The AES Corporation (AES)

FairStock Score: 54/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach AES as a capital-intensive utility and power producer, not a fast-growing franchise. It sells electricity through renewables, utilities, energy infrastructure, and new energy technologies. The utility segment may have some local protection, but generation and development are competitive and capital-hungry, so I cannot call this a wide-moat business. The recent record is uneven: in fiscal Q2 2026, revenue was $3.4B and net income $426.0M, versus revenue of $2.9B and a net loss of $95.0M in fiscal Q2 2025. FY2025 revenue was $12.2B with net income $910.0M and diluted EPS $1.26, below FY2024 net income $1.7B and diluted EPS $2.36, though far above FY2023 net income $249.0M and diluted EPS $0.35. FairStock classifies it as a TURNAROUND, returned to profit after a loss within the last three years. At the 2026-10-26 close of $15.03, FairStock's P/E is 5.63, with a Graham Number of $20.40 and a margin of safety of 26.47%, so the price looks statistically cheap. But cheapness needs balance-sheet support: trailing free cash flow is -$1.7B, FCF yield -16.0%, debt/equity 2.57, Altman Z-score 0.23, and ROCE only 2.96%. ROE is 9.57% and the Piotroski F-score is 6/9, so returns are modest rather than robust. The 4.75% dividend yield is attractive only if cash flow and leverage improve. I would want evidence that earnings convert into cash and that debt falls before trusting the low multiple.

In plain English: The company makes and sells electricity through power plants and utilities, including renewable projects. The business looks mixed: revenue and profit have improved recently, but it is not generating spare cash and carries a lot of debt. At $15.03, the price looks inexpensive compared with its reported profits and accounting value, though weak cash flow keeps the picture uncertain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer