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 $6.81G, signaling increasing performance

American Electric Power Company, Inc.'s debt to equity ratio is 1.63, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

American Electric Power Company, Inc.'s debt has decreased relative to shareholder equity from 1.70 last year to 1.63 today, signaling strengthened financials

American Electric Power Company, Inc. has a net debt to EBITDA ratio of 5.35x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

American Electric Power Company, Inc.'s interest coverage ratio of 2.49 indicates that earnings with margin can cover interest payments on company debt

American Electric Power Company, Inc.'s profit margin has increased (10.66%) in the last year from 14.90% to 16.49%, signaling increasing performance

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

American Electric Power Company, Inc.'s return on assets of 3.10% is lower than the 5.00% threshold, indicating inefficient asset utilization

American Electric Power Company, Inc.'s return on equity of 11.86%, 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 5.00 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 9.03%, 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 $2.97G to $3.58G, signaling increasing performance

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

ROIC 4.69% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. 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 5.00 out of 5 years, indicating consistent revenue performance

American Electric Power Company, Inc. had positive ROE in 5.00 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 4.86%, 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 14.60x, 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 under 1 which is considered undervalued

American Electric Power Company, Inc. has a price-to-book ratio of 2.36x, 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 3.40x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue