ADVANCED ENERGY INDUSTRIES (AEIS) Stock Fundamental Analysis
NASDAQ:AEIS - Nasdaq - US0079731008 - Common Stock - Currency: USD
AEIS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. AEIS has only an average score on both its financial health and profitability. AEIS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year AEIS was profitable.
AEIS had a positive operating cash flow in the past year.
AEIS had positive earnings in each of the past 5 years.
Each year in the past 5 years AEIS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AEIS (2.40%) is comparable to the rest of the industry.
AEIS has a Return On Equity (4.51%) which is in line with its industry peers.
AEIS has a Return On Invested Capital of 2.71%. This is comparable to the rest of the industry: AEIS outperforms 56.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AEIS is below the industry average of 9.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 4.51% | ||
| ROIC | 2.71% |
ROA(3y)5.81%
ROA(5y)6.6%
ROE(3y)11.48%
ROE(5y)13.29%
ROIC(3y)6.52%
ROIC(5y)7.83%
1.3 Margins
AEIS's Profit Margin of 3.66% is fine compared to the rest of the industry. AEIS outperforms 66.94% of its industry peers.
In the last couple of years the Profit Margin of AEIS has declined.
Looking at the Operating Margin, with a value of 4.52%, AEIS is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
In the last couple of years the Operating Margin of AEIS has declined.
AEIS's Gross Margin of 35.72% is in line compared to the rest of the industry. AEIS outperforms 58.87% of its industry peers.
In the last couple of years the Gross Margin of AEIS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.52% | ||
| PM (TTM) | 3.66% | ||
| GM | 35.72% |
OM growth 3Y-25.09%
OM growth 5Y-9.73%
PM growth 3Y-26.61%
PM growth 5Y-14.97%
GM growth 3Y-0.78%
GM growth 5Y-2.24%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AEIS is destroying value.
Compared to 1 year ago, AEIS has more shares outstanding
AEIS has less shares outstanding than it did 5 years ago.
AEIS has a better debt/assets ratio than last year.
2.2 Solvency
AEIS has an Altman-Z score of 3.82. This indicates that AEIS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.82, AEIS is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
The Debt to FCF ratio of AEIS is 7.64, which is on the high side as it means it would take AEIS, 7.64 years of fcf income to pay off all of its debts.
AEIS has a Debt to FCF ratio of 7.64. This is comparable to the rest of the industry: AEIS outperforms 53.23% of its industry peers.
AEIS has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
AEIS's Debt to Equity ratio of 0.47 is on the low side compared to the rest of the industry. AEIS is outperformed by 70.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 7.64 | ||
| Altman-Z | 3.82 |
ROIC/WACC0.33
WACC8.17%
2.3 Liquidity
AEIS has a Current Ratio of 4.42. This indicates that AEIS is financially healthy and has no problem in meeting its short term obligations.
AEIS has a Current ratio of 4.42. This is in the better half of the industry: AEIS outperforms 77.42% of its industry peers.
AEIS has a Quick Ratio of 3.27. This indicates that AEIS is financially healthy and has no problem in meeting its short term obligations.
AEIS has a Quick ratio of 3.27. This is in the better half of the industry: AEIS outperforms 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.42 | ||
| Quick Ratio | 3.27 |
3. Growth
3.1 Past
AEIS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.82%.
Measured over the past years, AEIS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.74% on average per year.
AEIS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.49%.
The Revenue has been growing by 13.44% on average over the past years. This is quite good.
EPS 1Y (TTM)-23.82%
EPS 3Y-8.16%
EPS 5Y8.74%
EPS Q2Q%4.84%
Revenue 1Y (TTM)-10.49%
Revenue growth 3Y0.59%
Revenue growth 5Y13.44%
Sales Q2Q%2.5%
3.2 Future
AEIS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.03% yearly.
Based on estimates for the next years, AEIS will show a quite strong growth in Revenue. The Revenue will grow by 9.12% on average per year.
EPS Next Y32.14%
EPS Next 2Y29.4%
EPS Next 3Y24.03%
EPS Next 5YN/A
Revenue Next Year11.01%
Revenue Next 2Y10%
Revenue Next 3Y9.12%
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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AEIS is valuated rather expensively with a Price/Earnings ratio of 23.39.
AEIS's Price/Earnings is on the same level as the industry average.
AEIS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
AEIS is valuated rather expensively with a Price/Forward Earnings ratio of 17.70.
67.74% of the companies in the same industry are more expensive than AEIS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.08. AEIS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.39 | ||
| Fwd PE | 17.7 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AEIS.
The rest of the industry has a similar Price/Free Cash Flow ratio as AEIS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.46 | ||
| EV/EBITDA | 23.13 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as AEIS's earnings are expected to grow with 24.03% in the coming years.
PEG (NY)0.73
PEG (5Y)2.68
EPS Next 2Y29.4%
EPS Next 3Y24.03%
5. Dividend
5.1 Amount
With a yearly dividend of 0.46%, AEIS is not a good candidate for dividend investing.
