Entering text into the input field will update the search result below

It's Time To Revisit American Electric Power Company

Khen Elazar profile picture
Khen Elazar


  • I analyzed the company four years ago and found it attractive.
  • Over the past four years, the stock has doubled its price, and it's time to revisit it again.
  • In this article, I will analyze the company looking at its fundamentals, valuation, opportunities and risks.


I am not necessarily looking for an additional company in the utilities sector right now. I am revisiting American Electric Power Company (NASDAQ:AEP), because I analyzed it several years ago, and saved it in my watch list. Back then, I found an attractive company, and in a comparison with its peers, I found it to be even more attractive.

I found an attractively valued company with growth prospects and decent fundamentals. Even the valuation was attractive. I am not 100% committed to invest according to my capital allocation. The allocation is fluid and changes daily, and since I have decades to add to my portfolio, if I find a company that I believe is attractive, I will buy it and balance it later.

In this article, I will reanalyze American Electric Power Company using the graph below that I created several years ago. The graph represents my methodology when looking at companies. In the following paragraphs, I will analyze the fundamentals, the valuation and the risks and opportunities in this company trying to determine whether it’s a worthy investment right now.


(Graph made by author)

According to Seeking Alpha:

American Electric Power Company, is an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. The company generates electricity using coal and lignite, natural gas, nuclear, hydroelectric, solar, wind, and other energy sources. It also supplies and markets electric power at wholesale to other electric utility companies, rural electric cooperatives, municipalities, and other market participants.

(Source: Wikipedia)


American Electric Power is a regulated utility and therefore its ability to raise prices is very limited. We shouldn't be surprised that as energy costs went down, the company didn't achieve significant top line growth. Yet, the company is still

ChartData by YCharts

ChartData by YCharts

ChartData by YCharts

ChartData by YCharts

ChartData by YCharts

This article was written by

Khen Elazar profile picture
Hi everyone, my name is Khen Elazar and I am 30 years old. I am investing in the stock market since I was 17 years old. I did it with the help and guidance of my Father who is an investment adviser. I used to invest in value and growth stocks, and in Israeli junk bonds. Over the past several years, I have been investing mainly in dividend growth stocks. I also enjoy reading and study new subjects. I am a political junkie and Sport enthusiast, mainly soccer and NBA.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.