Aureus
FRed Flag

American Electric Power Company(AEP)

F

Financial data as of Dec 31, 2024Improving · Utilities

FCF Margin-4.9%Free Cash Flow / Revenue
Cash Conversion229.3%Operating CF / Net Income
Free Cash Flow-$966.3M
Revenue$19.7B
Net Cash-$45.6BNet debt position
Debt / FCFN/AElevated debt burden
Current Ratio0.44Tight short-term liquidity
YoY FCF Growth+500.0%2 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-1Current ratio below 1.0 (0.44)
→
-1Negative FCF in 3 of last 4 quarters
→
+1Strong YoY FCF growth (500.0% YoY)
→
-1Only 2 positive quarters recently
→
-0.5Highly volatile FCF (consistency: 4.45)
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (229%)
  • Strong YoY FCF growth (+500.0%)
  • FCF trend is improving

Concerns

  • Negative FCF margin (-4.9%)
  • Net debt position ($45.6B)
  • Current ratio below 1.0 — tight short-term liquidity
  • Only 2 positive FCF quarters recently
  • Highly volatile quarterly FCF
Heavy CapEx — Operating cash flow is strong (35% margin) but most is reinvested

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin-4.9%
Net Margin15.0%
Operating CF Margin34.5%
CapEx Ratio39.4%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$45.6BNet debt position
Debt / FCFN/AElevated debt burden
Current Ratio0.44Tight liquidity
Debt / Equity1.70Moderate leverage

Quarterly FCF Trend

+500.0% YoYImproving (+500.0%)

Free cash flow per quarter

Sector Comparison — Utilities

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameAmerican Electric Power Company
SectorUtilities
Free Cash Flow-$966.3M
Revenue$19.7B
Net Income$3.0B
Operating Cash Flow$6.8B
Capital Expenditure$7.8B
FCF Margin-4.9%
Cash Conversion Rate229.3%
Net Margin15.0%
Total Debt$45.8B
Total Cash$202.9M
Net Cash-$45.6B
Current Ratio0.44
Debt / Equity1.70
Debt / FCFN/A
YoY FCF Growth+500.0%
Positive Quarters2 of 5
Trend DirectionImproving
Report DateDec 31, 2024
GradeF
Data SourceYahoo Finance

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