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Fundamental analysis: Ameren Corporation (AEE)

Awarener score: 5.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Modest), the business stability (Very good) and growth (Poor), and the company's inclination to return cash to the stockholders (Average).

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: 5.5

  • Business has been shrinking. It's been weak when measured against peer companies.
  • Ameren Corporation business trend stability is very 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 slightly better than rival companies.
  • Business profit on sales tends to be excellent. It's great when measured against 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 more than average in relation to rivals.
  • Total net profit tends to be very good when confronted to sales. Company stands encouraging in relation to comparable firms.

Growth score: 3.1

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

Miscellaneous score: 5.0

  • AEE had to pay some income taxes in relation to profits made in the past years. It's been mediocre against 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: 7.0

  • 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 a slight improvement compared to similar companies.
  • Profitability -in relation to owned resources- is usually quite good. It ranks similar to 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 almost average when measured against comparable enterprises.

Usage of Funds score: 5.1

  • AEE usually uses a modest portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments isn't too high. It stands almost average when measured against rival firms.
  • The company is usually largely investing in new property, plant, and equipment, to expand its operating capabilities, which is great when measured against industry peers.
  • In the past twelve months it paid some dividends, considering the current stock price. It came worse than most competitors.
  • Dividend payments have been more or less stable in recent years. The company has behaved lacking compared 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 rather normal in relation 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: 4.1

  • 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 similar to peer companies.
  • The company has lower short-term resources than short-term obligations. Unless it's part of the business model, there might be liquidity concerns. It turns to be in a weak position compared to similar firms.
  • Roughly a third of resources controlled were provided for with financial debt. Creditors have claims on the company. It remains somewhat better than rival firms.
  • Controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks below average when measured against rivals.
  • For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's lacking 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 a month credit. It still ranks almost average when measured against peers.
  • Normally has approximately somewhat more than two months of sales worth in inventory. It comes up as in a very weak position compared to competitors.
  • On average, it takes higher than three months from the purchase to charging customers. It happens to be mediocre against peers.
  • On average pays suppliers during the first couple of weeks from the purchase. It ranks almost average when measured against industry peers.
  • The company pays its suppliers roughly three months before charging its customers, so there's sufficient money invested in working capital. It's in a very weak position compared to similar companies.
  • Net interest expenses consume a portion of usual business earnings, but are bearable. It stands well ranked against rival firms.
  • Business earnings have usually been low when measured against loans taken. Even cutting back reinvesting in the business, it could take more than seven years to repay the obligations with current profitability. It ranks similar to 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 a disappointment compared to similar firms.
  • Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still mediocre against peer companies.

Valuation score: 4.5

  • Ameren Corporation looks very expensive in relation to profits and financial position. It happens to be almost average 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 lacking compared to peers.
  • In the past twelve months, the company consumed funds. Either it reinvested in the business or genuine fund generation might be challenging, which stands better than most 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 substantially worse when measured against industry firms.
  • In the past twelve months, the company hasn't rewarded investors, considering both dividends and share on the pie of earnings. It came up in a very weak position compared to peer ventures.
  • The company is indebted, it should focus on loan repayment. It looks slightly better than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is high. Substantial improvement expectations are already in the stock price, which is somewhat risky. It ranks below 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 very weak position compared to rival firms.
  • The relation between the stock price and accounting book value is high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains somewhat worse than peer firms.
  • In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be weak when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a good earnings power ability when measured against the current stock price and financial position. It's still in a very weak position compared to peer companies.

Total score: 5.3


AEE logos

Company at a glance: Ameren Corporation (AEE)

Sector, industry: Utilities, Utilities—Regulated Electric

Market Cap: 23.02 billions

Revenues TTM: 6.96 billions

Ameren Corporation, together with its subsidiaries, operates as a public utility holding company in the United States. It operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. The company engages in the rate-regulated electric generation, transmission, and distribution activities; and rate-regulated natural gas distribution and transmission businesses. It primarily generates electricity through coal, nuclear, and natural gas, as well as renewable sources, such as hydroelectric, wind, methane gas, and solar. The company serves residential, commercial, and industrial customers. Ameren Corporation was founded in 1881 and is headquartered in St. Louis, Missouri.

Awarener score: 5.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Modest), the business stability (Very good) and growth (Poor), and the company's inclination to return cash to the stockholders (Average).