AAON INC (AAON) Stock Fundamental Analysis
USA - NASDAQ:AAON - US0003602069 - Common Stock
82.18 USD
-0.29 (-0.35%)
82.18 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AAON. AAON was compared to 41 industry peers in the Building Products industry. AAON scores excellent on profitability, 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
AAON had positive earnings in the past year.
In the past year AAON had a positive cash flow from operations.
In the past 5 years AAON has always been profitable.
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 65.85% of its industry peers.
AAON has a Return On Equity of 14.66%. This is in the better half of the industry: AAON outperforms 60.98% of its industry peers.
AAON has a better Return On Invested Capital (10.32%) than 65.85% 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 12.76%.
The 3 year average ROIC (18.30%) for AAON is well above the current ROIC(10.32%). The reason for the recent decline needs to be investigated.
| 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
Looking at the Profit Margin, with a value of 9.70%, AAON is in line with its industry, outperforming 56.10% of the companies in the same industry.
In the last couple of years the Profit Margin of AAON has grown nicely.
AAON's Operating Margin of 12.20% is in line compared to the rest of the industry. AAON outperforms 46.34% of its industry peers.
In the last couple of years the Operating Margin of AAON has grown nicely.
The Gross Margin of AAON (28.67%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of AAON has grown nicely.
| 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 just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for AAON remains at a similar level compared to 1 year ago.
AAON has more shares outstanding than it did 5 years ago.
AAON has a worse debt/assets ratio than last year.
2.2 Solvency
AAON has an Altman-Z score of 9.52. This indicates that AAON is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AAON (9.52) is better than 97.56% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that AAON is not too dependend on debt financing.
AAON has a Debt to Equity ratio (0.40) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 9.52 |
ROIC/WACC1.01
WACC10.27%
2.3 Liquidity
A Current Ratio of 3.10 indicates that AAON has no problem at all paying its short term obligations.
AAON's Current ratio of 3.10 is amongst the best of the industry. AAON outperforms 82.93% of its industry peers.
AAON has a Quick Ratio of 1.99. 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 1.99 is amongst the best of the industry. AAON outperforms 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.1 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
AAON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.36%.
AAON shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.87% yearly.
Looking at the last year, AAON shows a small growth in Revenue. The Revenue has grown by 5.38% in the last year.
The Revenue has been growing by 20.67% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-33.36%
EPS 3Y20.46%
EPS 5Y13.87%
EPS Q2Q%-64.52%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y30.96%
Revenue growth 5Y20.67%
Sales Q2Q%-0.64%
3.2 Future
The Earnings Per Share is expected to grow by 14.97% on average over the next years. This is quite good.
The Revenue is expected to grow by 14.60% on average over the next years. This is quite good.
EPS Next Y-22.74%
EPS Next 2Y1%
EPS Next 3Y14.97%
EPS Next 5YN/A
Revenue Next Year10.18%
Revenue Next 2Y11.77%
Revenue Next 3Y12.27%
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.
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
With a Price/Earnings ratio of 54.07, AAON can be considered very expensive at the moment.
78.05% of the companies in the same industry are cheaper than AAON, based on the Price/Earnings ratio.
AAON's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 40.08, AAON can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, AAON is valued a bit more expensive than 75.61% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, AAON is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.07 | ||
| Fwd PE | 40.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AAON is valued more expensive than 80.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 30.91 |
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 14.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)3.9
EPS Next 2Y1%
EPS Next 3Y14.97%
5. Dividend
5.1 Amount
AAON has a yearly dividend return of 0.49%, which is pretty low.
AAON's Dividend Yield is comparable with the industry average which is at 1.13.
Compared to an average S&P500 Dividend Yield of 2.38, AAON's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
The dividend of AAON is nicely growing with an annual growth rate of 8.53%!
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 23.98% 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.
DP23.98%
EPS Next 2Y1%
EPS Next 3Y14.97%
82.18
-0.29 (-0.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners77.4%
Inst Owner Change-0.04%
Ins Owners0.81%
Ins Owner Change-5.09%
Market Cap6.70B
Analysts85
Price Target96.75 (17.73%)
Short Float %7.35%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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)-5.76%
PT rev (3m)-11.56%
EPS NQ rev (1m)-32.48%
EPS NQ rev (3m)-57.31%
EPS NY rev (1m)-25.79%
EPS NY rev (3m)-29.62%
Revenue NQ rev (1m)-1.55%
Revenue NQ rev (3m)-14.68%
Revenue NY rev (1m)-3.85%
Revenue NY rev (3m)-5.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.07 | ||
| Fwd PE | 40.08 | ||
| P/S | 5.32 | ||
| P/FCF | N/A | ||
| P/OCF | 199.53 | ||
| P/B | 8.05 | ||
| P/tB | 9.99 | ||
| EV/EBITDA | 30.91 |
EPS(TTM)1.52
EY1.85%
EPS(NY)2.05
Fwd EY2.49%
FCF(TTM)-2.38
FCFYN/A
OCF(TTM)0.41
OCFY0.5%
SpS15.44
BVpS10.21
TBVpS8.22
PEG (NY)N/A
PEG (5Y)3.9
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%
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 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 | 9.52 |
F-Score4
WACC10.27%
ROIC/WACC1.01
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)-33.36%
EPS 3Y20.46%
EPS 5Y13.87%
EPS Q2Q%-64.52%
EPS Next Y-22.74%
EPS Next 2Y1%
EPS Next 3Y14.97%
EPS Next 5YN/A
Revenue 1Y (TTM)5.38%
Revenue growth 3Y30.96%
Revenue growth 5Y20.67%
Sales Q2Q%-0.64%
Revenue Next Year10.18%
Revenue Next 2Y11.77%
Revenue Next 3Y12.27%
Revenue Next 5Y14.6%
EBIT growth 1Y-36.72%
EBIT growth 3Y44.5%
EBIT growth 5Y25.45%
EBIT Next Year31.98%
EBIT Next 3Y23.75%
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%