NYSE:AES
$12.30
(2/9 12:35PM)
+4.7%
| Open | $11.94 |
Mkt Cap | $7.8 Billion |
| High | $12.33 |
52Wk High | $15.44 |
| Low | $11.9 |
52Wk Low | $4.80 |
| Volume | 3.8 Million |
Avg Vol 10D | 8.4 Million |
Ockham's Rating/Recommendation Summary
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AES Revenue
As a value investing shop, we are interested in seeing how AES's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 1.07x and the low end of the range at 0.50x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for AES of 0.55x is well below its normal historic Price to Sales levels. At a price of $11.73, AES is 30% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.
AES Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. AES is significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for AES, the current level of Cash Earnings compared to its historical levels helps identify where AES is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 11.06 and a historical low Cash Earnings per share ratio of 5.65, an investor can relate where value becomes optimal.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for AES? From the Ockham perspective, we are looking specifically at AES to see if the market is recognizing the huge disparity between AES's past stock price to Cash Earnings ratio to today's levels. At a difference of 62% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at AES. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
AES Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely. While we do like to see companies with healthy and growing dividends, it is not appropriate for all companies, especially those focused on growth. In this regard, we regard AES as neutral because we do not have historical data for this company's dividends. We will being incorporating this into our analysis as soon as that data is available.
Slow Month for News Out of AES But Squawk Box Mentions Them
There has not been much to report from AES in the last few weeks at least, but Squawk Box talked about the stock recently.
Based on our methodology, The AES Corporation should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; AES has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… are you concerned about any of these negative credit ratings that we've seen for country AES cross the globe? Greece, but then also concerns about the united states and the ... …”
The AES Corporation (AES) Discussed on CNBC's Squawk On The Street
The AES Corporation is in the news. Find out how this impacts AES trading on Ockham Research.
Saying here. It goes through the numbers whirlpool had great numbers overall, even the top line numbers weren't that bad. Look at what they're saying, restructuring their business to AES aggressively align capacity to lower demand levels. >> what happened to cash for appliances in. >> where is that? >> mondayhoneywell also beat on the number but not the revenue >> they did have good guidance there's nothing really wrong with it. They're not aggressively coming out and saying things are getting better. Schlumberger, for example, they
“… to cash for appliances in. >> where is that? >> mondayhoneywell also beat on the number but not the revenue >> they did have good guidance there's nothing really wrong with it. They're not aggressively coming out and saying things are getting better. Schlumberger, for example, they …”
The AES Corporation (AES) Discussed on CNBC's Mad Money
The AES Corporation is in the news. Find out how this impacts AES trading on Ockham Research.
Buy asei until it goes lower. The name of this game is all week i'm giving you the stocks you would buy if the market -- there's nothing good that could happen for AES, nothing at all. Look, you go do your homework. You decide for yourself. Let's wait, please, for the you pick one after you listen the whole week if you like it. But when we get a decent pullback you're going to get a great entry point. With that disclaimer out of the way. I'm going to talk to you about asei's business. It's a pure play on x-ray machines that scan bombs, drugs, about 30% of the company's sales come from its z backscatter vans. Mobile x-ray systems housed in another 20% comes from the z large drive-thru x-ray systems. Asei's backscatter technologies is protected by a wall of this isn't the traditional x-ray where you get it from the it can detect just about and because the company's products are so high-tech they meaning more profitable on each what else do you need to know? Gets roughly 63% of its sales from the u.S. Government. It's got a funded backlog of 155 70% of which is expected to be
“… ease, for the you pick one after you listen the whole week if you like it. But when we get a decent pullback you're going to get a great entry point. With that disclaimer out of the way. I'm going to talk to you about asei's business. It's a pure play on x-ray machines that scan bombs, drugs, about 30% of the company's sales come from its z backscatter vans. Mobile x-ray systems housed in another 20% comes from the z large drive-thru x-ray systems. Asei's backscatter technologies is protected by a wall of this isn't the traditional x-ray where you get it from the it can detect just about and because the company's products are so high-tech they meaning more profitable on each what else do you need to know? Gets roughly 63% of its sales from the u.S. Government. It's got a funded backlog of 155 70% of which is expected to be …”
The AES Corporation (AES) Discussed on CNBC's Mad Money
The AES Corporation is in the news. Find out how this impacts AES trading on Ockham Research.
