AAON INC (AAON)
US0003602069 - Common Stock
Overall AAON gets a fundamental rating of 7 out of 10. We evaluated AAON against 39 industry peers in the Building Products industry. AAON has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. AAON is valued quite expensively, but it does show have an excellent growth rating. 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.
Each year in the past 5 years AAON has been profitable.
AAON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AAON has a Return On Assets of 18.52%. This is amongst the best in the industry. AAON outperforms 92.31% of its industry peers.
AAON has a better Return On Equity (23.96%) than 69.23% of its industry peers.
The Return On Invested Capital of AAON (21.71%) is better than 89.74% of its industry peers.
AAON had an Average Return On Invested Capital over the past 3 years of 15.91%. This is above the industry average of 13.33%.
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 87.18% of its industry peers.
AAON's Profit Margin has improved in the last couple of years.
The Operating Margin of AAON (20.14%) is better than 84.62% of its industry peers.
AAON's Operating Margin has improved in the last couple of years.
AAON has a Gross Margin (35.65%) which is in line with its industry peers.
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.
Compared to 1 year ago, AAON has more shares outstanding
The number of shares outstanding for AAON has been increased compared to 5 years ago.
Compared to 1 year ago, AAON has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 29.19 indicates that AAON is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 29.19, AAON belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of AAON is 0.70, which is an excellent value as it means it would take AAON, only 0.70 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.70, AAON is doing good in the industry, outperforming 79.49% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that AAON is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.09, AAON is doing good in the industry, outperforming 71.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.7 | ||
| Altman-Z | 29.19 |
ROIC/WACC2.07
WACC10.49%
2.3 Liquidity
A Current Ratio of 3.06 indicates that AAON has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.06, AAON is doing good in the industry, outperforming 79.49% of the companies in the same industry.
A Quick Ratio of 1.79 indicates that AAON should not have too much problems paying its short term obligations.
AAON has a better Quick ratio (1.79) than 74.36% of its industry peers.
| 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.
AAON shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.06% yearly.
AAON shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.32%.
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
Based on estimates for the next years, AAON will show a very strong growth in Earnings Per Share. The EPS will grow by 22.15% on average per year.
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 2Y16.99%
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
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 54.68, which means the current valuation is very expensive for AAON.
Based on the Price/Earnings ratio, AAON is valued more expensive than 87.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of AAON to the average of the S&P500 Index (27.73), we can say AAON is valued expensively.
AAON is valuated quite expensively with a Price/Forward Earnings ratio of 41.33.
AAON's Price/Forward Earnings ratio is rather expensive when compared to the industry. AAON is more expensive than 82.05% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, AAON is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.68 | ||
| Fwd PE | 41.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AAON is valued more expensive than 84.62% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AAON is valued a bit more expensive than the industry average as 79.49% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 97.87 | ||
| EV/EBITDA | 33.67 |
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.
The excellent profitability rating of AAON 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)12.46
PEG (5Y)2.48
EPS Next 2Y16.99%
EPS Next 3Y16.21%
5. Dividend
5.1 Amount
AAON has a yearly dividend return of 0.26%, which is pretty low.
AAON's Dividend Yield is comparable with the industry average which is at 1.05.
With a Dividend Yield of 0.26, AAON pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
5.2 History
The dividend of AAON is nicely growing with an annual growth rate of 8.94%!
AAON has paid a dividend for at least 10 years, which is a reliable track record.
AAON has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of AAON is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.68%
EPS Next 2Y16.99%
EPS Next 3Y16.21%
AAON INC
NASDAQ:AAON (12/20/2024, 8:00:00 PM)
After market: 124.13 0 (0%)124.13
+0.3 (+0.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners74.2%
Inst Owner Change-2.26%
Ins Owners0.56%
Ins Owner Change-1.91%
Market Cap10.09B
Analysts78.46
Price Target134.39 (8.27%)
Short Float %2.69%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
Dividend Growth(5Y)8.94%
DP13.68%
Div Incr Years2
Div Non Decr Years17
Ex-Date
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)29.17%
PT rev (3m)33.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.19%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.88%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.68 | ||
| Fwd PE | 41.33 | ||
| P/S | 8.34 | ||
| P/FCF | 97.87 | ||
| P/OCF | 41.44 | ||
| P/B | 12.66 | ||
| P/tB | 15.81 | ||
| EV/EBITDA | 33.67 |
EPS(TTM)2.27
EY1.83%
EPS(NY)3
Fwd EY2.42%
FCF(TTM)1.27
FCFY1.02%
OCF(TTM)3
OCFY2.41%
SpS14.88
BVpS9.8
TBVpS7.85
PEG (NY)12.46
PEG (5Y)2.48
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 | 29.19 |
F-Score8
WACC10.49%
ROIC/WACC2.07
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 Year34.01%
EBIT Next 3Y28.42%
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%