The AES Corporation [NYSE:AES]: Analyst Rating and Earnings
Equities traders frequently stay up to date regarding what leading market analysts think about a possible stock buy. As it relates to The AES Corporation [AES], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in December. On average, stock market experts give AES an Hold rating. Its stock price has been found in the range of 10.49 to 18.26. This is compared to its latest closing price of $18.18.
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 2.70. This is compared to 1 month ago, when its average rating was 2.70.
For the quarter ending in Dec-18 The AES Corporation [AES] generated $2.62 billion in sales. That’s 25.03% lower than the average estimate of $3.5 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Tue 14 May (In 60 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 11.20%. These measurements indicate that The AES Corporation [AES] is generating considerably more profit, after expenses are accounted for, 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 8.60 and its Total Debt to EBITDA Value is 5.69. The Enterprise Value to Sales for this firm is now 2.72, 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 10.15. 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 661.24M shares outstanding, amounting to a total market cap of $12.02B. Its stock price has been found in the range of 10.49 to 18.26. At its current price, it has moved by 0.33% from its 52-week high, and it has moved 74.64% from its 52-week low.
This stock’s Beta value is currently 1.06, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 77.57. This RSI suggests that The AES Corporation is currently Overbought.
Conclusion: Is The AES Corporation [AES] a Reliable Buy?
Shares of The AES Corporation [AES], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.