AES: A Mixed Return Profile and Valuation Assessment

AES (AES) has been drawing renewed attention after recent trading moves. The stock has a 3.0% one day share price decline at US$14.45, offset by a 4.3% 1 month share price return. The 1 year total shareholder return of 23.7% contrasts with weaker 3 and 5 year total shareholder returns. AES is trading at a fair value of US$15.29, putting a modest discount in focus. The ongoing decline in costs of solar, wind, and battery technologies is sustaining high returns on new projects, leading to improved EBITDA and net margins.