AAON INC (AAON) Stock Fundamental Analysis
NASDAQ:AAON - Nasdaq - US0003602069 - Common Stock
We assign a fundamental rating of 7 out of 10 to AAON. AAON was compared to 41 industry peers in the Building Products industry. Both the health and profitability get an excellent rating, making AAON a very profitable company, without any liquidiy or solvency issues. AAON shows excellent growth, but is valued quite expensive already. 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.
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's Return On Assets of 18.52% is amongst the best of the industry. AAON outperforms 92.50% of its industry peers.
AAON has a better Return On Equity (23.96%) than 70.00% of its industry peers.
AAON's Return On Invested Capital of 21.71% is amongst the best of the industry. AAON outperforms 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AAON is above the industry average of 13.18%.
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 87.50% of its industry peers.
In the last couple of years the Profit Margin of AAON has grown nicely.
With an excellent Operating Margin value of 20.14%, AAON belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
AAON's Operating Margin has improved in the last couple of years.
The Gross Margin of AAON (35.65%) is comparable to the rest of the industry.
AAON's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AAON is creating value.
The number of shares outstanding for AAON has been increased compared to 1 year ago.
Compared to 5 years ago, AAON has more shares outstanding
The debt/assets ratio for AAON has been reduced compared to a year ago.
2.2 Solvency
AAON has an Altman-Z score of 30.86. This indicates that AAON is financially healthy and has little risk of bankruptcy at the moment.
AAON has a Altman-Z score of 30.86. 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 80.00% 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's Debt to Equity ratio of 0.09 is fine compared to the rest of the industry. AAON outperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.7 | ||
| Altman-Z | 30.86 |
ROIC/WACC2.02
WACC10.72%
2.3 Liquidity
A Current Ratio of 3.06 indicates that AAON has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.06, AAON is in the better half of the industry, outperforming 77.50% of the companies in the same industry.
AAON has a Quick Ratio of 1.79. This is a normal value and indicates that AAON is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.79, AAON is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.70% over the past year.
The Earnings Per Share has been growing by 22.06% on average over the past years. This is a very strong growth
AAON shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.32%.
The Revenue has been growing by 21.91% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 22.15% on average over the next years. This is a very strong growth
AAON is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.47% yearly.
EPS Next Y4.39%
EPS Next 2Y16.99%
EPS Next 3Y16.21%
EPS Next 5Y22.15%
Revenue Next Year5.85%
Revenue Next 2Y14.99%
Revenue Next 3Y14.44%
Revenue Next 5Y14.47%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 58.22, AAON can be considered very expensive at the moment.
AAON's Price/Earnings ratio is rather expensive when compared to the industry. AAON is more expensive than 85.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. AAON is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 44.00, the valuation of AAON can be described as expensive.
Based on the Price/Forward Earnings ratio, AAON is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
The average S&P500 Price/Forward Earnings ratio is at 24.44. AAON is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.22 | ||
| Fwd PE | 44 |
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 82.50% of the companies listed in the same industry.
82.50% of the companies in the same industry are cheaper than AAON, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 104.2 | ||
| EV/EBITDA | 35.83 |
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 16.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)13.27
PEG (5Y)2.64
EPS Next 2Y16.99%
EPS Next 3Y16.21%
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 1.05.
Compared to an average S&P500 Dividend Yield of 2.28, AAON's dividend is way lower than the S&P500 average.
| 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 paid a dividend for at least 10 years, which is 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
13.68% 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.