To develop batteries for electric vehicles. Batteries using the hybrid buses made by daimler and -- they make big systems for standby power and emergency services. AES the global utility is their so what do you need to know to make money on the deal? The company's offering 25.7 million shares at between $10 $10 $11.50 per share. That's the range right now. I suspect it's going to go they're using the money from the offering mainly for capital expenditures to build up their the company's cashing in, not cashing out. You know I like to see that. Lead underwriters, pristine. Morgan and goldman. Obviously, they have the book of business, you want to try to do by the way, that's the best possible pedigree for an ipo you could ever get from the customers and the investors and the brokers. It really is. This is a really smoking good so what should you be willing to pay for a123? We've got to compare hev, that's a fuel cell company, since neither aone nor hev is profitable yet we have to base them on their revenues they're bringing in. Assuming a123 gets a similar multiple to hev on its sales I think it deserves a premium because it has better customers
“… company's offering 25.7 million shares at between $10 $10 $11.50 per share. That's the range right now. I suspect it's going to go they're using the money from the offering mainly for capital expenditures to build up their the company's cashing in, not cashing out. You know I like to see that. Lead underwriters, pristine. Morgan and goldman. Obviously, they have the book of business, you want to try to do by the way, that's the best possible pedigree for an ipo you could ever get from the customers and the investors and the brokers. It really is. This is a really smoking good so what should you be willing to pay for a123? We've got to compare hev, that's a fuel cell company, since neither aone nor hev is profitable yet we have to base them on their revenues they're bringing in. Assuming a123 gets a similar multiple to hev on its sales I think it deserves a premium because it has better customers …”
The AES Corporation (AES) Discussed on CNBC's Fast Money
The AES Corporation is in the news. Find out how this impacts AES trading on Ockham Research.
Outside of that and reacting and really do spell the beginning of a trade war. Mr. Gutierrez, thank you so much for joining us. Carlos gutierrez. >> appreciate. Thank you, melissa. >> former commerce secretary as well as cnbc contributor. What do we do here? Do we stay away from these >> along those lines AES corp. Was up 4 1/2%. China investment corp. Said they might tack a stake. They speak at a conference this wednesday in san francisco. Thursday in san francisco. Fair valuations you might hear what they have to say. That would be my interesting >> do not move. More trades on oil, bank of america, and under armour when we come back from this very quick break. Some said it was a match made in heaven, but did he end up signing his soul to the devil well, it sparked the crisis one there's another anniversary that you might have missed. We trade the wall street that remains next.
“… re? Do we stay away from these >> along those lines AES corp. Was up 4 1/2%. China investment corp. Said they might tack a stake. They speak at a conference this wednesday in san francisco. Thursday in san francisco. Fair valuations you might hear what they have to say. That would be my interesting >> do not move. More trades on oil, bank of america, and under armour when we come back from this very quick break. Some said it was a match made in heaven, but did he end up signing his soul to the devil well, it sparked the crisis one there's another anniversary that you might have missed. We trade the wall street that remains next. …”
The AES Corporation (AES) Discussed on CNBC's Power Lunch
The AES Corporation is in the news. Find out how this impacts AES trading on Ockham Research.
>> it's star search. How is it different from "star >> it's a fun show to watch. >>> let's find out how the hmo and health stocks are on the back of the president AES >> help by obama would be -- e today, the hmo group, very you can see that it is at its best levels of the session. There was the little in-- in the 10-1 out performance, my friends, for the hmos today. That is wall street's read on the speech last night. If you look at what is going to be remembered when all is said and done, is it the president's
“… best levels of the session. There was the little in-- in the 10-1 out performance, my friends, for the hmos today. That is wall street's read on the speech last night. If you look at what is going to be remembered when all is said and done, is it the president's …”
The AES Corporation (AES) Discussed on CNBC's Mad Money
The AES Corporation is in the news. Find out how this impacts AES trading on Ockham Research.
