AAON INC (AAON) Stock Fundamental Analysis
NASDAQ:AAON - US0003602069 - Common Stock
85.98 USD
+5.05 (+6.24%)
87.86 USD
+1.88 (+2.19%)
AAON gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. While AAON has a great profitability rating, there are some minor concerns on its financial health. AAON is valied quite expensively at the moment, while it does show a decent growth rate.
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.
AAON had positive earnings in each of the past 5 years.
AAON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AAON has a better Return On Assets (8.72%) than 65.85% of its industry peers.
With a decent Return On Equity value of 14.66%, AAON is doing good in the industry, outperforming 60.98% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.32%, AAON is doing good in the industry, outperforming 65.85% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AAON is significantly above the industry average of 12.73%.
The 3 year average ROIC (18.30%) for AAON is well above the current ROIC(10.32%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 14.66% | ||
| ROIC | 10.32% |
ROA(3y)15.18%
ROA(5y)14.44%
ROE(3y)20.84%
ROE(5y)19.53%
ROIC(3y)18.3%
ROIC(5y)16.85%
1.3 Margins
AAON has a Profit Margin of 9.70%. This is comparable to the rest of the industry: AAON outperforms 56.10% of its industry peers.
AAON's Profit Margin has improved in the last couple of years.
AAON has a Operating Margin (12.20%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AAON has grown nicely.
AAON's Gross Margin of 28.67% is in line compared to the rest of the industry. AAON outperforms 41.46% of its industry peers.
In the last couple of years the Gross Margin of AAON has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.2% | ||
| PM (TTM) | 9.7% | ||
| GM | 28.67% |
OM growth 3Y10.34%
OM growth 5Y3.96%
PM growth 3Y8.47%
PM growth 5Y4.17%
GM growth 3Y8.66%
GM growth 5Y5.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AAON is creating some value.
The number of shares outstanding for AAON remains at a similar level compared to 1 year ago.
AAON has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AAON is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.85 indicates that AAON is not in any danger for bankruptcy at the moment.
AAON's Altman-Z score of 9.85 is amongst the best of the industry. AAON outperforms 97.56% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that AAON is not too dependend on debt financing.
AAON's Debt to Equity ratio of 0.40 is in line compared to the rest of the industry. AAON outperforms 58.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 9.85 |
ROIC/WACC0.99
WACC10.43%
2.3 Liquidity
AAON has a Current Ratio of 3.10. This indicates that AAON is financially healthy and has no problem in meeting its short term obligations.
AAON has a Current ratio of 3.10. This is amongst the best in the industry. AAON outperforms 82.93% of its industry peers.
AAON has a Quick Ratio of 1.99. 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 1.99 is amongst the best of the industry. AAON outperforms 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.1 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
The earnings per share for AAON have decreased strongly by -33.36% in the last year.
Measured over the past years, AAON shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.87% on average per year.
Looking at the last year, AAON shows a small growth in Revenue. The Revenue has grown by 5.38% in the last year.
Measured over the past years, AAON shows a very strong growth in Revenue. The Revenue has been growing by 20.67% on average per year.
EPS 1Y (TTM)-33.36%
EPS 3Y20.46%
EPS 5Y13.87%
EPS Q2Q%-64.52%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y30.96%
Revenue growth 5Y20.67%
Sales Q2Q%-0.64%
3.2 Future
The Earnings Per Share is expected to grow by 14.97% on average over the next years. This is quite good.
AAON is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.60% yearly.
EPS Next Y-22.74%
EPS Next 2Y1%
EPS Next 3Y14.97%
EPS Next 5YN/A
Revenue Next Year10.18%
Revenue Next 2Y11.77%
Revenue Next 3Y12.27%
Revenue Next 5Y14.6%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 56.57, which means the current valuation is very expensive for AAON.
Compared to the rest of the industry, the Price/Earnings ratio of AAON indicates a slightly more expensive valuation: AAON is more expensive than 78.05% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. AAON is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 41.94 indicates a quite expensive valuation of AAON.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AAON indicates a slightly more expensive valuation: AAON is more expensive than 75.61% of the companies listed in the same industry.
AAON's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.57 | ||
| Fwd PE | 41.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AAON is valued more expensive than 80.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 32.27 |
4.3 Compensation for Growth
The decent profitability rating of AAON may justify a higher PE ratio.
A more expensive valuation may be justified as AAON's earnings are expected to grow with 14.97% in the coming years.
PEG (NY)N/A
PEG (5Y)4.08
EPS Next 2Y1%
EPS Next 3Y14.97%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, AAON is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.14, AAON has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, AAON's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
On average, the dividend of AAON grows each year by 8.53%, which is quite nice.
AAON has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)8.53%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
23.98% of the earnings are spent on dividend by AAON. This is a low number and sustainable payout ratio.
