$78.04
arrow_drop_up0.63%Is AEE a Buy or Sell based on AI Analysis?
Fundamental Analysis
Ameren Corp (AEE) has a strong dividend yield of 3.76%, which indicates that the company provides consistent returns to its shareholders through regular dividend payouts. The company's earnings growth forecast of 0.13% and earnings growth year-over-year of 6.77% showcase a stable and growing business performance. Additionally, the company has a price-to-earnings (P/E) ratio of 16.28, suggesting that the stock is reasonably priced relative to its earnings potential. Ameren Corp also has a solid return on equity (ROE) of 10.46%, indicating efficient utilization of shareholder equity to generate profits. Furthermore, the company's net margin of 15.36% reflects its ability to effectively manage costs and generate profits from its operations. On the other hand, Ameren Corp's current ratio of 0.65 and quick ratio of 0.43 raise concerns about the company's short-term liquidity and ability to meet its immediate financial obligations. These ratios indicate that Ameren may have difficulties in covering its short-term liabilities with its current assets. Additionally, the company's free cash flow margin is not provided, which could be a red flag for investors as it is crucial for determining a company's financial health and ability to fund its operations. Overall, while Ameren Corp demonstrates strengths in terms of dividend yield, earnings growth, P/E ratio, ROE, and net margin, investors should be cautious about the company's liquidity position and free cash flow performance.
Positive Development
Ameren Corp has announced a dividend hike, which could attract more investors. Ameren Corp has increased its quarterly cash dividend, which suggests a positive outlook for the company's financial health. Ameren Corp's stock has outperformed competitors on some days, indicating a strong market sentiment. Ameren Corp has a strong track record of increasing dividends, which could signal a stable financial position.
Negative Development
Ameren Corp's Q4 2023 earnings report indicates a fall in profit, which could be a cause for concern for investors. Ameren Corp's asset turnover ratio is relatively low, indicating potential inefficiencies in its operations. Ameren Corp's long-term debt-to-equity ratio is high, which could be a concern for investors. Ameren Corp's pre-tax margin is low, which could indicate a lack of profitability.
Technical Analysis
Ameren Corp (AEE) currently has a neutral technical rating, with three technical buy indicators including CCI, ATR, and WILLR, and five technical hold indicators such as RSI, MACD, ADX, ROC, and STOCHRSI. The stock is trading at $72.67 with a seven-day price change of 1.80% and a one-month price change of 6.93%. The fifty-two weeks high price is $91.18, while the low is $67.03. The stock has a beta of 0.44, indicating lower volatility compared to the market. Additionally, Ameren Corp has a market value score of 47 and industry score of 82, showcasing its strong performance within the sector. Furthermore, Ameren Corp's technical analysis also reveals that the stock has a technical buy indicator count of three for the month, indicating positive momentum in the short term. The company's technical hold indicator count is at five, suggesting a stable price trend. The stock sector is classified as Utilities, and it has seen a sector change of 28.55% in the past year. Ameren Corp's technical indicators are updated as of March 4, 2024, showcasing the most recent performance metrics. With a market benchmark analyst forecast price change percent of 18.53% and a market benchmark earnings growth forecast of 0.29%, Ameren Corp demonstrates resilience and potential for growth in the market.
Conclusion and recommendation
Ameren Corp, a utility company operating in the stock market, currently has a neutral analyst recommendation. With a market cap of $19.35B and a dividend yield of 3.76%, Ameren Corp has shown consistent performance in the industry with a return on equity of 10.46%. The company's financials also indicate a stable operating margin of 21.67%, highlighting its efficiency in managing assets and generating profit. Furthermore, Ameren Corp's technical indicators suggest a favorable buy sentiment with three indicators signaling a positive trend in the market. In conclusion, Ameren Corp presents itself as a strong player in the utilities sector with a solid financial standing and a history of stable performance. Despite the neutral analyst recommendation, the company's fundamentals and technical indicators point towards a positive outlook for investors. With a focus on dividend yield and market value, Ameren Corp offers potential growth opportunities and stability for long-term investments. Investors may consider adding Ameren Corp to their portfolios for a reliable and profitable asset in the utilities segment of the stock market.
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