American Electric Power Company, Inc. cash flow to debt ratio of 13.82% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

American Electric Power Company, Inc.'s free cash flow has increased -805.16% from $-966.30M last year to $6.81B, signaling increasing performance

American Electric Power Company, Inc.'s debt to equity ratio is 1.66, which means that the company's assets are unhealthy financed, signaling financial risk.

American Electric Power Company, Inc.'s debt has decreased relative to shareholder equity from 1.70 last year to 1.66 today, signaling strengthened financials

American Electric Power Company, Inc. has a net debt to EBITDA ratio of 5.32x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

American Electric Power Company, Inc.'s interest coverage ratio of 2.93 indicates that earnings with margin can cover interest payments on company debt

American Electric Power Company, Inc.'s profit margin has decreased (6.38%) in the last year from 14.90% to 13.95%, signaling decreasing performance

American Electric Power Company, Inc.'s short-term liabilities of $13.31B exceed its short-term assets of $6.05B, signaling financial risk

American Electric Power Company, Inc.'s return on assets of 2.58% is lower than the 5.00% threshold, indicating inefficient asset utilization

American Electric Power Company, Inc.'s return on equity of 10.01%, is lower than 15.00%, indicating bad performance

American Electric Power Company, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

American Electric Power Company, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

American Electric Power Company, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

American Electric Power Company, Inc. has a free cash flow yield of 10.19%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

American Electric Power Company, Inc.'s yearly earnings has increased 20.66% since last year from $2.97B to $3.58B, signaling increasing performance

American Electric Power Company, Inc.'s yearly revenue has increased 9.84% since last year from $19.92B to $21.88B, signaling increasing performance

ROIC 5.12% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

American Electric Power Company, Inc.'s 3-year revenue CAGR of 4.09% is positive, indicating growing revenue over the past 3 years

American Electric Power Company, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

American Electric Power Company, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

American Electric Power Company, Inc. has insufficient data to evaluate this check.

American Electric Power Company, Inc. has an earnings yield of 4.70%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

American Electric Power Company, Inc. is overvalued relative to its fair value price of 21.24 based on EBITDA multiple model

American Electric Power Company, Inc. has an EV/EBITDA ratio of 12.48x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

American Electric Power Company, Inc. is undervalued relative to its fair value price of 213.71 based on Earnings Fair Value model

American Electric Power Company, Inc. has a PEG-ratio over 1 which is considered overvalued

American Electric Power Company, Inc. has a price-to-book ratio of 2.00x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

American Electric Power Company, Inc. has a price-to-sales ratio of 2.97x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue