American Electric Power (AEP) Stock Analysis

July 31, 2026

This is a peer-relative look at American Electric Power (AEP): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Utilities peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for American Electric Power (AEP)
Profile Item	AEP
Name	American Electric Power Company, Inc.
Country/Region	United States
GICS Sector	Utilities
GICS Industry Group	Utilities
GICS Industry	Electric Utilities
GICS Sub-Industry	Electric Utilities
Market Capitalization	69.53 billion USD
Currency	USD
Exchange	Nasdaq
Listing Date	January 2, 1962
Security Type	Common Stock

Price Performance

Cumulative Growth

AEP

GSPC

American Electric Power (AEP) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for American Electric Power (AEP) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for American Electric Power (AEP) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

American Electric Power (AEP) metric values compared with Utilities industry-group medians
Metric	Current stock: AEP	Industry group median
Total Return (1Y)	16.40%	15.00%
Total Return (3Y, Annualized)	18.68%	11.96%
Total Return (5Y, Annualized)	11.68%	8.64%

Risk Profile

Drawdown History

AEP

GSPC

American Electric Power (AEP) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for American Electric Power (AEP) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

American Electric Power (AEP) metric values compared with Utilities industry-group medians
Metric	Current stock: AEP	Industry group median
Volatility (1Y, Annualized)	18.86%	21.90%
Beta (5Y)	0.52	0.55
Max Drawdown (5Y)	-29.56%	-36.10%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. AEP is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

American Electric Power (AEP) metric values compared with Utilities industry-group medians
Metric	Current stock: AEP	Industry group median
Sharpe Ratio (1Y)	0.66	0.43
Sortino Ratio (1Y)	1.01	0.64

Profitability

ROE (TTM)

American Electric Power (AEP) posts ROE of 12.59%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

AEP

Utilities industry group

12.59%

Group distribution

Max: 16.11%
AEP: 12.59%
Q3: 11.23%
Median: 9.48%
Q1: 7.55%
Min: 2.67%

Largest peers

CEG: 16.11%
AEP: 12.59%
SO: 10.99%
NEE: 10.33%
D: 9.79%
DUK: 9.66%
NGG: 8.41%

Where American Electric Power (AEP) stands on ROE within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

American Electric Power (AEP) keeps 16.29% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

AEP

Utilities industry group

16.29%

Group distribution

Max: 29.37%
Q3: 17.31%
AEP: 16.29%
Median: 12.55%
Q1: 9.24%
Min: -0.65%

Largest peers

NEE: 29.37%
NGG: 18.32%
D: 16.93%
AEP: 16.29%
DUK: 15.71%
SO: 14.46%
CEG: 12.69%

Where American Electric Power (AEP) stands on net margin within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

American Electric Power (AEP) turns 23.74% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

AEP

Utilities industry group

23.74%

Group distribution

Max: 43.52%
Q3: 30.09%
AEP: 23.74%
Median: 23.50%
Q1: 16.61%
Min: 0.00%

Largest peers

NGG: 32.60%
NEE: 30.18%
D: 28.75%
SO: 25.82%
DUK: 25.51%
AEP: 23.74%
CEG: 21.86%

Where American Electric Power (AEP) stands on operating margin within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

American Electric Power (AEP) metric values compared with Utilities industry-group medians
Metric	Current stock: AEP	Industry group median
ROE (TTM)	12.59%	9.48%
ROA (TTM)	3.17%	2.98%
Net Margin (TTM)	16.29%	12.55%
Operating Margin (TTM)	23.74%	23.50%
Gross Margin (TTM)	47.24%	43.69%

Growth

Revenue Growth

American Electric Power (AEP) grew revenue 10.93%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

American Electric Power (AEP): Revenue Growth across different time periods, set against Utilities industry-group medians.

EPS Growth

American Electric Power (AEP) grew earnings per share 19.35%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

American Electric Power (AEP): EPS Growth across different time periods, set against Utilities industry-group medians.

