American Electric Power Company, Inc.AEP
NASDAQ • Utilities
$137.32
P/E
20.60
PEG
0.01
FCF Yield
—
Rev Growth YoY
+1098.0% YoY
Gross Margin
4185.1%
Health Score
5/10
D/E Ratio
1.57
Confidence
LOW
Business Snapshot
American Electric Power (AEP) is one of the largest regulated electric utilities in the United States, delivering electricity to approximately 5.6 million customers across 11 states through an extensive transmission and distribution network. As a regulated utility, the majority of its revenue is subject to oversight by state and federal regulators, providing relative earnings stability. Based on its sector standing and characteristics, AEP operates as a large-cap utility, though a precise market capitalisation figure is not available in this data set.
Financial Health
**Score: 5/10** AEP's financial health presents a mixed picture. The reported gross margin of 4,185.1% and net margin of 1,677.0% are statistically anomalous and almost certainly reflect one-time accounting adjustments or reclassifications rather than sustainable operating profitability — they should not be interpreted at face value...
Risk Assessment
- **DATA INTEGRITY:** Revenue growth of +1,098% YoY and gross margins of 4,185.1% are statistically implausible for a regulated utility and suggest significant base-period distortions that obscure true financial performance. - **LIQUIDITY:** Current ratio of 0.45x indicates current liabilities are more than twice current assets, signalling potential short-term liquidity pressure. - **CASH FLOW OPACITY:** Free cash flow is unavailable, making it impossible to assess whether earnings translate into actual cash generation — a critical metric for a capital-intensive utility. - **TECHNICAL WEAKNESS:** A confirmed death cross (50-day MA crossing below 200-day MA) is in place, and the MACD signal is bearish — both are negative momentum indicators. - **LEVERAGE:** Debt/equity of 1.57x is material; for a utility with potential capital expenditure requirements, elevated debt limits financial flexibility if rates remain elevated. ---...