Stocks analysis

AES vs AFL Stock Comparison

Scores Breakdown

Metric AES AFL
📈 Growth 12/30 6/30
💰 Profitability 10/20 18/20
🏦 Financial Health 12/20 15/20
💵 Valuation 8/20 12/20
⚠️ Risk (lower is better) 4/10 7/10
Overall Score 48/100 54/100

Side-by-Side Summaries

AES Analysis AFL Analysis

📈 Growth & Financial Trajectory

Over the observed 7 quarters, AES's revenues hovered near $3.0B, ending around $2.42B in 2026 Q2, while net income remained positive overall, indicating resilience despite quarterly volatility. The trend shows modest growth from early 2025 into late 2025, with some weakness in 2026 Q2 driven by lower topline and mix. Overall, earnings resilience persisted through the period.

💰 Margins & Cash Flow

Gross margin ranged roughly in the high 20s and low 30s percentage; operating margin varied around the mid-teens in stronger quarters and contracted when costs rose. Net cash from operating activities was typically solid (around $1.0B per quarter), but investing cash flow was consistently negative, leading to fluctuating free cash flow and reliance on financing for liquidity.

🛡️ Balance Sheet & Liquidity

Total assets near $50B+, liabilities around $40B, and equity near $9–9.8B. Current ratio hovered below 1 in some quarters, reflecting funded working capital needs. Redeemable interests and temporary equity add complexity; overall balance sheet appears leveraged but with steady cash generation.

⚠️ Key Drivers & Risks

  • Drivers: Regulated utility earnings, renewable integration, stable demand
  • Risks: Commodity/energy price sensitivity, regulatory/policy shifts, interest-rate exposure

📈 Growth & Financial Trajectory

Eight quarters show a revenue path from $5.403B (2024 Q3) to $4.117B (2026 Q2). A trough occurred in 2025 Q1 with $4.16B rev and $29M net income. Revenues then recovered to the high 4.7–4.9B range in 2025 H2, before easing again to $4.12B in 2026 Q2. Net income moved from $1.902B (2024 Q3) to $0.825B (2026 Q2), with a dip to $29M in 2025 Q1. Overall, the trend is negative on revenue and earnings, but several quarters display strong operating performance (notably 2024 Q3 and late-2025/2026).

💰 Margins & Cash Flow

Operating margins were robust on several quarters, averaging in the mid-60s percent, peaking around 75% in 2024 Q3 and hovering near 70% in late 2025–2026; a trough around 40–41% occurred in 2025 Q2. Cash flow from operations remained positive across periods (e.g., $315M in 2024 Q4, $1.27B in 2025 Q3, $112M in 2026 Q2), while investing/financing swings produced occasional negative free cash flow (notably 2025 Q1 and 2026 Q1).

🛡️ Balance Sheet & Liquidity

Current assets consistently exceed current liabilities (e.g., 2026 Q2: Current Assets $115.96B vs Current Liabilities $85.65B). Total assets run in the $116–$125B range with equity around $28–$30B, indicating a solid reserve position given insurer-liability balances. Leverage remains typical for an insurance franchise, with ample liquidity cushions.

⚠️ Key Drivers & Risks

  • Drivers: Stable insurance premium streams and investment income support, with favorable rate environments aiding capital generation.
  • Risks: Earnings volatility from reserve dynamics and regulatory shifts; sensitivity to interest-rate changes and macro cycle could compress margins during downturns.