American Electric Power Company, Inc. (AEP) AI Stock Analysis

American Electric Power Company, Inc. is an electric public utility holding company that generates, transmits, and distributes electricity across the United States. Its operations are organized into Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. AEP generates power from coal, lignite, natural gas, nuclear energy, and renewables including hydro, solar, and wind. The company serves retail consumers as well as wholesale buyers, including other utilities, rural cooperatives, and municipalities. Founded in 1906 and based in Columbus, Ohio, AEP operates extensive infrastructure across its footprint.

AEP grew revenue from $16.62B in FY2021 to $19.31B in FY2022, $19.38B in FY2023, $19.92B in FY2024, and $21.78B in FY2025, reflecting a 5-year revenue CAGR of 7.9% from FY2020 to FY2025. Annual net income expanded from $2.49B in FY2021 to $3.58B in FY2025, with EPS increasing from $4.74 to $5.96. Over the same timeframe, operating margin rose from 19.6% to 24.3%, and net margin climbed to 16.4% in FY2025. Over the trailing twelve months, revenue reached $22.79B with an operating margin of 23.2%. In the latest quarter ending June 30, 2026, quarterly revenue grew 7.0% year-over-year, while quarterly earnings declined 43.2%.

As of June 30, 2026, AEP held $603.0M in cash and short-term investments against $53.50B in total debt, resulting in net debt of $52.90B. The company recorded a current ratio of 0.50 and a debt-to-equity ratio of 1.66 on shareholders' equity of $32.14B. Operating cash flow reached $6.94B in FY2025, generating free cash flow of $6.81B after capital expenditures of $130.0M. During FY2025, AEP paid $2.01B in dividends, while its share count changed by 9.1% over 5 years.

At a last close of $127.14, AEP trades at a trailing P/E of 22.0x and a forward P/E of 17.2x, compared to the median of its Nasdaq-100 Utilities peers at 20.9x and 16.0x, respectively. Its enterprise value to EBITDA sits at 12.6x, matching the peer median of 12.6x. Over the past year, AEP delivered a return of 11.5%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, the stock returned 82.3%, slightly below the S&P 500 return of 83.0%.

AEP pays a forward annual dividend of $3.80 per share, representing a dividend yield of 2.99% and a payout ratio of 63.4%. The dividend is paid quarterly and has been paid for 57 consecutive years. Over the last five years, the annualized dividend growth rate was 5.7%, with the most recent ex-dividend date on August 10, 2026.

Wall Street analysts currently assign AEP 11 Strong Buy, 3 Buy, and 9 Hold ratings, with 0 Sell or Strong Sell ratings. The mean price target of $140.88 implies an upside of 10.8% over the last close of $127.14. For the current fiscal year ending December 31, 2026, analysts estimate EPS of $6.39 and revenue of $23.83B. Over the last 4 quarters, the company beat EPS estimates 2 times. The next earnings release is scheduled for October 28, 2026.

This page is an AI-written research summary of American Electric Power Company, Inc. (AEP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: AEP income statement, AEP balance sheet, AEP key metrics, AEP analyst forecast, AEP chart. See the AEP stock overview for the latest quote and news.