AES

Utilities

The AES Corporation · Independent Power Producers · $10B

UQS Score — Balanced Preset
37.8
Below Average

The AES Corporation scores 37.8/100 using the Balanced preset.

UQS vs Utilities Sector
AES
37.8
Sector avg
43.5
Quality
Neutral
Moat
Weak
Growth
Weak
Risk
Weak
Valuation
Attractive

What is The AES Corporation?

The AES Corporation is a global diversified power generation and utility company headquartered in Arlington, Virginia. Operating across multiple continents, AES serves residential, commercial, industrial, and governmental customers through both generation assets and regulated utility businesses.

AES generates and sells electricity through a broad portfolio of power plants and utility operations spanning the United States, Latin America, Europe, and Asia. The company earns revenue by selling power to utilities, industrial users, and intermediaries, as well as distributing electricity directly to end-use customers. Its generation mix includes conventional fuels alongside a growing renewables and energy storage segment, giving it exposure to both legacy infrastructure and the energy transition.

Incorporated in 1981 and formerly known as Applied Energy Services, Inc., AES adopted its current name in April 2000.

  • Thermal and renewable power generation across coal, gas, hydro, wind, and solar
  • Regulated electricity distribution and transmission utilities
  • Energy storage and battery solutions
  • Landfill gas and biomass generation
  • Wholesale electricity sales across international markets

Is AES a Good Stock to Buy?

UQS Score rates AES as Below Average overall, reflecting broad weakness across most of its five evaluation pillars.

The one area where AES stands out relative to its profile is Valuation, which is rated Attractive — suggesting the market may already be pricing in many of the company's challenges. This could be relevant for investors focused on entry-point considerations.

Quality, Moat, Growth, and Risk are all rated Weak, pointing to structural headwinds including limited competitive differentiation, constrained earnings quality, and meaningful balance-sheet and operational risks common in capital-intensive global utilities.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does AES pay dividends?

Yes — The AES Corporation pays a dividend.

AES pays a regular dividend, consistent with the income-oriented nature of the utilities sector. Capital-intensive power companies often return cash to shareholders through dividends even while carrying significant debt loads. Investors should weigh the dividend against the company's Weak Risk and Quality pillar ratings before treating it as a reliable income anchor.

When does AES report earnings?

AES Corporation reports earnings on a quarterly cadence, typical for US-listed equities.

Given the Weak ratings across Quality and Growth pillars, recent earnings periods have reflected the pressures facing a globally diversified utility navigating currency exposure, regulatory environments across multiple jurisdictions, and the capital demands of an energy transition strategy.

For the most recent quarter's results and guidance updates, visit The AES Corporation's investor relations page directly.

AES Price History

-31.6% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in The AES Corporation?

$
Today it would be worth
$6,189
That's a -38.1% total return, or -9.2% annualized.

Based on The AES Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

AES Long-term Outlook

The fundamental outlook for AES is cautious. With Growth and Risk both rated Weak, the path to meaningful earnings expansion faces real obstacles — including high capital requirements, exposure to emerging-market regulatory and currency risk, and competitive pressure in renewable energy markets. The Attractive Valuation rating suggests downside may be partially reflected in the current price, but a re-rating would likely require demonstrated improvement in earnings quality or a sustained reduction in balance-sheet risk.

Growth drivers

  • Expansion of renewable energy and storage capacity across existing markets
  • Long-term power purchase agreements providing revenue visibility
  • Growing electricity demand in Latin American and Caribbean markets

Key risks

  • High leverage typical of capital-intensive global utility operations
  • Currency and regulatory risk across multiple emerging-market jurisdictions
  • Execution risk in transitioning legacy thermal assets toward cleaner generation

AES vs Peers

AES competes with a range of international infrastructure and utility operators across its key markets.

BIP-PE.TOAES scores lower
Brookfield Infrastructure Partners L.P.

Brookfield Infrastructure operates a diversified global infrastructure platform — including utilities, transport, and data — giving it broader asset-class diversification than AES's power-focused model.

CIG-CAES scores lower
Companhia Energética de Minas Gerais

CEMIG is a Brazilian integrated energy company with deep roots in the Minas Gerais state market, making it a direct regional competitor to AES's Latin American utility operations.

CU.TOSimilar UQS
Canadian Utilities Limited

Canadian Utilities focuses on regulated electricity and natural gas distribution in Canada and Australia, offering a more geographically concentrated and regulatory-stable profile compared to AES's global footprint.

Frequently Asked Questions

What does AES Corporation do?

AES Corporation generates and sells electricity through a portfolio of power plants and utility businesses spanning the United States, Latin America, Europe, and Asia. It serves utilities, industrial customers, and residential end-users using a mix of conventional and renewable energy sources, including solar, wind, hydro, gas, and energy storage.

Does AES pay dividends?

