ADVANCED ENERGY INDUSTRIES (AEIS) Stock Fundamental Analysis
NASDAQ:AEIS - Nasdaq - US0079731008 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to AEIS. AEIS was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. AEIS has only an average score on both its financial health and profitability. AEIS is valied quite expensively at the moment, while it does show a decent 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 (1.95%) is comparable to the rest of the industry.
The Return On Equity of AEIS (3.68%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 2.65%, AEIS perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AEIS is below the industry average of 8.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 3.68% | ||
| ROIC | 2.65% |
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 has a Profit Margin (2.91%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of AEIS has declined.
With a decent Operating Margin value of 4.34%, AEIS is doing good in the industry, outperforming 62.50% of the companies in the same industry.
AEIS's Operating Margin has declined in the last couple of years.
The Gross Margin of AEIS (35.16%) is comparable to the rest of the industry.
AEIS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.34% | ||
| PM (TTM) | 2.91% | ||
| GM | 35.16% |
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.
AEIS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AEIS has been reduced compared to 5 years ago.
Compared to 1 year ago, AEIS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.83 indicates that AEIS is not in any danger for bankruptcy at the moment.
AEIS has a better Altman-Z score (4.83) than 72.50% of its industry peers.
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.
With a Debt to FCF ratio value of 7.64, AEIS perfoms like the industry average, outperforming 50.83% of the companies in the same industry.
AEIS has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
AEIS has a Debt to Equity ratio of 0.48. This is in the lower half of the industry: AEIS underperforms 71.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 7.64 | ||
| Altman-Z | 4.83 |
ROIC/WACC0.32
WACC8.38%
2.3 Liquidity
AEIS has a Current Ratio of 4.62. This indicates that AEIS is financially healthy and has no problem in meeting its short term obligations.
AEIS has a better Current ratio (4.62) than 78.33% of its industry peers.
AEIS has a Quick Ratio of 3.32. This indicates that AEIS is financially healthy and has no problem in meeting its short term obligations.
AEIS has a better Quick ratio (3.32) than 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.62 | ||
| Quick Ratio | 3.32 |
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%.
AEIS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.74% yearly.
Looking at the last year, AEIS shows a very negative growth in Revenue. The Revenue has decreased by -10.49% in the last year.
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
The Earnings Per Share is expected to grow by 24.03% on average over the next years. This is a very strong growth
AEIS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.12% yearly.
EPS Next Y32.59%
EPS Next 2Y29.74%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 34.11, AEIS can be considered very expensive at the moment.
AEIS's Price/Earnings ratio is in line with the industry average.
AEIS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 25.72, which means the current valuation is very expensive for AEIS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AEIS is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.68. AEIS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.11 | ||
| Fwd PE | 25.72 |
4.2 Price Multiples
AEIS's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AEIS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.59 | ||
| EV/EBITDA | 36.34 |
4.3 Compensation for Growth
AEIS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AEIS's earnings are expected to grow with 24.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)3.9
EPS Next 2Y29.74%
EPS Next 3Y24.03%
5. Dividend
5.1 Amount
AEIS has a yearly dividend return of 0.30%, which is pretty low.
AEIS's Dividend Yield is rather good when compared to the industry average which is at 1.92. AEIS pays more dividend than 82.50% of the companies in the same industry.
With a Dividend Yield of 0.30, AEIS pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
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
AEIS pays out 35.78% of its income as dividend. This is a sustainable payout ratio.
DP35.78%
EPS Next 2Y29.74%
EPS Next 3Y24.03%
126.54
-3.72 (-2.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners107.41%
Inst Owner Change5.33%
Ins Owners0.8%
Ins Owner Change-0.48%
Market Cap4.77B
Analysts81.11
Price Target131.07 (3.58%)
Short Float %6.36%
Short Ratio9.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
Yearly Dividend0.41
Dividend Growth(5Y)N/A
DP35.78%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.1%
Min EPS beat(2)5.3%
Max EPS beat(2)16.9%
EPS beat(4)3
Avg EPS beat(4)2.95%
Min EPS beat(4)-15.1%
Max EPS beat(4)16.9%
EPS beat(8)7
Avg EPS beat(8)4.68%
EPS beat(12)11
Avg EPS beat(12)15.37%
EPS beat(16)14
Avg EPS beat(16)12.19%
Revenue beat(2)1
Avg Revenue beat(2)0.35%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)2.21%
Revenue beat(4)1
Avg Revenue beat(4)-2.55%
Min Revenue beat(4)-8.74%
Max Revenue beat(4)2.21%
Revenue beat(8)3
Avg Revenue beat(8)-1.75%
Revenue beat(12)7
Avg Revenue beat(12)2.21%
Revenue beat(16)7
Avg Revenue beat(16)1.33%
PT rev (1m)6.36%
PT rev (3m)11.39%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)0.22%
EPS NY rev (1m)0%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.11 | ||
| Fwd PE | 25.72 | ||
| P/S | 3.24 | ||
| P/FCF | 64.59 | ||
| P/OCF | 36.09 | ||
| P/B | 4.09 | ||
| P/tB | 6.62 | ||
| EV/EBITDA | 36.34 |
EPS(TTM)3.71
EY2.93%
EPS(NY)4.92
Fwd EY3.89%
FCF(TTM)1.96
FCFY1.55%
OCF(TTM)3.51
OCFY2.77%
SpS39.07
BVpS30.91
TBVpS19.12
PEG (NY)1.05
PEG (5Y)3.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 3.68% | ||
| ROCE | 3.36% | ||
| ROIC | 2.65% | ||
| ROICexc | 4.05% | ||
| ROICexgc | 6.31% | ||
| OM | 4.34% | ||
| PM (TTM) | 2.91% | ||
| GM | 35.16% | ||
| FCFM | 5.01% |
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-Score5
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 7.64 | ||
| Debt/EBITDA | 4.26 | ||
| Cap/Depr | 84.95% | ||
| Cap/Sales | 3.96% | ||
| Interest Coverage | 2.62 | ||
| Cash Conversion | 99.71% | ||
| Profit Quality | 172.25% | ||
| Current Ratio | 4.62 | ||
| Quick Ratio | 3.32 | ||
| Altman-Z | 4.83 |
F-Score5
WACC8.38%
ROIC/WACC0.32
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 Y32.59%
EPS Next 2Y29.74%
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-63%
EBIT growth 3Y-24.65%
EBIT growth 5Y2.41%
EBIT Next Year92.77%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-43%
FCF growth 3Y-11.96%
FCF growth 5Y26.09%
OCF growth 1Y-32.49%
OCF growth 3Y-2.31%
OCF growth 5Y21.99%