Revenue Breakdown
Composition ()
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Revenue Streams
American Electric Power Company Inc (AEP) generates its revenue through a diversified portfolio of business segments. Currently, the largest contributor to its top-line growth is Residential Revenues, accounting for 37.2% of total sales, equivalent to $2.23B. Other significant revenue streams include Commercial Revenues and Industrial Revenues. Understanding this composition is critical for investors evaluating how AEP navigates market cycles within the Electric Utilities industry.
Profitability & Margins
Evaluating the bottom line, American Electric Power Company Inc maintains a gross margin of 52.42%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at 25.16%, while the net margin is 16.64%. These profitability ratios, combined with a Return on Equity (ROE) of 12.82%, provide a clear picture of how effectively AEP converts its operational activities into shareholder value.
Comparative Benchmarking
In the context of the broader market, AEP competes directly with industry leaders such as NGG and VST. With a market capitalization of $63.88B, it holds a significant position in the sector. When comparing efficiency, AEP's gross margin of 52.42% stands against NGG's 100.00% and VST's 42.44%. Such benchmarking helps identify whether American Electric Power Company Inc is trading at a premium or discount relative to its financial performance.
