# American Electric Power Company, Inc. (AEP) — Stock CV

American Electric Power Company, Inc. is a $67.0B utility company. Revenue grew 10.3% over the last year, it keeps 10¢ of every dollar of sales as profit, and its net debt equals ~10.6 years of free cash flow. It trades at 21.3× earnings — around the middle of its own history.

> American Electric Power is one of the largest regulated utilities in the United States, providing electricity generation, transmission, and distribution to more than 5 million customers in 11 states.

## Identity

- **Ticker**: AEP
- **Sector**: Utilities
- **Industry**: Electric Services
- **Headquarters**: COLUMBUS, OH
- **Employees**: 17 581
- **Website**: https://www.aep.com
- **Market cap**: $67.0B
- **Last price**: $123.00
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $22.8B
- **Net income**: $2.38B
- **Free cash flow**: $4.29B
- **Net debt**: $45.2B
- **P/E**: 21.3
- **Revenue growth (YoY)**: 10.3%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 65 |
| Growth | 82 |
| Profitability | 57 |
| Health | 18 |
| Quality | 97 |
| Moat | 62 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [x] Revenue growing — +10.3% YoY
- [x] Profitable — $2.38B TTM
- [x] Profit growing — +14.0% YoY
- [x] Generates cash — $4.29B TTM
- [ ] Debt under control — ~10.6y of cash flow to repay
- [x] Established company — $67.0B market cap
- [x] Not printing shares — +8.9% shares over ~5y
- [x] Proven track record — 9/9 profitable years
- [ ] Financially stable — Altman Z 0.7 — distress
- [x] Pays a dividend — yield 3.06%
- [x] Valuation not extreme — P/E 21.3

## Experience (career milestones)

- **FY2025** — Best year on record: $3.12B net income
- **FY2016** — Profitable every year on record: 9 consecutive profitable years in our data
- **FY2016** — Revenue already above $10B: $16.4B in first reported year
- **FY2016** — Positive free cash flow every year since: 9-year streak
- **Aug 31, 2004** — American Electric Power Company's $10 billion acquisition of the Central and South West…
- **1958** — The American Gas and Electric Company, which would be renamed American Electric Power in 1958, was incorporated in 1906
- **1953** — American Electric Power was the first utility to utilize 345 kV transmission lines which took place in 1953

## Strengths

- High gross margin (41.9%)
- Revenue growing 10.3% year over year
- Strong cash conversion — FCF is 18.8% of revenue
- Piotroski F-Score 7/9 — fundamentally strong checklist

## Watch-outs

- Altman Z-Score 0.74 — elevated financial-distress risk
- Net debt would take ~12.4 years of free cash flow to repay
- Net debt equals ~10.6 years of free cash flow

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $2.90B | $254M | $576M |
| FY2022 | $19.6B | $2.31B | $3.71B |
| FY2023 | $19.0B | $2.21B | $2.86B |
| FY2024 | $19.7B | $2.48B | $6.80B |
| FY2025 | $21.9B | $3.12B | $3.49B |

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Source: https://stockcv.com/AEP — derived from company filings; may be delayed or incomplete. Information, not investment advice.