ADVANCED ENERGY INDUSTRIES (AEIS) Stock Fundamental Analysis
NASDAQ:AEIS - Nasdaq - US0079731008 - Common Stock - Currency: USD
Taking everything into account, AEIS scores 5 out of 10 in our fundamental rating. AEIS was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. AEIS has only an average score on both its financial health and profitability. AEIS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
AEIS had positive earnings in the past year.
In the past year AEIS had a positive cash flow from operations.
In the past 5 years AEIS has always been profitable.
In the past 5 years AEIS always reported a positive cash flow from operatings.
1.2 Ratios
AEIS's Return On Assets of 3.20% is fine compared to the rest of the industry. AEIS outperforms 65.60% of its industry peers.
AEIS has a Return On Equity of 5.99%. This is in the better half of the industry: AEIS outperforms 63.20% of its industry peers.
AEIS has a Return On Invested Capital (3.90%) which is comparable to the rest of the industry.
AEIS had an Average Return On Invested Capital over the past 3 years of 6.52%. This is below the industry average of 9.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 5.99% | ||
| ROIC | 3.9% |
ROA(3y)5.81%
ROA(5y)6.6%
ROE(3y)11.48%
ROE(5y)13.29%
ROIC(3y)6.52%
ROIC(5y)7.83%
1.3 Margins
AEIS has a Profit Margin of 4.73%. This is in the better half of the industry: AEIS outperforms 71.20% of its industry peers.
In the last couple of years the Profit Margin of AEIS has declined.
Looking at the Operating Margin, with a value of 6.27%, AEIS is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AEIS has declined.
AEIS has a better Gross Margin (36.37%) than 60.80% of its industry peers.
In the last couple of years the Gross Margin of AEIS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.27% | ||
| PM (TTM) | 4.73% | ||
| GM | 36.37% |
OM growth 3Y-25.09%
OM growth 5Y-9.73%
PM growth 3Y-26.61%
PM growth 5Y-14.97%
GM growth 3Y-0.78%
GM growth 5Y-2.24%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AEIS is destroying value.
Compared to 1 year ago, AEIS has more shares outstanding
AEIS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AEIS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.48 indicates that AEIS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.48, AEIS is doing good in the industry, outperforming 73.60% of the companies in the same industry.
AEIS has a debt to FCF ratio of 5.75. This is a neutral value as AEIS would need 5.75 years to pay back of all of its debts.
AEIS's Debt to FCF ratio of 5.75 is in line compared to the rest of the industry. AEIS outperforms 56.00% of its industry peers.
AEIS has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.46, AEIS is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 5.75 | ||
| Altman-Z | 4.48 |
ROIC/WACC0.44
WACC8.9%
2.3 Liquidity
AEIS has a Current Ratio of 4.43. This indicates that AEIS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.43, AEIS is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A Quick Ratio of 3.28 indicates that AEIS has no problem at all paying its short term obligations.
With a decent Quick ratio value of 3.28, AEIS is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.43 | ||
| Quick Ratio | 3.28 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.56% over the past year.
Measured over the past years, AEIS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.74% on average per year.
AEIS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.06%.
Measured over the past years, AEIS shows a quite strong growth in Revenue. The Revenue has been growing by 13.44% on average per year.
EPS 1Y (TTM)3.56%
EPS 3Y-8.16%
EPS 5Y8.74%
EPS Q2Q%112.07%
Revenue 1Y (TTM)0.06%
Revenue growth 3Y0.59%
Revenue growth 5Y13.44%
Sales Q2Q%23.55%
3.2 Future
Based on estimates for the next years, AEIS will show a very strong growth in Earnings Per Share. The EPS will grow by 25.73% on average per year.
The Revenue is expected to grow by 10.59% on average over the next years. This is quite good.
EPS Next Y44.32%
EPS Next 2Y31.87%
EPS Next 3Y25.73%
EPS Next 5YN/A
Revenue Next Year14.97%
Revenue Next 2Y11.28%
Revenue Next 3Y10.59%
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
The Price/Earnings ratio is 26.59, which means the current valuation is very expensive for AEIS.
AEIS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.91, AEIS is valued at the same level.
AEIS is valuated rather expensively with a Price/Forward Earnings ratio of 17.97.
Based on the Price/Forward Earnings ratio, AEIS is valued a bit cheaper than 66.40% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.85, AEIS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.59 | ||
| Fwd PE | 17.97 |
4.2 Price Multiples
AEIS's Enterprise Value to EBITDA is on the same level as the industry average.
AEIS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.69 | ||
| EV/EBITDA | 25.61 |
4.3 Compensation for Growth
AEIS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as AEIS's earnings are expected to grow with 25.73% in the coming years.
PEG (NY)0.6
PEG (5Y)3.04
EPS Next 2Y31.87%
EPS Next 3Y25.73%
5. Dividend
5.1 Amount
With a yearly dividend of 0.34%, AEIS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.07, AEIS pays a better dividend. On top of this AEIS pays more dividend than 81.60% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, AEIS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
5.2 History
AEIS has been paying a dividend for over 5 years, so it has already some track record.
AEIS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
AEIS pays out 20.84% of its income as dividend. This is a sustainable payout ratio.
