92.34 USD
-0.97 (-1.04%)
Last: Jan 30, 2026, 11:41 AM
Taking everything into account, AAON scores 5 out of 10 in our fundamental rating. AAON was compared to 42 industry peers in the Building Products industry. AAON has an average financial health and profitability rating. AAON is valued quite expensively, but it does show have an excellent growth rating. This makes AAON very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- AAON had positive earnings in the past year.
- In the past year AAON has reported a negative cash flow from operations.
- AAON had positive earnings in each of the past 5 years.
- Each year in the past 5 years AAON had a positive operating cash flow.
1.2 Ratios
- AAON has a Return On Assets (6.56%) which is in line with its industry peers.
- With a Return On Equity value of 11.65%, AAON perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- AAON has a Return On Invested Capital of 8.17%. This is comparable to the rest of the industry: AAON outperforms 42.86% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AAON is significantly above the industry average of 12.68%.
- The 3 year average ROIC (18.30%) for AAON is well above the current ROIC(8.17%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.56% | ||
| ROE | 11.65% | ||
| ROIC | 8.17% |
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 (7.64%) which is in line with its industry peers.
- AAON's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 9.98%, AAON is in line with its industry, outperforming 42.86% of the companies in the same industry.
- In the last couple of years the Operating Margin of AAON has grown nicely.
- AAON has a worse Gross Margin (26.88%) than 64.29% of its industry peers.
- AAON's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.98% | ||
| PM (TTM) | 7.64% | ||
| GM | 26.88% |
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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AAON is creating value.
- The number of shares outstanding for AAON remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, AAON has more shares outstanding
- The debt/assets ratio for AAON is higher compared to a year ago.
2.2 Solvency
- AAON has an Altman-Z score of 9.09. This indicates that AAON is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of AAON (9.09) is better than 95.24% of its industry peers.
- AAON has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.44, AAON is in line with its industry, outperforming 59.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 9.09 |
ROIC/WACC0.89
WACC9.13%
2.3 Liquidity
- A Current Ratio of 3.04 indicates that AAON has no problem at all paying its short term obligations.
- AAON's Current ratio of 3.04 is fine compared to the rest of the industry. AAON outperforms 76.19% of its industry peers.
- A Quick Ratio of 2.03 indicates that AAON has no problem at all paying its short term obligations.
- AAON has a Quick ratio of 2.03. This is amongst the best in the industry. AAON outperforms 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.04 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
- AAON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.49%.
- The Earnings Per Share has been growing by 23.49% on average over the past years. This is a very strong growth
- AAON shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.77%.
- The Revenue has been growing by 20.67% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-44.49%
EPS 3Y37.89%
EPS 5Y23.49%
EPS Q2Q%-41.27%
Revenue 1Y (TTM)8.77%
Revenue growth 3Y30.96%
Revenue growth 5Y20.67%
Sales Q2Q%17.41%
3.2 Future
- The Earnings Per Share is expected to grow by 18.22% 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 15.82% yearly.
EPS Next Y-29.72%
EPS Next 2Y0.55%
EPS Next 3Y17.12%
EPS Next 5Y18.22%
Revenue Next Year13.62%
Revenue Next 2Y12.98%
Revenue Next 3Y13.67%
Revenue Next 5Y15.82%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
- With a Price/Earnings ratio of 73.29, AAON can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, AAON is valued a bit more expensive than the industry average as 78.57% of the companies are valued more cheaply.
- The average S&P500 Price/Earnings ratio is at 28.39. AAON is valued rather expensively when compared to this.
- AAON is valuated quite expensively with a Price/Forward Earnings ratio of 45.44.
- Based on the Price/Forward Earnings ratio, AAON is valued a bit more expensive than 73.81% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. AAON is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.29 | ||
| Fwd PE | 45.44 |
4.2 Price Multiples
- AAON's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. AAON is more expensive than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 38.4 |
4.3 Compensation for Growth
- AAON has a very decent profitability rating, which may justify a higher PE ratio.
- AAON's earnings are expected to grow with 17.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)3.12
EPS Next 2Y0.55%
EPS Next 3Y17.12%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.41%, AAON is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.66, AAON has a dividend in line with its industry peers.
- With a Dividend Yield of 0.41, AAON pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
- The dividend of AAON is nicely growing with an annual growth rate of 8.53%!
- 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
- 30.27% of the earnings are spent on dividend by AAON. This is a low number and sustainable payout ratio.
- The dividend of AAON is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.27%
EPS Next 2Y0.55%
EPS Next 3Y17.12%
AAON INC / AAON FAQ
Can you provide the ChartMill fundamental rating for AAON INC?
ChartMill assigns a fundamental rating of 5 / 10 to AAON.
What is the valuation status of AAON INC (AAON) stock?
ChartMill assigns a valuation rating of 1 / 10 to AAON INC (AAON). This can be considered as Overvalued.
Can you provide the profitability details for AAON INC?
AAON INC (AAON) has a profitability rating of 6 / 10.
Can you provide the financial health for AAON stock?
The financial health rating of AAON INC (AAON) is 6 / 10.
How sustainable is the dividend of AAON INC (AAON) stock?
The dividend rating of AAON INC (AAON) is 5 / 10 and the dividend payout ratio is 30.27%.