NASDAQ:AAON: a strong growth stock preparing for the next leg up?.

Last update: May 29, 2024

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if AAON INC (NASDAQ:AAON) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted AAON INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Growth Assessment of NASDAQ:AAON

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:AAON boasts a 8 out of 10:

AAON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.21%, which is quite impressive.
The Earnings Per Share has been growing by 22.06% on average over the past years. This is a very strong growth
The Revenue has grown by 19.83% in the past year. This is quite good.
AAON shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.91% yearly.
AAON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.63% yearly.
Based on estimates for the next years, AAON will show a quite strong growth in Revenue. The Revenue will grow by 9.98% on average per year.

A Closer Look at Health for NASDAQ:AAON

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:AAON has received a 8 out of 10:

AAON has an Altman-Z score of 26.12. This indicates that AAON is financially healthy and has little risk of bankruptcy at the moment.
AAON has a Altman-Z score of 26.12. This is amongst the best in the industry. AAON outperforms 100.00% of its industry peers.
The Debt to FCF ratio of AAON is 0.13, which is an excellent value as it means it would take AAON, only 0.13 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.13, AAON belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
A Debt/Equity ratio of 0.02 indicates that AAON is not too dependend on debt financing.
AAON's Debt to Equity ratio of 0.02 is amongst the best of the industry. AAON outperforms 83.33% of its industry peers.
A Current Ratio of 3.13 indicates that AAON has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.13, AAON is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
AAON's Quick ratio of 1.57 is fine compared to the rest of the industry. AAON outperforms 64.29% of its industry peers.

Profitability Assessment of NASDAQ:AAON

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:AAON has earned a 9 out of 10:

With an excellent Return On Assets value of 18.88%, AAON belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
AAON has a Return On Equity of 22.92%. This is in the better half of the industry: AAON outperforms 71.43% of its industry peers.
AAON has a better Return On Invested Capital (22.80%) than 92.86% 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 13.56%.
The 3 year average ROIC (15.91%) for AAON is below the current ROIC(22.80%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 15.44%, AAON belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
AAON's Profit Margin has improved in the last couple of years.
The Operating Margin of AAON (20.41%) is better than 85.71% of its industry peers.
AAON's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 35.55%, AAON is doing good in the industry, outperforming 61.90% of the companies in the same industry.
AAON's Gross Margin has improved in the last couple of years.

How does the Setup look for NASDAQ:AAON

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:AAON this score is currently 7:

Although the technical rating is bad, AAON does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 78.26. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 76.11, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of AAON

Our latest full technical report of AAON contains the most current technical analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.