NASDAQ · Utilities

American Electric Power Company, Inc.

AEP · Utilities - Regulated Electric

$134.60

▼ -2.31 (-1.69%)

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Mr. Market is currently offering American Electric Power Company, Inc. at $134.60.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 61.0%

Operating Margin 24.6%

Net Income Margin 16.4%

Fin. Health F

Years to Pay Off Debt 13.8 yrs

Working Capital vs Long-Term Debt -$51.4B

Working Capital -$7.3B

Valuation F

Margin of Safety 0.0%

Price-to-Book 2.35x

Cash Flow F

Free Cash Flow -$1.6B

CapEx % of Net Income 239.7%

Owner Earnings $15.7B

4/7

Graham Score

Enterprising

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $73.2B

Enterprise Value $124.4B

P/E (TTM) 20.24

Dividend Yield 2.73%

Exchange NASDAQ

Key Margins

Gross Profit 61.0%

Operating Margin 24.6%

Net Margin 16.4%

Company Info

Sector Utilities

Industry Utilities - Regulated Electric

Employees 17581

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering American Electric Power Company, Inc. at $134.60.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

At $134.60, the stock trades at a 45% premium to its Graham Number of $92.65. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

About American Electric Power Company, Inc.

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.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	61.0% ▼	63.2%	58.6%	57.5%	N/A
Operating Margin %	24.6% ▲	22.5%	19.7%	19.2%	N/A
Net Income %	16.4% ▲	15.0%	11.6%	11.7%	N/A
Diluted EPS	6.66 ▲	5.58	4.24	4.49	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$114.5B	$103.1B	$96.7B	$93.4B	N/A
Total Debt	$49.5B ↑	$45.8B	$43.6B	$41.6B	N/A
Working Capital	-$7.3B ▼	-$7.2B	-$5.5B	-$6.5B	N/A
Years to Pay Debt	13.83	15.42	19.75	18.02	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	-$1.6B ▼	-$967M	-$2.5B	-$1.5B	N/A
Owner Earnings	$15.7B	$14.1B	$12.9B	$12.4B	N/A
CapEx % of Net Income	239.7%	261.9%	339.9%	293.5%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	6,086	14,280	-96	-362
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	9,060,000	8,031,000	7,207,000	7,264,300
Total Unusual Items	179,000	68,000	-4,000	-162,100
Total Unusual Items Excluding Goodwill	179,000	68,000	-4,000	-162,100
Net Income From Continuing Operation Net Minority Interest	3,580,000	2,967,000	2,208,000	2,307,200
Reconciled Depreciation	3,489,000	3,393,000	3,187,000	3,285,700
Reconciled Cost Of Revenue	8,421,000	7,158,000	7,757,000	8,264,400
EBITDA	9,239,000	8,099,000	7,203,000	7,102,200
EBIT	5,750,000	4,706,000	4,016,000	3,816,500
Net Interest Income	-2,026,000	-1,863,000	-1,807,000	-1,396,100
Interest Expense	2,026,000	1,863,000	1,807,000	1,396,100
Normalized Income	3,407,086	2,913,280	2,211,904	2,468,938
Net Income From Continuing And Discontinued Operation	3,580,000	2,967,000	2,208,000	2,307,200
Total Expenses	16,491,000	15,274,000	15,247,000	15,861,000
Total Operating Income As Reported	5,319,000	4,304,000	3,556,000	3,482,700
Diluted Average Shares	537,468	531,338	520,206	513,485
Basic Average Shares	534,535	530,093	518,904	511,842
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	3,580,000	2,967,000	2,208,000	2,307,200
Net Income Common Stockholders	3,580,000	2,967,000	2,208,000	2,307,200
Net Income	3,580,000	2,967,000	2,208,000	2,307,200
Minority Interests	-116,000	-9,000	-5,000	1,600
Net Income Including Noncontrolling Interests	3,696,000	2,976,000	2,213,000	2,305,600
Net Income Continuous Operations	3,696,000	2,976,000	2,213,000	2,305,600
Earnings From Equity Interest Net Of Tax	101,000	94,000	59,000	-109,400
Tax Provision	129,000	-39,000	55,000	5,400
Pretax Income	3,724,000	2,843,000	2,209,000	2,420,400
Other Income Expense	365,000	259,000	281,000	38,000
Other Non Operating Income Expenses	186,000	191,000	285,000	200,100
Special Income Charges	179,000	68,000	89,000	-162,100
Gain On Sale Of Ppe		0	0	116,300	0
Gain On Sale Of Business		0	0	-363,300	0
Other Special Charges	-245,000	-211,000	-175,000	-133,700
Write Off	66,000	143,000	86,000	48,800
Impairment Of Capital Assets					11,600
Gain On Sale Of Security			-93,000
Net Non Operating Interest Income Expense	-2,026,000	-1,863,000	-1,807,000	-1,396,100
Interest Expense Non Operating	2,026,000	1,863,000	1,807,000	1,396,100
Operating Income	5,385,000	4,447,000	3,735,000	3,778,500
Operating Expense	7,961,000	8,013,000	7,393,000	7,513,700
Other Operating Expenses	2,950,000	3,127,000	2,811,000	2,841,100
Other Taxes	1,631,000	1,596,000	1,492,000	1,469,800
Depreciation Amortization Depletion Income Statement	3,380,000	3,290,000	3,090,000	3,202,800
Depreciation And Amortization In Income Statement	3,380,000	3,290,000	3,090,000	3,202,800
Gross Profit	13,346,000	12,460,000	11,128,000	11,292,200
Cost Of Revenue	8,530,000	7,261,000	7,854,000	8,347,300
Total Revenue	21,876,000	19,721,000	18,982,000	19,639,500
Operating Revenue	21,350,000	19,239,000	18,524,000	19,231,300

