AAON INC (AAON) Stock Fundamental Analysis
NASDAQ:AAON - Nasdaq - US0003602069 - Common Stock - Currency: USD
Taking everything into account, AAON scores 6 out of 10 in our fundamental rating. AAON was compared to 42 industry peers in the Building Products industry. AAON scores excellent on profitability, but there are some minor concerns on its financial health. AAON shows excellent growth, but is valued quite expensive already. These ratings could make AAON a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year AAON was profitable.
AAON had a positive operating cash flow in the past year.
AAON had positive earnings in each of the past 5 years.
In the past 5 years AAON always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AAON (12.22%) is better than 76.19% of its industry peers.
With a decent Return On Equity value of 19.47%, AAON is doing good in the industry, outperforming 69.05% of the companies in the same industry.
AAON has a better Return On Invested Capital (14.41%) than 73.81% 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 12.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.22% | ||
| ROE | 19.47% | ||
| ROIC | 14.41% |
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's Profit Margin of 12.60% is fine compared to the rest of the industry. AAON outperforms 71.43% of its industry peers.
In the last couple of years the Profit Margin of AAON has grown nicely.
AAON has a Operating Margin (15.64%) which is in line with its industry peers.
AAON's Operating Margin has improved in the last couple of years.
AAON has a Gross Margin of 31.04%. This is comparable to the rest of the industry: AAON outperforms 45.24% of its industry peers.
AAON's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.64% | ||
| PM (TTM) | 12.6% | ||
| GM | 31.04% |
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
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 about the same amount of shares outstanding.
The number of shares outstanding for AAON has been increased compared to 5 years ago.
AAON has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 12.63 indicates that AAON is not in any danger for bankruptcy at the moment.
The Altman-Z score of AAON (12.63) is better than 100.00% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that AAON is not too dependend on debt financing.
The Debt to Equity ratio of AAON (0.31) is better than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 12.63 |
ROIC/WACC1.47
WACC9.82%
2.3 Liquidity
AAON has a Current Ratio of 2.77. This indicates that AAON is financially healthy and has no problem in meeting its short term obligations.
AAON's Current ratio of 2.77 is fine compared to the rest of the industry. AAON outperforms 73.81% of its industry peers.
A Quick Ratio of 1.80 indicates that AAON should not have too much problems paying its short term obligations.
AAON has a better Quick ratio (1.80) than 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
The earnings per share for AAON have decreased strongly by -13.03% in the last year.
The Earnings Per Share has been growing by 13.87% on average over the past years. This is quite good.
AAON shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.23%.
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)-13.03%
EPS 3Y20.46%
EPS 5Y13.87%
EPS Q2Q%-19.57%
Revenue 1Y (TTM)8.23%
Revenue growth 3Y30.96%
Revenue growth 5Y20.67%
Sales Q2Q%22.87%
3.2 Future
AAON is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.90% yearly.
The Revenue is expected to grow by 16.85% on average over the next years. This is quite good.
EPS Next Y9.78%
EPS Next 2Y22.78%
EPS Next 3Y28.9%
EPS Next 5YN/A
Revenue Next Year16.35%
Revenue Next 2Y16.47%
Revenue Next 3Y16.85%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 51.61, the valuation of AAON can be described as expensive.
Based on the Price/Earnings ratio, AAON is valued more expensive than 80.95% of the companies in the same industry.
When comparing the Price/Earnings ratio of AAON to the average of the S&P500 Index (25.82), we can say AAON is valued expensively.
A Price/Forward Earnings ratio of 32.71 indicates a quite expensive valuation of AAON.
AAON's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AAON is more expensive than 76.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. AAON is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.61 | ||
| Fwd PE | 32.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AAON indicates a rather expensive valuation: AAON more expensive than 80.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 31.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AAON does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of AAON may justify a higher PE ratio.
AAON's earnings are expected to grow with 28.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.28
PEG (5Y)3.72
EPS Next 2Y22.78%
EPS Next 3Y28.9%
5. Dividend
5.1 Amount
AAON has a yearly dividend return of 0.40%, which is pretty low.
AAON's Dividend Yield is comparable with the industry average which is at 1.19.
With a Dividend Yield of 0.40, AAON pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
5.2 History
The dividend of AAON is nicely growing with an annual growth rate of 8.53%!
