91.22 USD
-0.64 (-0.7%)
91.22 USD
0 (0%)
Overall AAON gets a fundamental rating of 5 out of 10. We evaluated AAON against 42 industry peers in the Building Products industry. AAON has only an average score on both its financial health and profitability. AAON shows excellent growth, but is valued quite expensive already. With these ratings, AAON could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
- AAON had positive earnings in the past year.
- In the past year AAON has reported a negative cash flow from operations.
- In the past 5 years AAON has always been profitable.
- AAON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of AAON (6.56%) is comparable to the rest of the industry.
- AAON's Return On Equity of 11.65% is in line compared to the rest of the industry. AAON outperforms 50.00% of its industry peers.
- AAON has a Return On Invested Capital of 8.17%. This is comparable to the rest of the industry: AAON outperforms 42.86% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AAON is significantly above the industry average of 12.68%.
- The last Return On Invested Capital (8.17%) for AAON is well below the 3 year average (18.30%), which needs to be investigated, but indicates that AAON had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.56% | ||
| ROE | 11.65% | ||
| ROIC | 8.17% |
ROA(3y)15.18%
ROA(5y)14.44%
ROE(3y)20.84%
ROE(5y)19.53%
ROIC(3y)18.3%
ROIC(5y)16.85%
1.3 Margins
- With a Profit Margin value of 7.64%, AAON perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
- AAON's Profit Margin has improved in the last couple of years.
- AAON has a Operating Margin of 9.98%. This is comparable to the rest of the industry: AAON outperforms 42.86% of its industry peers.
- AAON's Operating Margin has improved in the last couple of years.
- AAON's Gross Margin of 26.88% is on the low side compared to the rest of the industry. AAON is outperformed by 64.29% of its industry peers.
- In the last couple of years the Gross Margin of AAON has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.98% | ||
| PM (TTM) | 7.64% | ||
| GM | 26.88% |
OM growth 3Y10.34%
OM growth 5Y3.96%
PM growth 3Y8.47%
PM growth 5Y4.17%
GM growth 3Y8.66%
GM growth 5Y5.39%
2. Health
2.1 Basic Checks
- AAON has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for AAON remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, AAON has more shares outstanding
- Compared to 1 year ago, AAON has a worse debt to assets ratio.
2.2 Solvency
- AAON has an Altman-Z score of 8.93. This indicates that AAON is financially healthy and has little risk of bankruptcy at the moment.
- AAON's Altman-Z score of 8.93 is amongst the best of the industry. AAON outperforms 92.86% of its industry peers.
- AAON has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.44, AAON perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 8.93 |
ROIC/WACC0.9
WACC9.11%
2.3 Liquidity
- AAON has a Current Ratio of 3.04. This indicates that AAON is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 3.04, AAON is doing good in the industry, outperforming 76.19% of the companies in the same industry.
- AAON has a Quick Ratio of 2.03. This indicates that AAON is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Quick ratio value of 2.03, AAON belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.04 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
- The earnings per share for AAON have decreased strongly by -44.49% in the last year.
- The Earnings Per Share has been growing by 23.49% on average over the past years. This is a very strong growth
- The Revenue has grown by 8.77% in the past year. This is quite good.
- The Revenue has been growing by 20.67% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-44.49%
EPS 3Y37.89%
EPS 5Y23.49%
EPS Q2Q%-41.27%
Revenue 1Y (TTM)8.77%
Revenue growth 3Y30.96%
Revenue growth 5Y20.67%
Sales Q2Q%17.41%
3.2 Future
- AAON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.22% yearly.
- AAON is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.82% yearly.
EPS Next Y-29.72%
EPS Next 2Y0.55%
EPS Next 3Y17.12%
EPS Next 5Y18.22%
Revenue Next Year13.62%
Revenue Next 2Y12.98%
Revenue Next 3Y13.67%
Revenue Next 5Y15.82%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- AAON is valuated quite expensively with a Price/Earnings ratio of 72.40.
- 78.57% of the companies in the same industry are cheaper than AAON, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of AAON to the average of the S&P500 Index (28.60), we can say AAON is valued expensively.
- A Price/Forward Earnings ratio of 44.89 indicates a quite expensive valuation of AAON.
- Based on the Price/Forward Earnings ratio, AAON is valued a bit more expensive than 73.81% of the companies in the same industry.
- AAON is valuated expensively when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.4 | ||
| Fwd PE | 44.89 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AAON is valued more expensive than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 37.58 |
4.3 Compensation for Growth
- AAON has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as AAON's earnings are expected to grow with 17.12% in the coming years.
PEG (NY)N/A
PEG (5Y)3.08
EPS Next 2Y0.55%
EPS Next 3Y17.12%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.41%, AAON is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.66, AAON has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, AAON's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
- On average, the dividend of AAON grows each year by 8.53%, which is quite nice.
- AAON has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)8.53%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- AAON pays out 30.27% of its income as dividend. This is a sustainable payout ratio.
- AAON's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.27%
EPS Next 2Y0.55%
EPS Next 3Y17.12%
AAON INC / AAON FAQ
Can you provide the ChartMill fundamental rating for AAON INC?
ChartMill assigns a fundamental rating of 5 / 10 to AAON.
What is the valuation status of AAON INC (AAON) stock?
ChartMill assigns a valuation rating of 1 / 10 to AAON INC (AAON). This can be considered as Overvalued.
Can you provide the profitability details for AAON INC?
AAON INC (AAON) has a profitability rating of 6 / 10.
Can you provide the financial health for AAON stock?
The financial health rating of AAON INC (AAON) is 6 / 10.
How sustainable is the dividend of AAON INC (AAON) stock?
The dividend rating of AAON INC (AAON) is 5 / 10 and the dividend payout ratio is 30.27%.