The Aes Stock Buy Hold or Sell Recommendation

AES Stock  USD 17.93  0.68  3.94%   
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding The AES is 'Hold'. Macroaxis provides AES buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding AES positions. The advice algorithm takes into account all of AES's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting AES's buy or sell advice are summarized below:
Real Value
17.47
Target Price
22.6
Hype Value
17.93
Market Value
17.93
Naive Value
18.27
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell The AES given historical horizon and risk tolerance towards AES. When Macroaxis issues a 'buy' or 'sell' recommendation for The AES, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out AES 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.
In addition, we conduct extensive research on individual companies such as AES and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards The AES. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income.

Execute AES Buy or Sell Advice

The AES recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on The AES. Macroaxis does not own or have any residual interests in The AES or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute AES's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell AESBuy AES
Hold

Market Performance

Very WeakDetails

Volatility

Not too volatileDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Actively responds to the marketDetails

Investor Sentiment

InterestedDetails

Analyst Consensus

Strong BuyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

UnavailableDetails
For the selected time horizon The AES has a Risk Adjusted Performance of (0.01), Jensen Alpha of (0.31), Total Risk Alpha of (0.56) and Treynor Ratio of (0.03)
Our trade advice tool can cross-verify current analyst consensus on AES and to analyze the company potential to grow in the current economic cycle. To make sure AES is not overpriced, please confirm all AES fundamentals, including its shares owned by insiders, cash and equivalents, target price, as well as the relationship between the price to sales and book value per share . Given that AES has a price to book of 7.43 X, we suggest you to validate The AES market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

AES Trading Alerts and Improvement Suggestions

AES generated a negative expected return over the last 90 days
Over 94.0% of the company shares are held by institutions such as insurance companies
On 15th of February 2024 AES paid $ 0.1725 per share dividend to its current shareholders
Latest headline from zacks.com: Is Invesco SP 500 Equal Weight Utilities ETF a Strong ETF Right Now

AES Returns Distribution Density

The distribution of AES's historical returns is an attempt to chart the uncertainty of AES's future price movements. The chart of the probability distribution of AES daily returns describes the distribution of returns around its average expected value. We use The AES price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of AES returns is essential to provide solid investment advice for AES.
Mean Return
-0.06
Value At Risk
-3.32
Potential Upside
3.88
Standard Deviation
2.17
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of AES 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.

AES Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as AES is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading The AES backward and forwards among themselves. AES's institutional investor refers to the entity that pools money to purchase AES's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Massachusetts Financial Services Company2023-12-31
9.4 M
Wellington Management Company Llp2023-12-31
8.4 M
Amvescap Plc.2023-12-31
7.6 M
M&g Investment Management Ltd2023-12-31
M
Northern Trust Corp2023-12-31
6.2 M
Clearbridge Advisors, Llc2023-12-31
6.2 M
Charles Schwab Investment Management Inc2023-12-31
6.1 M
Ci Investments Inc2023-12-31
5.2 M
Electron Capital Partners, Llc2023-12-31
5.1 M
Vanguard Group Inc2023-12-31
87.8 M
Capital World Investors2023-12-31
71.3 M
Note, although AES's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

AES Cash Flow Accounts

201920202021202220232024 (projected)
Change To Inventory28M(20M)(93M)(417M)306M321.3M
Change In Cash(431M)255M(343M)603M(114M)(108.3M)
Free Cash Flow61M855M(214M)(1.8B)(4.7B)(4.5B)
Other Non Cash Items324M208M(134M)2.5B1.7B1.8B
Dividends Paid362M381M401M422M(444M)(421.8M)
Capital Expenditures2.4B1.9B2.1B4.6B7.7B8.1B
Net Income478M152M(951M)(505M)242M232.7M
End Period Cash Flow1.6B1.8B1.5B2.1B1.8B1.4B
Depreciation1.0B1.1B1.1B1.1B1.1B903.9M
Investments(428M)(358M)(330M)(5.8B)(7.7B)(7.3B)
Change Receivables73M48M(170M)(532M)(478.8M)(454.9M)
Net Borrowings165M(166M)(5M)617M709.6M745.0M
Change To Netincome982M1.4B2.6B2.0B2.3B2.5B

AES 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 AES or Independent Power and Renewable Electricity Producers 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 AES'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 AES 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 NYSE Composite
-0.31
β
Beta against NYSE Composite1.96
σ
Overall volatility
2.25
Ir
Information ratio -0.09

AES Volatility Alert

The AES exhibits very low volatility with skewness of -0.05 and kurtosis of -0.11. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure AES'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 AES'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.