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	1,187	1,187	1,185	11,233
Ordinary Shares Number	540,861	532,908	526,185	513,866
Share Issued	542,048	534,095	527,369	525,099
Net Debt	48,633,000	44,964,000	42,643,300	40,403,800
Total Debt	49,508,000	45,763,000	43,608,500	41,579,300
Tangible Book Value	31,085,000	26,891,000	25,194,200	23,840,900
Invested Capital	79,968,000	72,111,000	68,220,100	64,806,600
Working Capital	-7,262,000	-7,220,000	-5,501,500	-6,490,800
Net Tangible Assets	31,085,000	26,891,000	25,194,200	23,840,900
Capital Lease Obligations	678,000	596,000	635,100	666,100
Common Stock Equity	31,138,000	26,944,000	25,246,700	23,893,400
Total Capitalization	75,266,000	66,252,000	62,899,400	58,208,000
Total Equity Gross Minority Interest	32,218,000	26,986,000	25,285,900	24,122,400
Minority Interest	1,080,000	42,000	39,200	229,000
Stockholders Equity	31,138,000	26,944,000	25,246,700	23,893,400
Gains Losses Not Affecting Retained Earnings	36,000	-3,000	-55,500	83,700
Other Equity Adjustments	36,000	-3,000	-55,500	83,700
Retained Earnings	15,441,000	13,869,000	12,800,400	12,345,600
Additional Paid In Capital	12,138,000	9,606,000	9,073,900	8,051,000
Capital Stock	3,523,000	3,472,000	3,427,900	3,413,100
Common Stock	3,523,000	3,472,000	3,427,900	3,413,100
Total Liabilities Net Minority Interest	82,242,000	76,092,000	71,398,100	69,280,900
Total Non Current Liabilities Net Minority Interest	68,928,000	63,083,000	59,814,500	56,014,600
Other Non Current Liabilities	905,000	801,000	545,800	607,300
Preferred Securities Outside Stock Equity	38,000	38,000	42,500	45,900
Derivative Product Liabilities	178,000	224,000	241,800	345,200
Employee Benefits	232,000	361,000	241,700	257,300
Non Current Pension And Other Postretirement Benefit Plans	232,000	361,000	241,700	257,300
Non Current Deferred Liabilities	10,951,000	9,972,000	9,415,700	8,896,900
Non Current Deferred Taxes Liabilities	10,951,000	9,972,000	9,415,700	8,896,900
Long Term Debt And Capital Lease Obligation	44,706,000	39,812,000	38,172,100	34,867,100
Long Term Capital Lease Obligation	578,000	504,000	519,400	552,500
Long Term Debt	44,128,000	39,308,000	37,652,700	34,314,600
Long Term Provisions	3,556,000	3,531,000	2,972,500	2,879,300
Current Liabilities	13,314,000	13,009,000	11,583,600	13,266,300
Other Current Liabilities	2,030,000	1,590,000	1,480,700	1,423,400
Current Deferred Liabilities	507,000	455,000	423,700	408,800
Current Deferred Revenue	507,000	455,000	423,700	408,800
Current Debt And Capital Lease Obligation	4,802,000	5,951,000	5,436,400	6,712,200
Current Capital Lease Obligation	100,000	92,000	115,700	113,600
Current Debt	4,702,000	5,859,000	5,320,700	6,598,600
Other Current Borrowings	4,094,000	4,235,000	3,378,500	3,236,400
Line Of Credit			0	500,000
Commercial Paper	605,000	1,618,000	1,937,900	2,862,200
Current Notes Payable	3,000	6,000	4,300	0
Payables And Accrued Expenses	5,975,000	5,013,000	4,242,800	4,721,900
Current Accrued Expenses	544,000	453,000	410,200	336,500
Interest Payable	544,000	453,000	410,200	336,500
Payables	5,431,000	4,560,000	3,832,600	4,385,400
Total Tax Payable	2,002,000	1,922,000	1,800,100	1,714,600
Accounts Payable	3,429,000	2,638,000	2,032,500	2,670,800
Total Assets	114,460,000	103,078,000	96,684,000	93,403,300
Total Non Current Assets	108,408,000	97,289,000	90,601,900	86,627,800
Other Non Current Assets	4,402,000	3,873,000	3,625,700	3,757,400
Non Current Deferred Assets					4,398,300
Financial Assets	265,000	289,000	321,200	284,100
Investments And Advances	5,849,000	4,949,000	4,196,500	3,787,200
Other Investments	4,916,000	4,395,000	3,860,200	3,341,200
Investmentin Financial Assets	933,000	554,000	336,300	446,000
Goodwill And Other Intangible Assets	53,000	53,000	52,500	52,500
Goodwill	53,000	53,000	52,500	52,500
Net PPE	93,035,000	82,996,000	77,313,600	73,984,600
Accumulated Depreciation	-28,205,000	-26,186,000	-24,553,000	-23,682,300
Gross PPE	121,240,000	109,182,000	101,866,600	97,666,900
Construction In Progress	7,635,000	6,347,000	5,508,000	4,809,700
Other Properties	9,296,000	8,071,000	7,105,100	6,617,300
Current Assets	6,052,000	5,789,000	6,082,100	6,775,500
Other Current Assets	638,000	733,000	788,200	1,565,000
Hedging Assets Current	352,000	210,000	217,500	348,800
Assets Held For Sale Current				2,823,500	2,919,700
Restricted Cash	71,000	43,000	48,900	47,100
Prepaid Assets					129,800
Inventory	1,622,000	1,715,000	1,879,500	1,350,200
Receivables	2,952,000	2,670,000	2,603,600	2,767,400
Receivables Adjustments Allowances	-52,000	-61,000	-60,100	-57,100
Other Receivables	1,332,000	1,226,000	1,298,100	1,257,100
Taxes Receivable	85,000	38,000	156,200	99,400
Accounts Receivable	1,166,000	1,100,000	1,029,900	1,145,100
Cash Cash Equivalents And Short Term Investments	417,000	418,000	544,400	697,000
Other Short Term Investments	220,000	215,000	214,300	187,600
Cash And Cash Equivalents	197,000	203,000	330,100	509,400

