AAON INC (AAON) Stock Fundamental Analysis
USA - NASDAQ:AAON - US0003602069 - Common Stock
92.175 USD
+0.61 (+0.67%)
Taking everything into account, AAON scores 5 out of 10 in our fundamental rating. AAON was compared to 41 industry peers in the Building Products industry. While AAON has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, AAON is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AAON was profitable.
AAON had a positive operating cash flow in the past year.
In the past 5 years AAON has always been profitable.
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.
Looking at the Return On Equity, with a value of 14.66%, AAON is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
The Return On Invested Capital of AAON (10.32%) is better than 65.85% of its industry peers.
AAON had an Average Return On Invested Capital over the past 3 years of 18.30%. This is significantly above the industry average of 12.76%.
The last Return On Invested Capital (10.32%) for AAON is well below the 3 year average (18.30%), which needs to be investigated, but indicates that AAON had better years and this may not be a problem.
| 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
The Profit Margin of AAON (9.70%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of AAON has grown nicely.
With a Operating Margin value of 12.20%, AAON perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
AAON's Operating Margin has improved in the last couple of years.
AAON has a Gross Margin of 28.67%. This is comparable 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AAON is still creating some 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
Compared to 1 year ago, AAON has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 10.33 indicates that AAON is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.33, AAON belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
AAON has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.40, AAON is in line with its industry, outperforming 58.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 10.33 |
ROIC/WACC1
WACC10.34%
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.
Looking at the Current ratio, with a value of 3.10, AAON belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
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.
The Quick ratio of AAON (1.99) is better than 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.
AAON shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.87% yearly.
Looking at the last year, AAON shows a small growth in Revenue. The Revenue has grown by 5.38% in the last year.
AAON shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.67% yearly.
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.
Based on estimates for the next years, AAON will show a quite strong growth in Revenue. The Revenue will grow by 14.60% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 60.64, AAON can be considered very expensive at the moment.
AAON's Price/Earnings ratio is a bit more expensive when compared to the industry. AAON is more expensive than 78.05% of the companies in the same industry.
AAON's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.38.
A Price/Forward Earnings ratio of 44.96 indicates a quite expensive valuation of AAON.
Based on the Price/Forward Earnings ratio, AAON is valued a bit more expensive than 75.61% of the companies in the same industry.
AAON is valuated expensively when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.64 | ||
| Fwd PE | 44.96 |
4.2 Price Multiples
80.49% of the companies in the same industry are cheaper than AAON, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 34.27 |
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)4.37
EPS Next 2Y1%
EPS Next 3Y14.97%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, AAON is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.17, AAON has a dividend in line with its industry peers.
With a Dividend Yield of 0.45, AAON pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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
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%
NASDAQ:AAON (9/22/2025, 11:54:36 AM)
92.175
+0.61 (+0.67%)
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-8.43%
Market Cap7.52B
Analysts85
Price Target96.75 (4.96%)
Short Float %8.17%
Short Ratio4.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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)-11.56%
EPS NQ rev (1m)-21.49%
EPS NQ rev (3m)-57.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-29.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-14.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.64 | ||
| Fwd PE | 44.96 | ||
| P/S | 5.97 | ||
| P/FCF | N/A | ||
| P/OCF | 223.79 | ||
| P/B | 9.02 | ||
| P/tB | 11.21 | ||
| EV/EBITDA | 34.27 |
EPS(TTM)1.52
EY1.65%
EPS(NY)2.05
Fwd EY2.22%
FCF(TTM)-2.38
FCFYN/A
OCF(TTM)0.41
OCFY0.45%
SpS15.44
BVpS10.21
TBVpS8.22
PEG (NY)N/A
PEG (5Y)4.37
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 | 10.33 |
F-Score4
WACC10.34%
ROIC/WACC1
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%