Yes, AES pays a regular dividend. This is consistent with the utilities sector, where companies often distribute cash to shareholders. However, investors should consider the company's Weak Risk and Quality pillar ratings alongside the dividend when assessing income reliability. Full dividend metrics are available to UQS Pro members.

When does AES report earnings?

AES Corporation reports earnings on a quarterly cadence, as is standard for US-listed companies. For exact dates and the most recent results, check The AES Corporation's investor relations page, which is the authoritative source for scheduled announcements.

Is AES a good stock to buy?

UQS Score rates AES as Below Average, with Weak ratings across Quality, Moat, Growth, and Risk. The Valuation pillar is rated Attractive, which may interest value-oriented investors. Whether it suits your portfolio depends on your risk tolerance and investment goals — the full pillar breakdown is available to Pro members.

Is AES overvalued?

Based on the UQS Valuation pillar, AES is rated Attractive — meaning the current price appears to reflect many of the company's challenges relative to fundamentals. This does not guarantee upside, particularly given the Weak ratings in other pillars, but it suggests the stock is not trading at a premium to its peers.

How does AES compare to its competitors?

AES operates at a larger geographic scale than many regional peers, with exposure across the Americas, Europe, and Asia. Competitors like Brookfield Infrastructure Partners and Canadian Utilities tend to focus on more concentrated or regulated markets. CEMIG overlaps directly with AES in Latin American power markets. See the competitor panel on this page for a side-by-side UQS comparison.

What is AES's market cap bracket?

AES Corporation is classified as a large-cap company. This places it among the more substantial publicly traded utilities globally, though its market value reflects the pressures embedded in its current UQS profile.

Who founded AES Corporation?

AES was founded by Roger Sant and Dennis Bakke. The company was incorporated in 1981 under the name Applied Energy Services, Inc. and later rebranded to The AES Corporation in April 2000. It is headquartered in Arlington, Virginia.

Is AES a long-term quality investment?

As a long-term quality indicator, AES's UQS profile raises concerns. With Weak ratings across Quality, Moat, Growth, and Risk, the structural foundations that typically support durable long-term compounding are not strongly present. The Attractive Valuation may offer a margin of safety, but long-term quality investors typically look for stronger pillar scores.

What is the main competitive advantage of AES Corporation?

AES's scale and geographic diversification across more than a dozen countries give it broad market access. However, the UQS Moat pillar is rated Weak, suggesting this breadth has not translated into a durable competitive advantage relative to sector peers. Regulatory relationships and long-term power contracts provide some revenue stability.

What sector does AES belong to?

AES Corporation belongs to the Utilities sector. It operates as a diversified power generation and distribution company, which places it alongside regulated electric utilities and independent power producers. You can explore other [top utilities stocks](/sector/utilities) on UQS Score.

Is AES a growth stock or a value stock?

Based on UQS pillar labels, AES leans toward value territory — the Growth pillar is rated Weak while the Valuation pillar is rated Attractive. This profile is more consistent with a value or income-oriented framing than a growth investment thesis.

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Pro Analysis

AES — Score History

30354045Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 15 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 21, 202637.644.424.031.62.792.10.0
May 16, 202637.644.424.031.62.792.2-0.1
May 14, 202637.744.424.031.62.792.3+0.2
May 11, 202637.544.024.031.62.792.0+0.9
May 10, 202636.642.624.031.63.587.7+1.3
May 9, 202635.337.724.031.63.587.00.0
May 8, 202635.337.724.031.63.586.7-0.1
May 6, 202635.437.724.031.63.587.6-0.8
May 2, 202636.238.424.031.62.992.20.0
May 1, 202636.238.424.031.62.992.1-0.2

AES — Pillar Breakdown

Quality

44.4/100 (25%)

The AES Corporation has average quality metrics, with room for improvement in margins or capital efficiency.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityStrong

Profitability relative to shareholders' equity.

Operating ProfitabilityModerate

Ability to convert revenue into operating profit.

Net ProfitabilityStrong

Bottom-line profit as a share of revenue.

Gross Profit / AssetsWeak

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

31.6/100 (20%)

The AES Corporation faces growth headwinds with declining or stagnant revenue trends.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

2.7/100 (15%)

The AES Corporation presents elevated risk with concerns around leverage or financial stability.

Financial LeverageWeak

Debt levels relative to earnings capacity.

Debt/EquityWeak

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

93.4/100 (15%)

The AES Corporation appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorStrong

Enterprise value multiple relative to sector median.

Moat

24/100 (25%)

The AES Corporation operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for AES.

Score Composition

Quality
44.4×25%11.1
Growth
31.6×20%6.3
Risk
2.7×15%0.4
Valuation
93.4×15%14.0
Moat
24.0×25%6.0
Total
37.8Below Average

Financial Data

More Stock Analysis

How is the AES UQS Score Calculated?

The UQS (Unified Quality Score) for The AES Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses The AES Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether The AES Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.