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	-1,639,000	-967,000	-2,494,000	-1,484,400
Repayment Of Debt	-5,036,000	-3,780,000	-4,616,000	-3,641,000
Issuance Of Debt	8,581,000	5,841,000	6,533,000	7,134,000
Issuance Of Capital Stock	775,000	552,000	1,000,000	826,500
Capital Expenditure	-8,583,000	-7,771,000	-7,506,000	-6,772,400
End Cash Position	268,000	246,000	379,000	556,500
Beginning Cash Position	246,000	379,000	557,000	451,400
Changes In Cash	22,000	-133,000	-178,000	105,100
Financing Cash Flow	5,017,000	659,000	1,077,000	2,568,900
Cash Flow From Continuing Financing Activities	5,017,000	659,000	1,077,000	2,568,900
Net Other Financing Charges	2,705,000	-56,000	-88,000	-105,400
Cash Dividends Paid	-2,008,000	-1,898,000	-1,752,000	-1,645,200
Common Stock Dividend Paid	-2,008,000	-1,898,000	-1,752,000	-1,645,200
Net Common Stock Issuance	775,000	552,000	1,000,000	826,500
Common Stock Issuance	775,000	552,000	1,000,000	826,500
Net Issuance Payments Of Debt	3,545,000	2,061,000	1,917,000	3,493,000
Net Short Term Debt Issuance	-1,016,000	-306,000	-1,282,000	1,498,200
Short Term Debt Payments	-1,336,000	-1,030,000	-2,352,000	-986,100
Short Term Debt Issuance	320,000	724,000	1,070,000	2,484,300
Net Long Term Debt Issuance	4,561,000	2,367,000	3,199,000	1,994,800
Long Term Debt Payments	-3,700,000	-2,750,000	-2,264,000	-2,654,900
Long Term Debt Issuance	8,261,000	5,117,000	5,463,000	4,649,700
Investing Cash Flow	-11,939,000	-7,596,000	-6,267,000	-7,751,800
Cash Flow From Continuing Investing Activities	-11,939,000	-7,596,000	-6,267,000	-7,751,800
Net Other Investing Changes	143,000	505,000	1,463,000	268,300
Net Investment Purchase And Sale	-46,000	-45,000	-69,000	-40,400
Sale Of Investment	2,935,000	2,878,000	2,795,000	2,743,800
Purchase Of Investment	-2,981,000	-2,923,000	-2,864,000	-2,784,200
Net Business Purchase And Sale	-3,453,000	-285,000	-155,000	-1,207,300
Sale Of Business	0	114,000	0	0
Purchase Of Business	-3,453,000	-399,000	-155,000	-1,207,300
Net PPE Purchase And Sale	-130,000	-140,000	-128,000	-100,700
Purchase Of PPE	-130,000	-140,000	-128,000	-100,700
Capital Expenditure Reported	-8,453,000	-7,631,000	-7,378,000	-6,671,700
Operating Cash Flow	6,944,000	6,804,000	5,012,000	5,288,000
Cash Flow From Continuing Operating Activities	6,944,000	6,804,000	5,012,000	5,288,000
Change In Working Capital	341,000	510,000	-705,000	-237,700
Change In Other Current Liabilities	103,000	182,000	-162,000	54,300
Change In Other Current Assets	85,000	-13,000	-44,000	109,000
Change In Payables And Accrued Expense	284,000	325,000	-231,000	594,600
Change In Payable	284,000	325,000	-231,000	594,600
Change In Account Payable	252,000	85,000	-253,000	489,200
Change In Tax Payable	32,000	240,000	22,000	105,400
Change In Income Tax Payable	32,000	240,000	22,000	105,400
Change In Inventory	115,000	172,000	-504,000	-313,900
Change In Receivables	-246,000	-156,000	236,000	-681,700
Changes In Account Receivables	-246,000	-156,000	236,000	-681,700
Other Non Cash Items	-801,000	-150,000	78,000	-386,500
Provisionand Write Offof Assets				-319,200	-1,647,900
Asset Impairment Charge	66,000	143,000	86,000	236,800
Deferred Tax	269,000	13,000	144,000	-178,400
Deferred Income Tax	269,000	13,000	144,000	-178,400
Depreciation Amortization Depletion	3,489,000	3,393,000	3,187,000	3,285,700
Depreciation And Amortization	3,489,000	3,393,000	3,187,000	3,285,700
Depreciation	3,489,000	3,393,000	3,187,000	3,285,700
Operating Gains Losses	-116,000	-81,000	9,000	262,500
Pension And Employee Benefit Expense					6,100
Gain Loss On Investment Securities	-116,000	-81,000	9,000	15,500
Gain Loss On Sale Of PPE		0	0	-116,300	0
Gain Loss On Sale Of Business		0	0	363,300	0
Net Income From Continuing Operations	3,696,000	2,976,000	2,213,000	2,305,600