DP13.68%
EPS Next 2Y16.99%
EPS Next 3Y16.21%
AAON INC
NASDAQ:AAON (1/21/2025, 8:00:00 PM)
After market: 132.15 0 (0%)132.15
+1.97 (+1.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners74.2%
Inst Owner Change0.04%
Ins Owners0.56%
Ins Owner Change-2.14%
Market Cap10.74B
Analysts78.46
Price Target134.39 (1.7%)
Short Float %2.29%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
Yearly Dividend0.33
Dividend Growth(5Y)8.94%
DP13.68%
Div Incr Years2
Div Non Decr Years17
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.5%
Min EPS beat(2)7.82%
Max EPS beat(2)19.18%
EPS beat(4)3
Avg EPS beat(4)6.65%
Min EPS beat(4)-7.01%
Max EPS beat(4)19.18%
EPS beat(8)7
Avg EPS beat(8)14.21%
EPS beat(12)9
Avg EPS beat(12)7.23%
EPS beat(16)11
Avg EPS beat(16)4.85%
Revenue beat(2)2
Avg Revenue beat(2)4.96%
Min Revenue beat(2)1.58%
Max Revenue beat(2)8.34%
Revenue beat(4)3
Avg Revenue beat(4)0.57%
Min Revenue beat(4)-9.76%
Max Revenue beat(4)8.34%
Revenue beat(8)7
Avg Revenue beat(8)1.98%
Revenue beat(12)10
Avg Revenue beat(12)2.77%
Revenue beat(16)11
Avg Revenue beat(16)1.89%
PT rev (1m)0%
PT rev (3m)32.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.22 | ||
| Fwd PE | 44 | ||
| P/S | 8.88 | ||
| P/FCF | 104.2 | ||
| P/OCF | 44.11 | ||
| P/B | 13.48 | ||
| P/tB | 16.84 | ||
| EV/EBITDA | 35.83 |
EPS(TTM)2.27
EY1.72%
EPS(NY)3
Fwd EY2.27%
FCF(TTM)1.27
FCFY0.96%
OCF(TTM)3
OCFY2.27%
SpS14.88
BVpS9.8
TBVpS7.85
PEG (NY)13.27
PEG (5Y)2.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.52% | ||
| ROE | 23.96% | ||
| ROCE | 27.34% | ||
| ROIC | 21.71% | ||
| ROICexc | 21.71% | ||
| ROICexgc | 26.42% | ||
| OM | 20.14% | ||
| PM (TTM) | 15.78% | ||
| GM | 35.65% | ||
| FCFM | 8.52% |
ROA(3y)13.42%
ROA(5y)14.46%
ROE(3y)18.23%
ROE(5y)19.14%
ROIC(3y)15.91%
ROIC(5y)16.81%
ROICexc(3y)15.97%
ROICexc(5y)18.15%
ROICexgc(3y)20.39%
ROICexgc(5y)20.9%
ROCE(3y)20.04%
ROCE(5y)21.18%
ROICexcg growth 3Y4.53%
ROICexcg growth 5Y10.22%
ROICexc growth 3Y-1.99%
ROICexc growth 5Y6.13%
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%
F-Score8
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.7 | ||
| Debt/EBITDA | 0.24 | ||
| Cap/Depr | 241.01% | ||
| Cap/Sales | 11.61% | ||
| Interest Coverage | 90.44 | ||
| Cash Conversion | 80.67% | ||
| Profit Quality | 53.99% | ||
| Current Ratio | 3.06 | ||
| Quick Ratio | 1.79 | ||
| Altman-Z | 30.86 |
F-Score8
WACC10.72%
ROIC/WACC2.02
Cap/Depr(3y)190.77%
Cap/Depr(5y)200.06%
Cap/Sales(3y)8.6%
Cap/Sales(5y)9.38%
Profit Quality(3y)14.98%
Profit Quality(5y)47.04%
High Growth Momentum
Growth
EPS 1Y (TTM)7.7%
EPS 3Y16.16%
EPS 5Y22.06%
EPS Q2Q%-1.72%
EPS Next Y4.39%
EPS Next 2Y16.99%
EPS Next 3Y16.21%
EPS Next 5Y22.15%
Revenue 1Y (TTM)8.32%
Revenue growth 3Y31.44%
Revenue growth 5Y21.91%
Sales Q2Q%4.9%
Revenue Next Year5.85%
Revenue Next 2Y14.99%
Revenue Next 3Y14.44%
Revenue Next 5Y14.47%
EBIT growth 1Y15.87%
EBIT growth 3Y35.1%
EBIT growth 5Y33.51%
EBIT Next Year33.04%
EBIT Next 3Y25.57%
EBIT Next 5Y26.64%
FCF growth 1Y520.75%
FCF growth 3Y-6.79%
FCF growth 5Y22.93%
OCF growth 1Y714.32%
OCF growth 3Y7.25%
OCF growth 5Y23.68%