ADVANCED ENERGY INDUSTRIES (AEIS)
US0079731008 - Common Stock
Taking everything into account, AEIS scores 5 out of 10 in our fundamental rating. AEIS was compared to 128 industry peers in the Electronic Equipment, Instruments & Components industry. Both the profitability and the financial health of AEIS get a neutral evaluation. Nothing too spectacular is happening here. AEIS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
AEIS had positive earnings in the past year.
AEIS had a positive operating cash flow in the past year.
Each year in the past 5 years AEIS has been profitable.
In the past 5 years AEIS always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.06%, AEIS is doing good in the industry, outperforming 65.08% of the companies in the same industry.
The Return On Equity of AEIS (8.98%) is better than 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.77%, AEIS is in line with its industry, outperforming 58.73% of the companies in the same industry.
AEIS had an Average Return On Invested Capital over the past 3 years of 8.95%. This is in line with the industry average of 8.95%.
The 3 year average ROIC (8.95%) for AEIS is well above the current ROIC(3.77%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 8.98% | ||
| ROIC | 3.77% |
ROA(3y)7.48%
ROA(5y)6.97%
ROE(3y)15.14%
ROE(5y)14.31%
ROIC(3y)8.95%
ROIC(5y)8.53%
1.3 Margins
The Profit Margin of AEIS (6.58%) is better than 73.81% 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 6.45%, AEIS is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
AEIS's Operating Margin has declined in the last couple of years.
AEIS has a better Gross Margin (35.30%) than 61.90% of its industry peers.
In the last couple of years the Gross Margin of AEIS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.45% | ||
| PM (TTM) | 6.58% | ||
| GM | 35.3% |
OM growth 3Y-14.01%
OM growth 5Y-19.06%
PM growth 3Y-6.61%
PM growth 5Y-17.65%
GM growth 3Y-2.22%
GM growth 5Y-6.79%
2. Health
2.1 Basic Checks
AEIS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AEIS has less shares outstanding than it did 1 year ago.
AEIS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AEIS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.69 indicates that AEIS is not in any danger for bankruptcy at the moment.
AEIS's Altman-Z score of 3.69 is fine compared to the rest of the industry. AEIS outperforms 65.87% of its industry peers.
The Debt to FCF ratio of AEIS is 7.29, which is on the high side as it means it would take AEIS, 7.29 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AEIS (7.29) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.78 indicates that AEIS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.78, AEIS is doing worse than 84.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 7.29 | ||
| Altman-Z | 3.69 |
ROIC/WACC0.42
WACC8.9%
2.3 Liquidity
AEIS has a Current Ratio of 5.61. This indicates that AEIS is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 5.61, AEIS belongs to the best of the industry, outperforming 84.92% of the companies in the same industry.
AEIS has a Quick Ratio of 4.40. This indicates that AEIS is financially healthy and has no problem in meeting its short term obligations.
AEIS's Quick ratio of 4.40 is amongst the best of the industry. AEIS outperforms 84.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.61 | ||
| Quick Ratio | 4.4 |
3. Growth
3.1 Past
The earnings per share for AEIS have decreased strongly by -35.23% in the last year.
The Earnings Per Share has been growing slightly by 2.19% on average over the past years.
Looking at the last year, AEIS shows a very negative growth in Revenue. The Revenue has decreased by -16.80% in the last year.
AEIS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.16% yearly.
EPS 1Y (TTM)-35.23%
EPS 3Y-2.41%
EPS 5Y2.19%
EPS Q2Q%-53.23%
Revenue 1Y (TTM)-16.8%
Revenue growth 3Y5.36%
Revenue growth 5Y18.16%
Sales Q2Q%-22.95%
3.2 Future
Based on estimates for the next years, AEIS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.74% on average per year.
AEIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.52% yearly.
EPS Next Y-30.21%
EPS Next 2Y6.49%
EPS Next 3Y9.74%
EPS Next 5YN/A
Revenue Next Year-12.43%
Revenue Next 2Y1.35%
Revenue Next 3Y2.52%
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.
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
The Price/Earnings ratio is 25.52, which means the current valuation is very expensive for AEIS.
AEIS's Price/Earnings ratio is a bit cheaper when compared to the industry. AEIS is cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.05. AEIS is around the same levels.
The Price/Forward Earnings ratio is 19.45, which indicates a rather expensive current valuation of AEIS.
65.08% of the companies in the same industry are more expensive than AEIS, based on the Price/Forward Earnings ratio.
AEIS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.07.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.52 | ||
| Fwd PE | 19.45 |
4.2 Price Multiples
AEIS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, AEIS is valued a bit cheaper than the industry average as 62.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.18 | ||
| EV/EBITDA | 23.25 |
4.3 Compensation for Growth
AEIS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)11.65
EPS Next 2Y6.49%
EPS Next 3Y9.74%
5. Dividend
5.1 Amount
AEIS has a yearly dividend return of 0.37%, which is pretty low.
Compared to an average industry Dividend Yield of 1.67, AEIS pays a better dividend. On top of this AEIS pays more dividend than 84.13% of the companies listed in the same industry.
With a Dividend Yield of 0.37, AEIS pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
5.2 History
AEIS has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
14.84% of the earnings are spent on dividend by AEIS. This is a low number and sustainable payout ratio.
DP14.84%
EPS Next 2Y6.49%
EPS Next 3Y9.74%
ADVANCED ENERGY INDUSTRIES
NASDAQ:AEIS (5/31/2024, 7:21:58 PM)
After market: 107.43 0 (0%)107.43
+0.57 (+0.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.02B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Dividend Growth(5Y)
DP
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Div Non Decr Years
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Surprises & Revisions
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EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.52 | ||
| Fwd PE | 19.45 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)11.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 8.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.45% | ||
| PM (TTM) | 6.58% | ||
| GM | 35.3% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.61 | ||
| Quick Ratio | 4.4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-35.23%
EPS 3Y-2.41%
EPS 5Y
EPS Q2Q%
EPS Next Y-30.21%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.8%
Revenue growth 3Y5.36%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
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