Kentucky Retirement Systems Invests in American Electric Power Company,
December 22, 2023
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The Kentucky Retirement Systems has recently announced an investment in American Electric Power ($NASDAQ:AEP) Company, Inc. (AEP). It is the largest electric utility provider in the United States and one of the largest generators of electricity. AEP’s primary business is the generation, transmission, and distribution of electricity to retail and wholesale customers located in its service territory. They also provide energy-related products and services like natural gas distribution, energy management, and other energy-related services. AEP has a long history of providing reliable and affordable electricity.
It has also worked to be an industry leader in environmental responsibility by investing in renewable energy sources and carbon-free technologies. The company has also taken steps to reduce its carbon emissions by phasing out coal-fired power plants. This investment from the Kentucky Retirement Systems shows that they are confident in AEP’s future, as the company seeks to provide reliable and affordable electricity to millions of customers.
Market Price
AEP’s stock opened at $80.6 and closed at $80.0, representing a decrease of 0.3% from the previous day’s closing price of 80.3. The investment in AEP by Kentucky Retirement Systems is expected to be beneficial to both parties in the long run. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AEP. More…
| Total Revenues | Net Income | Net Margin |
| 19.29k | 2.26k | 11.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AEP. More…
| Operations | Investing | Financing |
| 4.23k | -6.57k | 2.17k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AEP. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 95.13k | 69.78k | 48.15 |
Key Ratios Snapshot
Some of the financial key ratios for AEP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.9% | 8.0% | 20.4% |
| FCF Margin | ROE | ROA |
| -18.3% | 10.0% | 2.6% |
Analysis
GoodWhale has conducted an analysis of AMERICAN ELECTRIC POWER’s financials and developed a Star Chart. Based on our analysis, AMERICAN ELECTRIC POWER is strong in dividend and profitability, but weak in asset and growth. AMERICAN ELECTRIC POWER has an intermediate health score of 4/10 with regard to its cashflows and debt, indicating that it is likely to safely ride out any crisis without the risk of bankruptcy. We classify AMERICAN ELECTRIC POWER as ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. We believe that investors with a long-term investment outlook may be interested in such a company, as they seek steady returns with minimal risk. They may also be interested in the dividend payout potential of this company. In addition, investors that focus on stock picking may also be interested, as AMERICAN ELECTRIC POWER provides an opportunity to enter at a low point and potentially gain returns as it rebounds in the future. More…
Peers
In the business world, competition is fierce. American Electric Power Co Inc is no exception. The company competes with other large energy companies such as Portland General Electric Co, Idacorp Inc, and Fortis Inc. All of these companies are striving to provide the best service and products to their customers.
– Portland General Electric Co ($NYSE:POR)
Portland General Electric Co is an electric utility company that serves the Portland metropolitan area in Oregon. As of 2022, the company has a market capitalization of 3.9 billion dollars and a return on equity of 9.64%. Portland General Electric is the largest provider of electricity in Oregon, serving over 800,000 customers. The company is vertically integrated and generates, transmits, and distributes electricity. It also provides natural gas service to over 70,000 customers in the Portland area.
– Idacorp Inc ($NYSE:IDA)
Idacorp Inc is an electric and natural gas utility holding company based in Boise, Idaho, serving customers in Idaho, Oregon, Washington, and Wyoming. As of 2021, it had a market capitalization of $4.93 billion and a return on equity of 8.44%. The company’s primary business is the generation, transmission, and distribution of electric and natural gas service. It also provides other energy-related services, such as telecommunications and renewable energy.
– Fortis Inc ($TSX:FTS)
Fortis Inc is a large Canadian holding company with extensive operations in the electricity sector. The company has a market capitalization of $24.59 billion as of 2022 and a return on equity of 8.51%. Fortis operates in four segments: Utilities, which includes electric and gas utility operations; Energy Infrastructure, which includes power generation, transmission, and storage facilities; Non-Utility, which focuses on commercial real estate and private equity investments; and Corporate & Other. The company has operations in Canada, the United States, and the Caribbean.
Summary
Recently, Kentucky Retirement Systems (KRS) has made a new investment in AEP, showing confidence in the company’s ability to perform. The stock has performed better than the industry average over the last twelve months. This investment from KRS affirms that AEP is a strong company and is well-positioned for future success.
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