AAON INC (AAON) Stock Fundamental Analysis
USA - NASDAQ:AAON - US0003602069 - Common Stock
105.53 USD
+5.5 (+5.5%)
105.53 USD
0 (0%)
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. While showing a medium growth rate, AAON is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AAON was profitable.
AAON had a positive operating cash flow in the past year.
AAON had positive earnings in each of the past 5 years.
Each year in the past 5 years AAON had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AAON (8.72%) is better than 63.41% of its industry peers.
AAON's Return On Equity of 14.66% is fine compared to the rest of the industry. AAON outperforms 63.41% of its industry peers.
AAON's Return On Invested Capital of 10.32% is fine compared to the rest of the industry. AAON outperforms 60.98% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AAON is significantly above the industry average of 12.50%.
The last Return On Invested Capital (10.32%) 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 | 8.72% | ||
| ROE | 14.66% | ||
| ROIC | 10.32% |
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 9.70%, AAON perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
AAON's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.20%, AAON is in line with its industry, outperforming 46.34% of the companies in the same industry.
AAON's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 28.67%, AAON perfoms like the industry average, outperforming 41.46% of the companies in the same industry.
AAON's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.2% | ||
| PM (TTM) | 9.7% | ||
| GM | 28.67% |
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.
The number of shares outstanding for AAON has been increased compared to 5 years ago.
The debt/assets ratio for AAON is higher compared to a year ago.
2.2 Solvency
AAON has an Altman-Z score of 11.06. This indicates that AAON is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 11.06, AAON belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that AAON is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.40, AAON is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 11.06 |
ROIC/WACC1.13
WACC9.12%
2.3 Liquidity
AAON has a Current Ratio of 3.10. This indicates that AAON is financially healthy and has no problem in meeting its short term obligations.
AAON has a Current ratio of 3.10. This is in the better half of the industry: AAON outperforms 78.05% of its industry peers.
A Quick Ratio of 1.99 indicates that AAON should not have too much problems paying its short term obligations.
AAON's Quick ratio of 1.99 is amongst the best of the industry. AAON outperforms 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.1 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
The earnings per share for AAON have decreased strongly by -44.49% in the last year.
Measured over the past years, AAON shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.87% on average per year.
AAON shows a small growth in Revenue. In the last year, the Revenue has grown by 2.75%.
Measured over the past years, AAON shows a very strong growth in Revenue. The Revenue has been growing by 20.67% on average per year.
EPS 1Y (TTM)-44.49%
EPS 3Y20.46%
EPS 5Y13.87%
EPS Q2Q%-41.27%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y30.96%
Revenue growth 5Y20.67%
Sales Q2Q%17.41%
3.2 Future
Based on estimates for the next years, AAON will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.13% on average per year.
The Revenue is expected to grow by 14.60% on average over the next years. This is quite good.
EPS Next Y-30.65%
EPS Next 2Y0.15%
EPS Next 3Y15.13%
EPS Next 5YN/A
Revenue Next Year10.18%
Revenue Next 2Y11.41%
Revenue Next 3Y12.21%
Revenue Next 5Y14.6%
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.
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
Based on the Price/Earnings ratio of 83.75, the valuation of AAON can be described as expensive.
AAON's Price/Earnings ratio is a bit more expensive when compared to the industry. AAON is more expensive than 78.05% of the companies in the same industry.
When comparing the Price/Earnings ratio of AAON to the average of the S&P500 Index (25.83), we can say AAON is valued expensively.
Based on the Price/Forward Earnings ratio of 52.34, the valuation of AAON can be described as expensive.
AAON's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AAON is more expensive than 75.61% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AAON to the average of the S&P500 Index (32.68), we can say AAON is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.75 | ||
| Fwd PE | 52.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AAON indicates a rather expensive valuation: AAON more expensive than 80.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 37.31 |
4.3 Compensation for Growth
The decent profitability rating of AAON may justify a higher PE ratio.
AAON's earnings are expected to grow with 15.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)6.04
EPS Next 2Y0.15%
EPS Next 3Y15.13%
5. Dividend
5.1 Amount
AAON has a yearly dividend return of 0.43%, which is pretty low.
AAON's Dividend Yield is comparable with the industry average which is at 1.29.
Compared to an average S&P500 Dividend Yield of 2.39, AAON's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
The dividend of AAON is nicely growing with an annual growth rate of 8.53%!
AAON has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.53%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
23.98% 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.
