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AES Corporation - AI Stock Analysis

Analysis generated June 12, 2025

AES Corporation (NYSE: AES) is a Fortune 500 global power company that provides sustainable energy to 14 countries through a diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. The company is strategically focused on providing greener, smarter solutions for electric power grids worldwide. AES strives to improve lives by delivering sustainable energy solutions to drive global improvements in the areas of clean energy, Big Data, and machine learning optimization of energy resources.

Fundamental Analysis

The revenue for AES Corporation in the last quarter was $2.96 billion. This figure is consistent with the revenue from the previous quarter, indicating stable performance. However, it represents a 3.99% decline when compared to the same quarter last year, which may raise some concerns about the company’s growth trajectory.

Net income for the last quarter was $560 million, showing a remarkable increase of 108.96% compared to the prior quarter. This is a positive sign of growth and suggests strong performance in managing operational costs or boosting profitability. Year over year, net income has increased by 29.63%, further reinforcing a trend of positive financial performance.

EBITDA for the last quarter stands at $959 million, which is a significant rise of 285.14% compared to the quarter before it. This demonstrates robust operational efficiency and strong earnings before interest, taxes, depreciation, and amortization. Year over year, the EBITDA has grown by 12.03%, which is another positive indicator.

The current Price-to-Earnings (P/E) ratio for AES Corporation is 5.91. This relatively low P/E ratio may indicate that the stock is undervalued, suggesting a potential buying opportunity for investors. This bullish outlook implies that AES Corporation may be trading at a bargain compared to its intrinsic value.

Technical Analysis

The current stock price for AES Corporation is $11.48. While this represents a 3.29% decrease compared to a month ago, it is a more significant 38.15% decrease compared to a year ago, which could signal long-term concern for investors. Despite the recent short-term decline, the overall trend appears bullish.

The Simple Moving Average (SMA10) is currently 10.88, which is higher than the previous SMA10 of 10.75. This suggests a potential upward trend in price movement, supporting a bullish outlook.

The Relative Strength Index (RSI) is at 38, which is in neutral territory. This indicates neither overbought nor oversold conditions, suggesting that the stock is currently fairly priced in the eyes of the market.

Alternative Data Analysis

Turning to alternative data, there is some mixed sentiment. AES Corporation currently has 53 open positions listed on various job boards. This figure is down by 21% over the last couple of months, possibly indicating efforts to cut costs or improve margins. While this may help short-term profitability, it might also be a negative indicator for long-term growth.

In terms of customer acquisition, AES Corporation’s webpage has received an estimated 150,000 visitors, which marks a worrying 37% decline in the last couple of months. This reduction in traffic might point to a loss in customer interest or demand.

Regarding customer engagement, AES Corporation has 3,800 followers on Instagram and 5,000 followers on Twitter, with no significant changes in recent months. This stagnation in social media followers might reflect a stable, albeit unremarkable, customer engagement.

According to AltIndex’s AI score, which integrates fundamental, technical, and alternative data analysis, AES Corporation has an AI score of 43. This score suggests a “hold” signal, indicating neither a strong buy nor sell recommendation at this moment.

Conclusion and Recommendation

Overall, AES Corporation demonstrates several strong financial metrics, including significant increases in net income and EBITDA, alongside a low P/E ratio, which may indicate undervaluation and potential for future growth. However, concerns arise from the recent declines in revenue, stock price, and webpage visitors, indicating potential challenges ahead.

Given these mixed signals, including the moderately bullish technical trend but neutral alternative data, the recommendation would be to hold the stock. This approach allows investors to benefit from any future positive developments while remaining cautious of the current challenges facing the company.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.