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AES (NYSE:AES), an American utility and power generation company, saw its stock decline by nearly 8% on Tuesday, impacted by proposed amendments to President Trump’s tax plan that aim to phase out renewable energy incentives by 2028. Renewable assets comprise approximately 52% of AES’s deployed power capacity, with 29% coming specifically from non-hydropower renewables. The company’s upcoming project pipeline also focuses heavily on renewables, exacerbating the negative impact from the proposed tax changes.
As of June 17, 2025, AES’s market capitalization stands at $7.5 billion, with a staggering debt level of $31 billion, resulting in a debt-to-equity ratio of 375.6%. Over the past three years, AES’s revenue has grown at an average rate of only 2.5%, contrasting with a 5.5% increase for the S&P 500. The company also reported a net income of $1.3 billion, reflecting a net income margin of 10.7%.
In previous downturns, AES stock dropped significantly, including a 57.5% decline during the inflation shock in 2022, compared to 25.4% for the S&P 500. Overall, AES is characterized by weak growth, profitability, and financial stability, leading analysts to classify the stock as unattractive for investment at this time.
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