The AES Corporation (AES) Stock AnalysisAESThe AES Corporation

The AES Corporation is an energy company. The Company operates in four segments: Renewables, Utilities, Energy Infrastructure, and New Energy Technologies. The Renewables segment include solar, wind, energy storage, and hydro generation facilities. The Utilities segment includes AES Indiana, AES Ohio, and AES El Salvador regulated utilities and their generation facilities. The Energy Infrastructure segment includes natural gas, liquefied natural gas (LNG), coal, pet coke, diesel, and oil generation facilities, and its businesses in Chile, which have a mix of generation sources, including renewables. The New Energy Technologies segment includes investments in Fluence, Uplight, Maximo and other initiatives. It has two lines of business: Generation, which owns and/or operates power plants to generate and sell power to customers and Utilities that own and/or operate utilities to generate or purchase, distribute, transmit and sell electricity to end-user customers. It operates in the Utilities sector (COGENERATION SERVICES & SMALL POWER PRODUCERS industry).

AES Corp is a good buy right now due to its attractive valuation metrics, including a low forward P/E of 6.58 and a significant gross margin of 20.22% in Q2 2026. The recent support from the Ohio Public Utilities Commission for AES's sale plan at $15 per share further strengthens investor confidence. However, the main risk is the high debt-to-equity ratio of 328.66%, which could impact financial stability if not managed properly.

9 analysts cover AES: 5 rate it Buy, 4 Hold and 0 Sell. The average price target is 18.25.