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Upturn AI Summary - About
American Electric Power Co Inc(AEP)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for AEP
10/09/2026: AEP (3-star) is currently NOT-A-BUY. Pass it for now.
American Electric Power (AEP) is a prominent US utility provider known for its extensive electricity transmission and distribution network. The company benefits from a regulated business model that offers relatively stable, predictable cash flows, making it an attractive option for income-oriented and low-risk investors. Its primary growth opportunity lies in meeting the surging electricity demand from data center developments and grid modernization requirements. However, investors should monitor risks associated with high capital expenditure needs, regulatory rate case outcomes, and interest rate volatility. Overall, AEP remains a foundational utility stock that balances essential service provision with moderate long-term growth potential in an evolving energy landscape.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | AEP offers moderate growth tied to regulated utility expansion rather than high-growth technology cycles. |
| Momentum investor | Weak fit | The stock is generally characterized by steady, low-beta price movement rather than rapid momentum trends. |
| Value investor | Mixed fit | Valuation is often pegged to industry-standard price-to-earnings multiples for regulated utilities. |
| Dividend investor | Strong fit | The company has a consistent history of dividend payments, making it a staple for income-focused portfolios. |
| Low-risk investor | Strong fit | Regulated utilities are generally viewed as defensive assets with lower volatility compared to the broader market. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Low | Utility stocks typically exhibit lower beta and volatility compared to cyclical sectors. |
| Valuation risk | Medium | Utility valuations are sensitive to long-term interest rate trends and yield competition. |
| Competition risk (Regulatory) | Medium | The primary 'competition' is regulatory scrutiny, which can impact allowed returns and rate recoveries. |
| Business quality | Strong | AEP provides an essential service with a regulated monopoly structure in its primary territories. |
| Dividend income | Strong | The company has a long track record of providing reliable dividend income to shareholders. |
| Execution risk | Medium | Successful execution relies on managing massive capital projects and navigating complex state regulatory processes. |
Price Behavior
Rolling Over
The price momentum is slowing down and beginning to turn downward.
Smooth
The stock has moved along a generally orderly path with only modest fluctuations.
Analysis of Past Performance
Type Stock | Historic Profit 22.52% | Avg. Invested days 57 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  4.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 10/09/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 66.59B USD | Price to earnings Ratio 21.2 | 1Y Target Price 142.53 |
Price to earnings Ratio 21.2 | 1Y Target Price 142.53 | ||
Volume (30-day avg) 3.8M shares | Beta 0.47 | 52 Weeks Range 110.01 - 139.52 | Updated Date 10/08/2026 |
52 Weeks Range 110.01 - 139.52 | Updated Date 10/08/2026 | ||
Dividends yield (FY) 3.10% | Basic EPS (TTM) 5.77 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Regulated Retail Operations | Electricity generation, transmission, and distribution to residential, commercial, and industrial customers. | Most revenue comes from stable, government-regulated utility bills. |
| Transmission and Distribution | Fees charged for moving electricity across the high-voltage grid. | This is a reliable, essential service fee model that underpins the power grid. |
| Geography | Operations across 11 US states, primarily in the Midwest and South. | Regional economic trends in these states directly impact electricity demand. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Valuation
Trailing PE 21.2 | Forward PE 17.24 | Enterprise Value 117.35B | Price to Sales(TTM) 2.92 |
Enterprise Value 117.35B | Price to Sales(TTM) 2.92 | ||
Enterprise Value to Revenue 5.15 | Enterprise Value to EBITDA 12.61 | Shares Outstanding 544.40M | Shares Floating 543.50M |
Shares Outstanding 544.40M | Shares Floating 543.50M | ||
Percent Insiders 0.03 | Percent Institutions 94.32 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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