AAON INC (AAON) Stock Fundamental Analysis
NASDAQ:AAON - Nasdaq - US0003602069 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to AAON. AAON was compared to 41 industry peers in the Building Products industry. AAON has an excellent profitability rating, but there are some minor concerns on its financial health. AAON is valued quite expensive, but it does show an excellent growth. These ratings would make AAON suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year AAON was profitable.
In the past year AAON had a positive 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
AAON has a better Return On Assets (14.34%) than 80.49% of its industry peers.
AAON has a Return On Equity of 20.44%. This is in the better half of the industry: AAON outperforms 70.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.70%, AAON belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AAON is significantly above the industry average of 12.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.34% | ||
| ROE | 20.44% | ||
| ROIC | 16.7% |
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
AAON has a Profit Margin of 14.04%. This is in the better half of the industry: AAON outperforms 75.61% of its industry peers.
AAON's Profit Margin has improved in the last couple of years.
AAON's Operating Margin of 17.42% is fine compared to the rest of the industry. AAON outperforms 65.85% of its industry peers.
In the last couple of years the Operating Margin of AAON has grown nicely.
Looking at the Gross Margin, with a value of 33.07%, AAON is in line with its industry, outperforming 51.22% of the companies in the same industry.
AAON's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.42% | ||
| PM (TTM) | 14.04% | ||
| GM | 33.07% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AAON is still creating some value.
AAON has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for AAON has been increased compared to 5 years ago.
Compared to 1 year ago, AAON has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 13.95 indicates that AAON is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.95, AAON belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
AAON has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
AAON has a Debt to Equity ratio of 0.19. This is in the better half of the industry: AAON outperforms 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 13.95 |
ROIC/WACC1.62
WACC10.34%
2.3 Liquidity
A Current Ratio of 2.79 indicates that AAON has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.79, AAON is doing good in the industry, outperforming 70.73% of the companies in the same industry.
AAON has a Quick Ratio of 1.72. This is a normal value and indicates that AAON is financially healthy and should not expect problems in meeting its short term obligations.
AAON's Quick ratio of 1.72 is fine compared to the rest of the industry. AAON outperforms 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
AAON shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.40%.
The Earnings Per Share has been growing by 13.87% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.74% in the past year.
The Revenue has been growing by 20.67% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-8.4%
EPS 3Y20.46%
EPS 5Y13.87%
EPS Q2Q%-46.43%
Revenue 1Y (TTM)2.74%
Revenue growth 3Y30.96%
Revenue growth 5Y20.67%
Sales Q2Q%-2.91%
3.2 Future
AAON is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.66% yearly.
Based on estimates for the next years, AAON will show a quite strong growth in Revenue. The Revenue will grow by 15.10% on average per year.
EPS Next Y9.68%
EPS Next 2Y21.6%
EPS Next 3Y27.66%
EPS Next 5YN/A
Revenue Next Year14.74%
Revenue Next 2Y15.26%
Revenue Next 3Y15.1%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
AAON is valuated quite expensively with a Price/Earnings ratio of 40.83.
80.49% of the companies in the same industry are cheaper than AAON, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.64. AAON is valued slightly more expensive when compared to this.
AAON is valuated quite expensively with a Price/Forward Earnings ratio of 37.22.
Based on the Price/Forward Earnings ratio, AAON is valued a bit more expensive than 78.05% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.44, AAON is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.83 | ||
| Fwd PE | 37.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AAON is valued expensively inside the industry as 80.49% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AAON may justify a higher PE ratio.
A more expensive valuation may be justified as AAON's earnings are expected to grow with 27.66% in the coming years.
PEG (NY)4.22
PEG (5Y)2.94
EPS Next 2Y21.6%
EPS Next 3Y27.66%
5. Dividend
5.1 Amount
AAON has a yearly dividend return of 0.49%, which is pretty low.
The stock price of AAON dropped by -38.17% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.28, AAON has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.52, AAON's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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.
AAON has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.53%
Div Incr Years2
Div Non Decr Years17
5.3 Sustainability
15.47% of the earnings are spent on dividend by AAON. This is a low number and sustainable payout ratio.
