AAON INC (AAON) Stock Fundamental Analysis
USA - NASDAQ:AAON - US0003602069 - Common Stock
104.26 USD
+0.1 (+0.1%)
104.26 USD
0 (0%)
Taking everything into account, AAON scores 6 out of 10 in our fundamental rating. 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. AAON is quite expensive at the moment. It does show a decent growth rate.
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.
AAON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 8.72%, AAON is doing good in the industry, outperforming 65.85% of the companies in the same industry.
AAON's Return On Equity of 14.66% is fine compared to the rest of the industry. AAON outperforms 60.98% of its industry peers.
AAON has a Return On Invested Capital of 10.32%. This is in the better half of the industry: AAON outperforms 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 12.70%.
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
AAON's Profit Margin of 9.70% is in line compared to the rest of the industry. AAON outperforms 56.10% of its industry peers.
In the last couple of years the Profit Margin of AAON has grown nicely.
AAON has a Operating Margin (12.20%) which is in line with its industry peers.
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
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 about the same amount of shares outstanding.
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
An Altman-Z score of 11.43 indicates that AAON is not in any danger for bankruptcy at the moment.
AAON has a Altman-Z score of 11.43. This is amongst the best in the industry. AAON outperforms 97.56% of its industry peers.
AAON has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.40, AAON is doing good in 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 | 11.43 |
ROIC/WACC1.11
WACC9.31%
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's Current ratio of 3.10 is amongst the best of the industry. AAON outperforms 85.37% 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 has a better Quick ratio (1.99) than 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 -33.36% in the last year.
The Earnings Per Share has been growing by 13.87% on average over the past years. This is quite good.
Looking at the last year, AAON shows a small growth in Revenue. The Revenue has grown by 5.38% in the last year.
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)-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
AAON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.78% yearly.
The Revenue is expected to grow by 14.60% on average over the next years. This is quite good.
EPS Next Y-31.19%
EPS Next 2Y1.95%
EPS Next 3Y14.78%
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.
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
The Price/Earnings ratio is 68.59, which means the current valuation is very expensive for AAON.
Compared to the rest of the industry, the Price/Earnings ratio of AAON indicates a slightly more expensive valuation: AAON is more expensive than 78.05% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.53. AAON is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 49.91, the valuation of AAON can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AAON indicates a slightly more expensive valuation: AAON is more expensive than 75.61% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.04. AAON is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.59 | ||
| Fwd PE | 49.91 |
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 | 38.82 |
4.3 Compensation for Growth
The decent 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 14.78% in the coming years.
PEG (NY)N/A
PEG (5Y)4.95
EPS Next 2Y1.95%
EPS Next 3Y14.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.40%, AAON is not a good candidate for dividend investing.
AAON's Dividend Yield is comparable with the industry average which is at 1.24.
With a Dividend Yield of 0.40, AAON pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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
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 2Y1.95%
EPS Next 3Y14.78%
104.26
+0.1 (+0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners79.01%
Inst Owner Change-0.29%
Ins Owners0.73%
Ins Owner Change-8.43%
Market Cap8.50B
Analysts86.15
Price Target99.2 (-4.85%)
Short Float %8.82%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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)2.53%
PT rev (3m)-3.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-56.55%
EPS NY rev (1m)-10.94%
EPS NY rev (3m)-35.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-14.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.59 | ||
| Fwd PE | 49.91 | ||
| P/S | 6.75 | ||
| P/FCF | N/A | ||
| P/OCF | 253.14 | ||
| P/B | 10.21 | ||
| P/tB | 12.68 | ||
| EV/EBITDA | 38.82 |
EPS(TTM)1.52
EY1.46%
EPS(NY)2.09
Fwd EY2%
FCF(TTM)-2.38
FCFYN/A
OCF(TTM)0.41
OCFY0.4%
SpS15.44
BVpS10.21
TBVpS8.22
PEG (NY)N/A
PEG (5Y)4.95
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 | 11.43 |
F-Score4
WACC9.31%
ROIC/WACC1.11
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-31.19%
EPS Next 2Y1.95%
EPS Next 3Y14.78%
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 2Y11.41%
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%