NASDAQ · Utilities

American Electric Power Company, Inc.

AEP · Utilities - Regulated Electric

$127.69

▼ -0.58 (-0.45%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 58.0%

Operating Margin 23.1%

Net Income Margin 14.5%

Fin. Health

F⤢

Years to Pay Off Debt 59.2 yrs

Working Capital vs Long-Term Debt -$52.8B

Working Capital -$6.0B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 2.18x

Cash Flow

F⤢

Free Cash Flow -$2.3B

CapEx % of Net Income 435.7%

Owner Earnings $5.6B

Profitability

Gross Profit Margin 58.0%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 23.1%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 14.5%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 59.2 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$52.8B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital -$6.0B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow -$2.3B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 435.7%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $5.6B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

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

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.

Market Data

Market Cap $69.5B

Enterprise Value $123.1B

P/E (TTM) 18.89

Dividend Yield 2.93%

Exchange NASDAQ

Key Margins

Gross Profit 58.0%

Operating Margin 23.1%

Net Margin 14.5%

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 $127.69.

The business passes only 2 of 6 of Graham's defensive criteria — well below his required standard.

At $127.69, the stock trades at a 178% premium to its Graham Number of $45.88. 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: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	58.0%▼	61.6%•	N/A
Operating Margin %	23.1%▲	22.2%•	N/A
Net Income %	14.5%▲	10.9%•	N/A
Diluted EPS	1.60•	N/A•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q3 2024
Total Assets	$117.8B	$114.5B	N/A
Total Debt	$51.8B▲	$49.5B•	N/A
Working Capital	-$6.0B▲	-$7.3B•	N/A
Years to Pay Debt	59.24	85.07	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	-$2.3B▼	-$680M•	N/A
Owner Earnings	$5.6B	$4.0B	N/A
CapEx % of Net Income	435.7%	428.3%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	-1,426	-10,912
Tax Rate For Calcs	0	0
Normalized EBITDA	2,412,000	2,221,800
Total Unusual Items	-31,000	-66,000
Total Unusual Items Excluding Goodwill	-31,000	-66,000
Net Income From Continuing Operation Net Minority Interest	874,000	582,000
Reconciled Depreciation	907,000	922,900
Reconciled Cost Of Revenue	2,529,000	1,932,200
EBITDA	2,381,000	2,155,800
EBIT	1,474,000	1,232,900
Net Interest Income	-552,000	-533,100
Interest Expense	552,000	533,100
Normalized Income	903,574	637,088
Net Income From Continuing And Discontinued Operation	874,000	582,000
Total Expenses	4,629,000	4,135,000
Total Operating Income As Reported	1,360,000	1,114,300
Diluted Average Shares	547,054
Basic Average Shares	542,079
Diluted EPS	0
Basic EPS	0
Diluted NI Availto Com Stockholders	874,000	582,000
Net Income Common Stockholders	874,000	582,000
Net Income	874,000	582,000
Minority Interests	-29,000	-23,200
Net Income Including Noncontrolling Interests	903,000	605,200
Net Income Continuous Operations	903,000	605,200
Earnings From Equity Interest Net Of Tax	25,000	21,100
Tax Provision	44,000	115,700
Pretax Income	922,000	699,800
Other Income Expense	83,000	52,600
Other Non Operating Income Expenses	114,000	118,600
Special Income Charges	-31,000	-66,000
Other Special Charges		-72,100	-58,000
Write Off	31,000	66,000
Net Non Operating Interest Income Expense	-552,000	-533,100
Interest Expense Non Operating	552,000	533,100
Operating Income	1,391,000	1,180,300
Operating Expense	2,100,000	2,093,800
Other Operating Expenses	750,000	862,200
Other Taxes	443,000	417,700
Depreciation Amortization Depletion Income Statement	907,000	813,900
Depreciation And Amortization In Income Statement	907,000	813,900
Gross Profit	3,491,000	3,274,100
Cost Of Revenue	2,529,000	2,041,200
Total Revenue	6,020,000	5,315,300
Operating Revenue	5,890,000	5,205,100