AAON's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.47%
EPS Next 2Y21.6%
EPS Next 3Y27.66%
82.06
+2.16 (+2.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners73.15%
Inst Owner Change-0.07%
Ins Owners0.51%
Ins Owner Change1.21%
Market Cap6.67B
Analysts80
Price Target113.99 (38.91%)
Short Float %3.55%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend0.32
Dividend Growth(5Y)8.53%
DP15.47%
Div Incr Years2
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-18.49%
Min EPS beat(2)-44.8%
Max EPS beat(2)7.82%
EPS beat(4)2
Avg EPS beat(4)-6.2%
Min EPS beat(4)-44.8%
Max EPS beat(4)19.18%
EPS beat(8)6
Avg EPS beat(8)5.53%
EPS beat(12)9
Avg EPS beat(12)6.51%
EPS beat(16)11
Avg EPS beat(16)2.6%
Revenue beat(2)1
Avg Revenue beat(2)-3.67%
Min Revenue beat(2)-8.93%
Max Revenue beat(2)1.58%
Revenue beat(4)2
Avg Revenue beat(4)-2.19%
Min Revenue beat(4)-9.76%
Max Revenue beat(4)8.34%
Revenue beat(8)6
Avg Revenue beat(8)0.38%
Revenue beat(12)10
Avg Revenue beat(12)2.21%
Revenue beat(16)11
Avg Revenue beat(16)1.54%
PT rev (1m)-4.89%
PT rev (3m)-15.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-53.43%
EPS NY rev (1m)-26.52%
EPS NY rev (3m)-26.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.51%
Revenue NY rev (1m)-3.44%
Revenue NY rev (3m)-8.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.83 | ||
| Fwd PE | 37.22 | ||
| P/S | 5.56 | ||
| P/FCF | N/A | ||
| P/OCF | 34.66 | ||
| P/B | 8.09 | ||
| P/tB | 10.04 | ||
| EV/EBITDA | 24.53 |
EPS(TTM)2.01
EY2.45%
EPS(NY)2.2
Fwd EY2.69%
FCF(TTM)-0.25
FCFYN/A
OCF(TTM)2.37
OCFY2.89%
SpS14.76
BVpS10.14
TBVpS8.17
PEG (NY)4.22
PEG (5Y)2.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.34% | ||
| ROE | 20.44% | ||
| ROCE | 20.9% | ||
| ROIC | 16.7% | ||
| ROICexc | 16.7% | ||
| ROICexgc | 19.88% | ||
| OM | 17.42% | ||
| PM (TTM) | 14.04% | ||
| GM | 33.07% | ||
| FCFM | N/A |
ROA(3y)15.18%
ROA(5y)14.44%
ROE(3y)20.84%
ROE(5y)19.53%
ROIC(3y)18.3%
ROIC(5y)16.85%
ROICexc(3y)18.35%
ROICexc(5y)17.88%
ROICexgc(3y)22.59%
ROICexgc(5y)21.24%
ROCE(3y)22.91%
ROCE(5y)21.09%
ROICexcg growth 3Y13.27%
ROICexcg growth 5Y1.06%
ROICexc growth 3Y19.13%
ROICexc growth 5Y-2.16%
OM growth 3Y10.34%
OM growth 5Y3.96%
PM growth 3Y8.47%
PM growth 5Y4.17%
GM growth 3Y8.66%
GM growth 5Y5.39%
F-Score4
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.57 | ||
| Cap/Depr | 339.76% | ||
| Cap/Sales | 17.75% | ||
| Interest Coverage | 74.38 | ||
| Cash Conversion | 70.83% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 13.95 |
F-Score4
WACC10.34%
ROIC/WACC1.62
Cap/Depr(3y)243.08%
Cap/Depr(5y)235.38%
Cap/Sales(3y)11.07%
Cap/Sales(5y)11.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.4%
EPS 3Y20.46%
EPS 5Y13.87%
EPS Q2Q%-46.43%
EPS Next Y9.68%
EPS Next 2Y21.6%
EPS Next 3Y27.66%
EPS Next 5YN/A
Revenue 1Y (TTM)2.74%
Revenue growth 3Y30.96%
Revenue growth 5Y20.67%
Sales Q2Q%-2.91%
Revenue Next Year14.74%
Revenue Next 2Y15.26%
Revenue Next 3Y15.1%
Revenue Next 5YN/A
EBIT growth 1Y-8.08%
EBIT growth 3Y44.5%
EBIT growth 5Y25.45%
EBIT Next Year41.93%
EBIT Next 3Y29.06%
EBIT Next 5YN/A
FCF growth 1Y-141.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.17%
OCF growth 3Y46.53%
OCF growth 5Y14.48%