critical fluid management needs of customers across the broad spectrum of life sciences and industry. Pall’s products are key to the success of customers in the medical, biopharmaceutical, semiconductor, water purification, aerospace, and energy markets. The company’s products are used every day by people around the world, in a wide range of applications and industries. Pall Corporation has a market cap of 2.89B as of 2022 and a Return on Equity of 4.57%.
Summary
AES Corporation is a global energy company that operates in the Utilities-Diversified industry. The company is involved in the generation, transmission, and distribution of electricity, as well as providing energy solutions. It has a strong balance sheet with low debt levels and a significant cash position. Analysts have a hold rating on the stock due to potential lower electricity prices in certain markets.
However, long-term investors may find value in the company’s growth prospects due to its presence in various markets.
