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Overview and Description of Major Subsidiaries AEP was incorporated under the laws of the State of New York in 1906 and reorganized in 1925. It is a public utility holding company that directly owns all of the outstanding common stock of the public utility subsidiaries identified below.
24.31% operating margin is above average. ROIC at 6.75%. Note that capital returns lag the margin, the business may be capital-intensive despite high margins.
Revenue up 10.9% YoY with margins expanding 2.5pp. However, free cash flow softened 45%, worth monitoring whether this is timing or structural.
Free cash flow declined 45% versus the prior year, cash generation momentum has weakened. Net debt of $49.25B represents 14.1x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$22.43B
▲ +10.9% YoY
Net Income (TTM)
$3.65B
▲ +20.7% YoY
Op. Margin
24.05%
▲ +2.5pp YoY
ROIC
6.70%
▲ +2.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$2.60B
▼ -45.5% YoY
Op. Cash Flow (TTM)
$7.01B
▲ +2.1% YoY
Net Debt
$51.26B
Cash & Equiv.
$516M
5Y CAGR: +8.0%
5Y CAGR: -7.7%
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