At least it's got as much hospitality as a fast food joint focused on selling cheap stuff you have. It just needed to start capitalizing on that fact, something that's finally happening though it's ban long AES's been a wendy's best in show of my fast food panoply of mcdonald's and burger king and I think the fries are badly underrated. The bottom lint turn in wendy's is real even if I am in the minority judging by the lethargic stock price. I think the $5 fast food stock could go much higher thanks to the move in breakfast, international growth opportunities, plans for dual branding with wendy's and it's getting better. The next big fast food stock. To make it smooth to higher james in south carolina, james. >> caller: jim, how are you? How are you?
“… d panoply of mcdonald's and burger king and I think the fries are badly underrated. The bottom lint turn in wendy's is real even if I am in the minority judging by the lethargic stock price. I think the $5 fast food stock could go much higher thanks to the move in breakfast, international growth opportunities, plans for dual branding with wendy's and it's getting better. The next big fast food stock. To make it smooth to higher james in south carolina, james. >> caller: jim, how are you? How are you? …”
The AES Corporation (AES) Discussed on CNBC's Closing Bell
The AES Corporation is in the news. Find out how this impacts AES trading on Ockham Research.
Profit to $303 million. Dea 15% decline in revenue. The company also raising its guidance, on lower tax rate and favorable commodity movements. AES shares trading up by more than 5 1/2%. "new york times" says the saim "boston globe" you a possibility but not a certainty. It has hired goldman sachs to explore the sale of the unit that runs the globe. "new york times" shares trading up a penny essentially flat on the session. Banana and fresh produce reporting a 46% jump to $89 million because of tighter cost the company also says its full-year earnings will be significantly improved due to higher operating margins and stronger banana and salad sales. Chiquita brand shares trading up on the day by about 16%.
“… not a certainty. It has hired goldman sachs to explore the sale of the unit that runs the globe. "new york times" shares trading up a penny essentially flat on the session. Banana and fresh produce reporting a 46% jump to $89 million because of tighter cost the company also says its full-year earnings will be significantly improved due to higher operating margins and stronger banana and salad sales. Chiquita brand shares trading up on the day by about 16%. …”
The AES Corporation (AES) Discussed on CNBC's Squawk On The Street
The AES Corporation is in the news. Find out how this impacts AES trading on Ockham Research.
Of 21 rising stocks. Only bank of america can't get it down here today. Hewlett-packard initiated a buy. $52 price tag, gives you 25% upside from these levels. Nesto's favorite, AES, higher again today. 3.Of%. Blowout quarter, 28 cents versus 22 cents on the estimate. Revenues beating. And the full-year forecast, doing what investors like the most, pumping it up. Erin, back to you. >> thank you very much. By the way, mark, it appears that president obama has time to cash for clunkers incentive. I know you were worried he might veto it. >>> nordic america out with second quarter results this basically break even. Very small. But the quote from the company's statement may say the most. They did have to cut their
“… the estimate. Revenues beating. And the full-year forecast, doing what investors like the most, pumping it up. Erin, back to you. >> thank you very much. By the way, mark, it appears that president obama has time to cash for clunkers incentive. I know you were worried he might veto it. >>> nordic america out with second quarter results this basically break even. Very small. But the quote from the company's statement may say the most. They did have to cut their …”
The AES Corporation (AES) Discussed on CNBC's Fast Money
The AES Corporation is in the news. Find out how this impacts AES trading on Ockham Research.
Very conservative at this point. Gives me international exposure. I really like the fact that, you know, it's a bite stock AES's a vice stock. I think the emerging markets are going to come back sooner. All international play has absolutely nothing to do with the u.S. Beyond that I think people are going to continue to trade down. I think this is a situation
“… with the u.S. Beyond that I think people are going to continue to trade down. I think this is a situation …”