AAON INC (AAON)
US0003602069 - Common Stock
AAON gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 39 industry peers in the Building Products industry. AAON scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AAON is valued quite expensively, but it does show have an excellent growth rating. This makes AAON very considerable for growth and quality 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.
AAON had positive earnings in each of the past 5 years.
AAON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AAON's Return On Assets of 18.52% is amongst the best of the industry. AAON outperforms 92.31% of its industry peers.
AAON has a Return On Equity of 23.96%. This is in the better half of the industry: AAON outperforms 69.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.71%, AAON belongs to the top of the industry, outperforming 89.74% of the companies in the same industry.
AAON had an Average Return On Invested Capital over the past 3 years of 15.91%. This is above the industry average of 13.66%.
The 3 year average ROIC (15.91%) for AAON is below the current ROIC(21.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.52% | ||
| ROE | 23.96% | ||
| ROIC | 21.71% |
ROA(3y)13.42%
ROA(5y)14.46%
ROE(3y)18.23%
ROE(5y)19.14%
ROIC(3y)15.91%
ROIC(5y)16.81%
1.3 Margins
AAON's Profit Margin of 15.78% is amongst the best of the industry. AAON outperforms 87.18% of its industry peers.
AAON's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.14%, AAON belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of AAON has grown nicely.
With a Gross Margin value of 35.65%, AAON perfoms like the industry average, outperforming 56.41% of the companies in the same industry.
In the last couple of years the Gross Margin of AAON has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.14% | ||
| PM (TTM) | 15.78% | ||
| GM | 35.65% |
OM growth 3Y2.78%
OM growth 5Y9.51%
PM growth 3Y-0.33%
PM growth 5Y9.29%
GM growth 3Y4.09%
GM growth 5Y7.44%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AAON is creating value.
Compared to 1 year ago, AAON has more shares outstanding
The number of shares outstanding for AAON has been increased compared to 5 years ago.
AAON has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 30.84 indicates that AAON is not in any danger for bankruptcy at the moment.
AAON has a Altman-Z score of 30.84. This is amongst the best in the industry. AAON outperforms 100.00% of its industry peers.
AAON has a debt to FCF ratio of 0.70. This is a very positive value and a sign of high solvency as it would only need 0.70 years to pay back of all of its debts.
The Debt to FCF ratio of AAON (0.70) is better than 76.92% of its industry peers.
AAON has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
AAON has a better Debt to Equity ratio (0.09) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.7 | ||
| Altman-Z | 30.84 |
ROIC/WACC2.09
WACC10.39%
2.3 Liquidity
A Current Ratio of 3.06 indicates that AAON has no problem at all paying its short term obligations.
AAON has a Current ratio of 3.06. This is in the better half of the industry: AAON outperforms 76.92% of its industry peers.
A Quick Ratio of 1.79 indicates that AAON should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.79, AAON is doing good in the industry, outperforming 71.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
AAON shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.70%.
AAON shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.06% yearly.
The Revenue has grown by 8.32% in the past year. This is quite good.
AAON shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.91% yearly.
EPS 1Y (TTM)7.7%
EPS 3Y16.16%
EPS 5Y22.06%
EPS Q2Q%-1.72%
Revenue 1Y (TTM)8.32%
Revenue growth 3Y31.44%
Revenue growth 5Y21.91%
Sales Q2Q%4.9%
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 19.00% yearly.
The Revenue is expected to grow by 12.60% on average over the next years. This is quite good.
EPS Next Y4.99%
EPS Next 2Y15.8%
EPS Next 3Y19%
EPS Next 5YN/A
Revenue Next Year5.77%
Revenue Next 2Y11.74%
Revenue Next 3Y12.6%
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 stable.
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 59.72.
Based on the Price/Earnings ratio, AAON is valued expensively inside the industry as 87.18% of the companies are valued cheaper.
When comparing the Price/Earnings ratio of AAON to the average of the S&P500 Index (28.96), we can say AAON is valued expensively.
AAON is valuated quite expensively with a Price/Forward Earnings ratio of 46.07.
AAON's Price/Forward Earnings ratio is rather expensive when compared to the industry. AAON is more expensive than 82.05% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. AAON is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.72 | ||
| Fwd PE | 46.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AAON is valued expensively inside the industry as 84.62% of the companies are valued cheaper.
AAON's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AAON is more expensive than 79.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 106.89 | ||
| EV/EBITDA | 35.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AAON has an outstanding profitability rating, which may justify a higher PE ratio.
AAON's earnings are expected to grow with 19.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)11.98
PEG (5Y)2.71
EPS Next 2Y15.8%
EPS Next 3Y19%
5. Dividend
5.1 Amount
AAON has a yearly dividend return of 0.24%, which is pretty low.
AAON's Dividend Yield is comparable with the industry average which is at 0.94.
With a Dividend Yield of 0.24, AAON pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
5.2 History
On average, the dividend of AAON grows each year by 8.94%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.94%
Div Incr Years2
Div Non Decr Years17
5.3 Sustainability
AAON pays out 13.68% of its income as dividend. This is a sustainable payout ratio.
The dividend of AAON is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.68%
EPS Next 2Y15.8%
EPS Next 3Y19%
AAON INC
NASDAQ:AAON (11/21/2024, 8:10:12 PM)
After market: 135.56 0 (0%)135.56
+3.51 (+2.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.02B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.72 | ||
| Fwd PE | 46.07 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)11.98
PEG (5Y)2.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.52% | ||
| ROE | 23.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.14% | ||
| PM (TTM) | 15.78% | ||
| GM | 35.65% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.06 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.7%
EPS 3Y16.16%
EPS 5Y
EPS Q2Q%
EPS Next Y4.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.32%
Revenue growth 3Y31.44%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y