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AEP (American Electric Power Co) Piotroski F-Score : 6 (As of Oct. 31, 2024)


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What is American Electric Power Co Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

American Electric Power Co has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for American Electric Power Co's Piotroski F-Score or its related term are showing as below:

AEP' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 5   Max: 7
Current: 6

During the past 13 years, the highest Piotroski F-Score of American Electric Power Co was 7. The lowest was 3. And the median was 5.


American Electric Power Co Piotroski F-Score Historical Data

The historical data trend for American Electric Power Co's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

American Electric Power Co Piotroski F-Score Chart

American Electric Power Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.00 6.00 7.00 4.00 5.00

American Electric Power Co Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 3.00 5.00 5.00 6.00

Competitive Comparison of American Electric Power Co's Piotroski F-Score

For the Utilities - Regulated Electric subindustry, American Electric Power Co's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


American Electric Power Co's Piotroski F-Score Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, American Electric Power Co's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where American Electric Power Co's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun24) TTM:Last Year (Jun23) TTM:
Net Income was 953.7 + 336.2 + 1003.1 + 340.3 = $2,633 Mil.
Cash Flow from Operations was 1794.1 + 1336.5 + 1442.2 + 1462 = $6,035 Mil.
Revenue was 5341.7 + 4577.2 + 5025.7 + 4579.2 = $19,524 Mil.
Gross Profit was 3259.4 + 2593.2 + 3132.4 + 2859.2 = $11,844 Mil.
Average Total Assets from the begining of this year (Jun23)
to the end of this year (Jun24) was
(96002.1 + 95125.6 + 96684 + 97744.6 + 99622.6) / 5 = $97035.78 Mil.
Total Assets at the begining of this year (Jun23) was $96,002 Mil.
Long-Term Debt & Capital Lease Obligation was $40,487 Mil.
Total Current Assets was $6,653 Mil.
Total Current Liabilities was $10,163 Mil.
Net Income was 683.7 + 384.3 + 397 + 521.2 = $1,986 Mil.

Revenue was 5526.1 + 4881.1 + 4690.9 + 4372.5 = $19,471 Mil.
Gross Profit was 3116.1 + 2620.4 + 2667.2 + 2607.9 = $11,012 Mil.
Average Total Assets from the begining of last year (Jun22)
to the end of last year (Jun23) was
(90861.3 + 91249.4 + 93403.3 + 94517.9 + 96002.1) / 5 = $93206.8 Mil.
Total Assets at the begining of last year (Jun22) was $90,861 Mil.
Long-Term Debt & Capital Lease Obligation was $37,296 Mil.
Total Current Assets was $8,041 Mil.
Total Current Liabilities was $13,267 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

American Electric Power Co's current Net Income (TTM) was 2,633. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

American Electric Power Co's current Cash Flow from Operations (TTM) was 6,035. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun23)
=2633.3/96002.1
=0.02742961

ROA (Last Year)=Net Income/Total Assets (Jun22)
=1986.2/90861.3
=0.02185969

American Electric Power Co's return on assets of this year was 0.02742961. American Electric Power Co's return on assets of last year was 0.02185969. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

American Electric Power Co's current Net Income (TTM) was 2,633. American Electric Power Co's current Cash Flow from Operations (TTM) was 6,035. ==> 6,035 > 2,633 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun23 to Jun24
=40487.3/97035.78
=0.41724094

Gearing (Last Year: Jun23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun22 to Jun23
=37295.6/93206.8
=0.40013819

American Electric Power Co's gearing of this year was 0.41724094. American Electric Power Co's gearing of last year was 0.40013819. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun24)=Total Current Assets/Total Current Liabilities
=6652.8/10162.7
=0.65462918

Current Ratio (Last Year: Jun23)=Total Current Assets/Total Current Liabilities
=8041.3/13267.1
=0.60610834

American Electric Power Co's current ratio of this year was 0.65462918. American Electric Power Co's current ratio of last year was 0.60610834. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

American Electric Power Co's number of shares in issue this year was 530.141. American Electric Power Co's number of shares in issue last year was 516.243. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=11844.2/19523.8
=0.60665444

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=11011.6/19470.6
=0.56555011

American Electric Power Co's gross margin of this year was 0.60665444. American Electric Power Co's gross margin of last year was 0.56555011. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun23)
=19523.8/96002.1
=0.20336847

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun22)
=19470.6/90861.3
=0.21428925

American Electric Power Co's asset turnover of this year was 0.20336847. American Electric Power Co's asset turnover of last year was 0.21428925. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+0+1+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

American Electric Power Co has an F-score of 6 indicating the company's financial situation is typical for a stable company.

American Electric Power Co  (NAS:AEP) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


American Electric Power Co Piotroski F-Score Related Terms

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American Electric Power Co Business Description

Address
1 Riverside Plaza, Columbus, OH, USA, 43215-2373
American Electric Power is one of the largest regulated utilities in the United States, providing electricity generation, transmission, and distribution to more than 5 million customers in 11 states. About 42% of AEP's of capacity is coal, with the remainder from a mix of natural gas (27%), renewable energy and hydro (21%), nuclear (8%), and demand response (2%). Vertically integrated utilities, transmission and distribution, and generation and marketing support earnings.
Executives
Antonio P Smyth officer: Executive Vice President 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Greg B Hall officer: Executive Vice President 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Daniel G. Stoddard director 5000 DOMINION BOULEVARD, GLEN ALLEN VA 23060
Kate Sturgess officer: Controller, CAO 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770
David Matthew Feinberg officer: Senior Vice President C/O ALLEGHENY ENERGY, INC., 800 CABIN HILL DRIVE, GREENSBURG PA 15601
Christian T Beam officer: Executive Vice President 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Nicholas K Akins officer: Executive Vice President AMERICAN ELECTRIC POWER COMPANY, INC., 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Ann P Kelly officer: Executive Vice President & CFO 460 NORTH GULPH ROAD, KING OF PRUSSIA PA 19406
Peggy Simmons officer: Executive Vice President 212 E 6TH ST, TULSA OK 74119
Raja Sundararajan officer: Executive Vice President 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Donna James director ONE MIRANOVA PLACE, SUITE 1040, COLUMBUS OH 43215
Therace Risch officer: Senior Vice President 6501 LEGACY DRIVE, PLANO TX 75024
Charles E Zebula officer: Executive Vice President 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Paul Iii Chodak officer: Executive Vice President 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Julia A Sloat officer: Executive VP, CFO 1 RIVERSIDE PLAZA, COLUMBUS OH 43215