American Electric Power Company, Inc. (AEP) scored on five pillars from its reported financial statements, and ranked against 52 Utilities companies.
American Electric Power Company, Inc. (AEP) scores 5.6 out of 10 as of , computed from its reported financial statements. That reads as solid quality. The reading rests on growth, and solvency is what holds it back.
Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.
We cannot judge American Electric Power Company, Inc. yet, because fewer than five years had both a return on capital and a cost of capital we could measure. This is not a “no”.
Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →
On the filings behind it, American Electric Power Company, Inc. earns 5.6 out of 10 for business quality as of October 17, 2026. That is solid quality on our scale. A solid reading is a respectable business with clear strengths and at least one area that falls short of the best in its field. The figure is a weighted average of five pillars, each scored from 0 to 10 against sector-aware benchmarks from reported statements.
Ranked with the 52 Utilities companies Lemma publishes, the score sits at the 92nd percentile, among the top tenth of the group. A typical company in the group scores 3.9, and the best quarter starts from 4.4. American Electric Power Company, Inc. is well above that typical reading.
On profitability, American Electric Power Company, Inc. scores 5.5, an average reading. Its peers have a median of 4.8 across 49 Utilities companies, which places it above them, at the 71st percentile. Profitability in the middle of the range is neither a moat nor a warning: margins and returns look like those of an ordinary business in this line of work.
Solvency scores 2.3 out of 10, which reads as weak. The median across 49 Utilities companies is 2.9, so American Electric Power Company, Inc. is below its peers on this pillar and ranks at the 17th percentile. Weak solvency means debt is heavy relative to earnings or cash flow, which makes the business more sensitive to interest rates and to any fall in profits.
Growth scores 10.0 out of 10, which reads as strong. None of the other Utilities companies scores higher here, against a median of 4.9 across 47 of them. Strong growth means revenue, earnings and cash flow have been compounding faster than at most peers over the last few years.
Efficiency scores 6.8 out of 10, which reads as average. The median across 51 Utilities companies is 3.0, so American Electric Power Company, Inc. is well above its peers on this pillar and ranks at the 94th percentile. An average efficiency reading suggests the business turns its assets and earnings into cash at roughly the rate its sector does.
Predictability scores 3.8 out of 10, which reads as weak. The median across 51 Utilities companies is 3.5, so American Electric Power Company, Inc. is in line with its peers on this pillar and ranks at the 60th percentile. A low predictability score often belongs to cyclical businesses, where good and bad years alternate with the economy or with commodity prices.
This is a lopsided profile. Growth scores 10.0 but solvency only 2.3, a gap of 7.7 points, so the overall hides a business that is excellent in one respect and weak in another. A growth lead says the business is expanding faster than it is doing anything else well, which is worth checking against predictability. A solvency shortfall makes the business more exposed to rising rates and to a weak year.
Closing the gap on solvency would do the most for the overall. At the median of Utilities companies, 2.9, American Electric Power Company, Inc. would score about 5.7 instead of 5.6. All five pillars could be scored, so the overall uses the full set of weights out of 100: profitability 25, solvency 20, growth 20, efficiency 15, predictability 20.
These are the Utilities companies closest to American Electric Power Company, Inc. in market value. Each has its own page scored on the same five pillars, so the comparison is like for like.
How much profit the company generates from its capital and sales.
The company’s ability to service debt and meet its obligations.
How fast revenue, earnings and cash flow are compounding.
How well assets and earnings convert into cash and output.
How stable and consistent results have been over time.
Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.
This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.
Educational only. Not investment advice.
On this reading American Electric Power Company, Inc. scores 5.6 out of 10, which reads as solid quality. Its strongest pillar is growth, its weakest is solvency. Quality is not the same as a good investment: the score says nothing about the price you would pay.
American Electric Power Company, Inc. ranks at the 92nd percentile of the 52 Utilities companies Lemma publishes a score for. The median there is 3.9 and the top quarter starts at 4.4, against American Electric Power Company, Inc.’s 5.6.
Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.
This page last changed on October 17, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for AEP are in the app.
No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.
Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.
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