NASDAQ:AAON, a strong growth stock, setting up for a breakout.

Last update: Aug 5, 2024

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether AAON INC (NASDAQ:AAON) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but AAON INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

A Closer Look at Growth for NASDAQ:AAON

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:AAON has earned a 8 for growth:

The Earnings Per Share has grown by an impressive 26.25% over the past year.
The Earnings Per Share has been growing by 22.06% on average over the past years. This is a very strong growth
Looking at the last year, AAON shows a quite strong growth in Revenue. The Revenue has grown by 14.05% in the last year.
Measured over the past years, AAON shows a very strong growth in Revenue. The Revenue has been growing by 21.91% on average per year.
Based on estimates for the next years, AAON will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.05% on average per year.
AAON is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.71% yearly.

A Closer Look at Health for NASDAQ:AAON

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:AAON has achieved a 8 out of 10:

AAON has an Altman-Z score of 18.95. This indicates that AAON is financially healthy and has little risk of bankruptcy at the moment.
AAON's Altman-Z score of 18.95 is amongst the best of the industry. AAON outperforms 100.00% of its industry peers.
The Debt to FCF ratio of AAON is 0.99, which is an excellent value as it means it would take AAON, only 0.99 years of fcf income to pay off all of its debts.
AAON's Debt to FCF ratio of 0.99 is amongst the best of the industry. AAON outperforms 90.00% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that AAON is not too dependend on debt financing.
AAON has a Debt to Equity ratio of 0.14. This is amongst the best in the industry. AAON outperforms 82.50% of its industry peers.
AAON has a Current Ratio of 2.99. This indicates that AAON is financially healthy and has no problem in meeting its short term obligations.
AAON has a better Current ratio (2.99) than 77.50% of its industry peers.
With a decent Quick ratio value of 1.70, AAON is doing good in the industry, outperforming 62.50% of the companies in the same industry.

Exploring NASDAQ:AAON's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:AAON scores a 8 out of 10:

Looking at the Return On Assets, with a value of 18.44%, AAON belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
The Return On Equity of AAON (25.17%) is better than 67.50% of its industry peers.
AAON has a Return On Invested Capital of 22.85%. This is amongst the best in the industry. AAON outperforms 92.50% of its industry peers.
The 3 year average ROIC (15.91%) for AAON is below the current ROIC(22.85%), indicating increased profibility in the last year.
The Profit Margin of AAON (15.61%) is better than 85.00% of its industry peers.
AAON's Profit Margin has improved in the last couple of years.
AAON's Operating Margin of 20.95% is amongst the best of the industry. AAON outperforms 82.50% of its industry peers.
In the last couple of years the Operating Margin of AAON has grown nicely.
AAON's Gross Margin has improved in the last couple of years.

How does the Setup look for NASDAQ:AAON

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:AAON currently has a 7 as setup rating:

Besides having an excellent technical rating, AAON also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 85.77, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of AAON

For an up to date full technical analysis you can check the technical report of AAON

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.