AAON's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.98%
EPS Next 2Y1%
EPS Next 3Y14.97%
85.98
+5.05 (+6.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners77.4%
Inst Owner Change-0.04%
Ins Owners0.81%
Ins Owner Change-2.56%
Market Cap7.01B
Analysts85
Price Target96.75 (12.53%)
Short Float %5.75%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend0.32
Dividend Growth(5Y)8.53%
DP23.98%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.56%
Min EPS beat(2)-34.77%
Max EPS beat(2)53.89%
EPS beat(4)2
Avg EPS beat(4)-4.47%
Min EPS beat(4)-44.8%
Max EPS beat(4)53.89%
EPS beat(8)5
Avg EPS beat(8)2%
EPS beat(12)9
Avg EPS beat(12)8.88%
EPS beat(16)10
Avg EPS beat(16)2.2%
Revenue beat(2)1
Avg Revenue beat(2)0.56%
Min Revenue beat(2)-6%
Max Revenue beat(2)7.13%
Revenue beat(4)2
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-8.93%
Max Revenue beat(4)7.13%
Revenue beat(8)5
Avg Revenue beat(8)-0.21%
Revenue beat(12)9
Avg Revenue beat(12)1.2%
Revenue beat(16)11
Avg Revenue beat(16)1.11%
PT rev (1m)-5.76%
PT rev (3m)-14.74%
EPS NQ rev (1m)-42.83%
EPS NQ rev (3m)-51.62%
EPS NY rev (1m)-25.79%
EPS NY rev (3m)-29.62%
Revenue NQ rev (1m)-13.79%
Revenue NQ rev (3m)-16.46%
Revenue NY rev (1m)-4.11%
Revenue NY rev (3m)-5.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.57 | ||
| Fwd PE | 41.94 | ||
| P/S | 5.57 | ||
| P/FCF | N/A | ||
| P/OCF | 208.75 | ||
| P/B | 8.42 | ||
| P/tB | 10.46 | ||
| EV/EBITDA | 32.27 |
EPS(TTM)1.52
EY1.77%
EPS(NY)2.05
Fwd EY2.38%
FCF(TTM)-2.38
FCFYN/A
OCF(TTM)0.41
OCFY0.48%
SpS15.44
BVpS10.21
TBVpS8.22
PEG (NY)N/A
PEG (5Y)4.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 14.66% | ||
| ROCE | 12.92% | ||
| ROIC | 10.32% | ||
| ROICexc | 10.32% | ||
| ROICexgc | 11.96% | ||
| OM | 12.2% | ||
| PM (TTM) | 9.7% | ||
| GM | 28.67% | ||
| FCFM | N/A |
ROA(3y)15.18%
ROA(5y)14.44%
ROE(3y)20.84%
ROE(5y)19.53%
ROIC(3y)18.3%
ROIC(5y)16.85%
ROICexc(3y)18.35%
ROICexc(5y)17.88%
ROICexgc(3y)22.59%
ROICexgc(5y)21.24%
ROCE(3y)22.91%
ROCE(5y)21.09%
ROICexcg growth 3Y13.27%
ROICexcg growth 5Y1.06%
ROICexc growth 3Y19.13%
ROICexc growth 5Y-2.16%
OM growth 3Y10.34%
OM growth 5Y3.96%
PM growth 3Y8.47%
PM growth 5Y4.17%
GM growth 3Y8.66%
GM growth 5Y5.39%
F-Score4
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 307.33% | ||
| Cap/Sales | 18.06% | ||
| Interest Coverage | 18.09 | ||
| Cash Conversion | 14.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.1 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | 9.85 |
F-Score4
WACC10.43%
ROIC/WACC0.99
Cap/Depr(3y)242.2%
Cap/Depr(5y)234.85%
Cap/Sales(3y)11.07%
Cap/Sales(5y)11.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-33.36%
EPS 3Y20.46%
EPS 5Y13.87%
EPS Q2Q%-64.52%
EPS Next Y-22.74%
EPS Next 2Y1%
EPS Next 3Y14.97%
EPS Next 5YN/A
Revenue 1Y (TTM)5.38%
Revenue growth 3Y30.96%
Revenue growth 5Y20.67%
Sales Q2Q%-0.64%
Revenue Next Year10.18%
Revenue Next 2Y11.77%
Revenue Next 3Y12.27%
Revenue Next 5Y14.6%
EBIT growth 1Y-36.72%
EBIT growth 3Y44.5%
EBIT growth 5Y25.45%
EBIT Next Year31.98%
EBIT Next 3Y23.75%
EBIT Next 5YN/A
FCF growth 1Y-647.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-72.65%
OCF growth 3Y46.53%
OCF growth 5Y14.48%