American Electric (Germany) Buy Hold or Sell Recommendation
AEP Stock | EUR 94.50 3.00 3.28% |
Assuming the 90 days horizon and complete risk avoidance on your part, our recommendation regarding American Electric Power is 'Strong Sell'. Macroaxis provides American Electric buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding AEP positions.
Check out American Electric Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as American and provide practical buy, sell, or hold advice based on investors' constraints. American Electric Power. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
American |
Execute American Electric Buy or Sell Advice
The American recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on American Electric Power. Macroaxis does not own or have any residual interests in American Electric Power or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute American Electric's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
Strong Sell
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
American Electric Trading Alerts and Improvement Suggestions
American Electric has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations | |
American Electric Power has accumulated 33.63 B in total debt with debt to equity ratio (D/E) of 149.0, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. American Electric Power has a current ratio of 0.48, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist American Electric until it has trouble settling it off, either with new capital or with free cash flow. So, American Electric's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like American Electric Power sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for American to invest in growth at high rates of return. When we think about American Electric's use of debt, we should always consider it together with cash and equity. | |
Over 78.0% of American Electric shares are held by institutions such as insurance companies |
American Electric Returns Distribution Density
The distribution of American Electric's historical returns is an attempt to chart the uncertainty of American Electric's future price movements. The chart of the probability distribution of American Electric daily returns describes the distribution of returns around its average expected value. We use American Electric Power price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of American Electric returns is essential to provide solid investment advice for American Electric.
Mean Return | 0.12 | Value At Risk | -2.25 | Potential Upside | 2.76 | Standard Deviation | 1.75 |
Return Density |
Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of American Electric historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
American Electric Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to American Electric or Utilities sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that American Electric's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a American stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.02 | |
β | Beta against Dow Jones | 0.75 | |
σ | Overall volatility | 1.72 | |
Ir | Information ratio | -0.0052 |
American Electric Volatility Alert
American Electric Power has relatively low volatility with skewness of -0.15 and kurtosis of 2.71. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure American Electric's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact American Electric's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.American Electric Fundamentals Vs Peers
Comparing American Electric's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze American Electric's direct or indirect competition across all of the common fundamentals between American Electric and the related equities. This way, we can detect undervalued stocks with similar characteristics as American Electric or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of American Electric's fundamental indicators could also be used in its relative valuation, which is a method of valuing American Electric by comparing valuation metrics with those of similar companies.
Better Than Average | Worse Than Average | Compare American Electric to competition |
Fundamentals | American Electric | Peer Average |
Return On Equity | 0.0985 | -0.31 |
Return On Asset | 0.0274 | -0.14 |
Profit Margin | 0.12 % | (1.27) % |
Operating Margin | 0.20 % | (5.51) % |
Current Valuation | 83.75 B | 16.62 B |
Shares Outstanding | 513.87 M | 571.82 M |
Shares Owned By Insiders | 0.03 % | 10.09 % |
Shares Owned By Institutions | 77.97 % | 39.21 % |
Price To Earning | 20.11 X | 28.72 X |
Price To Book | 2.07 X | 9.51 X |
Price To Sales | 2.47 X | 11.42 X |
Revenue | 19.64 B | 9.43 B |
Gross Profit | 8.41 B | 27.38 B |
EBITDA | 7.1 B | 3.9 B |
Net Income | 2.31 B | 570.98 M |
Cash And Equivalents | 386.2 M | 2.7 B |
Cash Per Share | 0.78 X | 5.01 X |
Total Debt | 33.63 B | 5.32 B |
Debt To Equity | 149.00 % | 48.70 % |
Current Ratio | 0.49 X | 2.16 X |
Book Value Per Share | 46.50 X | 1.93 K |
Cash Flow From Operations | 5.29 B | 971.22 M |
Earnings Per Share | 4.26 X | 3.12 X |
Price To Earnings To Growth | 3.02 X | 4.89 X |
Target Price | 97.74 | |
Number Of Employees | 16.97 K | 18.84 K |
Beta | 0.44 | -0.15 |
Market Capitalization | 42.58 B | 19.03 B |
Total Asset | 93.47 B | 29.47 B |
Z Score | 0.6 | 8.72 |
Annual Yield | 0.04 % | |
Five Year Return | 3.00 % | |
Net Asset | 93.47 B |
American Electric Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as American . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About American Electric Buy or Sell Advice
When is the right time to buy or sell American Electric Power? Buying financial instruments such as American Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Additional Information and Resources on Investing in American Stock
When determining whether American Electric Power is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if American Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about American Electric Power Stock. Highlighted below are key reports to facilitate an investment decision about American Electric Power Stock:Check out American Electric Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.