Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of American Electric Power Co Inc

AEP · Nasdaq · Utilities

Fundamental quality

REASONABLE

63

out of 100

American Electric Power Co Inc earns a fundamental-quality score of 63 out of 100, profiling it as a company of reasonable quality. Its score rests mainly on its profitability (net margin 16.9%). Its weakest area is its financial strength (net debt 5.65× EBITDA). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

American Electric Power operates America's largest electric transmission network: high-voltage lines crossing eleven interior states. A classic utility whose moment arrived unsought: electrification and AI demand exactly what it builds.

What will shape its future

  • Industrial and data-center demand across its territories, at multi-decade highs.
  • Rates approved by eleven state regulators, its perpetual negotiation.
  • The record capital plan in wires, demanding constant financing.

Breakdown by area

I.Growth
55

EPS growth: 8.4% · Revenue growth: 8.1%

II.Profitability
73

Net margin: 16.9% · ROE: 11.9% · ROIC: 6.6%

III.Financial health
48

Net debt/EBITDA: 5.65x · FCF: 11.6%

Source: SEC EDGAR · TTM through 31/03/2026

The score includes +4 for dividend strength: 16 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its financial strength drags it down the most.

Versus its sector

Percentile against the other 24 Utilities companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 75%
ROEbeats 58%
Growthbeats 63%
Cash generationbeats 90%
Less debtbeats 29%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

American Electric Power Co Inc strengths

  • High net margin (16.9%): the business is clearly profitable.
  • Revenue growing (8.1% annualized).
  • Positive free cash flow year after year, a self-funding business.

American Electric Power Co Inc risks and weaknesses

  • Very high leverage (net debt of 5.65× EBITDA): more exposed to rates and to a rough patch.
  • Its net debt has grown over the period.

American Electric Power Co Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
202014,9192,1973,83330,680
202116,7922,48833,051
202219,6402,30636,292
202318,9822,2134,85739,813
202419,7212,9766,40542,440
202521,8763,6963,49147,125

Between 2020 and 2025, revenue went from $14,919M to $21,876M (+47%) and net income went from $2,197M to $3,696M (+68%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended March 31, 2026, versus the quarter ended March 31, 2025 (SEC filings):

  • Revenue+10.2%
  • Net income+12.6%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$3.74

per share, yearly

54.3% of earnings

Payout

16 straight years raising it

Growth

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is American Electric Power Co Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is American Electric Power Co Inc a good company to invest in?

In terms of business quality, American Electric Power Co Inc scores 63 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is American Electric Power Co Inc a profitable company?

Yes. American Electric Power Co Inc shows a net margin of 16.9% and an ROE of 11.9%, a sign of a profitable business.

Does American Electric Power Co Inc have a lot of debt?

Yes, its leverage is high: net debt is 5.65 times its EBITDA, and it has been rising.

Is American Electric Power Co Inc growing?

Its revenue has grown 8.1% annualized in recent years and its earnings per share 8.4%.

Does American Electric Power Co Inc generate cash?

Yes. It converts about 11.6% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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