American Electric Power Company, Inc.AEP
NasdaqGS•Utilities•Utilities - Regulated Electric
American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. The company generates electricity using coal and lignite, nuclear, natural gas, renewable, hydro, solar, wind, and other energy sources; owns, operates, maintains, and invests in transmission infrastructure; and engages in the retail supply, and wholesale energy trading and marketing businesses. It operates approximately 252,000 circuit miles of distribution lines; 38,000 circuit miles of transmission lines; and 25,000 MWs of regulated owned generating capacity. American Electric Power Company, Inc. was incorporated in 1906 and is headquartered in Columbus, Ohio.
American Electric Power Company (AEP) reported trailing twelve months revenue of $22.43B as of March 2026, a 11.3% increase year-over-year. Quarterly revenue reached $6.02B, reflecting continued top-line momentum.
American Electric Power Company generated $3.80B in TTM net income, with quarterly EBITDA of $1.37B. The operating margin contracted from 23.5% to 22.6%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (22.6%) and net margin (15.0%) indicates moderate non-operating costs. Net margin has improved from 14.7% a year ago, signaling stronger bottom-line efficiency.
AEP trades at a P/E of 18.5x (in line with broad market averages) and a P/S of 3.1x. The price-to-book ratio of 2.1x reflects a moderate premium to book value.
The company generated $554.00M in free cash flow over the trailing twelve months, a 61.8% decrease year-over-year, indicating cash generation ability. The balance sheet shows $117.78B in total assets with $46.85B in long-term debt against $32.98B in stockholders equity for a debt-to-equity ratio of 1.4. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~22.9%, suggesting durable pricing power and cost discipline.
ROE is positive at ~11.2% on average, adequate but below the threshold typically associated with wide moats.
6 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (7 of 7 quarters up), with ~14.9% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~24.1% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
D/E ratio is 1.4 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
FCF turned negative in 2 of the last 8 quarters — occasional cash consumption.
Shares outstanding rose 2.5% — mild dilution. Compare to earnings growth to assess net per-share impact.