AAON INC (AAON)
US0003602069 - Common Stock
Taking everything into account, AAON scores 7 out of 10 in our fundamental rating. AAON was compared to 43 industry peers in the Building Products industry. AAON scores excellent points on both the profitability and health parts. This is a solid base for a good stock. AAON shows excellent growth, but is valued quite expensive already. These ratings could make AAON a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
AAON had positive earnings in the past year.
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
The Return On Assets of AAON (18.87%) is better than 93.02% of its industry peers.
AAON's Return On Equity of 24.16% is fine compared to the rest of the industry. AAON outperforms 72.09% of its industry peers.
AAON has a Return On Invested Capital of 22.17%. This is amongst the best in the industry. AAON outperforms 88.37% 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 13.74%.
The last Return On Invested Capital (22.17%) for AAON is above the 3 year average (15.91%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.87% | ||
| ROE | 24.16% | ||
| ROIC | 22.17% |
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 (15.20%) than 86.05% of its industry peers.
In the last couple of years the Profit Margin of AAON has grown nicely.
The Operating Margin of AAON (19.47%) is better than 79.07% of its industry peers.
AAON's Operating Margin has improved in the last couple of years.
AAON has a Gross Margin (34.15%) which is in line with its industry peers.
In the last couple of years the Gross Margin of AAON has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.47% | ||
| PM (TTM) | 15.2% | ||
| GM | 34.15% |
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
AAON has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, AAON has more shares outstanding
Compared to 5 years ago, AAON has more shares outstanding
AAON has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 24.73 indicates that AAON is not in any danger for bankruptcy at the moment.
AAON's Altman-Z score of 24.73 is amongst the best of the industry. AAON outperforms 97.67% of its industry peers.
AAON has a debt to FCF ratio of 1.02. This is a very positive value and a sign of high solvency as it would only need 1.02 years to pay back of all of its debts.
AAON has a Debt to FCF ratio of 1.02. This is in the better half of the industry: AAON outperforms 74.42% of its industry peers.
AAON has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AAON (0.07) is better than 76.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 1.02 | ||
| Altman-Z | 24.73 |
ROIC/WACC1.85
WACC11.95%
2.3 Liquidity
A Current Ratio of 3.23 indicates that AAON has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.23, AAON belongs to the top of the industry, outperforming 83.72% of the companies in the same industry.
AAON has a Quick Ratio of 1.54. This is a normal value and indicates that AAON is financially healthy and should not expect problems in meeting its short term obligations.
AAON's Quick ratio of 1.54 is fine compared to the rest of the industry. AAON outperforms 65.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.23 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
AAON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 77.92%, 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 31.48% in the past year. This is a very strong growth!
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)77.92%
EPS 3Y16.16%
EPS 5Y22.06%
EPS growth Q2Q18.31%
Revenue 1Y (TTM)31.48%
Revenue growth 3Y31.44%
Revenue growth 5Y21.91%
Revenue growth Q2Q20.44%
3.2 Future
The Earnings Per Share is expected to grow by 14.59% on average over the next years. This is quite good.
Based on estimates for the next years, AAON will show a quite strong growth in Revenue. The Revenue will grow by 11.55% on average per year.
EPS Next Y5.75%
EPS Next 2Y14.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.09%
Revenue Next 2Y11.55%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
A Price/Earnings ratio of 40.95 indicates a quite expensive valuation of AAON.
Based on the Price/Earnings ratio, AAON is valued a bit more expensive than 79.07% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.25, AAON is valued quite expensively.
The Price/Forward Earnings ratio is 38.64, which means the current valuation is very expensive for AAON.
Based on the Price/Forward Earnings ratio, AAON is valued a bit more expensive than the industry average as 74.42% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 21.67. AAON is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.95 | ||
| Fwd PE | 38.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AAON is valued a bit more expensive than 76.74% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AAON is valued more expensive than 83.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 149.01 | ||
| EV/EBITDA | 27.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AAON may justify a higher PE ratio.
AAON's earnings are expected to grow with 14.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.12
PEG (5Y)1.86
EPS Next 2Y14.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AAON has a yearly dividend return of 0.38%, which is pretty low.
Compared to an average industry Dividend Yield of 1.30, AAON has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, AAON's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
5.2 History
The dividend of AAON is nicely growing with an annual growth rate of 8.94%!
AAON has been paying a dividend for at least 10 years, so it has a reliable track record.
AAON has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.94%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
AAON pays out 14.89% of its income as dividend. This is a sustainable payout ratio.
AAON's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP14.89%
EPS Next 2Y14.59%
EPS Next 3YN/A
AAON INC
NASDAQ:AAON (4/24/2024, 7:00:00 PM)
After market: 89.67 0 (0%)89.67
+1.11 (+1.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.95 | ||
| Fwd PE | 38.64 | ||
| 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)7.12
PEG (5Y)1.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.87% | ||
| ROE | 24.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.47% | ||
| PM (TTM) | 15.2% | ||
| GM | 34.15% | ||
| 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 Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.23 | ||
| Quick Ratio | 1.54 | ||
| 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)
Growth
EPS 1Y (TTM)77.92%
EPS 3Y16.16%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)31.48%
Revenue growth 3Y31.44%
Revenue growth 5Y
Revenue growth 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
OCF growth 5Y