Balance Sheet

	2026	2025	2024
Treasury Shares Number	1,187	1,187
Ordinary Shares Number	543,973	540,861
Share Issued	545,160	542,048
Net Debt	50,803,000	48,633,000
Total Debt	51,776,000	49,508,000
Tangible Book Value	31,755,000	31,085,000
Invested Capital	82,917,000	79,968,000
Working Capital	-5,971,000	-7,262,000
Net Tangible Assets	31,755,000	31,085,000
Capital Lease Obligations	667,000	678,000
Common Stock Equity	31,808,000	31,138,000
Total Capitalization	78,658,000	75,266,000
Total Equity Gross Minority Interest	32,978,000	32,218,000
Minority Interest	1,170,000	1,080,000
Stockholders Equity	31,808,000	31,138,000
Gains Losses Not Affecting Retained Earnings	22,000	36,000
Other Equity Adjustments	22,000	36,000
Retained Earnings	15,795,000	15,441,000
Additional Paid In Capital	12,447,000	12,138,000
Capital Stock	3,544,000	3,523,000
Common Stock	3,544,000	3,523,000
Total Liabilities Net Minority Interest	84,798,000	82,242,000
Total Non Current Liabilities Net Minority Interest	72,204,000	68,928,000
Other Non Current Liabilities	1,235,000	905,000
Preferred Securities Outside Stock Equity	51,000	38,000
Derivative Product Liabilities	165,000	178,000
Employee Benefits	245,000	232,000
Non Current Pension And Other Postretirement Benefit Plans	245,000	232,000
Non Current Deferred Liabilities	11,249,000	10,951,000
Non Current Deferred Taxes Liabilities	11,249,000	10,951,000
Long Term Debt And Capital Lease Obligation	47,422,000	44,706,000
Long Term Capital Lease Obligation	572,000	578,000
Long Term Debt	46,850,000	44,128,000
Long Term Provisions	3,607,000	3,556,000
Current Liabilities	12,594,000	13,314,000
Other Current Liabilities	2,054,000	2,030,000
Current Deferred Liabilities	521,000	507,000
Current Deferred Revenue	521,000	507,000
Current Debt And Capital Lease Obligation	4,354,000	4,802,000
Current Capital Lease Obligation	95,000	100,000
Current Debt	4,259,000	4,702,000
Other Current Borrowings	3,604,000	4,094,000
Commercial Paper	651,000	605,000
Current Notes Payable	4,000	3,000
Payables And Accrued Expenses	5,665,000	5,975,000
Current Accrued Expenses	629,000	544,000
Interest Payable	629,000	544,000
Payables	5,036,000	5,431,000
Total Tax Payable	1,888,000	2,002,000
Accounts Payable	3,148,000	3,429,000
Total Assets	117,776,000	114,460,000
Total Non Current Assets	111,153,000	108,408,000
Other Non Current Assets	4,578,000	4,402,000
Non Current Deferred Assets			3,142,700
Financial Assets	233,000	265,000
Investments And Advances	5,715,000	5,849,000
Other Investments	4,803,000	4,916,000
Investmentin Financial Assets	912,000	933,000
Goodwill And Other Intangible Assets	53,000	53,000
Goodwill	53,000	53,000
Net PPE	95,504,000	93,035,000
Accumulated Depreciation	-28,453,000	-28,205,000
Gross PPE	123,957,000	121,240,000
Construction In Progress	8,314,000	7,635,000
Other Properties	9,769,000	9,296,000
Current Assets	6,623,000	6,052,000
Other Current Assets	979,000	638,000
Hedging Assets Current	246,000	352,000
Restricted Cash	33,000	71,000
Inventory	1,665,000	1,622,000
Receivables	3,184,000	2,952,000
Receivables Adjustments Allowances	-58,000	-52,000
Other Receivables	1,341,000	1,332,000
Taxes Receivable	214,000	85,000
Accounts Receivable	1,338,000	1,166,000
Cash Cash Equivalents And Short Term Investments	516,000	417,000
Other Short Term Investments	210,000	220,000
Cash And Cash Equivalents	306,000	197,000