DP20.84%
EPS Next 2Y31.87%
EPS Next 3Y25.73%
115.94
-0.06 (-0.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners110.14%
Inst Owner Change-1.29%
Ins Owners0.79%
Ins Owner Change2.59%
Market Cap4.39B
Analysts81.11
Price Target126.58 (9.18%)
Short Float %6.69%
Short Ratio6.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
Yearly Dividend0.41
Dividend Growth(5Y)N/A
DP20.84%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.08%
Min EPS beat(2)13.82%
Max EPS beat(2)16.34%
EPS beat(4)4
Avg EPS beat(4)13.09%
Min EPS beat(4)5.3%
Max EPS beat(4)16.9%
EPS beat(8)7
Avg EPS beat(8)6.97%
EPS beat(12)11
Avg EPS beat(12)12.12%
EPS beat(16)14
Avg EPS beat(16)13.57%
Revenue beat(2)2
Avg Revenue beat(2)2.29%
Min Revenue beat(2)1.18%
Max Revenue beat(2)3.39%
Revenue beat(4)3
Avg Revenue beat(4)1.32%
Min Revenue beat(4)-1.51%
Max Revenue beat(4)3.39%
Revenue beat(8)3
Avg Revenue beat(8)-1.34%
Revenue beat(12)7
Avg Revenue beat(12)1.18%
Revenue beat(16)9
Avg Revenue beat(16)1.77%
PT rev (1m)-3.42%
PT rev (3m)-3.12%
EPS NQ rev (1m)17.48%
EPS NQ rev (3m)17.15%
EPS NY rev (1m)9.22%
EPS NY rev (3m)7.86%
Revenue NQ rev (1m)5.88%
Revenue NQ rev (3m)5.77%
Revenue NY rev (1m)3.57%
Revenue NY rev (3m)2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.59 | ||
| Fwd PE | 17.97 | ||
| P/S | 2.82 | ||
| P/FCF | 44.69 | ||
| P/OCF | 28.83 | ||
| P/B | 3.57 | ||
| P/tB | 5.5 | ||
| EV/EBITDA | 25.61 |
EPS(TTM)4.36
EY3.76%
EPS(NY)6.45
Fwd EY5.56%
FCF(TTM)2.59
FCFY2.24%
OCF(TTM)4.02
OCFY3.47%
SpS41.15
BVpS32.47
TBVpS21.09
PEG (NY)0.6
PEG (5Y)3.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 5.99% | ||
| ROCE | 4.93% | ||
| ROIC | 3.9% | ||
| ROICexc | 6.13% | ||
| ROICexgc | 9.32% | ||
| OM | 6.27% | ||
| PM (TTM) | 4.73% | ||
| GM | 36.37% | ||
| FCFM | 6.3% |
ROA(3y)5.81%
ROA(5y)6.6%
ROE(3y)11.48%
ROE(5y)13.29%
ROIC(3y)6.52%
ROIC(5y)7.83%
ROICexc(3y)10.13%
ROICexc(5y)12.26%
ROICexgc(3y)16.74%
ROICexgc(5y)20.82%
ROCE(3y)8.26%
ROCE(5y)9.92%
ROICexcg growth 3Y-34.09%
ROICexcg growth 5Y-7.46%
ROICexc growth 3Y-32.01%
ROICexc growth 5Y-4.53%
OM growth 3Y-25.09%
OM growth 5Y-9.73%
PM growth 3Y-26.61%
PM growth 5Y-14.97%
GM growth 3Y-0.78%
GM growth 5Y-2.24%
F-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 5.75 | ||
| Debt/EBITDA | 3.42 | ||
| Cap/Depr | 79.97% | ||
| Cap/Sales | 3.47% | ||
| Interest Coverage | 6.76 | ||
| Cash Conversion | 92.12% | ||
| Profit Quality | 133.39% | ||
| Current Ratio | 4.43 | ||
| Quick Ratio | 3.28 | ||
| Altman-Z | 4.48 |
F-Score6
WACC8.9%
ROIC/WACC0.44
Cap/Depr(3y)90.77%
Cap/Depr(5y)81.79%
Cap/Sales(3y)3.57%
Cap/Sales(5y)3.09%
Profit Quality(3y)104.73%
Profit Quality(5y)103.39%
High Growth Momentum
Growth
EPS 1Y (TTM)3.56%
EPS 3Y-8.16%
EPS 5Y8.74%
EPS Q2Q%112.07%
EPS Next Y44.32%
EPS Next 2Y31.87%
EPS Next 3Y25.73%
EPS Next 5YN/A
Revenue 1Y (TTM)0.06%
Revenue growth 3Y0.59%
Revenue growth 5Y13.44%
Sales Q2Q%23.55%
Revenue Next Year14.97%
Revenue Next 2Y11.28%
Revenue Next 3Y10.59%
Revenue Next 5YN/A
EBIT growth 1Y-2.7%
EBIT growth 3Y-24.65%
EBIT growth 5Y2.41%
EBIT Next Year92.61%
EBIT Next 3Y39.8%
EBIT Next 5YN/A
FCF growth 1Y-30.55%
FCF growth 3Y-11.96%
FCF growth 5Y26.09%
OCF growth 1Y-25.16%
OCF growth 3Y-2.31%
OCF growth 5Y21.99%