AAON has paid a dividend for at least 10 years, which is 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)8.53%
Div Incr Years2
Div Non Decr Years17
5.3 Sustainability
AAON pays out 17.39% of its income as dividend. This is a sustainable payout ratio.
The dividend of AAON is growing, but earnings are growing more, so the dividend growth is sustainable.
DP17.39%
EPS Next 2Y22.78%
EPS Next 3Y28.9%
99.1
-0.84 (-0.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners73.15%
Inst Owner Change4.74%
Ins Owners0.51%
Ins Owner Change-3.42%
Market Cap8.06B
Analysts80
Price Target113.48 (14.51%)
Short Float %4.86%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Yearly Dividend0.32
Dividend Growth(5Y)8.53%
DP17.39%
Div Incr Years2
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.55%
Min EPS beat(2)-44.8%
Max EPS beat(2)53.89%
EPS beat(4)3
Avg EPS beat(4)9.02%
Min EPS beat(4)-44.8%
Max EPS beat(4)53.89%
EPS beat(8)6
Avg EPS beat(8)9.29%
EPS beat(12)9
Avg EPS beat(12)9.47%
EPS beat(16)11
Avg EPS beat(16)5.35%
Revenue beat(2)1
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-8.93%
Max Revenue beat(2)7.13%
Revenue beat(4)3
Avg Revenue beat(4)2.03%
Min Revenue beat(4)-8.93%
Max Revenue beat(4)8.34%
Revenue beat(8)6
Avg Revenue beat(8)0.64%
Revenue beat(12)10
Avg Revenue beat(12)1.72%
Revenue beat(16)12
Avg Revenue beat(16)2%
PT rev (1m)-0.45%
PT rev (3m)-18.2%
EPS NQ rev (1m)-21.81%
EPS NQ rev (3m)-46.47%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-26.46%
Revenue NQ rev (1m)-4.65%
Revenue NQ rev (3m)-17%
Revenue NY rev (1m)1.4%
Revenue NY rev (3m)-6.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.61 | ||
| Fwd PE | 32.71 | ||
| P/S | 6.4 | ||
| P/FCF | N/A | ||
| P/OCF | 88.66 | ||
| P/B | 9.88 | ||
| P/tB | 12.31 | ||
| EV/EBITDA | 31.39 |
EPS(TTM)1.92
EY1.94%
EPS(NY)3.03
Fwd EY3.06%
FCF(TTM)-1.65
FCFYN/A
OCF(TTM)1.12
OCFY1.13%
SpS15.49
BVpS10.03
TBVpS8.05
PEG (NY)5.28
PEG (5Y)3.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.22% | ||
| ROE | 19.47% | ||
| ROCE | 18.03% | ||
| ROIC | 14.41% | ||
| ROICexc | 14.42% | ||
| ROICexgc | 16.91% | ||
| OM | 15.64% | ||
| PM (TTM) | 12.6% | ||
| GM | 31.04% | ||
| 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-Score3
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.95 | ||
| Cap/Depr | 329.49% | ||
| Cap/Sales | 17.84% | ||
| Interest Coverage | 40.01 | ||
| Cash Conversion | 34.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.77 | ||
| Quick Ratio | 1.8 | ||
| Altman-Z | 12.63 |
F-Score3
WACC9.82%
ROIC/WACC1.47
Cap/Depr(3y)243.08%
Cap/Depr(5y)235.38%
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)-13.03%
EPS 3Y20.46%
EPS 5Y13.87%
EPS Q2Q%-19.57%
EPS Next Y9.78%
EPS Next 2Y22.78%
EPS Next 3Y28.9%
EPS Next 5YN/A
Revenue 1Y (TTM)8.23%
Revenue growth 3Y30.96%
Revenue growth 5Y20.67%
Sales Q2Q%22.87%
Revenue Next Year16.35%
Revenue Next 2Y16.47%
Revenue Next 3Y16.85%
Revenue Next 5YN/A
EBIT growth 1Y-14.34%
EBIT growth 3Y44.5%
EBIT growth 5Y25.45%
EBIT Next Year43.49%
EBIT Next 3Y31.02%
EBIT Next 5YN/A
FCF growth 1Y-3447.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y24.76%
OCF growth 3Y46.53%
OCF growth 5Y14.48%