These metrics estimate what American Electric Power Company, Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$92.65

Margin of Safety

Market Cap ÷ Company Value

2.34

P/B Ratio

2.35

Warren's Owner Earnings

$15.7B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

4/7 — Enterprising Investor

✅ Adequate Size

$21.9B

vs > $1.5B revenue

❌ Strong Financial Condition

0.45x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

2.73%

vs Uninterrupted dividends

✅ Earnings Growth

+48.3% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

20.2x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

2.35x P/B (P/E×P/B: 47.6)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-140.17

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$110.08

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	239.7%	261.9%	339.9%	293.5%	N/A
Repurchase of Capital Stock	N/A	N/A	N/A	N/A	N/A
Free Cash Flow	-$1.6B ▼	-$967M ▲	-$2.5B ▼	-$1.5B •	N/A •
Warren's Owner Earnings	$15.7B	$14.1B	$12.9B	$12.4B	N/A

Peers & Industry

No auto-detected peers for Utilities - Regulated Electric. You can manually compare AEP against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.02%

Low — management has little skin in the game

Return on Equity (ROE)

11.5%

Adequate — returns are moderate

Return on Assets (ROA)

3.1%

Fair — average asset utilization

Debt Trend YoY

+8.2% YoY

Debt is roughly stable

Leadership Team

William Fehrman

Chairman, President & CEO

Age 65

Pay: $7,226,057

0.202% of net income

Trevor Ian Mihalik CPA

Executive VP & CFO

Age 58

Pay: $2,597,619

0.073% of net income

Alicia Knapp

President of Nuclear Development

Age 46

Pay: $1,619,143

0.045% of net income

Douglas Cannon

President of AEP Transmission

Age 49

Pay: $2,607,091

0.073% of net income

Darcy Reese

Vice President of Investor Relations

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	10.58%	52,496,895
Blackrock Inc.	9.32%	46,260,983
State Street Corporation	6.13%	30,437,776
GQG Partners LLC	3.41%	16,902,872
Morgan Stanley	2.96%	14,661,858
Wellington Management Group, LLP	2.95%	14,639,127
Geode Capital Management, LLC	2.79%	13,823,744
Barclays Plc	2.14%	10,626,841

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.55

Low volatility — more stable than the market

Short Interest

3.3% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

1.54x

Moderate leverage

Current Ratio

0.46x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $97.46 Current: $134.60 High: $138.49

Currently at 91% of 52-week range

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