AAON INC (AAON) Stock Fundamental Analysis
NASDAQ:AAON - Nasdaq - US0003602069 - Common Stock - Currency: USD
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. While AAON has a great profitability rating, there are some minor concerns on its financial health. AAON shows excellent growth, but is valued quite expensive already. This makes AAON very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year AAON was profitable.
In the past year AAON had a positive cash flow from operations.
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 78.57% of its industry peers.
AAON has a Return On Equity of 19.47%. This is in the better half of the industry: AAON outperforms 69.05% of its industry peers.
AAON has a better Return On Invested Capital (14.41%) than 76.19% 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 12.71%.
| 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
With a decent Profit Margin value of 12.60%, AAON is doing good in the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Profit Margin of AAON has grown nicely.
Looking at the Operating Margin, with a value of 15.64%, AAON is in line with its industry, outperforming 59.52% of the companies in the same industry.
AAON's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 31.04%, AAON is in line with its industry, outperforming 45.24% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AAON is creating some value.
AAON has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, AAON has more shares outstanding
AAON has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.00 indicates that AAON is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.00, AAON belongs to the top of the industry, outperforming 97.62% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that AAON is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.31, AAON is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 10 |
ROIC/WACC0.91
WACC15.75%
2.3 Liquidity
A Current Ratio of 2.77 indicates that AAON has no problem at all paying its short term obligations.
AAON has a Current ratio of 2.77. This is in the better half 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.
Looking at the Quick ratio, with a value of 1.80, AAON is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
| 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.
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 quite strong growth in Revenue. The Revenue has grown by 8.23% 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)-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.
Based on estimates for the next years, AAON will show a quite strong growth in Revenue. The Revenue will grow by 16.85% on average per year.
EPS Next Y9.78%
EPS Next 2Y22.78%
EPS Next 3Y28.9%
EPS Next 5YN/A
Revenue Next Year16.51%
Revenue Next 2Y16.44%
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
A Price/Earnings ratio of 38.02 indicates a quite expensive valuation of AAON.
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.
Compared to an average S&P500 Price/Earnings ratio of 26.31, AAON is valued a bit more expensive.
A Price/Forward Earnings ratio of 24.09 indicates a rather 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 69.05% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AAON to the average of the S&P500 Index (22.13), we can say AAON is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.02 | ||
| Fwd PE | 24.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AAON is valued a bit more expensive than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.38 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AAON has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AAON's earnings are expected to grow with 28.90% in the coming years.
PEG (NY)3.89
PEG (5Y)2.74
EPS Next 2Y22.78%
EPS Next 3Y28.9%
5. Dividend
5.1 Amount
AAON has a yearly dividend return of 0.54%, which is pretty low.
Compared to an average industry Dividend Yield of 1.20, AAON has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, AAON's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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
AAON pays out 17.39% 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.
DP17.39%
EPS Next 2Y22.78%
EPS Next 3Y28.9%
72.99
-1.16 (-1.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners77.5%
Inst Owner Change4.74%
Ins Owners0.81%
Ins Owner Change0.12%
Market Cap5.94B
Analysts81.67
Price Target109.4 (49.88%)
Short Float %4.42%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend0.32
Dividend Growth(5Y)8.53%
DP17.39%
Div Incr Years0
Div Non Decr Years0
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)-3.59%
PT rev (3m)-8.72%
EPS NQ rev (1m)-8.14%
EPS NQ rev (3m)-49.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-26.46%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-17.17%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.02 | ||
| Fwd PE | 24.09 | ||
| P/S | 4.71 | ||
| P/FCF | N/A | ||
| P/OCF | 65.3 | ||
| P/B | 7.28 | ||
| P/tB | 9.06 | ||
| EV/EBITDA | 23.38 |
EPS(TTM)1.92
EY2.63%
EPS(NY)3.03
Fwd EY4.15%
FCF(TTM)-1.65
FCFYN/A
OCF(TTM)1.12
OCFY1.53%
SpS15.49
BVpS10.03
TBVpS8.05
PEG (NY)3.89
PEG (5Y)2.74
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 | 10 |
F-Score3
WACC15.75%
ROIC/WACC0.91
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 Year16.51%
Revenue Next 2Y16.44%
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%