# The AES Corporation (AES) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Utilities / Multi-Utilities. Price $14.79, market value $10.6 billion.

## Valuation
- **P/E (trailing): 5.5×** (5-yr avg 21.6×, 3-yr avg 21.6×). The AES Corporation trades at 5.5× trailing earnings, well below its own five-year average of 21.6×: cheap by its own standards. The Utilities median in the September 2026 study was 21.2×. Forward P/E is 6.2×, higher than trailing, so analysts expect earnings to fall.
- **Price / sales: 0.8×**. Each dollar of revenue is priced at 0.8×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.1×**. The shares trade at 2.1× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: -16.3%** (5-yr avg -24.5%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 18.1%**. The inverse of the P/E: 18.1% of the price is earned each year.

## Profitability
- **Gross margin: 20.3%**. The AES Corporation keeps 20.3% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Net margin: 7.4%**. 7.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 22.4%**. 22.4% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on assets: 3.6%**. Each dollar of assets produces 3.6% of profit.

## Growth
- **Revenue growth (1 yr): -0.4%** (3-yr -1.0%/yr, 5-yr 4.8%/yr). Revenue fell 0.4% over the last year, against 4.8% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -46.6%** (5-yr 78.3%/yr). Earnings per share fell 46.6%, slower than revenue, so margins compressed.

## Financial health
- **Current ratio: 0.77** (quick 0.77). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend yield: 4.76%** ($0.70 per share, trailing). The AES Corporation yields 4.76%, an income-level yield.
- **Payout ratio: 55%**. 55% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 14**. 14 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 4.2%/yr** (1-yr 1.7%). The dividend has grown 4.2% a year over five years.

## Price and momentum
- **Total return (1 yr): 19.8%** (YTD 5.6%, 3-mo 0.8%). The shares are up 19.8% over twelve months including dividends.
- **From 52-week high: -16.2%** (20.0% above the low). Trading 16% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 57**. An RSI of 57 is neutral.
- **Beta (1 yr): 0.49** (volatility 33%). Beta of 0.49 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=AES · Page: https://foliofundamentals.com/stocks/aes

Not investment advice.