AES Stock Analysis — AES Corporation
Sector: Utilities
AI Verdict
AES trades at 6.2x next year's earnings while utilities average 18x, so you're getting cheap exposure to above-average growth if the regulatory moat holds up.
Competitive Moat
AES operates regulated and contracted power generation assets, which provide stable cash flows due to long-term agreements and regulatory frameworks. Its defensibility comes from high capital requirements and regulatory barriers that limit new entrants in the utility sector.
Summary
AES is trading at just 6.2x next year's earnings with analyst consensus calling for 24.5% EPS growth, making it a rare value play among utilities.
Where It Stands
AES has delivered an 18.51% return over the past year, sits at a neutral RSI of 49.1, and trades at 6.2x forward earnings versus the utility sector median of 18x.
Key Metrics
- RSI: 49.1 — Neutral
- Trailing P/E: 7.7x
- Forward P/E: 6.2x
- PEG Ratio: 0.32
- Earnings Growth: +0.2%
- Revenue Growth: +0.0%
- Market Cap: $10.3B
- Dividend Yield: 0.05%
- 1-Year Return: 18.51%
- 52-Week High: $17.65
- 52-Week Low: $9.46
Analyst Consensus
4 Buy · 12 Hold · 0 Sell (16 analysts)
Bull Case
With forward EPS growth expected at 24.5% and a forward P/E of 6.2x, you're paying a bargain price for unusually high growth in a defensive sector.
Bear Case
If AES's P/E multiple reverts even halfway toward the sector median, the stock could see a 40–50% rerating upward, but if growth disappoints, the low multiple could persist or compress further.
Catalyst to Watch
Watch for regulatory approvals or contract wins, as these could further lock in future cash flows and justify the growth expectations.