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Fundamental analysis: Ameren Corporation (AEE)

Awarener score: 5.9

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

• Business growth has been almost stagnant. It's been encouraging in relation to peer companies.
• Ameren Corporation business trend stability is good. The higher the stability, the lower the risk. It looks somewhat worse than rivals.

Margins score: 8.2

• AEE profit margins -on goods and services sold- are usually good. They stand somewhat better than rival companies.
• Business profit on sales tends to be excellent. It's encouraging in relation to competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain excellent in relation to peers.
• Earnings -before income taxes and interests on loans taken- tend to be very good in relation to total revenues. They're still well ranked against similar companies.
• Profits -before income taxes- are usually very good considering total sales, and remain great when measured against rivals.
• Total net profit tends to be very good when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 3.6

• Ameren Corporation profit -on goods and services sold- has been growing at a low pace. It's been rather normal in relation to competitors.
• In recent years, earnings growth -on operations- have been almost stagnant, which has been somewhat worse than comparable firms.
• Profits -available to repay debt and purchase properties- have been growing at a very low pace, which compares below average when measured against peer enterprises.
• Growth on earnings -before income taxes and interests on loans taken- have been almost stagnant. It turns to be in a weak position compared to similar stocks.
• In past years, growth on profits -before income taxes- was almost stagnant. It was somewhat worse than rivals.
• In the previous years, growth on total net profit has been very low, and almost average when measured against peer companies.
• Earnings per share have been almost stagnant in past years. It's been close to average when compared to industry peers.

Miscellaneous score: 8.0

• AEE managed to pay little to no income taxes on profits made in the past years. It's been somewhat worse than peers.
• The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
• We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 7.2

• Ameren Corporation usually gets good returns on the resources it controls. It proves similar to peer firms.
• The company normally gets good proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
• There's usually abundant profitability -in relation to owned resources-. It ranks great when measured against competitors.
• In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's similar to comparable enterprises.

Usage of Funds score: 4.6

• AEE usually uses a very large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is heavy. It stands similar to rival firms.
• The company is usually largely investing in new property, plant, and equipment, to expand its operating capabilities, which is top tier when measured against industry peers.
• In the past twelve months it paid some dividends, considering the current stock price. It came somewhat worse than competitors.
• Dividend payments have been more or less stable in recent years. The company has behaved rather normal in relation to similar firms.
• The company generates very few genuine funds. Dividend payments are usually on borrowed money, which isn't sustainable in the long run. Unless business prospects improve greatly, future payments could be at risk. Sustainability looks bottom tier against comparable companies.
• The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains close to average when compared to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in a very weak position compared to rivals.
• We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 5.3

• Ameren Corporation intangible assets (like brands and goodwill) represent a very small portion of resources controlled, according to accounting books, which is mostly safe. It happens to be weak when measured against peer companies.
• The company has somewhat lower short-term resources than short-term obligations. Unless it's part of the business model, there might some liquidity concerns. It turns to be a slight improvement compared to similar firms.
• Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains better than most rival firms.
• Controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks encouraging in relation to rivals.
• For every dollar of short-term obligations, the company has less than a dollar of cash and short-term receivables. It's in good shape compared to peer firms.
• For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is bottom tier against similar enterprises.
• Usually, sales are on less than a month credit. It still ranks similar to peers.
• Normally has approximately somewhat less than one month of sales worth in inventory. It comes up as in good shape compared to competitors.
• On average, it takes close to one month from the purchase to charging customers. It happens to be slightly better than peers.
• On average pays suppliers before a month from the purchase. It ranks last-in-rank when measured against industry peers.
• The company pays its suppliers less than one month before charging its customers, so there's little money invested in working capital. It's in a weak position compared to similar companies.
• Net interest expenses consume a significant portion of usual business earnings, but are mostly bearable. It stands slightly better than rival firms.
• Business earnings have usually been very good when measured against loans taken. Cutting back reinvesting in the business, it could take less than two years to repay the obligations with current profitability. It ranks top tier when measured against comparable enterprises.
• Last twelve months revenues were non-significant in relation to fixed assets. The company must improve income to take advantage of used resources. It looks in good shape compared to similar firms.
• Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly better than peer companies.

Valuation score: 5.2

• Ameren Corporation looks somewhat expensive in relation to profits and financial position. It happens to be great when measured against competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a very weak position compared to peers.
• In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could get, it reinvested in the business, which stands slightly worse than similar companies.
• The company usually consumes more funds than can genuinely generate. Business needs are meet by borrowing money or consuming preexistent cash, which can only keep up until a certain limit. Unless the company is driving business growth, genuine profitability may be brought into question. It's still last-in-rank when measured against industry firms.
• In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up in a weak position compared to peer ventures.
• The company is somewhat indebted, loan repayment needs to be taken into account. It looks better than most similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation is somewhat high. Improvement expectations are already in the stock price, which presents some risks. It ranks almost average when measured against peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a weak position compared to rival firms.
• The relation between the stock price and accounting book value is significantly high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains worse than most peer firms.
• In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be great when measured against industry peers.
• In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still impressive in relation to peer companies.

Total score: 6.0

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Awarener score: 5.9

Conclusion

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