📊 AES Key Takeaways
Is Aes Corp. (AES) a Good Investment?
AES Corp exhibits concerning financial deterioration with collapsing profitability metrics, negative free cash flow, and severely strained liquidity despite high asset base. The company is burning cash while generating minimal operating income and faces substantial refinancing risk with weak interest coverage.
AES shows weak underlying earnings quality despite stable revenue and net income, with an extremely thin 0.8% operating margin and just 0.1x interest coverage indicating limited buffer against financing and operating pressure. Cash generation from operations is solid, but heavy capital spending drives materially negative free cash flow, while sub-1.0x liquidity ratios and a small equity base reduce financial flexibility.
Why Buy Aes Corp. Stock? AES Key Strengths
- Strong operating cash flow of $4.3B demonstrates underlying operational efficiency in collections
- Substantial asset base of $51.8B provides infrastructure and revenue generation capacity
- Maintained positive net income of $910M despite operational headwinds
- Strong operating cash flow generation of $4.31B
- Net income remained positive and slightly grew year over year
- Large asset base and essential-power business can support long-duration infrastructure cash flows
AES Stock Risks: Aes Corp. Investment Risks
- Negative free cash flow of -$1.6B indicates capital expenditures ($5.9B) far exceed operational cash generation, unsustainable long-term
- Critical liquidity crisis with current ratio of 0.77x and quick ratio of 0.69x below safe operating thresholds
- Operating margin collapsed to 0.8% with interest coverage at 0.1x, indicating inability to service debt from operations
- EPS declined 46.6% YoY while dilution continued, suggesting significant shareholder value destruction
- Revenue flat to declining with margin compression across gross, operating, and net metrics
- Operating profitability is very weak, with only $96M of operating income on $12.23B of revenue
- Free cash flow is deeply negative due to heavy capital expenditure needs
- Liquidity is tight with current and quick ratios below 1.0x, and interest coverage is extremely low
Key Metrics to Watch
- Free cash flow trajectory and path to positive generation
- Operating margin expansion or further compression
- Current ratio improvement and working capital management
- Debt refinancing activities and interest coverage ratio
- Free cash flow and capital expenditure intensity
- Operating margin and interest coverage
Aes Corp. (AES) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
AES Profit Margin, ROE & Profitability Analysis
AES vs Services Sector: How Aes Corp. Compares
How Aes Corp. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Aes Corp. Stock Overvalued? AES Valuation Analysis 2026
Based on fundamental analysis, Aes Corp. appears fundamentally strong relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Aes Corp. Balance Sheet: AES Debt, Cash & Liquidity
AES Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Aes Corp.'s revenue has grown significantly by 14% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.35 reflects profitable operations.
AES Revenue Growth, EPS Growth & YoY Performance
AES Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.3B | $504.0M | $0.71 |
| Q2 2025 | $2.9B | -$49.0M | $-0.08 |
| Q1 2025 | $2.9B | $46.0M | $0.07 |
| Q3 2024 | $3.3B | $231.0M | $0.32 |
| Q2 2024 | $2.9B | -$39.0M | $-0.06 |
| Q2 2022 | $2.7B | $28.0M | $0.04 |
| Q1 2022 | $2.6B | $115.0M | $0.16 |
| Q3 2021 | $2.5B | $223.0M | $0.32 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Aes Corp. Dividends, Buybacks & Capital Allocation
AES SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Aes Corp. (CIK: 0000874761)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AES
What is the AI rating for AES?
Aes Corp. (AES) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AES's key strengths?
Claude: Strong operating cash flow of $4.3B demonstrates underlying operational efficiency in collections. Substantial asset base of $51.8B provides infrastructure and revenue generation capacity. ChatGPT: Strong operating cash flow generation of $4.31B. Net income remained positive and slightly grew year over year.
What are the risks of investing in AES?
Claude: Negative free cash flow of -$1.6B indicates capital expenditures ($5.9B) far exceed operational cash generation, unsustainable long-term. Critical liquidity crisis with current ratio of 0.77x and quick ratio of 0.69x below safe operating thresholds. ChatGPT: Operating profitability is very weak, with only $96M of operating income on $12.23B of revenue. Free cash flow is deeply negative due to heavy capital expenditure needs.
What is AES's revenue and growth?
Aes Corp. reported revenue of $12.2B.
Does AES pay dividends?
Aes Corp. pays dividends, with $501.0M distributed to shareholders in the trailing twelve months.
Where can I find AES SEC filings?
Official SEC filings for Aes Corp. (CIK: 0000874761) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AES's EPS?
Aes Corp. has a diluted EPS of $1.26.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AES a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Aes Corp. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AES stock overvalued or undervalued?
Valuation metrics for AES: ROE of 22.4% (sector avg: 16%), net margin of 7.4% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy AES stock in 2026?
Our dual AI analysis gives Aes Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AES's free cash flow?
Aes Corp.'s operating cash flow is $4.3B, with capital expenditures of $5.9B. FCF margin is -13.3%.
How does AES compare to other Services stocks?
Vs Services sector averages: Net margin 7.4% (avg: 10%), ROE 22.4% (avg: 16%), current ratio 0.77 (avg: 1.5).