American Electric Power Company, Inc.: Company Profile and SWOT Analysis

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American Electric Power Company, Inc.: Company Profile and SWOT Analysis Powered By Docstoc
					American Electric Power Company, Inc.

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American Electric Power Company,                                           Financial Snapshot

Inc.                                                                       Operating Performance

Fast Facts                                                                 The company reported revenues of US$14,427.00
                                                                           million during 2010, with a CAGR of 3.40% during
                                                                           2006–2010. Its revenue grew at an annual rate of
Headquarters Address                1 Riverside Plaza, Columbus, 43215
                                                                           6.95% over the previous fiscal year. In 2010, the
                                                                           company recorded an operating margin of 18.46%, as
Telephone                           + 1 614 7161000
                                                                           against 20.54% in 2009.
Fax                                 + 1 614 2231823
                                                                           Revenue and Margins
Website                             www.aep.com

Ticker Symbol, Stock Exchange       AEP, New York Stock Exchange

Number of Employees                 18,712

Fiscal Year End                     December

Revenue (in US$ million)            14,427.00




SWOT Analysis                                                              Return on Equity

Strengths                           Weaknesses                             The company recorded a return on equity (ROE) of
                                                                           8.87% for 2010, as compared to its peers, PPL
Market leadership                   Decrease in bottom-line performance    Corporation (Ticker: PPL), IDACORP, Inc. (Ticker:
                                                                           IDA) and FirstEnergy Corp. (Ticker: FE), which
                                                                           recorded ROEs of 11.43%, 9.32% and 9.17%
Strong network base                 Lawsuit                                respectively. The company reported an operating
                                                                           margin of 18.46% in 2010.
                                    Overdependence on retail electricity
Strong top-line performance
                                    providers
                                                                           Return on Equity
Opportunities                       Threats
                                    Compliance with environmental
Construction of natural gas plant
                                    regulations

Growth prospects for wind energy    Impact of Weather Conditions

Increasing Demand for Renewable
                                    Nuclear Generation Risk
Energy




                                                                           Liquidity Position

                                                                           The company reported a current ratio of 0.77 in 2010,
                                                                           as compared to its peers, PPL Corporation,
                                                                           IDACORP, Inc. and FirstEnergy Corp., which
                                                                           recorded current ratios of 1.19, 1.03 and 0.79
                                                                           respectively. As of December 2010, the company
                                                                           recorded cash and short-term investments of worth
                                                                           US$710.00 million, against US$1,309.00 million
                                                                           current debt. The company reported a debt to equity
                                                                           ratio of 1.33 in 2010 as compared to its peers, PPL
                                                                           Corporation, IDACORP, Inc. and FirstEnergy Corp.,
                                                                           which recorded debt to equity ratios of 1.63, 1.10 and
                                                                           1.73 respectively.




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American Electric Power Company, Inc. - SWOT                                                                       Page 1
Profile
American Electric Power Company, Inc.

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Solvency ..........................................................................................................................................................13
      2.2.5       Valuation ..........................................................................................................................................................14
    2.3       Competitive Benchmarking ..................................................................................................................................15
      2.3.1       Market Capitalization .......................................................................................................................................16
      2.3.2       Efficiency ..........................................................................................................................................................17
      2.3.3       Capital Expenditure ..........................................................................................................................................18
      2.3.4       Valuation ..........................................................................................................................................................19
      2.3.5       Turnover – Inventory and Asset .......................................................................................................................20
      2.3.6       Liquidity ............................................................................................................................................................21
3     Mergers & Acquisitions and Partnerships ........................................................................................... 22
    3.1       M&A and Partnerships Strategy ...........................................................................................................................22
4     Recent Developments ........................................................................................................................... 31
5     SWOT Analysis ...................................................................................................................................... 33
    5.1       SWOT Analysis - Overview ..................................................................................................................................33
    5.2       Strengths ..............................................................................................................................................................33
    5.3       Weaknesses .........................................................................................................................................................33
    5.4       Opportunities ........................................................................................................................................................34
    5.5       Threats .................................................................................................................................................................34
6     Company Statement .............................................................................................................................. 36
7     History ..........................................................................................................
				
DOCUMENT INFO
Description: This SWOT analysis and company profile is a crucial resource for industry executives and anyone looking to gain a better understanding of the company's business. ICD Research's "American Electric Power Company, Inc.: Company Profile and SWOT Analysis" report utilizes a wide range of primary and secondary sources, which are analyzed and presented in a consistent and easily accessible format. ICD Research strictly follows a standardized research methodology to ensure high levels of data quality and these characteristics guarantee a unique report.
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