AES Corporation: An Undervalued Utility With A Renewable Future (NYSE:AES)

I see parallels in the current market compared to the tech bubble in the late 1990s, during which solid and defensive income names were passed in favor of high-flying tech names. In this article, I’m focused on AES Corporation (AES), which belongs to the defensive utility sector. I evaluate what makes this an attractive investment at the current valuation. So, let’s get started.

(Source: Company website)

A Look Into AES Corporation

AES Corporation is a Fortune 500 global power company. It provides energy in 14 countries through a diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Last year, the company generated over $10 billion in total revenue. It currently owns and manages $34 billion in total assets and employs 9,000 people globally. AES derives approximately 85% of its revenues from the U.S., with much of the rest coming from Latin America (8%) and Europe (6%).

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