AAON INC (AAON) Stock Fundamental Analysis
NASDAQ:AAON - Nasdaq - US0003602069 - Common Stock - Currency: USD
AAON gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. While AAON belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AAON is valued quite expensive, but it does show an excellent growth. This makes AAON very considerable for growth investing!
1. Profitability
1.1 Basic Checks
AAON had positive earnings in the past year.
AAON had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 12.22%, AAON is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
With a decent Return On Equity value of 19.47%, AAON is doing good in the industry, outperforming 68.29% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.41%, AAON is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
AAON had an Average Return On Invested Capital over the past 3 years of 18.30%. This is significantly above the industry average of 12.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.22% | ||
| ROE | 19.47% | ||
| ROIC | 14.41% |
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 has a Profit Margin of 12.60%. This is in the better half of the industry: AAON outperforms 70.73% of its industry peers.
AAON's Profit Margin has improved in the last couple of years.
AAON has a Operating Margin (15.64%) which is in line with its industry peers.
In the last couple of years the Operating Margin of AAON has grown nicely.
AAON has a Gross Margin (31.04%) which 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 | 15.64% | ||
| PM (TTM) | 12.6% | ||
| GM | 31.04% |
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.
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
An Altman-Z score of 10.24 indicates that AAON is not in any danger for bankruptcy at the moment.
AAON has a Altman-Z score of 10.24. This is amongst the best in the industry. AAON outperforms 97.56% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that AAON is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.31, AAON is doing good in the industry, outperforming 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 10.24 |
ROIC/WACC1.44
WACC9.99%
2.3 Liquidity
A Current Ratio of 2.77 indicates that AAON has no problem at all paying its short term obligations.
AAON has a better Current ratio (2.77) than 75.61% of its industry peers.
AAON has a Quick Ratio of 1.80. This is a normal value and indicates that AAON is financially healthy and should not expect problems in meeting its short term obligations.
AAON has a better Quick ratio (1.80) than 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
AAON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.03%.
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 quite strong growth in Revenue. The Revenue has grown by 8.23% in the last year.
AAON shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.67% yearly.
EPS 1Y (TTM)-13.03%
EPS 3Y20.46%
EPS 5Y13.87%
EPS Q2Q%-19.57%
Revenue 1Y (TTM)8.23%
Revenue growth 3Y30.96%
Revenue growth 5Y20.67%
Sales Q2Q%22.87%
3.2 Future
The Earnings Per Share is expected to grow by 19.17% on average over the next years. This is quite good.
AAON is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.10% yearly.
EPS Next Y6.1%
EPS Next 2Y16.38%
EPS Next 3Y19.17%
EPS Next 5YN/A
Revenue Next Year15.14%
Revenue Next 2Y14.07%
Revenue Next 3Y14.1%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 39.24, the valuation of AAON can be described as expensive.
AAON's Price/Earnings ratio is rather expensive when compared to the industry. AAON is more expensive than 80.49% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. AAON is valued slightly more expensive when compared to this.
AAON is valuated quite expensively with a Price/Forward Earnings ratio of 27.68.
Based on the Price/Forward Earnings ratio, AAON is valued a bit more expensive than 70.73% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. AAON is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.24 | ||
| Fwd PE | 27.68 |
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 | 24.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 19.17% in the coming years.
PEG (NY)6.43
PEG (5Y)2.83
EPS Next 2Y16.38%
EPS Next 3Y19.17%
5. Dividend
5.1 Amount
With a yearly dividend of 0.53%, AAON is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.14, AAON has a dividend in line with its industry peers.
With a Dividend Yield of 0.53, AAON pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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
17.39% 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.
DP17.39%
EPS Next 2Y16.38%
EPS Next 3Y19.17%
75.34
+1.95 (+2.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners77.5%
Inst Owner Change-0.02%
Ins Owners0.81%
Ins Owner Change0.14%
Market Cap6.13B
Analysts85
Price Target102.67 (36.28%)
Short Float %4.22%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Yearly Dividend0.32
Dividend Growth(5Y)8.53%
DP17.39%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.55%
Min EPS beat(2)-44.8%
Max EPS beat(2)53.89%
EPS beat(4)3
Avg EPS beat(4)9.02%
Min EPS beat(4)-44.8%
Max EPS beat(4)53.89%
EPS beat(8)6
Avg EPS beat(8)9.29%
EPS beat(12)9
Avg EPS beat(12)9.47%
EPS beat(16)11
Avg EPS beat(16)5.35%
Revenue beat(2)1
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-8.93%
Max Revenue beat(2)7.13%
Revenue beat(4)3
Avg Revenue beat(4)2.03%
Min Revenue beat(4)-8.93%
Max Revenue beat(4)8.34%
Revenue beat(8)6
Avg Revenue beat(8)0.64%
Revenue beat(12)10
Avg Revenue beat(12)1.72%
Revenue beat(16)12
Avg Revenue beat(16)2%
PT rev (1m)-9.52%
PT rev (3m)-9.93%
EPS NQ rev (1m)-19.22%
EPS NQ rev (3m)-42.12%
EPS NY rev (1m)-3.35%
EPS NY rev (3m)-3.39%
Revenue NQ rev (1m)-5.81%
Revenue NQ rev (3m)-10.12%
Revenue NY rev (1m)-1.17%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.24 | ||
| Fwd PE | 27.68 | ||
| P/S | 4.86 | ||
| P/FCF | N/A | ||
| P/OCF | 67.41 | ||
| P/B | 7.51 | ||
| P/tB | 9.36 | ||
| EV/EBITDA | 24.1 |
EPS(TTM)1.92
EY2.55%
EPS(NY)2.72
Fwd EY3.61%
FCF(TTM)-1.65
FCFYN/A
OCF(TTM)1.12
OCFY1.48%
SpS15.49
BVpS10.03
TBVpS8.05
PEG (NY)6.43
PEG (5Y)2.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.22% | ||
| ROE | 19.47% | ||
| ROCE | 18.03% | ||
| ROIC | 14.41% | ||
| ROICexc | 14.42% | ||
| ROICexgc | 16.91% | ||
| OM | 15.64% | ||
| PM (TTM) | 12.6% | ||
| GM | 31.04% | ||
| 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-Score3
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.95 | ||
| Cap/Depr | 329.49% | ||
| Cap/Sales | 17.84% | ||
| Interest Coverage | 40.01 | ||
| Cash Conversion | 34.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.77 | ||
| Quick Ratio | 1.8 | ||
| Altman-Z | 10.24 |
F-Score3
WACC9.99%
ROIC/WACC1.44
Cap/Depr(3y)243.08%
Cap/Depr(5y)235.38%
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)-13.03%
EPS 3Y20.46%
EPS 5Y13.87%
EPS Q2Q%-19.57%
EPS Next Y6.1%
EPS Next 2Y16.38%
EPS Next 3Y19.17%
EPS Next 5YN/A
Revenue 1Y (TTM)8.23%
Revenue growth 3Y30.96%
Revenue growth 5Y20.67%
Sales Q2Q%22.87%
Revenue Next Year15.14%
Revenue Next 2Y14.07%
Revenue Next 3Y14.1%
Revenue Next 5YN/A
EBIT growth 1Y-14.34%
EBIT growth 3Y44.5%
EBIT growth 5Y25.45%
EBIT Next Year43.49%
EBIT Next 3Y31.02%
EBIT Next 5YN/A
FCF growth 1Y-3447.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y24.76%
OCF growth 3Y46.53%
OCF growth 5Y14.48%