AAON, Inc.
AAON, Inc. Fundamental Analysis
AAON, Inc. (AAON) shows weak financial fundamentals with a PE ratio of 64.22, profit margin of 7.46%, and ROE of 12.63%. The company generates $1.4B in annual revenue with weak year-over-year growth of 2.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AAON's fundamental strength across five key dimensions:
Efficiency Score
WeakAAON struggles to generate sufficient returns from assets.
Valuation Score
WeakAAON trades at a premium to fair value.
Growth Score
WeakAAON faces weak or negative growth trends.
Financial Health Score
ExcellentAAON maintains a strong and stable balance sheet.
Profitability Score
WeakAAON struggles to sustain strong margins.
Key Financial Metrics
Is AAON Expensive or Cheap?
P/E Ratio
AAON trades at 64.22 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AAON's PEG of 8.78 indicates potential overvaluation.
Price to Book
The market values AAON, Inc. at 7.72 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 28.73 times EBITDA. This signals the market has high growth expectations.
How Well Does AAON Make Money?
Net Profit Margin
For every $100 in sales, AAON, Inc. keeps $7.46 as profit after all expenses.
Operating Margin
Core operations generate 10.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.63 in profit for every $100 of shareholder equity.
ROA
AAON, Inc. generates $6.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AAON, Inc. generates limited operating cash flow of $534.69K, signaling weaker underlying cash strength.
Free Cash Flow
AAON, Inc. generates weak or negative free cash flow of $-190.27M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.33 in free cash annually.
FCF Yield
AAON converts -2.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
64.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
8.78
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.48
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How AAON Stacks Against Its Sector Peers
| Metric | AAON Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 64.22 | 25.84 | Worse (Expensive) |
| ROE | 12.63% | 1279.00% | Weak |
| Net Margin | 7.46% | -43714.00% (disorted) | Weak |
| Debt/Equity | 0.48 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 2.63 | 10.62 | Strong Liquidity |
| ROA | 6.38% | -1537441.00% (disorted) | Weak |
AAON outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AAON, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
145.29%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
200.91%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
88.52%
Industry Style: Cyclical, Value, Infrastructure
High Growth