The AES Corporation [AES] is following upward trend in the market concluded with the last trading session. The shares of the Utilities sector company has a current value of $16.86 after AES shares went up by 0.60% during the last trading session. One of the reasons why Utilities stocks may go bullish is increased momentum in the press.
The AES Corporation [NYSE:AES]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For The AES Corporation [AES], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give AES an Outperform rating. Its stock price has been found in the range of 12.55 to 18.52. This is compared to its latest closing price of $16.76.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for The AES Corporation [AES] is sitting at 2.50. This is compared to 1 month ago, when its average rating was 2.70.
For the quarter ending in Mar-19 The AES Corporation [AES] generated $2.65 billion in sales. That’s 6.21% higher than the average estimate of $2.5 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Tue 6 Aug (In 53 Days).
Fundamental Analysis of The AES Corporation [AES]
Now let’s turn to look at profitability: with a current Operating Margin for The AES Corporation [AES] sitting at +22.25 and its Gross Margin at +24.04, this company’s Net Margin is now 6.30%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 9.30, and its Return on Invested Capital has reached 6.60%. Its Return on Equity is 26.66, and its Return on Assets is 3.00. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates AES financial performance.
Turning to investigate this organization’s capital structure, The AES Corporation [AES] has generated a Total Debt to Total Equity ratio of 472.11. Similarly, its Total Debt to Total Capital is 82.52, while its Total Debt to Total Assets stands at 59.33. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 549.75, and its Long-Term Debt to Total Capital is 75.43. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 8.41 and its Total Debt to EBITDA Value is 5.69. The Enterprise Value to Sales for this firm is now 2.68, and its Total Debt to Enterprise Value stands at 0.64. The AES Corporation [AES] has a Price to Book Ratio of 2.99, a Price to Cash Flow Ratio of 4.10 and P/E Ratio of 16.77. These metrics all suggest that The AES Corporation is more likely to generate a positive ROI.
Similarly, this company’s Receivables Turnover is 6.38 and its Total Asset Turnover is 0.33. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.01 and its Current Ratio is 1.14. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
The AES Corporation [AES] has 674.06M shares outstanding, amounting to a total market cap of $11.36B. Its stock price has been found in the range of 12.55 to 18.52. At its current price, it has moved down by -8.96% from its 52-week high, and it has moved up 34.34% from its 52-week low.
This stock’s Beta value is currently 1.05, which indicates that it is 2.11% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 54.48. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is The AES Corporation [AES] a Reliable Buy?
Shares of The AES Corporation [AES], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.