Growth Metrics

American Electric Power (AEP) metric values compared with Utilities industry-group medians
Metric	Current stock: AEP	Industry group median
Revenue Growth (YoY)	10.93%	8.34%
Revenue Growth (3Y CAGR)	3.66%	3.85%
EPS Growth (YoY)	19.35%	3.93%
EPS Growth (3Y CAGR)	14.04%	5.17%

Financial Strength

Current Ratio (MRQ)

American Electric Power (AEP) has current ratio of 0.53, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

AEP

Utilities industry group

0.53

Group distribution

Max: 1.74
Q3: 1.16
Median: 0.90
Q1: 0.65
AEP: 0.53
Min: 0.33

Largest peers

CEG: 1.36
D: 0.78
NGG: 0.76
DUK: 0.66
SO: 0.65
NEE: 0.54
AEP: 0.53

Where American Electric Power (AEP) stands on current ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

American Electric Power (AEP) has debt-to-equity ratio of 1.57, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

AEP

Utilities industry group

1.57

Group distribution

Max: 3.02
Q3: 1.79
AEP: 1.57
Median: 1.33
Q1: 0.85
Min: 0.00

Largest peers

SO: 1.90
DUK: 1.61
AEP: 1.57
NEE: 1.57
D: 1.55
NGG: 1.21
CEG: 0.66

Where American Electric Power (AEP) stands on debt-to-equity ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

American Electric Power (AEP) metric values compared with Utilities industry-group medians
Metric	Current stock: AEP	Industry group median
Current Ratio (MRQ)	0.53	0.90
Debt / Equity (MRQ)	1.57	1.33
Net Debt / EBITDA	5.61	5.41

Dividends

Dividend Yield (TTM)

American Electric Power (AEP) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

AEP

Utilities industry group

0.00%

Group distribution

Max: 5.79%
Q3: 3.68%
Median: 2.87%
Q1: 1.91%
AEP: 0.00%
Min: 0.00%

Largest peers

D: 3.79%
DUK: 3.37%
SO: 3.13%
NEE: 2.64%
CEG: 0.63%
NGG: 0.59%
AEP: 0.00%

Where American Electric Power (AEP) stands on dividend yield within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

American Electric Power (AEP) has payout ratio of 55.62%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

AEP

Utilities industry group

55.62%

Group distribution

Max: 116.67%
Q3: 73.40%
Median: 58.69%
AEP: 55.62%
Q1: 36.87%
Min: 0.00%

Largest peers

D: 78.76%
SO: 75.70%
NGG: 71.18%
DUK: 65.23%
NEE: 58.95%
AEP: 55.62%
CEG: 13.81%

Where American Electric Power (AEP) stands on payout ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

American Electric Power (AEP) metric values compared with Utilities industry-group medians
Metric	Current stock: AEP	Industry group median
Dividend Yield (TTM)	0.00%	2.87%
Dividend Payout Ratio (TTM)	55.62%	58.69%

Valuation

P/E Ratio (TTM)

American Electric Power (AEP) trades at P/E ratio of 19.16, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

AEP

Utilities industry group

19.16

Group distribution

Max: 30.81
Q3: 23.97
Median: 20.72
AEP: 19.16
Q1: 16.62
Min: 6.52

Largest peers

SO: 24.13
NEE: 22.32
CEG: 22.04
D: 20.60
DUK: 19.37
AEP: 19.16
NGG: 19.08

Where American Electric Power (AEP) stands on P/E ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

American Electric Power (AEP) trades at 3.10 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

AEP

Utilities industry group

3.10

Group distribution

Max: 6.28
Q3: 3.59
AEP: 3.10
Median: 2.76
Q1: 1.67
Min: 0.00

Largest peers

NEE: 6.58
NGG: 4.62
D: 3.52
SO: 3.51
CEG: 3.14
AEP: 3.10
DUK: 3.00

Where American Electric Power (AEP) stands on P/S ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

American Electric Power (AEP) trades at 2.19 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

AEP

Utilities industry group

2.19

Group distribution

Max: 3.32
Q3: 2.37
AEP: 2.19
Median: 1.86
Q1: 1.45
Min: 0.36

Largest peers

NGG: 9.47
NEE: 3.32
SO: 2.85
CEG: 2.84
AEP: 2.19
D: 2.18
DUK: 1.83

Where American Electric Power (AEP) stands on P/B ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

American Electric Power (AEP) metric values compared with Utilities industry-group medians
Metric	Current stock: AEP	Industry group median
P/E Ratio (TTM)	19.16	20.72
P/S Ratio (TTM)	3.10	2.76
P/B Ratio (MRQ)	2.19	1.86
Free Cash Flow Yield (TTM)	-10.00%	-5.91%