The AES CorporationAES
NYSE • Utilities
$14.43
P/E
11.27
PEG
—
FCF Yield
—
Rev Growth YoY
-37.0% YoY
Gross Margin
1840.0%
Health Score
3/10
D/E Ratio
7.36
Confidence
LOW
Business Snapshot
The AES Corporation is a global diversified utility company that generates and distributes electric power across multiple markets, operating a mix of conventional and renewable energy assets in the Americas, Europe, Asia, and the Middle East. The company sits near the lower end of the large-cap utilities space by conventional measures, though market capitalisation data is not sufficient to assign a definitive cap tier here. AES has been actively transitioning toward renewable energy infrastructure, operating in a capital-intensive, regulated industry where leverage is commonplace but currently elevated well beyond typical norms.
Financial Health
Score: 3/10
AES presents a deeply contradictory financial picture. The reported gross margin of 1,840% and net margin of 744% appear anomalous — almost certainly reflecting accounting distortions such as asset sales, impairments, or non-cash adjustments rather than genuine operating profitability, and should not be interpreted at face value...
Risk Assessment
- REVENUE DECLINE: Revenue contracted 37.0% year-over-year, an unusually severe drop for a regulated utility business that warrants explanation and close monitoring.
- LEVERAGE: Debt/equity ratio of 7.36x is extremely high, creating significant refinancing risk in a higher-for-longer interest rate environment.
- LIQUIDITY: Current ratio of 0.77x indicates current liabilities exceed current assets, signalling potential near-term cash pressure.
- EARNINGS COLLAPSE: Earnings growth of -4,569% year-over-year, regardless of accounting drivers, reflects an extreme deterioration in reported profitability.
- DATA QUALITY: Anomalous margin figures (gross margin of 1,840%, net margin of 744%) obscure true operating performance and reduce confidence in any ratio-based valuation.
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**Score: 3/10** AES presents a deeply contradictory financial picture. The reported gross margin of 1,840% and net margin of 744% appear anomalous — almost certainly reflecting accounting distortions such as asset sales, impairments, or non-cash adjustments rather than genuine operating profitability, and should not be interpreted at face value. More concerning is a debt-to-equity ratio of 7.36x, which is severely elevated even by utility-sector standards where leverage is expected, and a current ratio of 0.77x, meaning current liabilities exceed current assets — a potential short-term liquidity strain. Free cash flow data is unavailable, removing a critical pillar of fundamental assessment. ---
- **REVENUE DECLINE:** Revenue contracted 37.0% year-over-year, an unusually severe drop for a regulated utility business that warrants explanation and close monitoring. - **LEVERAGE:** Debt/equity ratio of 7.36x is extremely high, creating significant refinancing risk in a higher-for-longer interest rate environment. - **LIQUIDITY:** Current ratio of 0.77x indicates current liabilities exceed current assets, signalling potential near-term cash pressure. - **EARNINGS COLLAPSE:** Earnings growth of -4,569% year-over-year, regardless of accounting drivers, reflects an extreme deterioration in reported profitability. - **DATA QUALITY:** Anomalous margin figures (gross margin of 1,840%, net margin of 744%) obscure true operating performance and reduce confidence in any ratio-based valuation. ---
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