Fundamentals for The AES Corporation
AES's revenue is projected to decrease from last year, a development that could lead investors to adopt a more cautious approach. A revenue decline can negatively affect pr...
Business Operations:
Sector: UtilitiesIndustry: Utilities - Diversified
The AES Corporation, together with its subsidiaries, operates as a power generation and utility company in the United States and internationally. The company owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries; owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market. It uses various fuels and technologies to generate electricity, such as coal, gas, hydro, wind, solar, and biomass, as well as renewables comprising energy storage and landfill gas. The company owns and/or operates a generation portfolio of approximately 32,109 megawatts and distributes power to 2.7 million customers. The company was formerly known as Applied Energy Services, Inc. and changed its name to The AES Corporation in April 2000. The AES Corporation was incorporated in 1981 and is headquartered in Arlington, Virginia.
Revenue projections:
Financial Ratios:
| currentRatio | 0.746000 |
|---|---|
| forwardPE | 6.306553 |
| debtToEquity | 256.886000 |
| earningsGrowth | 0.000000 |
| revenueGrowth | 0.199000 |
| grossMargins | 0.202700 |
| operatingMargins | 0.186730 |
| trailingEps | 2.670000 |
| forwardEps | 2.370550 |
The AES Corporation's high debt-to-equity ratio reveals that the company is heavily reliant on debt for financing. This high level of leverage increases the risk of financial strain if profits decline or interest rates rise.
AES's forward EPS being lower than its trailing EPS suggests the company is expected to see reduced profitability in the current financial year compared to the previous one. This signals a potential decline in earnings, raising concerns about future financial performance.
Price projections:
Recommendation changes over time:
AES has received a mixed set of ratings from analysts, with no clear buy or sell recommendations. This ambiguity points to an uncertain market outlook, prompting investors to seek out other financial indicators to guide their investment strategies.