In the last 3 months the price of AEIS has falen by -28.37%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
AEIS's Dividend Yield is rather good when compared to the industry average which is at 2.40. AEIS pays more dividend than 82.26% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, AEIS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
AEIS has been paying a dividend for over 5 years, so it has already some track record.
AEIS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
28.35% of the earnings are spent on dividend by AEIS. This is a low number and sustainable payout ratio.
DP28.35%
EPS Next 2Y29.4%
EPS Next 3Y24.03%
86.79
+1.22 (+1.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners110.14%
Inst Owner Change0.48%
Ins Owners0.79%
Ins Owner Change0.83%
Market Cap3.29B
Analysts81.11
Price Target131.07 (51.02%)
Short Float %6.02%
Short Ratio7.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
Yearly Dividend0.41
Dividend Growth(5Y)N/A
DP28.35%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.82%
Min EPS beat(2)5.3%
Max EPS beat(2)16.34%
EPS beat(4)3
Avg EPS beat(4)5.86%
Min EPS beat(4)-15.1%
Max EPS beat(4)16.9%
EPS beat(8)7
Avg EPS beat(8)6.17%
EPS beat(12)11
Avg EPS beat(12)13.3%
EPS beat(16)14
Avg EPS beat(16)12.72%
Revenue beat(2)1
Avg Revenue beat(2)0.94%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)3.39%
Revenue beat(4)2
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-8.74%
Max Revenue beat(4)3.39%
Revenue beat(8)3
Avg Revenue beat(8)-1.44%
Revenue beat(12)7
Avg Revenue beat(12)1.74%
Revenue beat(16)8
Avg Revenue beat(16)1.55%
PT rev (1m)0%
PT rev (3m)6.69%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)7.41%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-3.94%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)2.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.39 | ||
| Fwd PE | 17.7 | ||
| P/S | 2.22 | ||
| P/FCF | 44.46 | ||
| P/OCF | 25.15 | ||
| P/B | 2.73 | ||
| P/tB | 4.28 | ||
| EV/EBITDA | 23.13 |
EPS(TTM)3.71
EY4.27%
EPS(NY)4.9
Fwd EY5.65%
FCF(TTM)1.95
FCFY2.25%
OCF(TTM)3.45
OCFY3.98%
SpS39.11
BVpS31.75
TBVpS20.26
PEG (NY)0.73
PEG (5Y)2.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 4.51% | ||
| ROCE | 3.44% | ||
| ROIC | 2.71% | ||
| ROICexc | 4.31% | ||
| ROICexgc | 6.69% | ||
| OM | 4.52% | ||
| PM (TTM) | 3.66% | ||
| GM | 35.72% | ||
| FCFM | 4.99% |
ROA(3y)5.81%
ROA(5y)6.6%
ROE(3y)11.48%
ROE(5y)13.29%
ROIC(3y)6.52%
ROIC(5y)7.83%
ROICexc(3y)10.13%
ROICexc(5y)12.26%
ROICexgc(3y)16.74%
ROICexgc(5y)20.82%
ROCE(3y)8.26%
ROCE(5y)9.92%
ROICexcg growth 3Y-34.09%
ROICexcg growth 5Y-7.46%
ROICexc growth 3Y-32.01%
ROICexc growth 5Y-4.53%
OM growth 3Y-25.09%
OM growth 5Y-9.73%
PM growth 3Y-26.61%
PM growth 5Y-14.97%
GM growth 3Y-0.78%
GM growth 5Y-2.24%
F-Score6
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 7.64 | ||
| Debt/EBITDA | 4.17 | ||
| Cap/Depr | 82.96% | ||
| Cap/Sales | 3.83% | ||
| Interest Coverage | 3.88 | ||
| Cash Conversion | 96.58% | ||
| Profit Quality | 136.42% | ||
| Current Ratio | 4.42 | ||
| Quick Ratio | 3.27 | ||
| Altman-Z | 3.82 |
F-Score6
WACC8.17%
ROIC/WACC0.33
Cap/Depr(3y)90.77%
Cap/Depr(5y)81.79%
Cap/Sales(3y)3.57%
Cap/Sales(5y)3.09%
Profit Quality(3y)104.73%
Profit Quality(5y)103.39%
High Growth Momentum
Growth
EPS 1Y (TTM)-23.82%
EPS 3Y-8.16%
EPS 5Y8.74%
EPS Q2Q%4.84%
EPS Next Y32.14%
EPS Next 2Y29.4%
EPS Next 3Y24.03%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.49%
Revenue growth 3Y0.59%
Revenue growth 5Y13.44%
Sales Q2Q%2.5%
Revenue Next Year11.01%
Revenue Next 2Y10%
Revenue Next 3Y9.12%
Revenue Next 5YN/A
EBIT growth 1Y-52.42%
EBIT growth 3Y-24.65%
EBIT growth 5Y2.41%
EBIT Next Year92.61%
EBIT Next 3Y39.8%
EBIT Next 5YN/A
FCF growth 1Y-50%
FCF growth 3Y-11.96%
FCF growth 5Y26.09%
OCF growth 1Y-37.42%
OCF growth 3Y-2.31%
OCF growth 5Y21.99%