Cash Flow

	2026	2025	2024
Free Cash Flow	-2,289,000	-679,700
Repayment Of Debt	-702,000	-508,300
Issuance Of Debt	2,953,000	2,011,900
Issuance Of Capital Stock	358,000	587,500
Capital Expenditure	-3,808,000	-2,492,900
Interest Paid Supplemental Data	450,000
Income Tax Paid Supplemental Data
End Cash Position	339,000	268,000
Beginning Cash Position	268,000	1,106,800
Changes In Cash	71,000	-838,800
Financing Cash Flow	2,121,000	1,537,900
Cash Flow From Continuing Financing Activities	2,121,000	1,537,900
Net Other Financing Charges	32,000	-43,100
Cash Dividends Paid	-520,000	-510,100
Common Stock Dividend Paid	-520,000	-510,100
Net Common Stock Issuance	358,000	587,500
Common Stock Issuance	358,000	587,500
Net Issuance Payments Of Debt	2,251,000	1,503,600
Net Short Term Debt Issuance	47,000	350,100
Short Term Debt Payments	0	350,000
Short Term Debt Issuance	47,000	100
Net Long Term Debt Issuance	2,204,000	1,153,500
Long Term Debt Payments	-702,000	-858,300
Long Term Debt Issuance	2,906,000	2,011,800
Investing Cash Flow	-3,569,000	-4,189,900
Cash Flow From Continuing Investing Activities	-3,569,000	-4,189,900
Net Other Investing Changes	259,000	86,900
Net Investment Purchase And Sale	-20,000	11,800
Sale Of Investment	555,000	585,800
Purchase Of Investment	-575,000	-574,000
Net Business Purchase And Sale		-1,795,700	-399,500
Purchase Of Business		-1,795,700	-399,500
Net PPE Purchase And Sale	-978,000	-41,100
Purchase Of PPE	-978,000	-41,100
Capital Expenditure Reported	-2,830,000	-2,451,800
Operating Cash Flow	1,519,000	1,813,200
Cash Flow From Continuing Operating Activities	1,519,000	1,813,200
Change In Working Capital	-392,000	650,600
Change In Other Current Liabilities	-66,000	28,700
Change In Other Current Assets	-115,000	47,300
Change In Payables And Accrued Expense	-136,000	643,900
Change In Payable	-136,000	643,900
Change In Account Payable	108,000	-75,300
Change In Tax Payable	-244,000	719,200
Change In Income Tax Payable	-244,000	719,200
Change In Inventory	-39,000	-35,700
Change In Receivables	-36,000	-33,600
Changes In Account Receivables	-36,000	-33,600
Other Non Cash Items	-110,000	-112,200
Asset Impairment Charge	31,000	66,000
Deferred Tax	80,000	-395,900
Deferred Income Tax	80,000	-395,900
Depreciation Amortization Depletion	907,000	922,900
Depreciation And Amortization	907,000	922,900
Depreciation		922,900	931,100
Operating Gains Losses	100,000	76,600
Gain Loss On Investment Securities	100,000	76,600
Net Income From Continuing Operations	903,000	605,200

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $5.5B ▲ $6.0B +10.2%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 60.2% ▲ 58.0% -2.3pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 25.5% ▲ 23.1% -2.4pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 14.6% ▲ 14.5% -0.1pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$6.0B/qtr (≈$24.1B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

0.53x current ratio

vs ≥ 2.0x

❌ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

-$2.3B

vs Positive

Operating Cash Flow

$1.5B

Latest quarter · Buffett's cash reality check

ROIC

1.0%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

2.1x

Net Assets: $33.0B

⚠️ Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.

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)

2.7%

Weak — poor returns on equity

Return on Assets (ROA)

0.7%

Poor — assets are not generating adequate returns

Debt Trend YoY

+4.6% YoY

Debt is roughly stable

Leadership Team

William Fehrman

Chairman, President & CEO

Age 65

Pay: $7,226,057

0.827% of net income

Alicia Knapp

President of Nuclear Development

Age 46

Pay: $1,619,143

0.185% of net income

Douglas Cannon

President of AEP Transmission

Age 49

Pay: $2,607,091

0.298% of net income

Darcy Reese

Vice President of Investor Relations

Quinton Lies

Executive Vice President of Nuclear Operations

Age 54

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	9.63%	47,797,729
Vanguard Capital Management LLC	7.08%	35,138,422
State Street Corporation	6.10%	30,288,136
Vanguard Portfolio Management LLC	3.15%	15,608,556
GQG Partners LLC	3.03%	15,025,884
Morgan Stanley	2.92%	14,486,169
Geode Capital Management, LLC	2.87%	14,222,791
Wellington Management Group, LLP	2.65%	13,156,392

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.52

Low volatility — more stable than the market

Short Interest

5.9% of float

Moderate short interest

Debt-to-Equity

1.57x

Moderate leverage

Current Ratio

0.53x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $101.11 Current: $127.69 High: $139.44

Currently at 69% of 52-week range

American Electric Power Company, Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis