Ameren (AEE) AI Stock Analysis

• Market Cap: $26.79B
• Dividend Yield: 2.78%
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.21
• Revenue Growth: 17.32%
• EPS Growth: 3.35%
• Country: US
• Employees: 8,981
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 1.01
• Shares Outstanding: 270,409,900
• 10 Day Avg. Volume: 1,272,502
• 30 Day Avg. Volume: 1,350,568
• PEG Ratio: 17.63
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 3.12
• P/FCF Ratio: -14.44
• Enterprise Value/Market Cap: 1.72
• Enterprise Value/Revenue: 5.47
• Enterprise Value/Gross Profit: 12.18
• Enterprise Value/Ebitda: 12.42
• 1Y Price Target: $106.88
• Price Target Upside: 5.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 75 Outperform
• Price Target: $114.00 ▲(13.04% Upside)

Ameren's overall score is driven by strong financial performance and positive earnings call sentiment. The company's strategic investments and growth prospects in data centers and infrastructure are significant strengths. However, negative free cash flow and limited technical momentum slightly temper the outlook.

Positive Factors

Infrastructure Investments

Significant infrastructure investments enhance operational efficiency and reliability, supporting long-term growth and competitive positioning.

Data Center Demand

Increased data center demand drives sales growth, providing a stable revenue stream and enhancing regional economic development.

Regulatory Progress

Positive regulatory outcomes ensure stable revenue and support strategic initiatives, fostering a favorable operating environment.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow may strain financial resources, limiting flexibility for future investments and growth opportunities.

Severe Weather Impact

Frequent severe weather events necessitate ongoing investments in grid resilience, potentially increasing operational costs.

High Capital Expenditures

High capital expenditures, while strategic, can pressure cash flow, affecting liquidity and financial stability in the near term.

Ameren Business Overview & Revenue Model

Company Description

Ameren Corporation, together with its subsidiaries, operates as a public utility holding company in the United States. It operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. The company engages in the rate-regulated electric generation, transmission, and distribution activities; and rate-regulated natural gas distribution and transmission businesses. It primarily generates electricity through coal, nuclear, and natural gas, as well as renewable sources, such as hydroelectric, wind, methane gas, and solar. The company serves residential, commercial, and industrial customers. Ameren Corporation was founded in 1881 and is headquartered in St. Louis, Missouri.

How the Company Makes Money

Ameren generates revenue primarily through the sale of electricity and natural gas to residential, commercial, and industrial customers. The company's revenue model is based on regulated utility rates set by state commissions, which allows it to earn a return on its infrastructure investments. Key revenue streams include distribution and transmission services, as well as delivery charges. Additionally, Ameren benefits from various energy efficiency programs and renewable energy investments, which can provide additional funding through incentives and grants. The company also engages in partnerships with local and federal agencies to enhance its clean energy initiatives, contributing to its overall earnings and long-term sustainability.

Ameren Financial Statement Overview

Summary

Ameren demonstrates strong financial health with robust profitability and efficient equity use. Revenue and profits are on a positive trajectory, driven by operational efficiency. However, negative free cash flow due to high capital expenditures poses a risk, requiring careful cash flow management.

Income Statement

Ameren shows strong profitability with a consistent increase in total revenue, reaching $8.43 billion TTM. The gross profit margin is robust at 9.03%, and the net profit margin stands at 14.55%, indicating efficient cost management. Revenue growth is positive at 10.61% TTM, suggesting healthy expansion. EBIT and EBITDA margins are also strong at 19.27% and 43.15% respectively, underscoring operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial structure with stockholders' equity at $12.31 billion. The debt-to-equity ratio is low at 0.0024, showcasing manageable leverage. Return on equity is impressive at 9.96%, highlighting effective use of equity capital. The equity ratio is 26.41%, indicating a balanced asset financing through equity.

Cash Flow

Ameren faces challenges in free cash flow, with a negative free cash flow of $-1.60 billion TTM, partly due to substantial capital expenditures. However, the operating cash flow to net income ratio of 2.45 demonstrates strong cash generation capabilities relative to net income. The free cash flow to net income ratio is negative, reflecting the impact of high capital spending on free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.43B	7.62B	7.50B	7.96B	6.39B	5.79B
Gross Profit	3.79B	3.65B	3.47B	3.34B	2.99B	2.86B
EBITDA	3.71B	3.54B	3.41B	3.18B	2.81B	2.60B
Net Income	1.23B	1.18B	1.15B	1.07B	990.00M	871.00M
Balance Sheet
Total Assets	46.63B	44.60B	40.83B	37.90B	35.73B	32.03B
Cash, Cash Equivalents and Short-Term Investments	11.00M	7.00M	25.00M	250.00M	16.00M	139.00M
Total Debt	19.98B	18.72B	16.51B	15.10B	13.61B	11.58B
Total Liabilities	34.18B	32.35B	29.35B	27.27B	25.91B	22.95B
Stockholders Equity	12.31B	12.11B	11.35B	10.51B	9.70B	8.94B
Cash Flow
Free Cash Flow	-1.62B	-1.65B	-1.21B	-1.12B	-1.86B	-1.57B
Operating Cash Flow	3.01B	2.76B	2.56B	2.26B	1.66B	1.73B
Investing Cash Flow	-4.63B	-4.46B	-3.80B	-3.37B	-3.53B	-3.33B
Financing Cash Flow	1.72B	1.75B	1.29B	1.17B	1.72B	1.73B

Ameren Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 100.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEE, the sentiment is Positive. The current price of 100.85 is above the 20-day moving average (MA) of 99.60, above the 50-day MA of 99.82, and above the 200-day MA of 95.65, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 57.38 is Neutral, neither overbought nor oversold. The STOCH value of 70.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AEE.

Ameren Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEE	75 Outperform	$26.79B	21.76	10.29%	2.78%	17.32%	3.35%
FE	73 Outperform	25.45B	19.34	10.18%	3.95%	6.44%	49.07%
DTE	70 Neutral	28.80B	19.85	12.31%	3.14%	14.35%	3.62%
PPL	67 Neutral	26.99B	27.30	6.92%	2.95%	6.62%	17.35%
CMS	65 Neutral	21.45B	21.10	12.19%	2.99%	8.25%	4.37%
ES	62 Neutral	25.64B	29.88	5.48%	4.30%	14.44%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

Ameren Corporate Events

Ameren Amends Equity Distribution Agreement, Increases Sales

On August 7, 2025, Ameren Corporation amended its Equity Distribution Sales Agreement, originally dated May 12, 2021, by entering into a First Amendment with several financial institutions acting as sales agents and forward sellers. This amendment added an additional agent and forward purchaser, increasing the authorized gross sales price under Ameren’s equity distribution program by $1.25 billion, allowing for up to $1.482 billion in common stock issuance. The company retains the flexibility to suspend offers and enter into forward sale agreements as needed.

Ameren Reports Q2 2025 Financial Results

Ameren Corporation announced its second quarter 2025 financial results, reporting a net income of $275 million, or $1.01 per diluted share, compared to $258 million, or $0.97 per share, in the same quarter of 2024. The increase in earnings was driven by infrastructure investments, new electric service rates, and disciplined cost management, though partially offset by higher interest expenses and lower retail sales due to near-normal temperatures. Ameren reaffirmed its 2025 earnings guidance range and highlighted its strategic focus on grid hardening and expanding its generation portfolio to ensure a reliable energy future.