AES Operating Margin vs. Revenue

AES Stock  EUR 15.32  0.20  1.32%   
Based on AES's profitability indicators, The AES may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in April. Profitability indicators assess AES's ability to earn profits and add value for shareholders.
For AES profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AES to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well The AES utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AES's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of The AES over time as well as its relative position and ranking within its peers.
  
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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.

AES Revenue vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining AES's current stock value. Our valuation model uses many indicators to compare AES value to that of its competitors to determine the firm's financial worth.
The AES is number one stock in operating margin category among related companies. It is the top company in revenue category among related companies totaling about  68,016,172,507  of Revenue per Operating Margin. . Comparative valuation analysis is a catch-all model that can be used if you cannot value AES by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for AES's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the AES's earnings, one of the primary drivers of an investment's value.

AES Revenue vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

AES

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.19 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

AES

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
12.62 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

AES Revenue vs Competition

The AES is the top company in revenue category among related companies. Market size based on revenue of Utilities - Diversified industry is presently estimated at about 276.51 Billion. AES holds roughly 12.62 Billion in revenue claiming about 5% of Utilities - Diversified industry.

AES Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in AES, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AES will eventually generate negative long term returns. The profitability progress is the general direction of AES's change in net profit over the period of time. It can combine multiple indicators of AES, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
The AES Corporation operates as a diversified power generation and utility company. The AES Corporation was founded in 1981 and is headquartered in Arlington, Virginia. AES CORP operates under Utilities - Diversified classification in Germany and is traded on Frankfurt Stock Exchange. It employs 9000 people.

AES Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on AES. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of AES position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the AES's important profitability drivers and their relationship over time.

Use AES in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if AES position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AES will appreciate offsetting losses from the drop in the long position's value.

AES Pair Trading

The AES Pair Trading Analysis

The ability to find closely correlated positions to AES could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AES when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back AES - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling The AES to buy it.
The correlation of AES is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as AES moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AES moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for AES can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your AES position

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 Farming Thematic Idea Now

Farming
Farming Theme
Companies producing farming products and providing services for farmers. The Farming theme has 45 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 Farming Theme or any other thematic opportunities.
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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:
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You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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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.
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To fully project AES's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of AES at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include AES's income statement, its balance sheet, and the statement of cash flows.
Potential AES investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although AES investors may work on each financial statement separately, they are all related. The changes in AES's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on AES's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.