AES Fundamentals Vs Peers

Comparing AES'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 AES's direct or indirect competition across all of the common fundamentals between AES and the related equities. This way, we can detect undervalued stocks with similar characteristics as AES or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of AES's fundamental indicators could also be used in its relative valuation, which is a method of valuing AES by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare AES to competition
FundamentalsAESPeer Average
Return On Equity-0.0285-0.31
Return On Asset0.0336-0.14
Profit Margin0.02 %(1.27) %
Operating Margin0.14 %(5.51) %
Current Valuation38.16 B16.62 B
Shares Outstanding710.81 M571.82 M
Shares Owned By Insiders0.50 %10.09 %
Shares Owned By Institutions94.00 %39.21 %
Number Of Shares Shorted11.22 M4.71 M
Price To Earning430.16 X28.72 X
Price To Book7.43 X9.51 X
Price To Sales0.97 X11.42 X
Revenue12.67 B9.43 B
Gross Profit2.55 B27.38 B
EBITDA(189 M)3.9 B
Net Income242 M570.98 M
Cash And Equivalents1.37 B2.7 B
Cash Per Share3.33 X5.01 X
Total Debt27.09 B5.32 B
Debt To Equity4.07 %48.70 %
Current Ratio1.29 X2.16 X
Book Value Per Share2.46 X1.93 K
Cash Flow From Operations3.03 B971.22 M
Short Ratio1.12 X4.00 X
Earnings Per Share0.34 X3.12 X
Price To Earnings To Growth1.26 X4.89 X
Target Price21.83
Number Of Employees9.6 K18.84 K
Beta1.06-0.15
Market Capitalization12.26 B19.03 B
Total Asset44.8 B29.47 B
Retained Earnings(1.39 B)9.33 B
Working Capital(3.08 B)1.48 B
Note: Acquisition by Paul Freedman of 15408 shares of AES subject to Rule 16b-3 [view details]

AES Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as AES . 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 AES Buy or Sell Advice

When is the right time to buy or sell The AES? Buying financial instruments such as AES 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.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total18.7B23.5B27.1B18.8B
Total Assets33.0B38.4B44.8B33.3B

Use Investing Ideas to Build Portfolios

In addition to having AES in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Construction Thematic Idea Now

Construction
Construction Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Construction theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Construction Theme or any other thematic opportunities.
View All  Next Launch
When determining whether AES is a strong investment it is important to analyze AES's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact AES's future performance. For an informed investment choice regarding AES Stock, refer to the following important reports:
Check out AES 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 that the AES information on this page should be used as a complementary analysis to other AES's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

Complementary Tools for AES Stock analysis

When running AES's price analysis, check to measure AES's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy AES is operating at the current time. Most of AES's value examination focuses on studying past and present price action to predict the probability of AES's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move AES's price. Additionally, you may evaluate how the addition of AES to your portfolios can decrease your overall portfolio volatility.
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Fundamental Analysis
View fundamental data based on most recent published financial statements
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Stocks Directory
Find actively traded stocks across global markets
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Is AES's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of AES. If investors know AES will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about AES listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.46)
Dividend Share
0.67
Earnings Share
0.34
Revenue Per Share
18.936
Quarterly Revenue Growth
(0.03)
The market value of AES is measured differently than its book value, which is the value of AES that is recorded on the company's balance sheet. Investors also form their own opinion of AES's value that differs from its market value or its book value, called intrinsic value, which is AES's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because AES's market value can be influenced by many factors that don't directly affect AES's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between AES's value and its price as these two are different measures arrived at by different means. Investors typically determine if AES is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AES's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.