AES Corp

Halal Rating :
Uncomfortable
Last Price $10.8
Market Cap $7.7b
1D Change

4.04 %

1 Year Change

-45.6 %

Next Earnings Date

Yet to be announced

Company Overview

The company generates, transmits, distributes, and sells electric energy to approximately 516,000 residential, commercial, and industrial customers. It owns and operates four generating stations, including a coal-fired station in Petersburg; the natural gas and fuel oil station in Harding Street; a combined cycle gas turbine natural gas plant in Eagle Valley; and the small peaking station that uses natural gas in Georgetown. The company was incorporated in 1926 and is based in Indianapolis, Indiana.

Revenue Sources

Pass

Based on review of AES's business activities, their primary revenue streams come from electricity generation and distribution through various power plants and utilities. These activities are halal as they provide essential services and involve the legitimate exchange of goods and services. There is no evidence of revenue from haram sources like gambling, alcohol, tobacco, or other prohibited activities.

Reliance on Interest

Reporting Date Total Revenue Total Expense Interest Income Interest Expense Interest Income Ratio Interest Expense Ratio
March 31, 2025 $2.93b $2.96b - $350.0m 0.00% 11.82%
Dec. 31, 2024 $2.96b $3.12b - $366.0m 0.00% 11.72%
Sept. 30, 2024 $3.29b $3.11b - $380.0m 0.00% 12.20%
June 30, 2024 $2.94b $3.08b - $398.0m 0.00% 12.91%

Analysis of the last four quarters shows that interest expenses constitute a material portion of the company's total expenses. The interest expense ratios consistently exceed the 5% threshold of total expenses across all quarters analyzed. This indicates that interest plays a significant role in the company's financial structure.

Operational Ethics

Pass

After reviewing AES's operations and partnerships, there is no evidence of significant ongoing associations with entities involved in human rights violations. The company's operations are spread across multiple countries but do not show material ties to the state of Israel or the Chinese Communist Party.

Rating Justification

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