Exploring the Growth Potential of NASDAQ:AAON as It Nears a Breakout.

Last update: Aug 30, 2024

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if AAON INC (NASDAQ:AAON) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted AAON INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Assessing Growth Metrics for NASDAQ:AAON

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:AAON scores a 8 out of 10:

The Earnings Per Share has grown by an impressive 26.25% over the past year.
AAON shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.06% yearly.
Looking at the last year, AAON shows a quite strong growth in Revenue. The Revenue has grown by 14.05% in the last year.
The Revenue has been growing by 21.91% on average over the past years. This is a very strong growth!
The Earnings Per Share is expected to grow by 17.16% on average over the next years. This is quite good.
Based on estimates for the next years, AAON will show a quite strong growth in Revenue. The Revenue will grow by 11.31% on average per year.

How We Gauge Health for NASDAQ:AAON

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:AAON has earned a 7 out of 10:

An Altman-Z score of 20.39 indicates that AAON is not in any danger for bankruptcy at the moment.
The Altman-Z score of AAON (20.39) is better than 100.00% of its industry peers.
AAON has a debt to FCF ratio of 0.99. This is a very positive value and a sign of high solvency as it would only need 0.99 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.99, AAON is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
AAON has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
AAON has a better Debt to Equity ratio (0.14) than 70.00% of its industry peers.
A Current Ratio of 2.99 indicates that AAON has no problem at all paying its short term obligations.
The Current ratio of AAON (2.99) is better than 80.00% of its industry peers.
AAON has a better Quick ratio (1.70) than 65.00% of its industry peers.

Understanding NASDAQ:AAON's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:AAON has achieved a 9:

AAON has a better Return On Assets (18.44%) than 92.50% of its industry peers.
With a decent Return On Equity value of 25.17%, AAON is doing good in the industry, outperforming 72.50% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 22.85%, AAON belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AAON is above the industry average of 13.75%.
The 3 year average ROIC (15.91%) for AAON is below the current ROIC(22.85%), indicating increased profibility in the last year.
AAON has a better Profit Margin (15.61%) than 87.50% of its industry peers.
In the last couple of years the Profit Margin of AAON has grown nicely.
Looking at the Operating Margin, with a value of 20.95%, AAON belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
AAON's Operating Margin has improved in the last couple of years.
In the last couple of years the Gross Margin of AAON has grown nicely.

How does the Setup look for NASDAQ:AAON

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:AAON this score is currently 7:

Although AAON has an excellent technical rating, the quality of the presented setup is not ideal at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.