AESCAUTIOUS

Return on Equity (ROE)

13.8%

Higher than 100% of Utilities sector peers

Updated 1930h ago

Sector Performance

100th percentile

AES

13.8%

Sector Median

9.6%

Sector Avg

8.1%

📊

Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for every dollar of shareholders' equity—13.8% means AES earns $0.138 per dollar of equity.

This is well above the Utilities sector median of 9.6%, placing AES in the 100th percentile among its peers, the strongest performance in the group. The metric has been perfectly stable over the past eight quarters, with year-over-year and quarter-over-quarter changes of exactly +0.0%. A high ROE that shows no movement suggests AES consistently delivers strong profitability without recent improvement or deterioration—reducing uncertainty but also offering no catalyst for upside surprise. This stability combined with top-tier peer ranking indicates low short-term risk from earnings volatility, yet the lack of growth may limit momentum. The overall CAUTIOUS verdict is partly contradicted by the ROE strength, as the metric points to solid operational efficiency, though caution likely stems from other factors such as regulatory exposure or debt levels.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about AES?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does AES's Return on Equity (ROE) compare to its sector?

AES's Return on Equity (ROE) of 13.8% compares to a Utilities sector median of 9.6%, placing it in the 100th percentile.

Who are AES's closest peers by Return on Equity (ROE)?

The closest Utilities peers by Return on Equity (ROE) include: PNW (9.6%), PCG (8.8%), ATO (8.8%), PPL (8.3%), AEE (10.9%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.