AES Corp. Scores 77% on Contrarian Investor Model

AES Corp. achieves a 77% rating based on fundamentals. Despite challenges, such as EPS growth rate and pre-tax profit margins, the stock shows potential through its favorable P/E ratio and return on equity. Investors may find it appealing if fundamentals improve.

Date: 12-03-2025

AI Rating: 5

Overview of AES Corp's Performance Metrics

AES Corp has garnered a 77% rating on the Contrarian Investor model, which is generally favorable, but there are several areas of concern that could impact stock perceptions negatively.

Earnings Per Share (EPS): The stock fails the EPS Growth Rate test, indicating a lack of growth potential in earnings, which can be a significant red flag for potential investors looking for companies with strong upward trends.

Return on Equity (ROE): AES Corp has passed the ROE criteria, suggesting that the company is efficiently utilizing shareholder equity to generate profits. This could attract investors who prioritize ROE as a key indicator of investment quality.

Profit Margins: The company did not meet expectations on Pre-Tax Profit Margins, which could indicate challenges in controlling costs or generating sufficient revenue, affecting overall profitability.

Debt Levels: The company's high debt-to-equity ratio raises concerns. High debt levels can increase risk and financial vulnerability, leading to cautious sentiment among investors.

Overall, while the current fundamental rating (77%) is not dismal, the failing marks in EPS growth, profit margins, and debt levels suggest that potential investors should approach with caution. Significant improvements in these areas would be required for a more favorable outlook in stock valuations.

Stocks: AES