Should I Buy AES Stock in 2026?

Data-driven analysis and honest assessment for The AES Corporation

Analysis Updated:
HOLDMixed signals - suitable for existing holders

Current Price: $14.04P/E: 9.4

Decision Score

6.4/10

Hold

Based on 6 fundamental factors

Score Breakdown:

Valuation (20%)9/10

Very low P/E of 9.4 suggests undervaluation

Growth (20%)5/10

Slow growth of 0%

Profitability (20%)4/10

Thin margins (0% net)

Financial Health (15%)5/10

Financial health data limited

Cash Flow (15%)10/10

Excellent FCF yield of 22.0%

Insider Activity (10%)5/10

No recent insider activity

Key Investment Metrics

Current Price

$14.04

P/E Ratio

9.42

Revenue Growth

0.0%

Profit Margin

0.1%

Market Cap

$10.2B

Dividend Yield

0.05%

How AES Compares to Competitors

Understanding how AES stacks up against peers helps inform your investment decision.

How AES Compares to Peers

Upcoming Events for AES

+5 Reasons TO Buy AES

1. Attractively valued at 9.4x earnings

strong

A P/E ratio of 9.4 is below the market average of ~20x, suggesting the stock may be undervalued.

2. High free cash flow yield of 22.0%

strong

FCF yield above 5% means substantial cash generation for dividends, buybacks, or reinvestment.

-5 Reasons NOT to Buy AES

1. Thin profit margins of 0.1%

high risk

Low margins provide little cushion against cost increases or pricing pressure.

2. Low gross margins of 17%

medium risk

Margins below 30% indicate commodity-like pricing and input cost vulnerability.

3. Minimal revenue growth

low risk

Growth of 0.0% barely keeps pace with inflation.

Who Should Buy AES?

Investment Profile

Risk Level

Medium

Recommended Holding Period

3-5 years

Best For:

  • Value Investors

    P/E of 9.4 offers margin of safety

Not Suitable For:

  • Growth Investors

    Limited 0% growth may disappoint

  • Income-Focused Retirees

    Low 0.0% yield

Consider These Alternatives

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Pro tip: Compare AES directly with competitors using our comparison tool to see which stock better fits your criteria.

Get the Full Picture

Access AI-powered insights, DCF valuations, insider trading data, and real-time analysis for AES

Frequently Asked Questions

What is AES stock price today?

AES (The AES Corporation) stock is trading at $14.04 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).

Is AES stock going up or down today?

AES stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.

Should I buy AES stock now?

The decision to buy AES depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.

Is AES a buy, hold, or sell right now?

Our AI-powered analysis provides buy/hold/sell recommendations for AES based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.

Is AES stock overvalued or undervalued?

AES currently trades at a P/E ratio of 9.42, which may suggest attractive valuation. Our DCF calculator provides intrinsic value estimates to help determine if AES is fairly priced.

What is AES's P/E ratio?

AES has a price-to-earnings (P/E) ratio of 9.42, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.

What is AES's market cap?

AES (The AES Corporation) has a market capitalization of $10.20 billion, making it a mid-cap stock.

What is AES's price to book ratio?

AES trades at a price-to-book (P/B) ratio of 2.64, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.

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Disclaimer

This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.