DP23.98%
EPS Next 2Y0.15%
EPS Next 3Y15.13%
105.53
+5.5 (+5.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners79.01%
Inst Owner Change0.34%
Ins Owners0.73%
Ins Owner Change-8.43%
Market Cap8.60B
Revenue(TTM)1.20B
Net Income(TTM)122.09M
Analysts86.15
Price Target107.1 (1.49%)
Short Float %10.89%
Short Ratio7.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.32
Dividend Growth(5Y)8.53%
DP23.98%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.56%
Min EPS beat(2)-34.77%
Max EPS beat(2)53.89%
EPS beat(4)2
Avg EPS beat(4)-4.47%
Min EPS beat(4)-44.8%
Max EPS beat(4)53.89%
EPS beat(8)5
Avg EPS beat(8)2%
EPS beat(12)9
Avg EPS beat(12)8.88%
EPS beat(16)10
Avg EPS beat(16)2.2%
Revenue beat(2)1
Avg Revenue beat(2)0.56%
Min Revenue beat(2)-6%
Max Revenue beat(2)7.13%
Revenue beat(4)2
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-8.93%
Max Revenue beat(4)7.13%
Revenue beat(8)5
Avg Revenue beat(8)-0.21%
Revenue beat(12)9
Avg Revenue beat(12)1.2%
Revenue beat(16)11
Avg Revenue beat(16)1.11%
PT rev (1m)10.7%
PT rev (3m)4.32%
EPS NQ rev (1m)1.79%
EPS NQ rev (3m)-54.31%
EPS NY rev (1m)0.79%
EPS NY rev (3m)-33.39%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-13.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.75 | ||
| Fwd PE | 52.34 | ||
| P/S | 6.84 | ||
| P/FCF | N/A | ||
| P/OCF | 256.22 | ||
| P/B | 10.33 | ||
| P/tB | 12.83 | ||
| EV/EBITDA | 37.31 |
EPS(TTM)1.26
EY1.19%
EPS(NY)2.02
Fwd EY1.91%
FCF(TTM)-2.38
FCFYN/A
OCF(TTM)0.41
OCFY0.39%
SpS15.44
BVpS10.21
TBVpS8.22
PEG (NY)N/A
PEG (5Y)6.04
Graham Number17.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 14.66% | ||
| ROCE | 12.92% | ||
| ROIC | 10.32% | ||
| ROICexc | 10.32% | ||
| ROICexgc | 11.96% | ||
| OM | 12.2% | ||
| PM (TTM) | 9.7% | ||
| GM | 28.67% | ||
| 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%
ROICexgc growth 3Y13.27%
ROICexgc 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 Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 307.33% | ||
| Cap/Sales | 18.06% | ||
| Interest Coverage | 18.09 | ||
| Cash Conversion | 14.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.1 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | 11.06 |
F-Score4
WACC9.12%
ROIC/WACC1.13
Cap/Depr(3y)242.2%
Cap/Depr(5y)234.85%
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)-44.49%
EPS 3Y20.46%
EPS 5Y13.87%
EPS Q2Q%-41.27%
EPS Next Y-30.65%
EPS Next 2Y0.15%
EPS Next 3Y15.13%
EPS Next 5YN/A
Revenue 1Y (TTM)2.75%
Revenue growth 3Y30.96%
Revenue growth 5Y20.67%
Sales Q2Q%17.41%
Revenue Next Year10.18%
Revenue Next 2Y11.41%
Revenue Next 3Y12.21%
Revenue Next 5Y14.6%
EBIT growth 1Y-36.72%
EBIT growth 3Y44.5%
EBIT growth 5Y25.45%
EBIT Next Year0.46%
EBIT Next 3Y22.76%
EBIT Next 5YN/A
FCF growth 1Y-647.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-72.65%
OCF growth 3Y46.53%
OCF growth 5Y14.48%
AAON INC / AAON FAQ
Can you provide the ChartMill fundamental rating for AAON INC?
ChartMill assigns a fundamental rating of 6 / 10 to AAON.
Can you provide the valuation status for AAON INC?
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 7 / 10.
Can you provide the PE and PB ratios for AAON stock?
The Price/Earnings (PE) ratio for AAON INC (AAON) is 83.75 and the Price/Book (PB) ratio is 10.33.
What is the financial health of AAON INC (AAON) stock?
The financial health rating of AAON INC (AAON) is 6 / 10.