AAON INC (AAON) Stock Fundamental Analysis
NASDAQ:AAON - Nasdaq - US0003602069 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to AAON. AAON was compared to 41 industry peers in the Building Products industry. AAON has an excellent profitability rating, but there are some minor concerns on its financial health. AAON is valued quite expensively, but it does show have an excellent growth rating. With these ratings, AAON could be worth investigating further 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.
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
The Return On Assets of AAON (12.22%) is better than 78.05% of its industry peers.
With a decent Return On Equity value of 19.47%, AAON is doing good in the industry, outperforming 65.85% of the companies in the same industry.
With a decent Return On Invested Capital value of 14.41%, AAON is doing good in the industry, outperforming 75.61% 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 12.79%.
| 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
The Profit Margin of AAON (12.60%) is better than 68.29% of its industry peers.
AAON's Profit Margin has improved in the last couple of years.
AAON's Operating Margin of 15.64% is in line compared to the rest of the industry. AAON outperforms 58.54% of 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 46.34% of its industry peers.
In the last couple of years the Gross Margin of AAON has grown nicely.
| 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) well above the Cost of Capital (WACC), AAON is creating 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
Compared to 1 year ago, AAON has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 10.39 indicates that AAON is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.39, AAON belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that AAON is not too dependend on debt financing.
AAON has a better Debt to Equity ratio (0.31) than 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 10.39 |
ROIC/WACC1.42
WACC10.16%
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 73.17% of its industry peers.
A Quick Ratio of 1.80 indicates that AAON should not have too much problems paying its short term obligations.
The Quick ratio of AAON (1.80) is better than 75.61% 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
The Earnings Per Share is expected to grow by 19.17% 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 14.10% yearly.
EPS Next Y4.11%
EPS Next 2Y16.38%
EPS Next 3Y19.17%
EPS Next 5YN/A
Revenue Next Year14.9%
Revenue Next 2Y14.07%
Revenue Next 3Y14.1%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
AAON is valuated quite expensively with a Price/Earnings ratio of 38.90.
Based on the Price/Earnings ratio, AAON is valued expensively inside the industry as 80.49% of the companies are valued cheaper.
AAON is valuated rather expensively when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 27.43, the valuation of AAON can be described as expensive.
AAON's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AAON is more expensive than 70.73% of the companies in the same industry.
AAON's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.9 | ||
| Fwd PE | 27.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AAON is valued a bit more expensive than 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of AAON may justify a higher PE ratio.
AAON's earnings are expected to grow with 19.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)9.45
PEG (5Y)2.8
EPS Next 2Y16.38%
EPS Next 3Y19.17%
5. Dividend
5.1 Amount
AAON has a yearly dividend return of 0.50%, which is pretty low.
AAON's Dividend Yield is comparable with the industry average which is at 1.12.
With a Dividend Yield of 0.50, AAON pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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
17.39% 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.
DP17.39%
EPS Next 2Y16.38%
EPS Next 3Y19.17%
NASDAQ:AAON (7/14/2025, 2:08:28 PM)
74.68
-2.15 (-2.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners77.5%
Inst Owner Change-0.02%
Ins Owners0.81%
Ins Owner Change0.07%
Market Cap6.08B
Analysts85
Price Target102.67 (37.48%)
Short Float %4.22%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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)-6.15%
PT rev (3m)-9.93%
EPS NQ rev (1m)-19.22%
EPS NQ rev (3m)-41.98%
EPS NY rev (1m)-5.16%
EPS NY rev (3m)-5.2%
Revenue NQ rev (1m)-5.81%
Revenue NQ rev (3m)-10.12%
Revenue NY rev (1m)-1.38%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.9 | ||
| Fwd PE | 27.43 | ||
| P/S | 4.82 | ||
| P/FCF | N/A | ||
| P/OCF | 66.82 | ||
| P/B | 7.45 | ||
| P/tB | 9.27 | ||
| EV/EBITDA | 24.56 |
EPS(TTM)1.92
EY2.57%
EPS(NY)2.72
Fwd EY3.65%
FCF(TTM)-1.65
FCFYN/A
OCF(TTM)1.12
OCFY1.5%
SpS15.49
BVpS10.03
TBVpS8.05
PEG (NY)9.45
PEG (5Y)2.8
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 | 10.39 |
F-Score3
WACC10.16%
ROIC/WACC1.42
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 Y4.11%
EPS Next 2Y16.38%
EPS Next 3Y19.17%
EPS Next 5YN/A
Revenue 1Y (TTM)8.23%
Revenue growth 3Y30.96%
Revenue growth 5Y20.67%
Sales Q2Q%22.87%
Revenue Next Year14.9%
Revenue Next 2Y14.07%
Revenue Next 3Y14.1%
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%