AAON INC (AAON) Stock Fundamental Analysis
NASDAQ:AAON - Nasdaq - US0003602069 - Common Stock - Currency: USD
Taking everything into account, AAON scores 7 out of 10 in our fundamental rating. AAON was compared to 40 industry peers in the Building Products industry. AAON scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AAON shows excellent growth, but is valued quite expensive already. These ratings would make AAON suitable 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.
In the past 5 years AAON always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 18.52%, AAON belongs to the best of the industry, outperforming 92.50% of the companies in the same industry.
AAON has a better Return On Equity (23.96%) than 70.00% of its industry peers.
AAON has a Return On Invested Capital of 21.71%. This is amongst the best in the industry. AAON outperforms 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AAON is above the industry average of 13.20%.
The last Return On Invested Capital (21.71%) for AAON is above the 3 year average (15.91%), which is a sign of increasing profitability.
| 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 has a better Profit Margin (15.78%) than 85.00% of its industry peers.
In the last couple of years the Profit Margin of AAON has grown nicely.
AAON's Operating Margin of 20.14% is amongst the best of the industry. AAON outperforms 85.00% of its industry peers.
In the last couple of years the Operating Margin of AAON has grown nicely.
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
AAON has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, AAON has more shares outstanding
Compared to 5 years ago, AAON has more shares outstanding
Compared to 1 year ago, AAON has an improved debt to assets ratio.
2.2 Solvency
AAON has an Altman-Z score of 26.36. This indicates that AAON is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 26.36, AAON belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 0.70, AAON belongs to the top of the industry, outperforming 82.50% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that AAON is not too dependend on debt financing.
The Debt to Equity ratio of AAON (0.09) is better than 72.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.7 | ||
| Altman-Z | 26.36 |
ROIC/WACC2.04
WACC10.66%
2.3 Liquidity
A Current Ratio of 3.06 indicates that AAON has no problem at all paying its short term obligations.
The Current ratio of AAON (3.06) is better than 77.50% of its industry peers.
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.
The Quick ratio of AAON (1.79) is better than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 1.79 |
3. Growth
3.1 Past
AAON shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.70%.
Measured over the past years, AAON shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.06% on average per year.
The Revenue has grown by 8.32% in the past year. This is quite good.
Measured over the past years, AAON shows a very strong growth in Revenue. The Revenue has been growing by 21.91% on average per year.
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
AAON is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.15% yearly.
The Revenue is expected to grow by 14.47% on average over the next years. This is quite good.
EPS Next Y4.39%
EPS Next 2Y16.94%
EPS Next 3Y18.1%
EPS Next 5Y22.15%
Revenue Next Year5.85%
Revenue Next 2Y14.95%
Revenue Next 3Y14.37%
Revenue Next 5Y14.47%
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
Based on the Price/Earnings ratio of 45.65, the valuation of AAON can be described as expensive.
Based on the Price/Earnings ratio, AAON is valued expensively inside the industry as 82.50% of the companies are valued cheaper.
When comparing the Price/Earnings ratio of AAON to the average of the S&P500 Index (29.63), we can say AAON is valued expensively.
With a Price/Forward Earnings ratio of 34.54, AAON can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AAON indicates a rather expensive valuation: AAON more expensive than 80.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. AAON is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.65 | ||
| Fwd PE | 34.54 |
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.
Based on the Price/Free Cash Flow ratio, AAON is valued a bit more expensive than the industry average as 77.50% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81.71 | ||
| EV/EBITDA | 30.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AAON does not grow enough to justify the current Price/Earnings ratio.
AAON has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AAON's earnings are expected to grow with 18.10% in the coming years.
PEG (NY)10.4
PEG (5Y)2.07
EPS Next 2Y16.94%
EPS Next 3Y18.1%
5. Dividend
5.1 Amount
AAON has a yearly dividend return of 0.28%, which is pretty low.
In the last 3 months the price of AAON has falen by -24.59%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
AAON's Dividend Yield is comparable with the industry average which is at 1.10.
With a Dividend Yield of 0.28, AAON pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
5.2 History
On average, the dividend of AAON grows each year by 8.94%, which is quite nice.
AAON has been paying a dividend for at least 10 years, so it has 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 2Y16.94%
EPS Next 3Y18.1%
103.63
-6.96 (-6.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners74.2%
Inst Owner Change2.1%
Ins Owners0.56%
Ins Owner Change-1.16%
Market Cap8.42B
Analysts78.46
Price Target138.72 (33.86%)
Short Float %2.34%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
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)3.23%
PT rev (3m)33.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.65 | ||
| Fwd PE | 34.54 | ||
| P/S | 6.96 | ||
| P/FCF | 81.71 | ||
| P/OCF | 34.59 | ||
| P/B | 10.57 | ||
| P/tB | 13.2 | ||
| EV/EBITDA | 30.02 |
EPS(TTM)2.27
EY2.19%
EPS(NY)3
Fwd EY2.9%
FCF(TTM)1.27
FCFY1.22%
OCF(TTM)3
OCFY2.89%
SpS14.88
BVpS9.8
TBVpS7.85
PEG (NY)10.4
PEG (5Y)2.07
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 | 26.36 |
F-Score8
WACC10.66%
ROIC/WACC2.04
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 2Y16.94%
EPS Next 3Y18.1%
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 2Y14.95%
Revenue Next 3Y14.37%
Revenue Next 5Y14.47%
EBIT growth 1Y15.87%
EBIT growth 3Y35.1%
EBIT growth 5Y33.51%
EBIT Next Year33.23%
EBIT Next 3Y27.89%
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%